Question

Topic: Research/Metrics

Correlation Between Brand Awareness And Leads

Posted by Anonymous on 250 Points
I am trying to prove a correlation between increased spending on brand awareness activity and better results from concurrent lead generation activity - ie evidence of some sort of multiplying factor which can be applied to the number of leads a direct marketing campaign can generate if there is a corresponding increase in spend on advertising / brand awareness at the same time. Does anyone have any effective formulae, stats or examples?
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RESPONSES

  • Posted by Chris Blackman on Accepted
    You may find something here https://www.vmr.com/research/index.html#type at Newsweek Media Research which may help you.

    You could also try the Marketing Association/Marketing Institute in whichever country you live.

    The problem with correlating spending on brand awareness to direct marketing campaign results is not so much the coefficient of correlation, which may be high, but in proving the causal link.

    It makes sense that a DM campaign bolstered by brand - or even product/service - advertising around the same time-frame - will enhance sales, if both the advertising and the DM campaign have integrity and an appropriate call to action - are well executed, and well bought (media-wise).

    I presume you are being asked to provide "evidence" to support a marketing spend decision. In the absence of any evidence, why not try the DM campaign first without, and then with advertising support. That way, you get real evidence using your target segments with your own product.

    Remember this when referencing other people's case studies:

    Results may vary

    Hope this helps

    ChrisB
  • Posted by koen.h.pauwels on Accepted
    Very interesting question, Belinda, and one for which there is no general formula. In a recent project on a fast moving consumer good, I found that 1% increase in unaided awareness (as measuresd by telephone surveys) improved sales by .24% . This would suggest a multiplier of a quarter. Importantly, this impact does not occur immediately, I find this peak effect 4 weeks after the awareness increase, which is likely related to the product's purchase cycle.

    Anybody else with estimates? It would be interesting to pool them together to provide industry benchmarks...

    Koen

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