Study suggests most Australian businesses are not recognising the value of brand.
A new Deloitte study of 300 marketing professionals found that most believe that digital and social media are the best channels for building a brand.
This is despite strong evidence that shows brands that create strong emotional connections with their customers are worth significantly more and are more profitable that those that don’t. In 2017, Millward Brown’s research showed that top 100 most valuable brands in US had net profits rates 42.9% higher than overall S&P 500.
Deloitte also point out that having a stronger brand is not just about revenue. It also brings broader benefits such as better product differentiation, customer loyalty, staff attraction and premium pricing.
Despite this, the study finds only 17% of Australian marketers see brand as their most important objective.
Marketers say they are in a constant battle for consumer attention and 1 in 4 believe that their brand has stagnated or declined in the past 12 months.
Key findings in the report
- 58% of marketers see the inability to measure across channels as a barrier to making more effective campaigns.
- Four in five marketing professionals believe new technologies will drive change in their marketing strategy in the next five years.
- Businesses spending on social media or digital channels were 1.34 times more likely to report that their brand performance had improved in the last year.
- Digital marketing and social media marketing are the only two mediums that marketers expect to spend a higher proportion of their budget on over the next two years
- Almost two in five marketing managers think that social media is the most effective medium for building customer engagement.
Deloitte’s report ‘Building brands in the digital age’ was commissioned by Facebook. You can download a full copy of the report here.
Michael is Managing Partner and Strategy Director at Truly Deeply, a brand agency with 25 years’ experience working with brands to position them for growth. His deep expertise is in unlocking the strategic power of your brand to create a differentiated, compelling and authentic brand proposition that will engage all your audiences. Michael has extensive experience working across Australia and the Middle East working with leading Australian and International organisations across just about every sector.