forbes.com
Data-Driven Brand Measurement: The New Key to Growth
The shift from product-led to brand-led growth is driving increased investment in brand measurement companies like Tracksuit, which recently secured $25 million in Series B funding, reflecting a growing need for data-driven brand insights and a move towards quantifying brand impact.
- What are the primary reasons behind the rising importance of brand measurement in today's business landscape?
- Brand-led growth is replacing product-led growth as the key to success in the 2020s. However, most companies focus on measuring only the small percentage of customers ready to buy immediately, neglecting the much larger potential market. This oversight stems not from a lack of understanding of brand importance, but from uncertainty in measuring brand impact.
- How are venture capitalists and established companies responding to the need for better brand metrics, and what are their underlying motivations?
- The growing importance of brand measurement is driven by the increasing ease of copying product features due to AI and shorter attention spans. This trend is reflected in the recent $25 million Series B funding for Tracksuit, a brand measurement company, and the broader VC investment in this sector. Companies like VMG Partners view brand performance management as crucial for consumer-facing businesses, highlighting the shift towards data-driven brand building.
- What are the potential future implications of data-driven brand measurement for businesses, and how will this impact their strategies and decision-making?
- The future of brand building will involve data-driven insights similar to how HR has adopted people analytics. This will allow for understanding how campaigns build brand awareness, how emotional connections impact pricing, and how brand archetypes perform across different markets. This data-driven approach will bring a level of rigor and predictability to brand management that is currently lacking.
Cognitive Concepts
Framing Bias
The framing is strongly positive towards the increasing importance of brand measurement and the companies providing these services. The positive quotes from investors and company founders are highlighted, while potential drawbacks or limitations are less emphasized. The headline itself, "Why Brand-Led Growth is the Moat of the 2020s," frames brand-led growth as a superior strategy.
Language Bias
The language used is generally positive and enthusiastic about the trend toward brand measurement. Words like "moat," "enlightenment," and "indispensable" create a strong positive connotation. However, this is a common framing in business articles and may not constitute significant bias.
Bias by Omission
The article focuses heavily on the rise of brand measurement and the investment in companies like Tracksuit, potentially omitting other approaches to brand building or criticisms of the data-driven approach. While acknowledging limitations of scope is mentioned, a broader discussion of alternative methodologies or potential downsides of over-reliance on data could enhance the analysis.
False Dichotomy
The article presents a somewhat simplistic dichotomy between product-led growth and brand-led growth, suggesting a clear shift from one to the other. It overlooks the possibility of a blended or integrated approach, where both product and brand strategies are essential for success.
Gender Bias
The article features several male executives and founders, but doesn't appear to exhibit a significant gender bias in its language or representation. More information on the gender balance of the companies and the overall industry would be needed for a complete assessment.
Sustainable Development Goals
The article highlights the growing importance of brand measurement in driving business growth. Improved brand measurement leads to better marketing ROI, more efficient resource allocation, and ultimately, stronger economic performance for companies. This directly contributes to decent work and economic growth by enhancing business competitiveness and creating opportunities for professionals in the brand measurement field.