Leaders often view brand metrics as 'fuzzy' for two key reasons: marketers suffer from 'learned helplessness' due to a constant churn of new measurement tools, and they often measure brand performance in an absolute vacuum, failing to provide the competitive, longitudinal insights that boardrooms actually need for decision-making.
CFOs don't expect flawless marketing attribution. They distrust 'black box' metrics and prefer CMOs who are transparent about uncertainties. The best approach is to openly discuss imperfections and collaborate on a joint plan to improve measurement over time, building trust and confidence.
To prove brand's financial impact, connect it to the three core levers of Customer Lifetime Value (CLV). A strong brand lowers customer acquisition costs, increases retention, and supports higher margins through pricing power. Since aggregate CLV is tied to firm valuation, this makes brand's contribution tangible to a CFO.
Data shows that adding brand marketing to a performance-driven engine can increase median ROI by 90%. The persistent tension between brand and performance stems from short-termism and the allure of easily measured clicks, creating a false dichotomy between two essential functions.
The speaker coins "technoplasmosis" for when tech vendors persuade a company's finance department to adopt marketing metrics that favor selling tech stacks (e.g., click-through rates). This shifts focus to short-term, transactional activities and away from long-term brand building, which is more valuable.
A common attribution error is assigning all sales to paid marketing activities. In reality, most brands have a strong "baseline"—sales that would occur even without marketing. Accurate measurement requires modeling this baseline first, then attributing only the incremental lift from campaigns.
Constant Contact CEO Frank Vella reveals a paradox: while SMBs are increasing their marketing spend, their confidence in its effectiveness has plummeted. This isn't due to a lack of effort, but rather an overwhelming number of tools and a fundamental inability to measure ROI. Only 18% of SMBs feel confident in their marketing, a significant drop from the previous year, highlighting a critical gap between investment and perceived results.
Instead of chasing quantifiable but often misleading metrics like MQLs or pipeline attribution, focus on qualitative feedback from sales. Successful brand marketing means the sales team enters 'warm rooms' where customers are already familiar with and receptive to the company, eliminating the need to start from zero.
Reacting to a regression towards tactical performance marketing, branding expert David Aaker introduced his "Five Bs" framework (Relevance, Image, Loyalty, Portfolio, Equity). It reminds leaders that brand is a long-term asset and notably includes "Brand Portfolio" to emphasize that a strong brand rarely stands alone, requiring co-brands and endorsers.
Repositioning Marketing Mix Modeling (MMM) from a purely financial ROI calculation to a measure of consumer response and brand health can secure broader organizational buy-in, especially from brand-focused teams.
Shift the mindset from a brand vs. performance dichotomy. All marketing should be measured for performance. For brand initiatives, use metrics like branded search volume per dollar spent to quantify impact and tie "fluffy" activities to tangible growth outcomes.