Brand investment matters to the City, reveals new IPA/Brand Finance survey
A recent article from the IPA discusses the findings of the IPA/Brand Finance Investment Analyst Survey, highlighting that investment analysts consider brand strength crucial for a company’s success.
The survey, involving over 200 financial analysts from the US and UK, reveals that 79% prioritise “Strength of brand/marketing” over leadership quality and technological innovation when appraising companies. Additionally, it uncovers a positive shift towards viewing advertising as an investment rather than a cost, with implications for marketing’s role in driving organic growth and profit margins.
However, there’s a recognised need for better education about marketing’s broader financial impacts, suggesting a move towards capitalising marketing spend similarly to technology R&D. Recommendations include advocating for marketing as an investment and improving how marketing spend is accounted for and reported, underscoring the long-term value of branding efforts.
For a detailed read, visit the IPA’s article directly here.