Brands that collaborate with influencers usually have two reasons for doing so: growth in sales and growth in branding. To what extent does this come true?
ROI Champions
To answer that question, it is good to reflect on ROI gurus Binet and Field. Recently, adidas announced a policy change in line with the guidelines of this duo. Shortly before that, the champions were discussed in this podcast .
One of the most famous charts of the gurus is the Zigzag chart buy bulk sms service The first represents activation , short term (peak increase sales) and the second long term ( brand building and higher turnover margins). Although the commitment per sector and type of business requires a different ratio, the commitment of both is required.
The duo showed that the importance of branding has increased even further since 1998. The optimal balance is about 25 percent activation and 75 percent brand building. Branding is the engine of long-term growth.
Simon Peel, adidas' Global Media Director, announces in the policy change that they will focus more on long-term marketing (branding). They have chosen the 40/60 ratio as the basis for all markets that the brand serves. In other words, adidas is reducing the focus on short-term results. This is in line with market-wide research by Binet and Field.
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