Branding as an investment in Growth
Companies and organizations worldwide spend approximately $700 billion annually on marketing, media, research, creative etc., to influence and change people’s behavior.
Until now, the effect of these spendings has been hard to measure. Thanks to digitalization, we can now analyze behavioral data to understand why people do what they do and think what they think.
My Telescope helps decisions makers understand and track those behavioral signals, helping them make more educated decisions, and turn spendings into investments.
The world’s 40 strongest brands generated almost twice the total return to shareholders (TRS) over the course of the 20-year period ending in 2019. Source McKinsey, 2020)
Until today there has been no proper way to measure the branding activities impact on bottom line and market share. The opportunity for branding and the marketing function is to start thinking line an investor.
CMOS ADOPT AN INVESTOR MINDSET
Successful investors seek to maintain a healthy amount of liquidity so that they can rebalance their portfolios nimbly as market conditions or other circumstances change. The longer an investment is expected to take to pay off, the more risk it carries. In the same vein, marketers with an investor mindset take a risk-adjusted view and penalize certain investments that will take longer to generate a return. They determine hurdle rates based on the expected returns each potential communication investment can generate, relative to the current and constantly fluctuating price. To take an extreme example, the absolute and relative return on investment expectations would result in a much higher hurdle rate for an investment in a five-year professional sports league sponsorship than for next week’s search-bidding strategy.
To make sure you win both in the long and the short play use Share of Search
