Identity in Crisis

This eye-opening report by Ipsos and Jones Knowles Ritchie (JKR)[1] reveals a startling truth: only 15% of brand assets (such as logos, colors, typography, mascot, etc.) possess true distinctiveness.  What this means in business terms is that a substantial portion of the $1.6 Trillion global annual marketing investment will be wasted on branded assets that lack distinctiveness and will go unnoticed!

While not entirely unexpected, these results are remarkable given the recognized importance of having a distinct brand identity. Distinctive brand assets form the very foundation of a company's brand identity. The more integrated and strategically distinct these assets are, the greater the benefits they bring:

👉🏼  Higher return on advertising investment

👉🏼 Higher level of trust and reduced buyer doubt

👉🏼 Stronger brand identity

👉🏼 Price premium

According to the Corporate Executive Board (CEB), companies with a strong and differentiated brand identity can even demand a price premium of up to 13% compared to their competitors.

So, why are we witnessing such a low percentage of distinctive brand assets?

✔️ Understanding: There is a lack of in-depth knowledge and understanding of the elements that make a brand asset strategically and authentically distinctive. For example, the report reveals that brand slogans and color choices perform extremely poorly in distinctiveness. Furthermore, many companies fail to comprehend what elements set their assets apart and make the identity distinct within their specific business or product category.

✔️ Testing: Insufficient testing is conducted to measure the distinctiveness of brand assets. Decisions regarding brand asset creation or modifications are often made based on internal preferences rather than objective evaluation.

✔️ Consistency: Brand distinctiveness alone is insufficient to leave a lasting impact. Consistency plays a vital role in reinforcing, making memorable, and differentiating a brand's distinctiveness over time. Lack of consistency in brand assets makes it more challenging for a brand to establish itself as truly distinctive in the minds of audiences.

✔️ Investment - There is understandably a reluctance to modify brand assets, particularly for major brands that have made significant investments in establishing their visual identity, such as a logo. However, it's essential to question whether these assets work effectively for the brand. The investment becomes a wasted opportunity if they are not distinct and fail to resonate with the target audience.

[1] https://bedistinctive.jkrglobal.com