What do global brands like Google, Coco-Cola and Apple have in common?
Other than being instantaneously recognisable by their corporate identity, they each own over 20% of the worldwide market share in their respective categories.[1] So why would the likes of Coca-Cola – one of the most recognisable brands in the world with an already-captivated market – spend over $4 billion[2] annually on advertising?
They understand the critical importance of building consumer trust in a saturated market.
Seeking efficient growth in a tough economic climate, marketing leaders are scrutinising how and where to allocate their paid media budgets. While performance marketing is about driving immediate results and measurable success, brand marketing focuses on building and nurturing the brand for long-term success.
Surprisingly, companies are allocating more of their budgets towards short-term performance rather than the optimal balance, with current CMO spending showing 59.9% on short-term performance and 40.1% on long-term brand building.[3]
Crucial importance
“As a media agency, gaining buy-in from brands and their finance teams for strategies we know will work is challenging because not every aspect can be measured on paper. Many brands focus solely on performance metrics and ROI, neglecting the crucial importance of brand and trust building,” says Irina Vlad, managing director at specialist media agency, Ivie Media.
Increasing retention rates and customer lifetime value in the attention economy is vital to ensure long-term success for brands, over short-term gains. Ivie Media’s approach to paid-media is designed to foster customer loyalty and targeted, strategic brand awareness on behalf of their clients, particularly small and medium-sized enterprises (SMEs).
One such example is exemplified in Ivie Media’s recent collaboration with Tractor Outdoor and their client, Lula. Through this partnership, SMEs can access free advertising on Tractor Outdoor’s extensive network of digital screens, thanks to the SME Launchpad initiative.
Empowering small businesses
This platform is a testament to Ivie Media’s dedication to providing tangible, value-driven opportunities for businesses to enhance their visibility and reach.
Lula, an online lending platform serving small businesses in South Africa, targets the crucial SME sector, which contributes nearly 40% of GDP and employs 60% of the private sector workforce. Their goal is to enhance financial inclusion and foster growth and prosperity throughout the SME sector.
As a long-standing client of Ivie Media, Lula understood the value in the proposal presented by Ivie Media for the SME Launchpad, in offering value to their clients without the need for instant gratification.
“Our purpose at Lula is to empower small businesses to succeed, and for that reason, this partnership with Tractor Outdoor was a no-brainer.
Making billboards accessible
“Billboard advertising was traditionally exclusively used by large enterprises with massive marketing budgets, but Tractor’s programmatic digital billboards level out the playing field with targeted and cost-effective ad delivery and we are very excited to be able to offer small businesses some ‘big brand exposure’ and a chance to get their message across to the right audiences to grow their businesses,” says Pieta Meyer, brand director at Lula.
The SME Launchpad, conceptualised by Ivie Media and facilitated by Lula and Tractor Outdoor, one of South Africa’s largest independent out of home and digital OOH media owners, offers a significant boost for businesses looking to expand their presence without the hefty price tag usually associated with advertising.
By leveraging Tractor’s digital screen network, SMEs can benefit from high-impact, targeted advertising campaigns that would otherwise be out of reach.
As Vlad says, “In today’s competitive landscape, brands must navigate wisely between immediate gains and sustainable growth. Optimally, performance marketing and brand building work exceptionally well together, but building both long-term customer loyalty without the need for immediate results, should form part of any marketing strategy.”
[1] https://gs.statcounter.com/search-engine-market-share / https://medium.com/modern-day-business/coca-cola-is-an-worldwide-renowned-company-61d610514fea / https://www.theguardian.com/technology/2024/jan/17/apple-samsung-worlds-top-smartphone-seller-iphone-honor-google-divide-android
[2] https://www.statista.com/statistics/286526/coca-cola-advertising-spending-worldwide/#:~:text=Over%20the%20last%20years%2C%20Coca,about%20five%20billion%20dollars%20spent.
[3] https://cmosurvey.org/wp-content/uploads/2023/03/The_CMO_Survey-Highlights_and_Insights_Report-March_2023.pdf
