Recent studies have shown unanimously that recognizable brands convert at up to 300% more than companies with no little or no brand recognition. The industry ecommerce average is hovering in the 1% range; Staples.com has a 20% conversion rate.
The problem is that companies are spending more and more of their dollars online. Online advertising companies are very direct-response driven. Clients expect to see the ROI for every dollar spent. This data has been a 2-edged sword. It is great that you can see where your dollar goes; in fact, I pitch it all day long. The problem is that the very ability that allows us to see the fine detail of where marketing dollars goes gets clients (of all sizes) away from branding and simply obsessed with a sale or conversion. In addition to this, most online businesses are not funded and require making a profit each month on its marketing dollar. This makes it very hard as a combination direct response/branding campaign is hard to pull off.
It is my belief that the internet will do a dramatic shift from itsâ€™ early pioneers of young people building seriously profitable garage-based businesses to large brands dominating the space. The â€œlittle guysâ€ need to start coming up with a clever way to get people brand aware before it is too late.