Short and long-term strategies need to be balanced both in terms of marketing strategy and in measurement of effectiveness. The advance of digital and social has created a growing focus on short-term impact. Emotion and personal connection are what generates long-term success.
Short-term strategies focus on immediate gain, for example a sales spike. In contrast, long-term strategies measure success over time – for example, the long-term price effects produced by a strong brand.
1. The ‘rule of thumb’ for ad investment is moving from 60:40 to 76:24 in favour of long-term brand-building work
According to UK researchers Les Binet and Peter Field, product-led, rational incentives show the most short-term success, while emotive brand-based storytelling drives growth over time. Benchmarks for short-term effect should therefore be immediate behavioural metrics, such as direct response rates, click-throughs or immediate sales uplifts. Benchmarks for long-term are share of voice, brand tracking, emotion-based metrics and price elasticity. Further, the authors found a 60:40 media budget split between brand-building channels and activation channels coincides with peak effectiveness and efficiency – however the importance of brand-building is growing over time; they estimate the current ratio should be closer to 76:24.