"There are measures like brand lift, reach, frequency analysis and other KPIs that advertisers use to ground the success of brand-building campaigns. But one limitation of these KPIs is translating them into monetary value - it can be difficult for advertisers to understand how these campaigns impact future sales."
"Many marketing activities create value beyond short attribution windows, but advertisers do not have reliable ways to measure these longer-term effects with the same confidence as short-term metrics. This measurement gap creates more than just uncertainty - it fundamentally shapes how budgets are allocated."
"Without visibility into how channels like CTV, online video and upper-funnel media drive brand awareness and long-term purchases, budget optimization gravitates toward tactics such as retargeting. While valuable, this approach indexes toward audiences already intending to purchase at the expense of new customer acquisition and long-term brand growth."
Marketers face a critical challenge in measuring brand advertising's return on investment, with only 53% confident in their ability to measure total spending ROI. While 46% of B2C marketing leaders balance short-term revenue with long-term growth, the gap between upper-funnel awareness campaigns and final purchases makes accurate measurement difficult. Traditional KPIs like brand lift and reach fail to translate into monetary value, leaving advertisers uncertain about long-term sales impact. This measurement gap fundamentally shapes budget allocation, pushing spending toward retargeting and short-term tactics rather than new customer acquisition and brand building, despite marketers knowing intuitively that these activities drive long-term growth.
Read at Digiday
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