Marketers must have a five-year forecast to ensure effective brand-building efforts

New Ideas in MarketingEssential news for marketers, summarised by YouGov
April 14, 2020, 1:58 PM UTC

Brands should balance the brand-building budget between long-term brand building vs short-term activation.

This article quotes Paul Dyson, founder, accelero, who notes that brands must forecast and prepare a five-year view for the benefit of the marketing teams in terms of strategy. Dyson suggests moving away from an activation-only, long-term strategy.

Brands must consider a model that accounts for short-term effects of advertising and long-term too, in addition to the effect of a non-media base, like distribution and NPD. This could give brands a peek into spends depending on activation against brand-building to achieve future targets.

As per Dyson’s simulations, “front-weighting brand spend with on average 51% of brand building budget across years one and two, and the remainder spread over the following three years” is recommended. This is something marketers could evaluate heading into a possible recession.

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