Is Brand Value Defined As Long-Term Or Short-Term Performance?
AdExchanger "Data-Driven Thinking" column is written by members of the media community and contains fresh perspectives on the digital revolution in media. In this edition of "Data-Driven Thinking," Simone Chaffiotte, VP Director, Audience Strategy at Carat USA covers defining brand value and implementing a most valuable consumer strategy.
When companies arrange their marketing organizations by separating brand building and performance into distinct departments, teams often define their key audiences with different types of data.
Brand builders lean toward attitudinal data, relying on brand equity metrics and segments to target those who may eventually want to buy their product. On the other hand, performance-oriented marketers believe actual trackable behaviors are king.
At its heart, this disconnect comes down to a critical question: What defines value?
Brand builders tend to take a long-term view of value. They are willing to invest today for the future of the brand or product, be that one, five or – sometimes – 20 years down the line. They measure their success in metrics like brand equity, momentum and brand love. Even when brand marketers select a more direct outcome metric, such as consideration or purchase intent, they’re really just choosing predictions of future success, not guarantees.
Conversely, performance marketers often prioritize short-term value and measure success in sales or a predictable behavioral metric like footfall, lead generation or site engagement.
So, who is right? It’s an ongoing debate, but if we approach the question from a consumer point of view, what becomes most apparent is that we’re asking the wrong question.