Ask yourself this question.

If your brand was a person, what type of person would it be? How would it act, what it would look like? More importantly would its value be solely determined by how many people knew of it?

These questions are at the heart of branding and the value of branding.

Branding is normally defined as “activities that increase a potential customers ability to identify (recognize or recall) the brand, within the category, in sufficient detail to make a purchase” (Advertising & Promotion Management, 2007).

This standard definition would dictate that large established brands such as British Airways or Mercedes Benz, with high degrees of awareness and recognition, have little need for branding online.

The reality is that branding is not solely about awareness but association. Like a person, a brand is not defined solely by its level of recognition but defined by key attributes such as its tone of voice and character. In an environment where social networking and word of mouth are becoming increasingly influential, shaping and influencing the way brands are associated has never been so important.

The role of branding is then to associate the brand to specific emotional and cognitive attributes, leading to an increase in sentiment, interaction and purchase consideration.

Let’s put this theory to the test with one of our clients. As part of its sponsorship of the Formula One McLaren team, Hilton in partnership with Mercedes Benz, another key sponsor of the McLaren team, developed an ad featuring Lewis Hamilton and Fernando Alonso. The aim of the ad was not to create awareness of Mercedes Benz or Hilton. The purpose was to associate both brands with the attributes of Formula 1, exploiting through humor the widely publicized rivalry between both drivers. Through humor and association the ad aimed to communicate the desirability and quality of the Hilton and Mercedes product and brand. While largely a product placement for Hilton, this ad succeeds at some level as it delivers a degree of association for the brand. While the ad might not generate immediate car sales for Mercedes or room bookings for Hilton, in the long term it helps shape the way the brand is perceived, considered and associated.

As the founder of Revlon, Charles Revson, famously stated, “In the factory, we make cosmetics. In the drugstore we sell hope”.

Earlier this decade me and the other two founding partners of Web Liquid had the responsibility of developing British Airways online media strategy and capabilities. The airline aimed to become a pioneer in the online space; recognizing the commercial benefits provided by the online channel from a distribution, cost of sale and brand positioning perspective. In August 2000 the airline announced it was to change the structure of commissions paid to travel agents. Prior to that decision, British Airways gave travel agents 7% of the ticket price as commission, an expenditure of nearly £300m a year. It was a bold move considering travel agents accounted for 85% of sales, with online contributing a mere 1% of total sales. For the next three years the airline embarked in an aggressive online marketing program, aimed at driving channel shift and growing the usage of its new flagship site ba.com. At the heart of its online communications and acquisition strategy was the concept of innovation. British Airways recognized that the online channel was not purely a distribution or sales channel but a channel in which its brand would live permanently. While the airline could have focused their online marketing investment on tactical direct response programs, it invested heavily in branding online. We didn’t assume its brand heritage or high level of brand awareness would organically transfer online.

The case for online branding can sometimes be challenging in a commercial environment focused on maximizing profit and immediate return on investment from advertising investments. While the value of branding is recognized, it is usually ignored. Lets examine some of the questions raised when considering branding online.

1. My brand already has very high levels of awareness and consideration. Why should I investment in branding online? Unfortunately awareness and consideration are not perpetual, they fluctuate and become susceptible to change 1) relative to the larger environment in which the brand operates in and 2) the customer experience with the brand. Furthermore, while consumers do not view brands different online or offline, the transparency of prices and content online can challenge the baseline perception and awareness of the brand.
2. Measuring branding online is challenging. How can I demonstrate return from my investment? Measuring the qualitative impact of brand advertising can be achieved by leveraging proven traditional methodologies. To isolate the impact of online advertising an exposed/control methodology is used to measure increases in key metrics such as 1) purchase intent, 2) brand favorability, 3) message association and 4) brand awareness. Furthermore, leading research providers such as Dynamic Logic provide the opportunity to benchmark these metrics against specific industry category segment. The value of branding online can also be measured by leveraging the Net Promoter Score a metric that has become a leading indicator of our consumer generated insight programs. The Net Promoter Score (% Promoters – % of Detractors) is a metric that quantifies the likelihood a user would recommend or support a brand. Unlike the traditional model of exposed vs. controlled, the value of a consumer is not based on their stated perceptions but on his or her actions. While the Net Promoter Score can be used to measure the impact of online marketing, it should complement a larger consumer generated insight effort aimed at understanding the key brand drivers online.
3. Branding online is expensive. How can I combine branding with my sales and distribution efforts to ensure some degree of immediate return? Online branding does not have to be expensive to be effective. Unlike traditional media, the effectiveness of online branding efforts is not purely based on overall reach and coverage. Online branding can be achieved through narrowcasting of the message to specific audiences and prospect segments
4. Consumers are increasingly using online to research and transact. Are they going to take notice of non price /offer-lead messages? Research published by the Online Publishers Association indicates people are shifting their behavior and now spend nearly half their online time visiting content, a 37% increase in share of time from four years ago, compared to a 35% gain for search, a more transaction oriented channel. However, the total time spent with search remains low, accounting for just 5% of Internet users online time in 2007. While consumers are indeed transacting online, they now consume large amounts of content, which becomes an important part of their overall brand and purchase consideration process.

The nature of online branding is an evolution of traditional branding, relying more on brand personification, as people’s online behavior and brand interactions become more frequent, less transaction oriented and more personal. So, now ask yourself this question.

What is the personality of your brand online?

About Alain Portmann

My job is simple. To inspire staff, clients and consumers.

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