How To Measure Value of Brand Awareness

It is notoriously difficult to measure the efficacy of marketing efforts. Methods for assessing packaging design or traditional advertising campaign impact are very nebulous. That fact is often brought to explain the explosive growth of Google and other stalwarts of the digital marketing industry. After all, the digital funnel analysis can easily provide you with the cost of your customer acquisition while most brick and mortar marketing efforts cannot. 

However, the in-store demo campaign is one exception, as it indeed can provide complete accountability for every dollar invested. I would posit that most people undervalue an economic impact of in store demo, because they do not have a methodology to measure this impact holistically. In other words they figure that a return on investment in demo is only measured by amount of product sales during this demo. That is a very low hanging fruit, because it is easy to measure by looking at demo reports and/or POS data in stores. 

When you ask CPG brand builders why do they invest money and efforts in conducting demo campaigns, you will hear a combination of the following responses:

  • We want to increase our brand awareness
  • We want to show our support to retailers
  • We want to accelerate velocity of of our product inventory

All of the above are very worthy goals, so how would you know if you achieved them or not without assigning economic valuations to them? Economic valuation of the latter two goals are reasonably well represented by sales receipts achieved during the demo event and additional sales uplift during 3-4 weeks immediately following the event. The only sources of such data can be the store POS or the distributor sales order records.

The economic value of brand awareness can be calculated adopting the methods that are commonly used by digital marketers. Growing brand awareness means exposing your product and your brand to as many people as possible. One of the most effective promotional channels for building brand awareness is internet banner ads, that show up when you use keywords to find anything online. The price you would pay to Google for a moment of your potential customer’s attention (eyeballs) could potentially be used to value a moment of attention a shopper would give to your brand during a demo event. 

One may argue that the value of taste, direct communication with a brand ambassador, or holding a product in your customer hands, is considerably more or less valuable than a momentous click on your company’s ad banner. I think that such an argument is more dependent on your product, and does not negate the methodology as a whole. You can find a free copy of Demo ROI Calculator template by clicking on this link.

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