Our panel included presentations from Claire Tinker, ESL Insights, Victoria Sakal, Morning Consult and Brian Fuhrer, Nielsen. Panelists offered their thoughts on 1) the Impact of the Current Crisis, 2) Advertising and Brands in the Crisis and 3) What Will Stay After the Crisis. Editor’s Note: The full summary is available to member’s only.
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The ARF’s second Virtual Town Hall, How is the Coronavirus Impacting the Global Advertising Industry?, focused on the recent coronavirus outbreak and how to best plan and recover from a recession market. Huge parts of the U.S. economy have shut down. From restaurants to gyms to hotel chains, workers are being hit hard as layoffs snowball daily. The advertising industry is feeling the shock as advertising budgets dry up due to postponed launches and canceled sporting, entertainment and business events. Editor’s Note: The full summary is available to members only.
With COVID-19 threatening a worldwide recession, many brands may be considering slashing their advertising budgets. A historical analysis of studies on advertising in recessions in the Journal of Advertising Research would have brands shy away from this move. The 2009 article, still relevant today, found that advertising is important during an economic contraction, and good advertising could reap a brand many benefits that may last beyond the economic downturn.
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Deciding to make major cuts or to eliminate brand advertising can be one of marketers’ most painful choices. This ARF paper summarizes the findings from a number of studies that quantify the impact and implications of drastic budget reductions, offers a case study, and provides insights, so that marketers can be better informed as they have to consider tough calls. Editor’s Note: The full report is available to member’s only.
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Aligning your brand to a good cause seems like a smart business decision, especially considering the expectations Millennials have when engaging with brands. However, designing and implementing CSR programs is more complicated than is often perceived. Cause-related marketing efforts may have a low ROI – or have mixed marketplace reaction. So, how do companies increase the odds of CSR marketing success? And how should they value the outcome, especially if increased sales isn’t the goal?
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P&G and Unilever have made it clear that brands need to get smarter at ways they deploy available targeting data, writes Gian Fulgoni, Chairman Emeritus of comScore, Inc. The focus should be on driving both short-term performance and long-term outcomes, which “need not be mutually exclusive.”
Member Only AccessThe Marketing Accountability Standards Board (MASB) has developed a method to measure brand value and predict movements in market share. Jack Neff, writing for Advertising Age, analyzes this “Brand Choice” metric.
MASB was established seven years ago by a coalition of academics, market researchers, and marketers. It recently concluded Phase I of its Brand Investment & Validation project. MASB tested a “Brand Choice” metric based on surveys of approximately 500 people per brand. These consumers were asked to select among several competing brands in a category as if they were winners of a prize drawing.
According to David Stewart, Marketing Professor at Loyola Marymount University in Los Angeles and MASB chair, “We believe by linking this Brand Choice metric to some pretty simple metrics like market share, price premium and distribution coverage, we can actually generate estimates of future operating cash flow, which allows you to get at the value of a brand.”
He also pointed out that this is the first time the Brand Choice Metric has been studied across such a broad array of brands in consumer packaged goods and automotive.
Phase II of the project involves comparing how the MASB’s metric compares to other brand valuation and evaluation models. MASB will also study what factors reliably drive its Brand Choice metric – including marketing spending, advertising quality, and social media. Study parameters are still in development, and will likely take 18 months to test. As a result, Mr. Stewart doesn’t expect results until 2018.
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Dr. Paul Marsden, writing for Digital Intelligence Today, discusses the 2015 WPP 100 Most Valuable Global Brands Report.
According to this report, the top 100 brands are worth $3.3 trillion. WPP calculates brand value by combining financial value with brand contribution.
The article emphasizes that “a brand is more than a logo, it is a set of associations that can influence propensity to choose and frequency of choice.” Among the characteristics which drive brand value are salience, difference, and meaningfulness.
The top most valuable global brands on this list include:
The article also provides a link to the full WPP report.
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For more on this topic, check out the Tech Tab in Morning Coffee.