Brand equity
DefinitionBrand Strategy
Brand equity
The differential effect that knowing the brand has on a customer's response to its marketing: the same product, price and ad work harder when the brand is familiar and positively linked in memory. The reason strong brands convert cheaper and price higher.
Evidence from the library
Brand creates value through cheaper acquisition, more value per customer, and a moatPrinciple2:1Brand Memory Lift weighs brand-awareness gains twice as heavily as ad-recall gains, replacing impressions as the creator success metric.Principle52% / 62%Brands with the strongest distinctive assets are 52% more salient (Kantar) and their campaigns perform 62% better (Ebiquity) than weaker-asset rivals.Stat28%Where brand equity is actually builtStat+0.6% long, +0.4% shortRaising brand awareness lifts short-term sales as well as long-term onesStat
Source
Marketing Definitions
Kevin Lane Keller, Conceptualizing, Measuring, and Managing Customer-Based Brand Equity (1993)
More from this source
DefinitionMarket penetrationDefinitionMental availabilityDefinitionPhysical availabilityDefinitionBrand salienceDefinitionCategory entry points (CEPs)DefinitionDistinctive brand assetsDefinitionBrand positioningDefinitionBrand architectureDefinitionBrand awarenessDefinitionMarket shareDefinitionFuture demandDefinitionValue proposition
We wrote about this
The Death of the Tab Switch and the Rise of the Chat-AdAgentic AI and Safe Pixels: The Brand Strategy for the New Creative PipelineGoogle's Ad Agents and Runway's Figma Link: The AI Shift in Ad WorkflowsGPT-6 Astra and $1B ChatGPT Ads: The Week AI Claimed AGI and Sent the InvoiceThe Engagement Trap: Creator Metrics Point the Wrong Way Two-Thirds of the TimeThe Brand Equity Illusion: 71% of your brand equity is NOT built via paid media