40% of respondents anticipate an increase in brand investments through the year.
WARC’s report highlights that marketers are revaluating their spending plans for 2020, while focusing on brand-building with long-term impact instead of performance marketing with short-term payoffs. The report found “short-termism” to be the primary issue, with 70% of respondents agreeing that brands have “over-invested in performance marketing”.
CMOs acknowledge their deviation from the “rule of thumb of 60/40 investment split between brand and sales activation”. Digital-first brands are moving towards brand-building to scale their businesses, while realising that they must adhere to the same rules of sustainable long-term growth as traditional businesses.
Brands are viewing search and online display as key for brand-building, whereas focus on TV and OOH is diminishing. The article concludes by saying that “test-and-learn” is crucial for companies who want to reinvest in brand.
[3 minute read]