What's Happening?
Recent research by Initiative, in collaboration with YouGov and Google Trends, highlights a significant imbalance in B2B marketing strategies, where brand-building receives less than one-third of marketing spend
despite being a stronger driver of commercial outcomes. The report reveals that brand-building is 24% more correlated with purchase intent than demand activation. This imbalance is attributed to economic uncertainty, leading marketers to focus on lower-funnel performance tactics for quick returns. The research emphasizes the importance of brand-building in driving demand and warns that neglecting it could lead to a dry funnel.
Why It's Important?
The findings underscore the critical role of brand-building in sustaining long-term commercial success in B2B marketing. As marketers face pressure to deliver immediate results, the focus on short-term activations can undermine the potential for future growth. By prioritizing brand-building, companies can enhance their reputation, build trust, and lower price sensitivity, ultimately improving the effectiveness of lower-funnel tactics. This shift is essential for adapting to the evolving landscape of B2B marketing, where decision-makers are more informed and sales cycles are longer.
What's Next?
B2B marketers are encouraged to audit their current strategies to identify areas of over- or underperformance in brand-building. The integration of brand and demand efforts through shared metrics with finance and sales is recommended to prove long-term value. Designing media architectures that nurture both brand-building and demand activation across various channels is crucial for achieving a balanced approach. Investing in creativity and emotional storytelling is highlighted as a key strategy for enhancing brand-building efforts.
