Need to know

  • While brand equity is defined as the value of a brand, advertising equity can be defined as the value of a brand’s advertising. Advertising equity is not captured by traditional brand strength measures.
  • Benefits of strong advertising equity:
    • If a company's previous advertising is perceived as worthy of attention, consumers are likely to want to see their advertising even in the future.
    • Companies that have high quality communications are also perceived to offer better products and be better at product development.
    • If employees like the advertising and perceive it to be effective, it creates stronger motivation to participate and contribute to the company's development.
    • It adds value to the context of the advertising. Consumers are prepared to pay more for media that contains advertising from strong brands than for media with the same editorial content, but advertising from weaker brands.
    • A high advertising equity can make advertising investment more efficient, and the brand can achieve higher effectiveness at a lower cost.
  • There are no shortcuts. In order to develop a strong advertising equity, you have to start with great, creative advertising, planned for a long-term campaign.
  • Measure your advertising equity on a regular basis, this can provide support for investment decisions on future communications and highlight the value of the marketing function.
  • If the advertising equity is low, it is wise to work mainly with broad, mass-media channels. If you have a high advertising equity, the possibilities of SEO, viral spread and earned media increases.
  • Before updating or replacing an advertising concept, measure the advertising equity of current creative.

Introduction