Why is brand awareness so important?
Brand awareness is an oft-discussed goal of many advertising campaigns, but what makes it so crucial? Two key concepts, the 95-5 Rule and the Rule of Three in every Purchase Decision, explain why building brand awareness is as, or more, important than other key KPIs:
The 95-5 Rule
According to the Ehrenber-Bass Institute, up to 95% of potential buyers are not in the market to buy a brand’s products or services at any given time. Consumers are not moved in-market by marketers, but by themselves depending on their needs.
The Rule of Three
Research done by BBN provides solid insight into the purchase decision making process that consumers go through when they move into buying mode. The first search engine that consumers use in this mode is their head- and brands only one to three brands come to mind.
After adding competitors through research and narrowing down to those that can resolve their need or problem, 90% of the time, the brand that is chosen is one of the initial three brands that came to the consumer’s mind initially.
Putting these two rules together shows that brand awareness is crucial to building sales: brands that are remembered are brands that are bought. Those companies who are most memorable for the 5% of in-market potential buyers are 90% more likely than other brands to clinch the sale. Building awareness primes future buyers to choose your brand when they come in-market.
OOH is unbeatable for building brand awareness. The always-on, un-skippable, and everyday nature of the medium is perfectly suited for building all three components of this crucial marketing goal- brand recall, recognition, and dominance.
According to the OAAA, 88% of US adults have noticed an OOH ad in the past month. Repeated, frequent views of advertising messaging build familiarity with a brand's visual appearance, personality, offerings, and more, allowing your brand to stay top of mind when consumers come into market for your product.