- There is a direct correlation between advertising spending, brand awareness, and market share (given that the brand’s distribution is equal to that of other brands in the category and consumers like the brand’s point of difference). In fact, James Gregory and the Corporate Branding Partnership (and others) have linked advertising spending to increases in sales, earnings, market share, and stock price.
- A brand’s perceived quality increases with increases in advertising impressions, regardless of message.
- The more extended a brand becomes, the more it needs sub-brands to aid with its extensions.
- “Purchase intent” tends to be inflated for declining brands and understated for emerging brands.
- Advertising is often most effective in increasing share of market when brands are so similar that the advertising message is the primary source of differentiation.
Excepted from Brand Aid, second edition, available here.