go-Digital Blog on Digital Marketing

Branding is still a useful activity? Reach and frequency is still a useful metric?

Source: http://community.microsoftadvertising.com/blogs/analytics/archive/2009/07/06/getting-back-to-basics-why-web-advertising-needs-traditional-media-metrics.aspx

Getting Back to Basics – Why Web Advertising Needs Traditional Media Metrics

posted Mon, Jul 06 2009

by Young Bean Song MSFT

Trying to build a brand marketing campaign without traditional target reach and Gross Rating Points (GRP) estimates is like trying to diet without the concept of calories. The analogy of dieting and advertising works on many levels.

continue reading Young Bean Song…

My response…

RE: “Patty Wakeling, an industry veteran who leads Unilever’s Global Media Insights Group, recently reminded me that in today’s retail environment, the choice between the branded versus the generic option are separated by less than an inch on the shelf. It was a sobering reminder of the power of branding, and why so many companies are willing to spend so much to build their brand equity.” But in the case of Whole Foods’ own store brand, 365, many people perceive it to be better than branded options (or at least equivalent). So they tend to choose to buy the 365 product instead. In other cases, what used to be brand equity/value is now perceived as an undesirable premium. Take another example — the rise and popularity of Trader Joe’s where 80% of the products sold are house brands. Consumers care about the product and its quality and value; consumers no longer care (as much) about the brand that is slapped on the package if the contents inside suck.

A brand used to be a mark or symbol burned onto a cow’s butt to signify what ranch it came from. And if people knew the ranch had a good reputation for raising healthy cows, they would buy the cow. The brand helped simplify the purchase decision. These days, advertisers carefully manicure “brand messages” and shout them at target consumers using various one-way channels such as TV, print, radio, and banner ads. But like Scott Cook, Intuit, said, “A brand is no longer wht we tell the consumer its – its what the consumers tell each other it is.” So branding as we know it (advertisers shouting claims at target customers) is less relevant or even unwanted entirely by modern consumers. And brand equity, which used to be a large, fungible item on the balance sheet (technically known as “good will”) may be far less valuable today. Consumers don’t just take the advertisers’ word for it; they will do their own research and buy what is actually valuable and useful.

Companies that actually develop useful and valueable products or services that consistently deliver on their promise — Apple, Drobo, Zappos, JetBlue, etc. — can even cut out their brand advertsing entirely because their brand IS their consistent delivery on the promise of value and usefulness. For example, has Apple EVER claimed they have awesome design and are easy to use? NEVER! But their products consistently deliver on those 2 attributes. So that’s how modern users would describe Apple’s brand to their friends.

A “brand” is earned over time. “Branding” is no longer a useful activity (and furthermore it is damned expensive — media costs — and ineffective — because it is the advertiser making claims that modern consumers don’t believe, assuming they saw the ad in the first place).

From AdAge — people buying private label, generics, or store brands (quality of which are pretty comparable to name brands)

Private Labels winning the battle of the brands
http://adage.com/article?article_id=134791

What do you think?

Tags: advertising, advertising works, analogy, analytics, Apple EVER, Basics, Bean, blogs, brand, brand equity, brand marketing, brand messages, calories, Campaign, case, choice, concept, cow, diet, dieting, environment, equity, equity value, estimates, example, Foods, Global, global media, Gross, gross rating points, Group, GRP, house brands, inch, industry, industry veteran, Joe, Jul, marketing, marketing campaign, Media, media metrics, metrics, Mon, MSFT, option, Patty Wakeling, power, private labels, Product, promise, purchase decision, quality, ranch, Rating, reach, reading, reminder, response, retail environment, Scott Cook, shelf, Song, Source, store, target, target consumers, today, trader joe, Traditional, traditional target, Unilever, value, value consumers, veteran, Web, web advertising, whole foods, Young