Phoenix Studios
How to measure ROI on brand investment
30th March
/
5 min.
In a world where short-term metrics often dominate boardroom discussions, brand investment can seem like a long game. But the returns are very real — and measurable. At Phoenix Studios, we believe that brand is not only a creative asset but a strategic lever of enterprise value. Here's how to measure its ROI across the three challenges we work with brand leaders on:
Birth: Launching a New Brand
At this formative stage, brand investment is about establishing market presence, generating awareness, and building credibility. Measuring ROI here starts with market traction:
Brand Awareness Lift: Benchmark pre- and post-launch awareness levels through surveys (e.g., YouGov, Toluna). A strong launch can see unaided brand awareness rise 25-40% within 6–12 months [Source: Nielsen, 2023].
Customer Acquisition Cost (CAC): Track reductions in CAC over time. A well-executed brand launch can reduce CAC by up to 30% by increasing conversion rates and shortening decision cycles [Source: McKinsey, 2022].
Early Market Share Gains: Use sales and market share data to track entry success. A strong brand launch can accelerate time-to-profitability by 12–18 months.
Renewal: Repositioning for Relevance
For established brands facing erosion or stagnation, renewal involves repositioning to re-energise growth. ROI at this stage focuses on re-engagement and preference shift:
Net Promoter Score (NPS): A repositioned brand with stronger relevance should see an uplift in NPS. Industry averages suggest increases of 10–30 points post-repositioning [Source: Bain & Company, 2024].
Revenue Per Customer: Stronger positioning enables premium pricing and cross-sell. We often see a 10–15% lift in average order value within 6 months.
Share of Voice to Share of Market Ratio (SOV:SOM): If a brand's SOV exceeds its SOM, growth is likely. A renewed brand should target a 1.2+ SOV:SOM ratio as a leading indicator [Source: IPA Databank, 2023].
In a world where short-term metrics often dominate boardroom discussions, brand investment can seem like a long game. But the returns are very real — and measurable. At Phoenix Studios, we believe that brand is not only a creative asset but a strategic lever of enterprise value. Here's how to measure its ROI across the three challenges we work with brand leaders on:
Birth: Launching a New Brand
At this formative stage, brand investment is about establishing market presence, generating awareness, and building credibility. Measuring ROI here starts with market traction:
Brand Awareness Lift: Benchmark pre- and post-launch awareness levels through surveys (e.g., YouGov, Toluna). A strong launch can see unaided brand awareness rise 25-40% within 6–12 months [Source: Nielsen, 2023].
Customer Acquisition Cost (CAC): Track reductions in CAC over time. A well-executed brand launch can reduce CAC by up to 30% by increasing conversion rates and shortening decision cycles [Source: McKinsey, 2022].
Early Market Share Gains: Use sales and market share data to track entry success. A strong brand launch can accelerate time-to-profitability by 12–18 months.
Renewal: Repositioning for Relevance
For established brands facing erosion or stagnation, renewal involves repositioning to re-energise growth. ROI at this stage focuses on re-engagement and preference shift:
Net Promoter Score (NPS): A repositioned brand with stronger relevance should see an uplift in NPS. Industry averages suggest increases of 10–30 points post-repositioning [Source: Bain & Company, 2024].
Revenue Per Customer: Stronger positioning enables premium pricing and cross-sell. We often see a 10–15% lift in average order value within 6 months.
Share of Voice to Share of Market Ratio (SOV:SOM): If a brand's SOV exceeds its SOM, growth is likely. A renewed brand should target a 1.2+ SOV:SOM ratio as a leading indicator [Source: IPA Databank, 2023].
In a world where short-term metrics often dominate boardroom discussions, brand investment can seem like a long game. But the returns are very real — and measurable. At Phoenix Studios, we believe that brand is not only a creative asset but a strategic lever of enterprise value. Here's how to measure its ROI across the three challenges we work with brand leaders on:
Birth: Launching a New Brand
At this formative stage, brand investment is about establishing market presence, generating awareness, and building credibility. Measuring ROI here starts with market traction:
Brand Awareness Lift: Benchmark pre- and post-launch awareness levels through surveys (e.g., YouGov, Toluna). A strong launch can see unaided brand awareness rise 25-40% within 6–12 months [Source: Nielsen, 2023].
Customer Acquisition Cost (CAC): Track reductions in CAC over time. A well-executed brand launch can reduce CAC by up to 30% by increasing conversion rates and shortening decision cycles [Source: McKinsey, 2022].
Early Market Share Gains: Use sales and market share data to track entry success. A strong brand launch can accelerate time-to-profitability by 12–18 months.
Renewal: Repositioning for Relevance
For established brands facing erosion or stagnation, renewal involves repositioning to re-energise growth. ROI at this stage focuses on re-engagement and preference shift:
Net Promoter Score (NPS): A repositioned brand with stronger relevance should see an uplift in NPS. Industry averages suggest increases of 10–30 points post-repositioning [Source: Bain & Company, 2024].
Revenue Per Customer: Stronger positioning enables premium pricing and cross-sell. We often see a 10–15% lift in average order value within 6 months.
Share of Voice to Share of Market Ratio (SOV:SOM): If a brand's SOV exceeds its SOM, growth is likely. A renewed brand should target a 1.2+ SOV:SOM ratio as a leading indicator [Source: IPA Databank, 2023].
Immortality: Strengthening for Long-Term Value
This is about future-proofing. ROI here is tied to resilience, retention, and market leadership:
Brand Valuation: Use recognised models (Interbrand, Brand Finance) to quantify brand as an intangible asset. Companies with strong brands command 31% higher EBITDA multiples [Source: PwC, 2023].
Employee Retention & Recruitment: A compelling employer brand reduces recruitment costs and churn. According to LinkedIn, strong employer brands see 50% more qualified applicants and 28% lower turnover.
Exit Value: In PE contexts, brand strength can drive higher exit multiples. EY reports that portfolio companies with brand integration in strategy achieve 20% higher exit valuations [Source: EY, 2024].
Brand is not a soft metric. When managed as a strategic asset, its ROI is trackable, defendable, and transformational. Whether you're birthing a new brand, renewing a fatigued one, or future-proofing a market leader, clear KPIs must be defined upfront and tracked relentlessly.
At Phoenix Studios we build brand value. Let’s talk about how yours can rise to the challenge.
Immortality: Strengthening for Long-Term Value
This is about future-proofing. ROI here is tied to resilience, retention, and market leadership:
Brand Valuation: Use recognised models (Interbrand, Brand Finance) to quantify brand as an intangible asset. Companies with strong brands command 31% higher EBITDA multiples [Source: PwC, 2023].
Employee Retention & Recruitment: A compelling employer brand reduces recruitment costs and churn. According to LinkedIn, strong employer brands see 50% more qualified applicants and 28% lower turnover.
Exit Value: In PE contexts, brand strength can drive higher exit multiples. EY reports that portfolio companies with brand integration in strategy achieve 20% higher exit valuations [Source: EY, 2024].
Brand is not a soft metric. When managed as a strategic asset, its ROI is trackable, defendable, and transformational. Whether you're birthing a new brand, renewing a fatigued one, or future-proofing a market leader, clear KPIs must be defined upfront and tracked relentlessly.
At Phoenix Studios we build brand value. Let’s talk about how yours can rise to the challenge.
Immortality: Strengthening for Long-Term Value
This is about future-proofing. ROI here is tied to resilience, retention, and market leadership:
Brand Valuation: Use recognised models (Interbrand, Brand Finance) to quantify brand as an intangible asset. Companies with strong brands command 31% higher EBITDA multiples [Source: PwC, 2023].
Employee Retention & Recruitment: A compelling employer brand reduces recruitment costs and churn. According to LinkedIn, strong employer brands see 50% more qualified applicants and 28% lower turnover.
Exit Value: In PE contexts, brand strength can drive higher exit multiples. EY reports that portfolio companies with brand integration in strategy achieve 20% higher exit valuations [Source: EY, 2024].
Brand is not a soft metric. When managed as a strategic asset, its ROI is trackable, defendable, and transformational. Whether you're birthing a new brand, renewing a fatigued one, or future-proofing a market leader, clear KPIs must be defined upfront and tracked relentlessly.
At Phoenix Studios we build brand value. Let’s talk about how yours can rise to the challenge.
Jonny Westcar, Partner
