IMS launches tool to measure commercial impact of brand advertising
Marketing effectiveness consultancy Independent Marketing Sciences has launched BrandEquity ROI, an econometric tool designed to measure the long-term impact of brand marketing on business performance.
The tool is already being used by brands including Burger King, Bupa and Hovis to assess how brand advertising contributes to underlying revenue over time, beyond short-term sales uplift.
Measuring long-term brand impact
BrandEquity ROI is positioned as an alternative to performance-focused analytics that prioritise immediate results. Its modelling shows how revenue is affected in the years following changes to brand investment, including the long-term consequences of reducing spend.
The methodology links brand metrics such as awareness, sentiment and reputation with business indicators including sales and leads. These relationships are then tested for sensitivity to brand media to identify where brand advertising influences commercial outcomes and which strategies are more likely to support sustained growth.
Challenging short-term measurement
Data generated by BrandEquity ROI suggests that cutting brand spend can undermine future performance. According to the analysis, a company that halts brand investment for five consecutive years would need to spend seven times more on marketing each year to achieve the same level of sales as a business that maintained consistent brand support.
The modelling also indicates that brand activity delivers sixty five percent of its total value after a campaign has ended, highlighting the limitations of relying solely on short-term measurement frameworks.
Providing a financial case for brand investment
Alex Vass, founder and CEO, Independent Marketing Sciences: “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.”
Alex Vass, founder and CEO, Independent Marketing Sciences: “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.”
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