Convincing the CFO that brand building investment is worth it
Apr 3, 2025
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Preston Rutherford, co-founder of Chubbies and Marathon, dives into the critical need for convincing CFOs that brand building isn't just an expense, but a vital investment for growth. He tackles the challenges of traditional ROI metrics and discusses how performance marketing meshes with brand development for sustainable success. They also delve into redefining success metrics, emphasizing profit margins, and the synergy between branding and digital strategies, offering actionable insights for navigating today’s marketing landscape.
Brand building is a critical driver of long-term growth that requires clear financial connections to counteract its perception as a mere expense.
Effective marketing strategies must integrate emotional engagement and long-term metrics like contribution margins to enhance brand recognition and profitability.
Deep dives
Understanding Brand Building and Performance Marketing
A critical distinction is made between performance marketing, which focuses on short-term revenue optimization through click-based attribution, and brand building, which aims to generate long-term demand. Performance marketing strategies often lead to a disregard for the narrative and emotional engagement that branding fosters, reducing brand presence. Brands are increasingly recognizing that relying solely on immediate metrics can obscure the true impact of their marketing efforts, as many advertisers grapple with declining returns despite rising investments. This understanding pushes marketers to redefine how they measure success, highlighting the need for an integrated approach that values brand equity alongside immediate sales.
Engaging CFOs in Brand Investment Discussions
Engaging the CFO or other leadership in discussions about brand investment requires clear connections to financial performance metrics. Identifying trends in the profit and loss statement can help convey the relationship between brand-building efforts and overall profitability. Metrics such as contribution margin and the impact of discounts can highlight falling margins despite increased revenues, indicating a deeper issue. By presenting these insights, marketers can shift the narrative from brand-building being perceived as a mere expense to being a necessary investment for sustainable growth.
Leveraging Long-Term Metrics for Brand Success
Transitioning to a long-term approach necessitates marketers adjust their focus away from immediate revenue metrics to contribution margins and variable profits. Implementing structured testing methodologies improves understanding of marketing effectiveness by evaluating the true impact of branding initiatives over time. Marketers are encouraged to prioritize creative content that evokes an emotional response, thus fostering brand recognition and organic search interest. By balancing short-term needs with long-term vision, companies can better navigate changing market conditions while enhancing overall brand health.
How to convince leadership, especially the CFO, that investing in brand building isn't just a fluffy expense, but a critical driver of long-term, profitable growth. Americas Editor Ann Marie Kerwin talks with Preston Rutherford, cofounder of the men’s apparel brand Chubbies, and Marathon, a new platform designed to measure the revenue impact of brand initiatives.
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