Why CEOs and CMOs Are Betting Big on Brand Advertising Once Again (And How to Win Over Your Boardroom)
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We’ve explored how digital advertising budgets often end up in the hands of Big Tech, driving up costs and limiting control for consumer brands. As digital channels become increasingly saturated, many leaders are rediscovering the strategic value and sustained growth driven by brand advertising.
Why Brand Advertising is Back on the Radar
Commenting on a recent study titled “The Effectiveness Equation” by Google”, Principal Analytical Consultant at Google Steven Rampersad, said the following about brand advertising:
"Knowledge is Power, Data is Knowledge and the Data is clear: brand building pays off, both in the short and long term. Yet, many marketers are still under-investing. Our latest research reveals a critical insight: marketing returns in months 5-24 are just as valuable as those in the first four months. The 'carryover effect' is real, but often overlooked. A mere 1% increase in brand awareness typically leads to a 0.6% boost in long-term sales and a 0.4% lift in short-term sales."
Brand advertising builds enduring equity and deep customer loyalty, going far beyond short-lived sales spikes. It acts as a shield during market volatility, preserving premium pricing and securing long-term profitability. Findings of our latest State of Media Capital 2025 report, analyzing 278 brands founded in the last 10 years, reveals that startups using media capital to scale on TV achieve mass-market penetration five years earlier than brands following traditional growth models. The verdict from research is clear: brands that invest consistently in brand-building significantly outperform rivals chasing quick wins.
Strong brands also wield unmatched pricing power, giving them the muscle to raise prices confidently, even in tough economic climates. Adding to that, brands with enhanced pricing power grow at double the rate of their weaker competitors, according to Kantar’s BrandZ analysis, which had looked at thousands of brand cases.
“It’s been a few decades since pricing was given to finance, so marketing considers ‘growing profit margins through pricing’ to be quite low in their list of job responsibilities. Have you got [pricing power]? If your price changes, and you can keep the demand for your product (almost) intact, then yes, you do. If your demand drops less than your competitors’, you have a higher pricing power than they do.”
And that’s when you enjoy the benefits - consumers are willing to pay up to double for your brand vs. an alternative, you’ve earned a 4% advantage on your brand value change last year only, and your improved pricing power fuelled your growth at twice the rate of those brands that lost pricing power. In other words, brand equity growth and pricing power go hand-in-hand.
TV Powers Brand Equity
Digital marketing is essential, yet TV advertising remains unmatched in building enduring brand equity. TV advertising’s extensive reach and emotional impact consistently drive robust long-term profitability. And again, the research supports that: Based on 598 brands in the MFG Deal Hub, 43 have gone public, and 135 have been acquired. On average, companies that IPOed reached this status 12 months faster than general B2C companies.
Peter Field’s analysis of ten years of Institute of Practitioners in Advertising (IPA) data found TV remains a constant in the most effective advertising campaigns, with 80-85% of winning cases using TV. He says:
“Any marketer who considers walking away from TV advertising would be crazy to do so.”
- Cutting brand spend can be very costly long-term - especially during downturns. Google’s analysis, which we mentioned earlier, puts it very clearly:
“When one major footwear brand reduced its marketing spend by 40% during a period of economic uncertainty, their primary competitor maintained consistent investment levels and launched an aggressive growth campaign. Within six months, the competitor had increased brand awareness by 15% and consideration by 11%. This example illustrates a fundamental truth about marketing dynamics: absence creates a vacuum that competitors will rush to fill, and once they’ve occupied that space in consumers’ minds, dislodging them requires disproportionate effort and investment.”
How to Make the Case for Brand Advertising in the Boardroom
To secure boardroom support, marketers must clearly articulate brand advertising’s strategic benefits. Here are three key metrics:
- Pricing Power: Showcase how strong brands achieve significantly higher prices and maintain profitability even under economic stress. For instance, research shows powerful brands often command prices nearly double those of weaker competitors.
- Long-term Profitability: Highlight how sustained brand advertising delivers consistent returns that compound over time. Around 58% of advertising-generated profits manifest after the first three months, emphasizing advertising’s enduring impact.
- Market Resilience: Illustrate the role of consistent brand investment in maintaining customer loyalty and safeguarding market share during downturns.
Present clear, compelling metrics such as pricing elasticity, full-price sales proportions, and competitive market positioning. These concrete indicators convincingly demonstrate to leadership that brand advertising provides strategic financial returns. So how can consumer brands accelerate growth using the power of brand advertising while optimizing marketing costs?
This article is part of a series uncovering the funding and business challenges faced by consumer brands and how brand advertising can play a strategic role in accelerating growth. If you missed out on the other posts, take a look here:
