Marketing & Business Growth Aren’t Directly Linked: Why Brand Investment Matters

A quick question.....have you ever struggled with linking marketing results to actual business growth? If so, you’re not alone. Many marketers face the challenge of proving their impact, especially when sales teams expect immediate, tangible results.

The reality? Marketing is about more than just quick wins; it’s about building something that lasts and this starts with brand.

The Long Game of Branding

It can be tricky to connect marketing efforts directly to sales, but that’s because branding isn’t just about instant conversions. It’s about long-term impact. A strong brand strategy pays off over time and creates the right foundations for good marketing to follow if executed consistently and with adaptability to market conditions.

Marketing effectiveness experts Les Binet and Peter Field emphasise that "brand building not only generates volume but it also supports price, by reducing price elasticity."

Their extensive research, including the influential report "The Long and the Short of It," demonstrates that brand investment fuels business success. Investing in brand building increases market power, allows businesses to command a price premium, and ultimately drives sustainable growth. It’s not just theory, it’s proven through data. A well-executed brand strategy creates a media multiplier effect, meaning that each marketing effort builds on the last, creating exponential growth in awareness, preference, and loyalty.

The Pitfall of Short-Term Thinking

Unfortunately, many businesses, particularly smaller ones, don’t see the value of long-term brand investment. They focus too much on short-term sales metrics, using last-touch attribution to measure success. While this might show immediate spikes in revenue, it often ignores the deeper consumer behaviours that drive long-term profitability.

Dr. Grace Kite, founder of Magic Numbers, has extensively researched this challenge. She notes that businesses often reach a "performance plateau" when relying solely on short-term tactics, highlighting the need for brand building to sustain growth.

Consumers don’t just buy because they saw an ad or clicked on a link. They buy because they recognise, trust, and feel an emotional connection to a brand. That’s where storytelling and differentiation come in, without them, businesses struggle to create preference in a crowded market.

Why brand difference matters

IPA argue that while brands have never had better evidence of the value they add, the rules of how brands grow have shifted thanks to digital channels, sustainability concerns and inflation. Specifically, the IPA report that brands with high Difference achieved better growth and pricing power (the ability to command higher margins) than those relying mostly on salience or volume.

What drives “Difference”

“Difference” is more than distinctive design assets (colours, fonts, slogans): while those matter (30 %), over 70 % comes from intangible levers like positioning, product/service experience, innovation, range relevance, responsibility. To be a “breakthrough brand” (fast growers, strong entrants) means challenging category conventions, doing things differently and meaningfully, not just being different for difference’s sake.

Practical implications - What you should do

Ensure your brand strategy is emotionally differentiated: you need more than functional benefits, you need a story, a territory others aren’t in. Use a creative platform that can bring that story to life emotionally - and stick to it consistently (long-term campaigns rather than short bursts). Design for difference in your media & investment plan: choose high-attention, high-impact channels (including newer/social platforms) that reinforce your emotional differentiation. Implement an agile measurement framework that links to “meaningful difference,” not just salience or reach. And ensure different parts of your business (innovation, experience, sustainability) all fold into reinforcing that brand difference.

Why Difference is urgent now?

In inflationary times, margin matters more than volume: the blog highlights that a 1% increase in price can boost operating profit by 8% (citing McKinsey & Company), and Difference is strongly correlated with pricing power. Thus, building mental and physical availability (salience, distribution) is still important, but it’s not enough. To unlock full brand value, you must embed a meaningful difference.

The Role of Brand Tracking

To effectively measure the impact of brand investment, evolving and improving brand tracking methods is essential. According to Think Collectiv, brand tracking has long been a critical tool for understanding brand health and guiding strategic decisions. In the UK alone, brand tracking accounts for an estimated £1 billion annually, representing 15-20% of the market research industry. However, many businesses remain dissatisfied or uncertain about their brand tracking strategies. By refining these methods, companies can gain more accurate insights into consumer perceptions and the effectiveness of their branding efforts, leading to more informed decisions and better alignment with business growth objectives.

Why Brand Investment Pays Off

Branding is about memorability. It ensures that when a consumer has a need, your business is the first that comes to mind. This is called mental availability, and it’s a crucial factor in sustained business growth. Companies that invest in brand equity beyond just a logo refresh or surface-level changes see stronger returns in the long run.

Binet and Field's research suggests that the optimal balance between brand building and sales activation is around 60:40, with 60% of the budget allocated to brand-building activities.

Dr. Kite also emphasises the importance of recognising when it's the right time for brand building, stating that "you can get growth from scaling up performance marketing, but not forever."

That said, proving the link between brand investment and sales isn’t always straightforward. Beyond econometrics and long-term data analysis, there isn’t always a direct line between branding and immediate revenue. However, businesses that take brand-building seriously see undeniable improvements in market share, customer retention, and overall profitability.

Final Thoughts

So, back to the original question....can marketing prove its impact on business growth?

• Absolutely. But only if businesses commit to more than just a quick branding update.

• True brand investment builds mental availability, differentiation, and strengthens customer preference, and drives sustainable success.

• By evolving brand tracking strategies, companies can better understand and demonstrate the impact of their branding efforts.

If you’re ready to explore this further, I can share plenty of great resources to help. Let’s talk.