Broadly speaking marketing can be split into two distinct subsets:

1. Direct Response

This type of activity is primarily focused on driving the customer directly to purchase – examples include paid search advertising, email, direct mail etc

2. Brand

This type of activity is primarily focussed on increasing the visibility of the brand and ultimately increasing brand awareness amongst your target audience (i.e. the people who might be interested in purchasing from you / using your services.

Now clearly, it’s not as cut and dried as this, as inevitably direct response advertising may positively impact brand awareness, and brand advertising may indeed generate direct sales.

To understand the importance of brand v direct response it’s useful to consider how consumers might find you. 

1. Brand – they are looking specifically for you. In this instance the consumer spontaneously recalls your brand and are searching specifically for it. An example of this would be a consumer searching for ‘Compare the Market’ when they need car insurance, rather than searching for the more generic ‘car insurance’.
2. Specific Product or Service – here the reverse is true – the consumer searches for ‘car insurance’ rather than a specific brand.
3. Ambient – here the consumer isn’t looking at all. They may not be aware of the product or service which you offer, but you make them aware of it.
4. Existing Customer - an existing customer may decide to return to you
5. Recommendation - someone who comes to you because someone else has recommended your product or service

There are of course many other ways that consumers ‘find’ brands, but just using the five examples above we can begin to see the importance of both brand and direct response techniques.

Many companies elect simply to utilise direct response techniques – this is because broadly speaking, these techniques are easy to measure, and when executed well, offer an excellent return on investment. For example, many companies elect only to run SEO and Paid Search campaigns.

No bad thing, some might say, and indeed these campaigns are cost effective; however – ultimately these companies are only advertising to those who are already looking. Chances are, unless you actively search online for the particular product or service which these companies offer, you might never know they exist.

Which is a bit of a shame, because if you look at the list above they are only hitting 3 of the 5 possibilities – i.e. people searching for a specific product or service; existing customers (although, they’re really only hitting these customers by default – they aren’t actively marketing to them), and they may pick up some recommendations.

I’m not trying to infer that direct response marketing is inferior to brand marketing – it’s not. I think in fact, that a balance of direct response and brand marketing often yield the best overall results.

We recently saw just that with one of our clients who in addition to their existing SEO and PPC campaign decided to do some TV & radio advertising. As a result, month on month they saw a 10% uplift in online leads alone – not to mention an further increases in offline leads (via their call centre and in store). Very impressive – particularly given the current economic climate!

We also observed that customers who arrive on websites from branded search terms convert at a much higher rate than those from generic search terms.

Interesting stuff, huh? As with any marketing activity, we would of course recommend a test and learn approach – but we think it illustrates the strength of integrating brand and direct response marketing strategies within a single campaign.

Image credit Heideho

This entry was posted on Thursday, April 16th, 2009 at 4:28 pm and is filed under Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.