Marketers are under acute pressure to deliver instant results for boards and shareholders, but returns from performance media spend diminish if brand building is neglected, according to Mindshare Australasia CEO, Katie Rigg-Smith.
Speaking at MCN’s PartnerFronts, Rigg-Smith said some clients spent 80% of their budgets on performance media, while others spent 80% on brand building. She said blanket rules around optimal spend ratios could not be applied across brands and categories.
Technology has enabled “fabulous” direct opportunities for clients, but brands “still need to stand for something in the bigger consciousness of Australia”, said Rigg-Smith.
“Making sure your brand has some kind of heritage and some kind of brand health measures is going to help your performance as well,” she added.
While “every dollar is being scrutinised,” Rigg-Smith said Mindshare is communicating the need to invest in brands and working to give marketers sufficient “ammunition” so that boards have the confidence to spend money on brand building.
Combining brand and performance marketing will lead to stronger, more sustainable results, she suggested.
“If you ignore your brand for too long, you [might have] 18 months before that latent brand awareness or brand health measures start to erode,” said Rigg-Smith.
“There is a direct relationship between brand health and performance in most instances.”
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