Invisible ROI: The BRAND, the Myth, the Legend.

I’ve worked in marketing for 20-years and seen the transformation of data and analytics firsthand. Early in my career, the best way to gauge ROI was asking “how did you hear about us?” when a customer called. Now, thanks to better marketing channels and capabilities coupled with technology, we can track revenue generated by a specific ad-channel. Yes, you read that correctly: revenue generated.

As an example, we have tools that can help our HVAC customers see that last month their Google Performance Max campaign generated $30,000 in sold revenue – which is amazing! However, insights like these don’t always tell the whole story.

Imagine for a moment you’re in need of HVAC service, you go on Google and search for AC repair near me and you’re presented with 20 options. Maybe that customer saw a YouTube ad for your business a few days prior, and then they click on your PPC ad. PPC gets the credit, but what about YouTube? Can we track YouTube directly to revenue, no. But does it deserve some of the credit? You bet!

And the Survey Says…

Mediagistic recently did a study of 20 different HVAC companies, separating those who invest in brand advertising and those who do not, over a 10-month period. Here’s what we found:

Investing in Brand Resulted in More Conversions

Companies that included branding elements like YouTube, Google Demand Gen, or programmatic advertising averaged about 488 conversions, according to Google Analytics. Those that did not? They received about 300. That means the dealers that invested in some form of brand advertising saw a 62% boost in conversions – simply by making their brand recognizable within their serving area.

A Strong Brand = More Search Impressions

During the course of this study, our team saw brand affect search in two really dramatic ways:

• Brand Search Impressions: Dealers that invested in brand advertising had more than double the amount of people looking for them by name vs. the group that didn’t brand. Shocking, I know!
• Average total search impressions: This was (legitimately) surprising. Clients that invested in branding showed up, 11,729 on the search engine results page. Dealers that did not, 3,651 – about 30% of what dealers that branded received.

Why so much more? Dealers who invested in brand advertising increased the recognition of their brand, which drove more local consumers to search for their brand name rather than performing unbranded searches (i.e. “air conditioning repair near me”). Not only do these branded search results have lower competition (after all, the consumer is searching for your business name!), but they also allow your paid search investment to go farther, allowing you to achieve more search impressions at pennies on the dollar.

In short, investing into brand will increase your total number of brand searches and creates what is known as a “positive feedback loop” resulting in:

• Higher Click-Through Rates (CTR): Branded searches typically have higher CTRs, which positively influences ad rank and organic search positions
• Improved Quality Score: Google’s algorithm considers CTR and relevance when determining ad positions and organic rankings. Higher brand awareness often leads to better engagement metrics, improving overall quality scores
• Enhanced Ad Rank: Brand recognition can lead to better ad performance, which in turn improves ad rank and increases the likelihood of ads being shown more frequently
• Higher Impression Share: As brand recognition grows, dealers may achieve a higher impression share for their target keywords, leading to more frequent appearances in SERPs
• Increased Trust and Authority: Consistent brand presence across search results can enhance perceived trust and authority, potentially leading to higher click-through rates and more frequent ad displays

Why This Matters for Your Business

There are a number of reasons this matters for your business but here are the primary ones:

1. Reduced customer acquisition cost: Once customers are familiar with your brand and have trust, they convert more easily. Over time that reduces the investment it takes to acquire them.
2. Raises Pricing Power: People pay for trust. A lot! A strong brand keeps you for competing solely on price. Would you be willing to pay more for a Dr. Pepper than you would a Dr. Thunder?
3. Fuels organic growth: Brand awareness leads to more organic traffic, word of mouth referrals, and direct searches.
4. Increases the efficacy of performance marketing: When someone sees your ad and already knows your brand, they’re far more likely to click and convert.

Playing the Long Game

Brand affinity, advocacy, trust, and recognition don’t happen overnight; it takes time. But you don’t expect to get a six-pack after one week of going to the gym either, right? Same goes for investing in your brand. If you’re consistent, provide good service, and remain vigilant, it will prove to be important part of your marketing mix, even if the “data” doesn’t show it.

Ready to build a brand that drives performance?

Talk to a Mediagistic expert today and find out how a balanced strategy—combining brand awareness and performance marketing—can unlock long-term growth for your business. Let’s build your reputation, improve your ROI, and make sure your brand is top of mind (and top of search). Talk to an expert today!

Adam Smith is the Vice President of Channel Marketing at Mediagistic. He’s a driven marketing and management professional with 15+ years of experience and a passion for his work. His role requires expertise in every aspect of advertising, but also necessitates the ability to understand a business’ objectives and provide recommendations that drive results. Whether collaborating with an individual business or a marketing manager looking to drive results, the goal never changes – gain market share, increase brand awareness and make the phone ring! Connect with him on Linkedin.

Images via iStock