Transforming Brand Perception through New Research
TransUnion, in collaboration with MMA Global, has recently launched an insightful whitepaper that fundamentally shifts how we perceive brand marketing's impact on business performance. This groundbreaking study highlights that traditional metrics have undervalued the power of branding, suggesting a striking underestimation of as much as 83%. This analysis comes at a time when brands are increasingly vying for recognition in a marketplace dominated by short-term metrics.
Understanding the Brand as Performance Framework
For many Chief Marketing Officers (CMOs), justifying brand-related expenses has been a herculean task due to corporate focus predominantly on immediate results. Enter the Brand as Performance (BaP) framework. Introduced by MMA Global in the previous year, this innovative model validates how brand investments directly correlate with customer acquisition and retention. This marks a significant shift in narrative, enabling brands to establish a stronger case for their marketing strategies based on tangible outcomes.
A New Paradigm for Marketers
“Brand as Performance equips marketers with the tangible language and proof they need to articulate what has long been known: branding is essential for growth,” stated Matt Spiegel, EVP of TruAudience Growth Strategy at TransUnion. This new approach aligns marketing efforts with measurable outcomes, empowering CMOs to defend their budgets and report progress confidently to executive leadership.
The Unseen Power of Branding
Greg Stuart, CEO of MMA Global, emphasized the importance of this framework, stating, “We now possess evidence that shows brand investment yields compounding returns over time, fostering growth far beyond what short-term initiatives offer.” In reinforcing this idea, the whitepaper draws on empirical evidence from major U.S. brands, shedding light on transformational successes.
Key Insights from the Research
The conclusions are compelling, with multiple key takeaways coming to the forefront:
- Marketing impact has been systematically undervalued: The study outlines that traditional methods misjudge marketing's contribution by up to 83%.
- Marketing fuels favorability: Establishing brands see favorable lifts of up to 24%, crucial in a competitive landscape.
- Favorability drives customer conversion: Favorable consumers are found to purchase four to five times more than their less-engaged counterparts.
- Long-term effects are substantial: The research indicates that branding impacts compound over time, with effects being 1.8 to six times greater than those derived from short-term tactics.
- Brand-first strategies enhance growth: Evidence illustrated that companies employing brand-centric strategies, such as Ally, achieved a 16% increase in new customers and a 29% growth in account openings.
The Voice of Experience: Ally's Testimony
Ally’s Chief Marketing & PR Officer, Andrea Brimmer, shared, “We have always believed our powerful brand is the cornerstone of our growth. The findings confirm that prioritizing brand strategies not only builds equity but leads to outstanding business results—more customers and accounts—ultimately driving sustainable growth beyond fleeting tactics.”
Access to the Full Whitepaper
The full whitepaper titled Giving Marketing the Credit it Deserves is now accessible. It dives deeper into applying the Brand as Performance framework effectively and is a must-read for marketers eager to optimize their brand strategies.
TransUnion’s Marketing Solutions Knowledge Lab, MMA Global, and Rubinson Partners, Inc. conducted this thorough analysis, employing extensive case studies from prominent brands. The method involved large-scale identity applications, consumer surveys, and thorough tracking methodologies spanning 9 to 10 months, ensuring robust findings.
About TransUnion
TransUnion (NYSE: TRU) stands as a leading global information and insights company, with a workforce of over 13,000 across 30 countries. Their core mission is to establish trust within the marketplace by providing reliable representations of individuals. Through innovative solutions extending from credit services to advanced analytics, TransUnion empowers consumers and businesses to engage confidently. The company's vision, encapsulated by Information for Good®, aims to create economic opportunities and enhance experiences for millions globally.
About MMA Global
With a membership of over 800 companies worldwide, MMA Global serves as a pivotal marketing trade association. It unites the entire marketing ecosystem—from technology to media—dedicated to driving change and fostering sustainable growth. Empowering marketers with research-backed insights, MMA Global is shaping the future landscape of marketing.
Frequently Asked Questions
What is the main finding of the TransUnion whitepaper?
The whitepaper reveals that brand marketing's impact is often undervalued by as much as 83%, changing how brands measure success.
What does the Brand as Performance framework entail?
This framework helps marketers demonstrate how brand investments lead to customer acquisition and retention, aligning marketing with measurable business performance.
Which companies were highlighted in the research?
Major brands including Ally, Kroger, and The Campbell’s Company featured prominently in the study, showcasing effective brand strategies.
How does branding affect consumer behavior?
Positive brand perception increases consumer favorability, leading to a purchase rate that is four to five times higher among favorable consumers.
Where can I access the full whitepaper?
The complete whitepaper, Giving Marketing the Credit it Deserves, is available for download for those looking to deepen their understanding of the findings.
