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.
[2 minute read]