Wondering how much you should allocate toward brand building in your marketing budget? We’ve looked at the numbers and want to share the findings with you! Get ready to increase your budgets.
Renewed Focus on Brand Building
New research shows CMOs are increasing their brand-building spending.
In their biennial CMO survey, Duke University’s Fuqua School of Business released their new research which suggests a growing trend by CMOs to focus on building up their brands.
In the report, CMO respondents to their survey report that they expect their brand building spending to increase by 9.7%. This is up from 6.3% in August 2016.
This jump is a dramatic departure from the steady brand building budgets from 2014-2016, which hovered around 5% increases.
In a recent report from OnBrand Magazine, they also found that CMOs and Global Marketers believe brand building is an important part of their marketing program.
Among their brand building strategies, brand vision and mission, story and value proposition, and brand guidelines are the most popular brand building strategies.
B2B Services will feel this growth most
This growth in brand building will be most apparent with B2B service companies, as they will be among the leaders of the brand-building spending increases.
This is on trend with other research conducted by Spencer Brenneman LLC. They also found that 82% of their B2B participants also indicated that they planned to increase their branding strategy budgets.
Behind B2B service companies, B2C service companies will also see a growth in brand building spending.
This strategy is not without merit… Businesses that report increasing their brand building spending continually report above-average rates of improvements in inbound and outbound marketing impact and sales pipeline, among other marketing goals.
CMOs who are committed to building brand awareness also found that brand value also increased. CMOs reported a 3.8% increase in brand value over the last year, which is up from 3.3% in 2015.
“Determine who you are and what your brand is, and what you’re not. The rest of it is just a lot of noise.” – Geoffrey Zakarian
Brand Building and Social Media
One of the biggest reasons CMOs are increasing their brand building budgets is because of increased social media use by companies and their consumers.
This is due to the fact that social media is where most companies can build brand awareness among consumers. In fact, brand building and brand awareness is the most common use of social media by businesses.
As a result, CMOs are looking to meet their consumer with messaging that communicates who they are and why consumers should care. To do this, budgets for social media marketing must be increased.
Are you increasing your digital branding budgets to add more brand building?