Campaign India Team
Nov 05, 2024

Marketers bet big on brand-building, not just quick wins

According to a study by CNN International Commercial and MTM, 78% of marketers listed improving brand awareness and reputation as their top goal.

While the temptation to focus on short-term tactics remains, marketers are shifting towards brand-building as a pillar of success. Image source: Freepik
While the temptation to focus on short-term tactics remains, marketers are shifting towards brand-building as a pillar of success. Image source: Freepik

In an age dominated by rapid technological change and fleeting consumer attention spans, brands are focusing on long-term growth strategies to ensure relevance and loyalty. A recent study, conducted by CNN International Commercial (CNNIC) and insights consultancy MTM, highlights this trend, showing that nine out of ten senior marketing leaders worldwide are prioritising brand-building strategies over short-term gains.

The study, presented in the white paper ‘Brand power: Strategies for instant impact and future growth’, examines the perspectives of 1,090 senior marketers across 12 markets, uncovering the critical factors behind successful, enduring brand relationships.

The research engaged marketing leaders in roles such as chief marketing officers, heads of marketing, and media directors across a mix of advertising companies and media agencies. Key markets surveyed included the US, UK, France, Germany, the UAE, South Africa, Australia, Japan, India, Singapore, South Korea, and Hong Kong. Despite the pressure to deliver immediate results, these marketers are focusing on brand-building, storytelling, and establishing meaningful connections with consumers to create sustained impact.

According to the report, 78% of respondents listed “improving brand awareness and reputation” as their top goal. Despite economic pressures and the temptation to pursue short-term tactics, brand-building remains a priority for companies of all sizes.

The study also sheds light on the top barriers to long-term brand investment, with marketers citing competitive pressures to focus on quick wins, concerns about the economic climate, and difficulties in measuring the impact of brand campaigns. These challenges, alongside a push for immediate sales generation, are obstacles that many marketing leaders are actively working to navigate.

CNNIC and MTM’s findings reveal a prevailing shift towards more enduring, ‘always-on’ advertising strategies. Around 65% of marketers reported using these continuous campaigns to reinforce brand presence and build brand equity over time.

Jo Tenzer, director of audience insight at CNNIC, explained, “Marketers often hold one of the most innovative and challenging roles in business today, and this study navigates some of the complexities of the industry. The findings reveal that brand-building is recognised as an essential long-term goal for companies worldwide, with leaders increasingly aware of the need to embrace continuous, purpose-driven storytelling that genuinely engages consumers.”

One notable insight from the study is the value that marketers place on storytelling, with one in two brand campaigns planned for the next year set to focus on brand purpose or narrative. Effective storytelling remains at the heart of these long-term strategies, as brands strive to communicate their values and create memorable, emotional connections. This approach goes beyond brand recall to cultivate a brand identity that consumers can relate to on a personal level, fostering loyalty and deeper engagement.

 

As the study highlights, authenticity is key to successful brand storytelling. Marketers are increasingly mindful of crafting narratives that genuinely align with their brand's essence, inviting audiences to connect with their purpose on an emotional level.

This is more than just a marketing tactic; it’s a way to cultivate trust and long-term loyalty. In fact, 81% of respondents indicated that purpose-driven campaigns, including themes like Environmental, Social, and Governance (ESG), are central to their upcoming marketing efforts, showing a strong alignment with global consumer demands for corporate responsibility.

The importance of community-building initiatives and sustainability efforts is growing, particularly among brands seeking to forge long-term connections with their audiences. In response, marketers are integrating ESG themes into their messaging, signalling a shift towards campaigns that resonate with consumer values. This aligns with recent trends showing that consumers, especially younger demographics, are more likely to support brands that demonstrate a commitment to environmental and social issues.

CNNIC’s research also underscores the ongoing role of news platforms in brand-building efforts. A significant 91% of marketers agree that partnering with trusted news providers is crucial for building brand credibility.

Furthermore, 83% believe that advertising during major world events or breaking news enhances, rather than detracts from, a brand’s image. In an era where brand reputation is intricately linked to trust and transparency, news platforms offer an ideal vehicle for brands to communicate their values and build public confidence.

Tenzer noted, “It’s also clear that international news providers continue to play a crucial role in building trust and credibility for brands in today’s information-saturated landscape.” This reliance on news platforms as a medium for brand-building reflects a broader trend of companies seeking to align themselves with reputable outlets to bolster their message’s credibility and impact.

The study's insights are echoed in the top marketing objectives reported by participants. Beyond brand awareness, marketers are also focusing on customer acquisition (57%), revenue growth (57%), market expansion (53%), and loyalty-building (48%). These goals highlight the multifaceted approach marketers are taking to grow their brand's footprint while ensuring a steady revenue stream and a dedicated customer base. Although the allure of quick returns remains, the emphasis on loyalty and awareness underscores a deeper commitment to building brand equity over time.

 

Interestingly, budget size was not a significant factor in determining brand investment. Whether managing large or modest budgets, marketers were equally committed to prioritising brand-building.

This signals a shift in mindset, where long-term investment in brand reputation is increasingly seen as an essential part of marketing strategy, regardless of financial constraints. For smaller companies, this commitment often translates to creative, resourceful approaches to maintain brand presence and foster loyalty without breaking the bank.

The CNNIC and MTM white paper provides an insightful overview of the current marketing landscape, underscoring a growing commitment to brand-building, even amid pressures to prioritise immediate results. The ‘always-on’ strategy, supported by purpose-driven storytelling and long-term advertising, has become a primary approach for marketers looking to secure lasting success.

As brands continue to navigate an increasingly complex and competitive marketplace, this research offers a valuable roadmap for achieving sustained growth and relevance. For companies across sectors and regions, the findings reaffirm the importance of storytelling, community-building, and authenticity in creating a brand that resonates with today’s discerning consumers.

While the temptation to focus on short-term tactics remains, marketers are shifting towards brand-building as a pillar of success, recognising that the power of a brand lies not just in its visibility but in its values, trustworthiness, and the connections it builds over time.

Source:
Campaign India

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