Ad Spending – A Driving Force of Value
Consistent ad spending is a driving force in creating brand value. Other forms of communications, such as public relations, investor relations, employee relations, and social media, contribute an additional 23%.
With many events, such as economic uncertainty, falling outside the control of a public company, it would be a mistake to slash advertising, a relatively sure thing that can improve a company’s valuation.
Communications of all types have an impact on brand image. Whether planned or unplanned, everything you say and do as a corporation will impact the image of your company.
CoreBrand research shows the more a company spends on advertising, the better its chances of improving its reputation. The less a company spends on advertising, the more likely its image suffers and the higher its risk during an unforeseen crisis. Earnings growth and stock performance consistently rise and fall with image. Therefore, brand image (Familiarity and Favorability) impacts the financial value of a company in terms of stock price and revenue.
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CoreBrand Data Science, a Tenet Partners Company
CoreBrand uses quantitative research from 10,000 consumers and business decision makers to measure brand awareness (Familiarity) and perception (Favorability) for each company in its database, which is then combined to calculate a company’s brand strength, or “BrandPower.” This leads to a natural mechanism for optimizing advertising investment and ROI strategy.
The CoreBrand methodology is aligned to ISO standards and reviewed by the Marketing Accountability Standards Board (MASB) MMAP auditors. CoreBrand Data Science is leading major changes in how companies evaluate brand performance and actively manage investments for higher returns. For more information about CoreBrand Data Science, visit https://corebrand.co.