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Branding Is an Asset, Not an Expense

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  Published in Business and Finance on Thursday, November 20th 2025 at 13:17 GMT by Entrepreneur

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How to Get Real ROI from Your Branding Efforts – A Practical Summary

Branding is one of the most powerful—and most elusive—tools in a company’s arsenal. While a great logo, a memorable tagline, or a compelling brand story can help a business stand out, many marketers still struggle to prove that those intangible investments translate into tangible financial gains. The Entrepreneur article “How to Get Real ROI From Your Branding Efforts” breaks down the science behind measuring brand performance, offers practical metrics, and shows how to align branding initiatives with core business objectives. Below is a comprehensive summary of its key insights, enriched with additional context from the article’s internal links and broader industry research.

1. Branding is an Asset, Not an Expense

The article begins by redefining the brand from a “nice‑to‑have” creative element into a strategic asset that can be valued, tracked, and optimized. It references the Interbrand® “Best Global Brands” report and BrandZ’s methodology—both of which assign a dollar value to brand equity based on future earnings, market share, and risk reduction. These valuations illustrate that a strong brand can increase a company’s market value, much like a proprietary technology or a patented product.

Why is brand equity important?
The linked “Why Is Brand Equity Important?” section explains that brand equity buffers a business against competitive pressure, allows premium pricing, reduces marketing costs over time, and drives higher customer lifetime value.

2. The Two Pillars of Branding ROI

The article frames branding ROI around two complementary dimensions:

By measuring both sides, a business can see how brand efforts translate into short‑term sales spikes and long‑term customer equity.

3. Step‑by‑Step Process for Measuring Brand ROI

3.1 Define Brand‑Specific Goals

The article stresses that ROI only makes sense when tied to specific business outcomes. Start with a clear objective such as:

• Increase brand awareness among Gen‑Z by 15% in 12 months
• Boost customer retention from 65% to 78% within 18 months
• Generate a 25% lift in sales attributed to brand campaigns

These goals should be embedded in the marketing budget and linked to the company’s overall strategic plan.

3.2 Choose the Right Metrics

The article recommends a balanced scorecard approach, with metrics grouped under financial, customer, internal process, and learning & growth categories. Key metrics include:

• Brand Awareness & Recall – aided and unaided recall surveys, reach vs. frequency data
• Brand Consideration & Choice – market research on brand preference, share of voice
• Brand Loyalty & Advocacy – NPS, customer lifetime value (CLV), repeat purchase rates
• Sentiment & Brand Health – social listening dashboards, sentiment scores, crisis metrics

Additional resource: The linked “Brand Health Measurement” article outlines how to design a longitudinal study that tracks these metrics quarterly.

3.3 Allocate a Dedicated Brand Budget

A central lesson is that budget isolation is critical. Brand initiatives should be funded separately from tactical advertising, so they can be evaluated independently. The article suggests a typical split of 10–15% of the overall marketing spend for long‑term brand building, with the remainder for direct response.

3.4 Track, Test, and Optimize

Using an analytics platform (e.g., Adobe Analytics, Google Analytics, or a dedicated brand equity dashboard), track each KPI in real time. Run A/B tests on creative, copy, and channel mix to see what drives the most lift. The article highlights that incremental lift tests (using control groups) are the most reliable method for measuring brand-driven revenue changes.

3.5 Report Back to Stakeholders

Build quarterly brand performance reports that include a brand‑ROI calculator:
[ \text{Brand ROI} = \frac{\text{Incremental Brand Revenue} - \text{Brand Investment}}{\text{Brand Investment}} ]
This metric ties the marketing budget to the profit line, making it easier for executives to approve future spend.

4. Common Pitfalls and How to Avoid Them

5. Case Studies That Illustrate the Approach

The article cites three illustrative examples:

1. Airbnb – By investing heavily in storytelling and a “belonging” brand promise, Airbnb increased its market share by 8% and reduced acquisition costs by 30% in a single year.
2. Nike – A brand‑centric re‑branding that focused on authenticity and heritage lifted the company’s average price point by 10% while maintaining customer loyalty.
3. Warby Parker – Leveraging an omnichannel brand experience, Warby Parker grew its customer base by 200% and achieved a brand‑driven revenue increase of $250M in 2018.

These case studies demonstrate that when brand initiatives are aligned with measurable business outcomes, the ROI can be substantial.

6. Final Take‑aways

• Treat branding as a strategic asset that can be quantified and tracked.
• Define clear, measurable brand objectives that map onto company growth targets.
• Use a balanced mix of financial and customer‑centric metrics to capture the full impact.
• Separate brand budgets to isolate and evaluate ROI.
• Employ rigorous testing and incremental lift measurement to attribute revenue accurately.
• Report brand ROI in financial terms to secure executive buy‑in.

By following this structured approach, marketers can turn the “invisible” power of branding into a tangible, measurable contribution to the bottom line—making it easier to justify future investments and demonstrate the true value of a strong, consistent brand identity.