The KPI For Measuring Brand Lift

Introduction

In the vast realm of performance marketing, a common question arises: "How do you measure brand lift, brand awareness, and brand performance?" While many presentations and discussions on the topic might gloss over the specifics, there are concrete methods and key performance indicators (KPIs) that businesses can utilize to gauge these metrics effectively.

Media Efficiency Ratio (MER)

One potential solution to this perennial question lies in the concept of Media Efficiency Ratio (MER). MER measures the efficiency of your media spend in relation to the revenue generated. By comparing year-over-year data while controlling for other variables, you can infer an increase in brand awareness and its potential impact on ROI.

How MER Works

The foundational assumption here is that increased brand awareness leads to improved metrics such as click-through rate (CTR), conversion rate, customer take rate, and retention. Therefore, if you advertised last year and continue doing so this year under similar conditions but notice better performance metrics, you can attribute this to enhanced brand awareness.

Challenges and Philosophical Considerations

While the theoretical framework behind using MER is solid, its application in real-world scenarios requires a mix of faith and data. The difficulty lies in selling this method to a client due to its abstract nature. As one marketing expert aptly noted, it feels more suitable for a textbook than a sales pitch.

Insights from Byron Sharp

Byron Sharp, the celebrated author of "How Brands Grow," provides some enlightening perspectives. During his talk at a recent conference, Sharp emphasized that not everything needs to be measured. This goes against the grain for many performance marketers who meticulously track every metric.

Incremental Approach to Brand Awareness

Sharp advocates for a gradual approach in building brand awareness. You don’t need to overhaul your entire advertising strategy overnight. Start by integrating incremental, middle-of-the-funnel campaigns focused on consideration and brand recall. This strategy allows for a balance between performance marketing and brand-building efforts without sacrificing short-term gains.

Real-world Application

In practice, this means testing and optimizing top and middle-of-the-funnel campaigns. By running small tests and observing their impact on critical business metrics like lead quality and cost per acquisition (CPA), you can gradually scale up your brand-building efforts. Success stories from brands that have increased their spend over time while maintaining or even reducing their CPA offer compelling proof.

Long-term Commitment and Confidence

Adopting this approach requires a level of confidence in your core business assumptions. You'll need to invest time, effort, and money into campaigns without the immediate gratification of short-term metrics. It's a rigorous, yet potentially rewarding journey akin to strategies employed by renowned marketers like Don Draper from "Mad Men."

Conclusion

To summarize, measuring brand lift and brand performance goes beyond standard KPIs. MER offers a compelling, though challenging, approach to gauge the efficacy of your media spend. Insights from industry leaders like Byron Sharp further suggest a balanced, incremental strategy for building brand awareness over time. Ultimately, this approach necessitates a blend of faith, confidence, and long-term commitment.

Keywords

Brand lift
Brand awareness
Brand performance
Media Efficiency Ratio (MER)
Incremental approach
Byron Sharp
Performance marketing
Conversion rates
Click-through rates (CTR)
Cost per acquisition (CPA)

FAQ

Q1: What is Media Efficiency Ratio (MER)?
A1: MER is a measure of the efficiency of media spend in relation to the revenue generated. It compares year-over-year data to infer the impact of increased brand awareness on ROI.

Q2: How does increased brand awareness impact business metrics?
A2: Increased brand awareness can improve metrics like click-through rate (CTR), conversion rate, customer take rate, and retention, ultimately leading to better overall performance.

Q3: What insights did Byron Sharp offer on brand measurement?
A3: Byron Sharp suggests that not everything needs to be measured meticulously. He advocates for a gradual, incremental approach to building brand awareness without overwhelming the current advertising strategy.

Q4: How do you integrate brand-building efforts into existing campaigns?
A4: Instead of making drastic changes, start with small, middle-of-the-funnel campaigns that focus on consideration and brand recall. Gradually scale these campaigns based on observed improvements in business metrics like lead quality and CPA.

Q5: Why is a long-term commitment necessary for brand-building?
A5: Building brand awareness requires confidence in your business fundamentals and a willingness to invest time, money, and effort without immediate short-term rewards. This approach emphasizes sustained growth and incremental gains over time.