Branding Investment: Key Reasons for Business Success

What once started as a tool for cattle ranchers to mark and track their cows has become an effective strategy businesses use to stand out. Now, millions of businesses use branding to spread the word, grow their community of customers, and shape perception.

With all the benefits it brings, investing in branding has shifted from a good-to-have to a must-have. Data shows that global digital advertising spending reached $626.86 billion in 2023 and is estimated to balloon up to $765.98 billion in the next two years. That's because branding works when done right.

Unravel the benefits and pitfalls of branding and learn specific tactics and strategies you can employ to grow your presence. Plus, take inspiration from some of the most successful brands worldwide.

Branding has evolved from merely a functional effort to create an identifiable name that captures attention to a strategy that communicates the essence of a business. It bridges the stories and values of a brand to its audience.

In modern branding, businesses ideally adapt to societal changes, politics, and other economic influences while staying true to their core, especially for startups looking to gain momentum in the market.

Let's put it this way. A business without an established brand is akin to a sailboat without a sail. It may float, sure. But, it is less likely to withstand rough waters and drift away from its intended destination.

Investing in your brand becomes a powerful tool that allows you to create a compelling and unique brand image. It aids in forming a stronger bond with your customers and delivers on your brand promise.

Think of iconic brands like Apple, Disney, Adidas, Google, and Microsoft. Other small brands that made it big include Everlane, Dollar Shave Store, and TOMS shoes. They barely need an introduction and are valued highly worldwide.

The good news is you can become like them, too.

But first—what exactly can investing in branding do for your business?

If you are looking for reasons to invest in branding now, below are exciting benefits you could gain in the long run.

Reason #1: Enhance Brand Recognition and Brand Recall

How many potential customers can name your brand by mentioning your product category? Will customers recognize you by your product packaging or brand colors alone? If you're on the fence about where you stand in the market, you might benefit from branding to enhance brand recognition and recall.

Brand recognition refers to how quickly customers can name your brand without visual aids—logo, packaging, etc. For example, a mere mention of toothpaste may bring Colgate to mind.

A strong brand recall occurs when customers can think of your brand in a jiff after seeing or hearing prompts. Case in point, a person presented with a silhouette of a half-eaten apple may think of tech brand Apple right away.

When you consistently expose customers to your distinct brand identity—logos, colors, fonts, and messaging— it can carve a strong presence in their minds. Over time, they become familiar with your brand and, eventually, nurture customer loyalty and trust.

Reason #2: Improve Business Efficiency

A company with a clear picture of what it wants to achieve, aside from improving the bottom line, is on its way to ensuring longevity in the business. Thankfully, branding can do that for your business as it's the soul and inner compass needed to realize long-term goals and continuous growth.

In addition to a defined branding strategy, a business can run smoothly with a collaborative team of experts who share the same passion, values, and interests as the brand at the helm.

You can also expect to create meaningful and lasting connections with your audience. With an adaptable brand framework, your business can roll through changing market trends and maintain relevance.

Reason #3: Establish and Strengthen Brand Credibility

Your brand value correlates to your credibility. And this cannot be truer, especially with the rise of cancel culture.

It wasn’t too long ago when Chinese consumers swore off Dolce & Gabanna because of the racial stereotypes in one of its ad campaigns. Or how Quaker's Aunt Jemima mascot was booted off the grocery shelves because of its racist origin.

Consequently, companies became more conscious of pouring resources and doubling branding efforts to maintain a positive brand image.

Factor in the hurdles the younger generations have endured like wars, pandemics, and economic downturns, and it's no wonder why they desire to connect with humane brands. They prefer companies that value their wellness and champion diversity, inclusivity, and transparency.

When you invest in branding, you can strategize and spearhead campaigns and other efforts that nurture trust between you and your customers. For example, you can curate a community of ambassadors and influencers that embody desirable qualities that align with your values.

In effect, branding allows you to attract and retain more customers and increase your overall brand value.

Reason #4: Differentiate Your Brand from the Competition

Branding is an efficient way for your business to create a clear and unique distinction from your competitors. It often involves injecting a unique personality that appeals to your target audience, increasing brand awareness through compelling storytelling, and tailoring a memorable brand experience.

With continuous effort and monitoring, branding can uncover opportunities for growth and innovation to give you a competitive edge.

Just look at Scrub Daddy, a sponge brand that combines fun and functionality in its products and branding efforts. Through its iconic smiley sponge and the innovative use of polymer foam material, it has recorded over $600 million since its inception.

Who knew that a kitchen sponge could be a hit through branding?

Reason #5: Increase Profitability and Brand Value

There’s more to branding than making your business look visually appealing.

When you gain the solid trust of your audience, brands can confidently charge premium prices without being questioned. And this is because customers are less likely to doubt the value you bring them.

In return, your overall sales can increase, fostering long-term support via your loyal customer base. A high brand value impacts your business internally, too.

Aside from attracting top-performing candidates, a high-value and well-known brand boosts your team's morale. In effect, they are more willing to be involved and contribute to the company's growth.

Do the above branding benefits sound appealing? Before jumping into action, below are the key ingredients you'll need to tailor a brand strategy that works.

Visual Identity and Design

Every visual element— colors, font type, shapes, imagery — can have a tremendous psychological impact on potential customers. Curved shapes evoke comfort, warm colors appeal to happy emotions, and fonts can visually translate a brand’s tone. That said, it is crucial to create a brand identity that is pleasing to the eyes and embodies the personality and values of a business.

One look at Liquid Death's product packaging and you'd probably think the head-turning-grunge-design-inspired cans contain beer or energy drinks. But, it's actually a brand that sells water—the least exciting beverage there is.

Liquid Death's unconventional approach to its brand identity has made it indistinguishable from its competitors. From the skull illustrations to its catchy tagline, "Murder Your Thirst," the brand continues to rake in over $200 million in annual revenue.

The company CEO shared in an interview, "We want to entertain people and make them laugh in service of a brand. And if you can do that, they’re going to love your brand because you’re giving them something of value. You’re actually making them laugh.”

Brand Messaging and Brand Voice

Your brand message is a statement that concisely conveys your story, value proposition, and overall commitment to the customers. Ideally, it is empowering, inspiring, and sparks action.

But having a compelling brand message is not enough. How you say it also matters through your choice of brand voice and can elevate your message to the next level. Make sure to capture your brand's personality, tone, and culture. They should align with your brand voice.

Consistency is key when using your brand voice. Aside from applying it to marketing communication efforts, your frontline team can use the same voice when engaging with customers.

A great example of a brand with a distinct brand voice and brand messaging is Old Spice. It poked fun and broke stereotypes about men delivered with a humorous yet confident brand voice. To date, "The Man Your Man Could Smell Like" has become one of their most successful and iconic campaigns.

Digital Branding

Having an expansive online presence in the digital age is vital in creating the bedrock of your brand. But, building a brand presence doesn't mean spreading yourself too thin, either.

Establish your digital branding on platforms relevant to your target audience. For instance, social media channels like Instagram and TikTok are your best bet for fashion and cosmetic brands because of their visual marketing possibilities. Or perhaps optimizing your branded website is more effective than social media.

Find out which platforms fit your brand by surveying and tracking your customers’ online activities. Below are questions that can help identify patterns and behaviors you can use to shape your digital branding strategy.

• Which platforms are your customers most active in?
• What time of day are they usually online?
• How often do they purchase online?
• What type of content do they seek from brands?

Once you know where you should be, you can proceed to mapping out your marketing tactics like content planning and partnering with brand ambassadors and influencers.

Pro tip: Digital branding can be overwhelming, hence, we suggest integrating digital asset management as well. It is a huge plus when organizing, tracking, and storing visual, and audio, and ensuring all rights reserved for marketing and branding assets.

Customer Experience and Engagement

Providing a positively memorable customer experience and engagement can set you apart from the competition. And whether in person or online, customers want to feel valued and understood beyond just being sold products or services.

With this in mind, it is crucial to tailor experience and engagement that address the unique needs of customers. Start by leveraging a CRM system or customer relationship management.

Think of it as a central hub for all information about existing customers, potential customers, and new customers. It aids in gathering, organizing, and analyzing information so you can provide better customer relations, and communications, and manage task automation.

What’s more, you can tap your digital platforms to reach out to your target audience to see how they currently feel about your brand and find out their needs and expectations. Creating portals dedicated to customer support can improve the overall brand experience, too, as this allows for faster problem response in real time.

There are more things to consider when investing in branding, but pinning the above-mentioned elements already sets you to a great start. It also gives you a leg up when you have an understanding of what you can achieve through branding.

Now, all you need is to strategize a game plan intentionally designed for your brand. Enter, branding agencies.

A branding agency is a great partner for all businesses, including startups, offering a team of experts with expansive knowledge and experience to work with.

Whether you’re looking to build your brand from scratch, refresh your brand identity, and other professional branding needs, you can count on them.