Nielsen recently released a report extolling advertisers to ensure their marketing mix was balanced and designed to “create and maintain long-term equity.” As companies respond to the pressure to generate growth and drive ROI in a post-pandemic marketplace, Nielsen cautioned that “growth must be addressed with balanced marketing strategies that re-elevate upper-funnel, brand building efforts to work in tandem with the mid- and lower-funnel efforts.”
And the report notes that this isn’t just about spend … messaging also plays a critical role. Nielsen looked at the impact of marketing by message strategy for two brands in different categories and then measured the impact both short-term and long-term. Their findings concluded:
• Lower-funnel messaging has a higher short-term impact than upper-funnel messaging, but it doesn’t deliver much additional value in the long term.
• Upper-funnel messaging delivers slightly lower short-term results, but it delivers meaningful additional value in the long term.
Indeed, the Nielsen report noted “the case for increased brand building has been on the rise since academic research in 2013 from the Institute of Practitioners in Advertising (IPA) claimed that brand-building strategies are true long-term business drivers. The IPA even goes so far as to boldly assert that
the optimal balance between long- and short-term efforts is 60-40.”
Throughout the pandemic, consumers have been educated about the importance of balance: eating a balanced diet, maintaining a work/life balance as well as ensuring an emotional balance in terms of caring for others and caring for yourself. Now as we enter a post-pandemic world, it appears companies must learn the same lesson. As Nielsen noted, “brands need to understand that the channels that are great for driving sales may not be ideal for driving awareness.”
Source: Nielsen, “Take Command of Your Brand”