Brand + Commerce = ❤️
Brand + Commerce = ❤️. In the world of brand and ecommerce, the key to success is to strike a balance between performance and brand building. An approach that’s purely performance- focused leads to short-term gains, but ultimately results in a decline in brand resonance. A strategy that prioritizes brand-building and discovery-first thinking will result in continuous demand creation and qualitative reach, leading to sustainable growth in both brand equity and sales. To achieve this balance, brands should invest in both performance-oriented strategies and qualitative reach campaigns that are attractive to potential new customers.
This trend originates from the report:
OGILVY - Social Media Trends 2023
With an overabundance of choices and channels, and a consumer who is harder to persuade, there’s a risk of plateauing sales within a short timeframe and marginal gains over time. A balanced approach of longer-term, upper-funnel and discovery-first thinking can take brands to the next level, as compared to simply carpet-bombing the same audience with re-targeted product ads. One of the main arguments here is around continuously creating demand and pulling up qualitative reach, as a precursor for attention.
From our experience, we notice that a performance-oriented strategy (with a bare minimum of brandplay) is more likely to lead to a short burst in sales, but will likely cause a fall-off in searches and brand resonance over time. Looking at platform research, there are significant correlations between building meaningful scale, maintaining equity and driving incremental commerce value. To avoid sluggish growth of both brand and sales objectives in the long run, it will be essential to keep growing by speaking to a pool of potential new customers through qualitative reach campaigns and enhancement strategies.