Research from IPA databank shows some interesting findings and Peter Field/Les Binets will publish a new report about this shortly focusing on long term branding vs short term activation.
One of their worries is that Big Data can have a negative impact on business results due to brands focusing and allocating more of their marketing budget to short term activation.
“Big data in marketing, whether it admits it or not, is inevitably heavily focussed on short-term metrics - one of its boasts is about the speed of decision making. This is very dangerous for brands, unless balanced with long-term metrics linked to long-term performance measured over years” - Peter Fields.
The studies show that Long term branding in the form of advertising designed to evoke only an emotional response is twice as likely to produce large profit effects over a three year time frame as any other form of advertising.
A budget split in the area of 40% Short term activation and 60% Long term activation seems to be the optimal spilt for best effect and growth.
The study also shows that Short term activation effects get an uplift when a brand starts doing both. But stays stabile in effect over the years while Long term branding initiative effect grows over the years.
>>> Here´s my comment:
1. Short term activation (or sales conversion activities which I bluntly call them - as I see activation as a term being about activating the market so that the brand will become part of the stories between people) must ecco the story/stories of the brand.
2. Long term branding must continuously create positive memories - as well as the big story occasionally shown on TV as a TV spot. Same with Short term activation.
3. Big Data and Real Time Marketing - in addition and as a vital, perhaps central, part of the brands storytelling - will be the driver for growth but must be measured and focused with affecting BOTH long term and short term KPI´s in mind.
A brand is a living entity and is enriched cumulatively over time. The product of many big and small gestures. This understanding as a fundament for marketing decisions is crucial for growth. So we need to move out, once and for all, from the traditional short vs long term focus activities and start working 24/7/365 to be perceived as relevant and gaining ESOV - which ensures growth in market share.