IMS tool tracks long-term brand ad impact on revenue

Independent Marketing Sciences has launched BrandEquity ROI, an econometric tool that measures the long-term commercial impact of brand advertising.

IMS said brands including Burger King, Bupa and Hovis have started using the product. The consultancy positioned the tool as a response to measurement approaches that focus on short-term sales uplift.

BrandEquity ROI uses modelling and metrics to estimate the impact of brand marketing on business performance over time. IMS said the tool also estimates how revenue changes in subsequent years when a company cuts brand investment.

Measurement focus

Marketing teams often allocate budgets between brand and performance activities. Performance tools commonly report results over shorter periods and tie them to immediate actions such as clicks or conversions. IMS argued that those approaches can miss longer-term effects.

IMS said BrandEquity ROI combines brand measures with commercial outcomes. It listed brand awareness, sentiment and reputation as inputs, alongside business KPIs such as sales and leads. IMS said it tests those KPIs for sensitivity to brand media. The company said the process identifies where brand advertising shows a discernible impact on business goals.

IMS also made claims about the relationship between sustained brand spend and future revenue. It said the tool's data indicate that a company that stops investing in brand activity for five consecutive years would need to invest seven times as much in marketing each year to achieve the same sales as a company that continues brand investment throughout.

In another finding, IMS said brand activity delivers 65% of its total value in the years after a campaign ends. The consultancy said that result shows a limitation in measurement approaches that focus on short-term impact.

Attribution debate

Marketers and finance teams have long debated how to measure the contribution of different channels. The debate has intensified as digital platforms have expanded their measurement products and brands have scrutinised marketing spend amid cost pressures.

IMS singled out platform attribution models in its comments on the market. "Performance marketing platforms from Google and Meta provide finance-friendly attribution models that overstate their own impact. Once a brand reaches maturity, we often see budgets cut and funds diverted from brand-building to protect short term margins. This leads to a cycle of decline in the business that is often impossible to revert," said Alex Vass, Founder and CEO, IMS.

Vass also framed the new product as a tool for internal budget discussions between marketing and finance leaders. "BrandEquity ROI protects mature brands from decline by providing CMOs and CFOs with a financial case for sustained brand investment, countering the common pressure to cut brand building marketing tactics. By quantifying long-term brand impact, BrandEquity ROI solves a critical gap in traditional measurement approaches," said Vass.

Agency positioning

IMS describes itself as an independent marketing effectiveness and data analytics consultancy. It said it works across econometrics, marketing and communications analytics, and media effectiveness. The company said it collaborates with brands across the UK, EU and the US.

BrandEquity ROI contributes to a growing market for measurement products that connect marketing activity to business outcomes over longer time horizons. The approach sits alongside marketing mix modelling and other econometric methods used by marketers for budget allocation decisions.

IMS said its modelling assesses what happens after a campaign ends. It also said its approach estimates the revenue decline that can follow cuts in brand investment. The company positioned that estimate as a way for brands to assess the long-term cost of reducing brand budgets.

IMS was founded in 2019 by analytics expert Alex Vass. The company said it provides analytics and marketing effectiveness advice to brands and agencies.

"Performance marketing platforms from Google and Meta provide finance-friendly attribution models that overstate their own impact. Once a brand reaches maturity, we often see budgets cut and funds diverted from brand-building to protect short term margins. This leads to a cycle of decline in the business that is often impossible to revert," said Alex Vass, Founder and CEO, IMS.