What is brand awareness (branding) and how does it fit into an advertising strategy?

Advertising generally serves two purposes. One is building awareness of a company and its offerings, which we call brand awareness. The goal of brand awareness is establishing Top-of-Mind Awareness (TOA) – when that company is the first consideration in a consumer’s mind when they are ready to make a purchase decision in that category. When looking at a marketing funnel, this is at the very top. Effective advertising that achieves brand awareness has broad reach and high frequency.

Brand awareness is important because a consumer generally won’t engage with a company they are unfamiliar with. Trust is extremely important, and having high awareness of a brand, outside of that awareness being negative, usually equates in a consumer’s mind to trust against brands that are unknown, whether that trust is justified or not. We know that 70% of consumers will only click on search results from brands they recognize, because of implied trust. Furthermore, most consumers will only consider two or three options when making a purchase decision, with one certainly being the primary consideration upfront, so it’s extremely important for a brand to be one of those top considerations.

Branding doesn’t stop at building initial awareness. There is a recurring need to reinforce that awareness to hold onto their established market position, or possibly increase it. Failure to do so could result in a competent competitor stealing market share.  This is why well known businesses, like McDonald’s and Apple, continue to advertise heavily. Everyone knows who McDonald’s is and what they offer, but they need consistent reminders to keep the brand fresh as a primary consideration.

While branding and awareness are often used interchangeably, they are technically different tactics that just happen to serve both purposes. Branding’s sole purpose is to stamp a brand – generally the company’s name and logo, but not exclusively. At the simplest level, branding is a logo on some kind of sponsorship – sponsoring a racecar or sports team being prime examples. It establishes awareness of that company’s name and logo, but not what it represents. Awareness expands branding with a message of what the brand stands for – its offerings, values, and advantages.

Brand awareness marketing markets to a “future” buyer, building awareness ahead of a need or, in some cases, stimulating the need. It is the hardest type of advertising to track, but arguably the most important. “Today” buyers are making purchase decisions based on brand awareness already established on their mind.

How much investment should be allocated to brand awareness?

How much share of an advertising budget should be allocated to brand awareness depends on many factors, including age of the business, purchase cycle of its offerings, and competitive situation. We can help determine your advertising split.