A massive disconnect in the advertising world
The issue boils down to a misalignment. While many CMOs and brands value indicators of long term success, agency planners and buyers are held accountable for short term success. This disconnect means brands are paying attention to commodity driven metrics, but ignoring the metrics that matter, like long term brand awareness.
Metrics that miss the mark: Too much focus is placed on click-through rates, impressions, or other isolated performance indicators that fail to tell the full story of effectiveness. These data points don’t give brands insights into consumer behavior or awareness.
The race to the bottom: The focus on short-term metrics forces agencies and vendors to compete in a “race to the bottom,” chasing the lowest cost-per-delivery while squeezing margins. This has led to the commoditization of services, diminished creativity, and, ultimately, a compromised product.
Collateral damage: The fallout of this mentality includes widespread fraud, the increase of Made-for-Advertising (MFA) sites, and up to 60% of ad spend wasted in the name of driving “highest yield” at the lowest cost.
And yet, the industry as a whole agrees on the findings of Les Binet and Peter Field: long-term brand building consistently outperforms short-term tactics. In their research titled The Long and Short of It, they found that the most effective ad strategies allocate 60% of ad spend to long term brand building and 40% to short term activations.
The case for long-term thinking: lessons from McCain
One example of the power of long-term brand strategy is McCain, the chip brand. Even though it’s a household name, shoppers were pulling back and looking for cheaper alternatives. Promotional tactics were delivering short-term volume, but were also shrinking margins and revenue.
McCain understood the importance of long term brand building, and decided to spend more ad dollars on building brand awareness. As a result:
Price Elasticity Reduced by 47%
Base Sales Increased by 44%
Profit ROI Climbed to £1.50 and continued to rise
Mark Hodge, VP Marketing at McCain, credited their success to a disciplined, long-term mindset:
“At the core of this success story is the mindset shift to see brands as being built over years and decades, not quarters. This testament to long-term thinking is something that is now encouraged across markets as well as upheld in our own.”
Why do we still hear “no” so often?
If case studies like McCain’s prove the effectiveness of long-term brand building, why does it remain so difficult to get buy-in for these strategies? Why do we hear 99 “no’s” before a single “yes”?
Most brands are obsessed with quarterly results and instant feedback on ad spend. Long term thinking and consistency are often thought of as impractical. Because of this:
Many brands prioritize immediate wins over lasting value.
Agencies are pushed into a reactive mode, catering to short-term KPIs (like CPM and click-through-rate) rather than advocating for long term strategies.
The industry maintains a culture of disposability rather than sustainability.
Where are the brand builders?
If CMOs and marketing leaders truly value long-term brand health, why does it take so many pitches to convince them? Where are the brand builders willing to trust the process, invest in the future, and reject the “quick-fix” mentality?
The answer, we believe, lies in education and advocacy. We know the impact of long-term brand building. We’ve seen it work, and we’ll keep championing it. For every “no,” there’s a “yes” waiting to be unlocked—and that’s why we’re here.
The advertising industry has always been able to recalibrate when a strategy isn’t working. This is why we’re so optimistic that companies will come around to a focus on long term brand building. It’s not just about winning pitches. It’s about proving the value of what we stand for. And that? That’s worth every single “no” along the way.
