For more than a decade, performance marketing has claimed an outsized share of CMO attention—and budget. But new research from The Multiplier Effect: A CMO’s Guide to Brand Building in the Performance Era reveals a deeper truth: the most powerful results come not from performance or brand alone, but from a smart, integrated approach that connects the two. 

Developed in collaboration with WARC, Analytic Partners, BERA and System1, this landmark report offers one of the clearest cases yet for full-funnel marketing—Prophet is proud to have played a central role in bringing it to life. Through our work designing and executing brand and demand strategies that deliver measurable business impact for our clients, we know that when brand and performance work together, growth multiplies. 

The Myth of the Performance-Only Playbook 

The research confronts a long-standing myth: that brand marketing can’t deliver provable business results. The data tells a different story: 

• Brand marketing alone outperforms performance marketing in ROI. 
• When brand and performance efforts are combined, the return on investment increases by an extraordinary 90%. 
• High brand awareness makes performance campaigns more effective at the bottom of the funnel. 
• Stronger brands enjoy greater pricing power—improving profitability, not just reach. In fact, a 1% increase in brand differentiation and relevance drives a 0.6% lift in pricing power. 

These insights are particularly important in categories where consideration cycles are long. In B2B, for example, just 5% of buyers are in-market at any given time. Performance tactics focused only on in-market buyers will always miss the majority of the audience. Investing in brand ensures you’re influencing choice long before a prospect raises their hand. 

Why CMOs Need a New Approach 

The distinction between brand and performance marketing is increasingly outdated—and, as the report shows, costly. Over-prioritizing performance at the expense of brand leads to a “performance penalty,” where revenue returns can drop between 20% and 50%. The solution? A more balanced and integrated investment strategy: 

• CMOs should allocate at least 30% of marketing spend to equity-driving work, with 40–60% considered best practice. 
• Marketers need to shift from siloed brand and performance teams to integrated planning, aligning campaigns around full-funnel creative platforms. 
• Budgets should account for the “media multiplier”—the longer-term value of media investments—which can range from 1.1x to 2x, depending on the channel. 
•  Have patience—but not that much… while performance marketing might show an initial bump in sales, within 90 days, 50% of the brand impact will be realized 

Finally, marketers need the tools to measure what really matters. The report encourages building a “measurement stack” that tracks both short- and long-term impact—from immediate campaign returns to effects on pricing, preference, and brand equity. 

How to Win Across the Funnel 

At Prophet, we’ve long believed that sustainable, uncommon growth comes from integrating brand and demand. That’s why we help CMOs and marketing teams not only define their brand’s purpose and positioning—but also bring it to market through strategies that drive awareness, conversion, and loyalty. 

Our work with clients like PENN Entertainment, FM, Inspira Financial and Curative demonstrates how a full-funnel approach pays off: 

• For Inspira Financial, we led a full rebrand from Millennium Trust, delivering everything from strategic foundations to campaign creative and media execution. 
• For Curative, an innovative health insurance challenger, we partnered across two phases: building the brand and go-to-market story, then developing a high-performance ABM demand strategy. The result? Record-breaking mid- and lower-funnel engagement and rapid customer growth. 

CMOs have long talked about collapsing organizational silos, creating a single view of the customer, and fostering a genuinely holistic business approach. Many even fancy themselves as working toward that. But in today’s economic climate, where contributing to measurable, meaningful growth and aligning their goals to the business’ has become part of every CMOs charter, it will likely come as a surprise that others see marketing not as part of the solution but part of the problem: Recent research from Gartner finds that 55% of business collaborators say marketing inhibits the success of cross-functional initiatives. 

Too many marketing organizations are not built to support the needs of the business. Often, marketing isn’t contributing to growth in the way that it theoretically should, because it can’t. Misalignment between functions – frequently sales, marketing and product – has created a series of disintermediated metrics and key performance indicators. The result is that there is too little (and sometimes zero) alignment on business-level goals.  

The C-suite, especially CEOs and CFOs are losing patience and becoming more vocal about what matters: Return on investment. Revenue attribution. Pipeline progression. Intersection with sales. What they’re sick of hearing? More about marketing creative, Net Promoter Scores or metrics that are disconnected from financial performance. CMOs need to think in terms of business performance. 

As organizations integrate more demand generation capabilities into their strategy– this puts increased requirements on relevant content, integrated sales and marketing data, and the need for holistic customer experience understanding in too many ways, they are still a throwback to the decades-old approach of spraying, praying and pushing people along in the funnel.  

The entire marketing process must be optimized to support in-market demand generation use cases.  

We know it isn’t as sexy as spending on award-winning advertising campaigns. To find meaningful growth, CMOs need to focus on operating processes and lay the organization-wide groundwork for integrated brand-to-demand strategies. They need to think about GAAP performance measures in addition to Cannes, partnering closely across the C-suite to focus on business metrics.  

Is Your Organization Built for Growth? Answer These Three Questions 

CMOs have been sprinkling the right buzzwords into their strategy plans for years, and many talk a good game around the integration of brand and demand. However, the urgency is increasing: Sharper tech and increased focus on ROI make it increasingly futile for CMOs to hide outdated marketing processes. Growth-oriented CMOs should consider these three immediate-term steps and ask themselves:  

Are your brand and demand marketing teams truly integrated?

Think hard about the demand marketing processes already in place. Are they written into and coded within marketing automation? Is everyone clear about the brand governance touchpoints throughout the performance marketing process?  

What are we learning and where can we experiment to optimize our efforts?

Solution-focused CMOs are always looking for growth, which means establishing and piloting next-gen demand marketing use cases. This often starts with an evaluation of historical in-market performance against benchmarks to review areas for improvement and experimentation. These experiments must be ongoing, defining and pressure-testing updates to process and operating models. Those insights will help inform end-to-end campaigns that bring teams together, documenting and codifying the process from the very beginning, making it easier to replicate them. 

Does your team have the right mix of skills to deliver across both brand and demand requirements?

Customer-centric and growth-minded CMOs need to balance the right capabilities to deliver against expanded requirements of end-to-end brand and demand campaigns. This means having the ability to scale creative and content across channels and touchpoints AND supporting performance optimization with analytical rigor. 

We regularly have the great fortune to spend time with clients at their marketing leadership offsites. As they assess how effectively they have delivered against their current year plans, it is equally critical that they begin to look towards emerging trends that impact next year’s marketing plans.  

Marketers today are wrestling with seismic change in understanding rapidly changing customer experience needs, marketplace disruption, competitive landscape and organizational challenges. At least 40% of U.S. CEOs expect CMOs to focus on five key growth challenges: revenue, market share, competition, reputation and company narrative.  

The expectations for return on investment have never been higher. Navigating the noise and delivering business outcomes is the CMO’s new mission. It requires new skills, insights, measurement and tremendous focus on execution. In our recent analysis of key trends facing marketing leaders, we found four emerging trends for 2025 planning to build your strategy for staying ahead.

1. Integrate Brand and Demand  

More and more clients are evolving their annual marketing plan to integrate brand and demand into a single growth plan. Some are even substituting the customer journey for the funnel as the backdrop to uncover gaps or identify more opportunities at every touchpoint. Our ongoing research, ”Brand and Demand Marketing: A Love Story” backs up this approach to break down silos and plan brand and performance plans together. Winning organizations are 3X more likely to take a fully integrated approach to connect brand and demand. Whether you’re preparing a brand or product launch or need to find other routes to growth, this could be the year you take integrated planning to a new level, building stronger relationships across the organization and a foundation for bigger impact. You’ll hear much more from us both on launching brands and how to integrate brand and demand as our latest research report launches.  

2. Provide Marketing’s POV on AI 

AI in marketing being top of mind won’t be a surprise to any marketer reading this post. It is estimated that AI will drive $100 billion in revenue by 2027. With more money than ever being funneled into new AI technology, it should be apparent that the impact on customer experience, insights and new ways of working will reshape how marketing is delivered. With a perpetual need to drive more personalized communication in the market and meet the insatiable need for content that resonates with buyers, AI holds great promise to deliver more with less resources. The C-Suite is grappling with broad-ranging opportunities to leverage AI technology, and the marketing leader is uniquely positioned to think through the firm’s position on AI, how it can be used to enhance customer touch points and how AI can drive more scale in marketing efforts. AI can be integrated into nearly every section of your 2025 plan. See how we started to organize use cases here to maximize AI’s value.  

3. Embrace the Next Wave of Data-Driven Marketing 

Delivering data-driven marketing and advancing customer insight remain a key domain of the modern marketing leader. Understanding the customer has been a staple of marketing’s role within the organization and there are more ways than ever to get more data on customer wants and needs. However, efforts to capture customer data and find prospective customers in the wild are growing more complex and challenging. More companies than ever before are embarking on building sophisticated first-party data understanding and reach. In addition, marketers are developing new lead generation and management capabilities that deliver more contextually relevant and personalized experiences. All of this is happening with a relentless focus on attribution, measurement, and the ability to prove business impact. More than half of brands (60%) quantify the value of engagement on social in terms of revenue impact, 57% use it to track conversions and sales directly resulting from social efforts and 51% use it to optimize their product development or marketing strategy. Data enrichment, identity management and the ability to leverage new technology are the newest set of differentiating skills that marketing leaders are addressing. 

4. Rethink Effectiveness in an Ever-Evolving Media Landscape 

Worldwide ad spending will grow nearly 10% in 2024, for a total of $992 billion. Almost 70% of that will be spent on digital advertising, which will see a spending increase of more than 13%—well above its 2022 and 2023 growth rates. As ever, diverse forms of media play a key role in the toolkit for marketers, with continued growth in out-of-home (OOH), fueled by digital OOH and eyes on emerging retail media. An evolving landscape in how media is delivered and regulated is creating significant disruption and opportunity. Global advertising spend continues to increase, as cookie-based advertising is being turned off, FAST TV is emerging, the influencer market is maturing, and there are a swath of regulatory and legal decisions pending. Each of these changes brings opportunity, a need for new capability building, impacts on budgets and an increase in marketing leadership needs.  

Caroline Chulick is the Head of U.S. Marketing at Hill’s Pet Nutrition, a subsidiary of Colgate-Palmolive, where she leads brand strategy, media, data & analytics, integrated commerce and public relations for a premium pet food business. 

Kate Price: Given the increased focus on accountability and ROI in marketing, how has your experience been, and what shifts have you observed in your approach to demonstrate impact? 

Caroline Chulick: In my 20 years at Colgate-Palmolive, there has been a consistent strategic focus and commitment to driving ROI and measurement. However, recently there has been a noticeable shift in expectations and the way we approach demonstrating impact. With increased investment in brand building, there is greater rigor in tracking where these investments go. The key lies in aligning investments, tactics, and the entire funnel with well-defined business goals in the planning phase. The C-suite places trust in the marketing team to deliver results, but there is certainly a heightened expectation for faster feedback cycles. The cadence for presenting outcomes has increased, particularly in short-term, behavior-driven data, requiring a faster test-learn-pivot cycle. For marketing to be successful, educating senior leaders on evolving marketing approaches and technologies is a crucial aspect. There’s a general acceptance around continuous learning and our leaders understand that the traditional approaches may not be effective in the current landscape. And, we’ve found that they are always excited to learn more. 

KP: Within your organization, how has cross-functional collaboration evolved, especially in terms of partnering with other internal business units? 

CC: In the realm of CPG marketing, cross-functional collaboration has always been fundamental. However, the transformation lies in how this collaboration has evolved, particularly in the past three years. The game-changer is the increasing maturity of data within the organization. While traditional collaboration involved departments such as supply chain, sales, finance and legal, the difference now is the profound impact of data across every facet of the organization. Data-driven partnerships have become the norm, influencing how we go to market in areas like warehousing, frontline sales and end-user interactions. 

As an example, we initiated a data partnership for media purposes, which unexpectedly transformed how we approached veterinary clinics in our sales strategy. The newfound data visibility allowed us to discern critical differences between two seemingly similar clinics. Through our data, we discovered that Clinic A was loyal to our brand and distinct from Clinic B, which was also ordered just as much from a competitor. This revelation reshaped how we engaged with each clinic, providing tailored conversations and sales strategies. The availability of this data has revolutionized not only how we approach the market, but also how we tier and equip our salesforce for more effective interactions. 

These evolving dynamics in B2B marketing showcase the potential for leveraging data to achieve precise, personalized interactions akin to the one-to-one marketing approach in the consumer space. 

KP: We published a report called Brand and Demand: A Love Story which talks about the tension between the two functions. How do you balance your brand and demand marketing investments? 

CC: The dynamic between brand and demand is a nuanced one for us. Brand, which has traditionally been associated with long-term equity building, now intertwines with demand, which is focused on short-term actions. For us, the two are interlinked, and we’ve observed that our short-term (ROI) for brand building is as impactful, if not more, than it is for product-specific initiatives. Our data-driven approach allows us to find a unique balance, where we test and optimize the mix to align with our brand’s specific strengths and audience penetration. For us, it’s the strategic fusion of both that typically yield the best outcomes. 

An important component for creating an optimal balance is our team dynamics. Physical collaboration spaces and a culture of curiosity and continuous learning have been key in breaking down silos and fostering cross-functional collaboration. Our team operates with a shared understanding that we’re not just building a product; we’re crafting a brand, a lifestyle, and a connection with our audience. This distinction motivates our team, aligning their efforts to build equity and deliver a meaningful brand experience. The nature of our category, focused on pets and families, adds a layer of emotional engagement, creating a sense of purpose for our team.  

We’ve also shifted our key performance indicators (KPIs) to encourage collaborative achievements, reinforcing that synergies between different strengths and focuses lead to more impactful outcomes. My role as a leader involves connecting these dots, facilitating collaboration and removing any barriers the teams encounter. 

KP: In the report, we found four common principles of brand and demand: anchoring marketing investment in business objectives, experimentation, building a modern marketing organization and putting the customer at the center. Do you agree with these and how do you apply these to your organization? 

CC: I do agree with these principles. Anchoring our marketing investment in business objectives is a fundamental principle that we actively embrace. Each year, we set ambitious goals, some with a short-term focus and others with a strategic, three-to-five-year horizon. The key lies in translating these objectives into actionable plans through what we call a brand growth plan. This plan serves as our roadmap, and KPIs are the compass guiding our progress. The process involves a continuous cycle of testing, learning, and pivoting, ensuring we stay agile and effective in achieving our business objectives. 

As it relates to experimentation, it is not just encouraged. but ingrained in our culture. I recall a valuable lesson several years ago from an executive leader and mentor that came while I was working on a new direct-to-consumer project. He actually urged me to fail! The rationale was clear: if we’re not failing, we’re not pushing the company beyond its comfort zone. Failure isn’t a setback; it’s a sign that we’re challenging the status quo. Experimentation, accompanied by a willingness to fail, is vital for growth and innovation. 

Building a modern marketing organization requires a dynamic approach. In my three years in the current role, I’ve repeatedly recognized the need to adapt our organizational structure. The pace of change and growth demands a constant pulse on the people, structure, tools, and resources within the organization. 

Being customer-centric is not just a philosophy; it’s a way of life in our organization. Every initiative, product, or experience starts with a customer insight or a pain point that needs addressing. The commitment is to solve problems or make lives easier, ensuring that each effort is purpose-driven. 

KP: What excites you about the market in the next couple of years, and how are you preparing your organization for upcoming shifts? 

CC: What excites me most about the future are strategic partnerships and a focus on audience-first planning. We are actively seeking unconventional partnerships across the pet space, expanding our role from a nutrition company to a comprehensive pet health solution. Additionally, the shift to audience-first planning is a key evolution in strategy. This approach, which is rooted in understanding and addressing audience needs, goes beyond traditional campaign planning. The challenge lies in balancing the emotional and product-centered needs, ensuring that personalized, audience-centric strategies coexist harmoniously. The exploration of these new frontiers aligns nicely with our commitment to continuous innovation and adaptation to evolving market dynamics. 

Colin Westcott-Pitt is the Global Chief Brand Officer at Glanbia Performance Nutrition where he is responsible for the development and oversight of their brand portfolio. 

Kate Price: Given the disruption of the last few years, marketers are being asked to take on greater accountability and demonstrate the impact and ROI of their marketing investment while creating tighter alignment with overall business objectives. How have you shifted your strategy in response to these challenges? 

Colin Westcott-Pitt: Certainly, the disruption in recent years has been a significant factor in reshaping our marketing priorities. Although, I’ve never viewed business outcomes in conflict with marketing outcomes. In fact, we’ve always operated with the mindset that one leads to another. At a brand’s core, it comes down to revenue and margin objectives. While there might be instances where marketers are overly focused on awareness or perception, in the current landscape it’s essential to strike a balance and recognize that marketing plays a crucial role in driving revenue and overall business success. 

To address the disruption, we’ve adopted a balanced scorecard approach to measure impact and ROI. This involves incorporating both short-term and medium to long-term measures. Recognizing the importance of a balanced strategy, we understand that there is no long-term without the short-term.  

We’ve taken a hard look at the role of data and how to apply it effectively has become essential for identifying growth opportunities, ensuring a balance between existing and new consumers, and ultimately driving strategic decision-making. The challenge lies in ensuring that the organization, at all levels, is fluent in interpreting and applying this data effectively. It’s crucial for the insights and analytics group to simplify complex data for broader understanding. 

KP: How have conversations with your C-suite evolved in light of recent disruptions and how has that impacted the role of brand at your organization? 

CWP: Our conversations have changed significantly. Our leadership team is increasingly engaged and curious about the changing landscape. They increasingly understand the shifting dynamics and ask more of marketing. They often begin with business objectives, emphasizing the importance of linking marketing initiatives to broader organizational goals. 

However, while marketing has undoubtedly become more data-driven and shifted towards performance metrics, the role of storytelling cannot be overlooked. We strive to find a unifying principle that everyone can align with, and that principle is often the brand. We reject the notion of silos where marketing is solely responsible for the brand. Instead, we emphasize that everyone plays a crucial role in shaping the brand experience. This approach helps break down barriers and encourages collaboration. We recognize the importance of each function, whether it’s marketing, manufacturing, or sales, in contributing to the overall success of the brand. Small initiatives, like rewarding employees with branded merchandise, can foster a sense of unity and shared purpose. 

Challenges arise when the brand is not perceived as fundamental. In functions such as finance or manufacturing, for example, it is a key task of marketing to help these teams understand the role of brand across these various departments. To do this, it requires a meaningful effort to communicate that everyone contributes to the success of the brand and, by extension, the business. It’s about instilling a sense of appreciation for the unique role each function plays in achieving overall success. We come back to the phrase “everyone has a unique contribution to success” which reinforces the idea that each person, regardless of their role or function, is integral to the overall success of the brand and the business. It doesn’t always have to be a big initiative. We hit a major milestone in our business this year and handed out t-shirts to all of our teams, which was a relatively small thing, but from an internal employee engagement, it made everybody feel like part of the story. The small things can sometimes go a long way. 

KP: How do you navigate the tensions between brand and demand, especially in the context of demand marketing and short-term performance? 

CWP: I think the key is to avoid viewing brand and demand as an either-or situation but rather embrace the idea of “both-ism,”. Balancing brand and demand is crucial, it really requires a disciplined brand planning process. Our process involves a systematic approach that aligns brand strategy with demand opportunities, setting clear objectives that include pricing strategies, promotions, and channel roles.   

To deliver against this “both-ism” approach, balancing the long and short term, the key is starting with a comprehensive situation assessment and aligning brand strategy with demand opportunities. From there, the brand planning process sets clear objectives, including pricing strategies, promotions, and channel roles. It’s crucial to recognize consumer moments (e.g., New Year’s Resolutions) that matter and retailer moments that matter (e.g., Amazon Prime Day). Success really requires a systematic and collaborative planning approach that considers each function’s unique role at different moments in time.  

We are also relentless in our measurement. Goals are tracked through a strategic performance pyramid that encompasses business objectives like household penetration, market share, and consumption. The pyramid narrows down to more specific metrics like website visits, search levels, and media reach. This provides a clear structure for tracking leading and lagging indicators at both strategic and tactical levels, ensuring the brand’s performance is measured comprehensively and preventing over-reliance on a few seductive metrics. 

KP: In our report, “Brand and Demand: A Love Story” we outline for common principles of brand and demand: anchoring marketing investment in business objectives, experimentation, building a modern marketing organization and putting the customer at the center. Do you agree with these and how do you apply these to your organization? 

CWP: Absolutely, I think these all apply. I’d say recently we’ve especially shifted towards more enthusiasm and passion for experimentation, fostering an environment without fear of failure. As we put a greater emphasis on experimentation, we’ve been able to encourage a culture of trying new things quickly, building curiosity and being data-driven. Our approach to agile learning is facilitated by having specialists delve into emerging areas, utilizing social listening and even experimenting with artificial intelligence. 

I also think we are living in the golden age of effectiveness. Building a modern marketing organization involves understanding contemporary principles and building off models like Ehrenberg Bass. Distinctive assets, a key aspect of discussions, have become more formalized and structured. Our conversations around consumer-centricity have evolved, emphasizing real-time insights and quick feedback mechanisms. We put a greater emphasis on tapping into consumer behavior through super consumer groups and communities, ensuring a continuous effort to stay agile and adapt to changing consumer dynamics. We have a small group of consumers that we tap into on a regular basis for quick feedback. Everything is changing really fast, so having the ability to tap into real-time insights allows us to stay on top of new consumer trends.  

KP: Last but not least, what keeps you excited about marketing?   

CWP: There are a couple of things that I’m particularly excited about. The first is this shift towards being measured against business outcomes. If this is the golden age of marketing effectiveness, and when we’re doing a good job, then our business results should reflect that. Witnessing the tangible results of effective marketing is exhilarating. On the consumer side, the joy lies in working with brands that can make a positive impact on people’s lives. Whether it’s contributing to a healthy lifestyle, performance improvement, or weight management, seeing the positive change in consumers’ lives is truly fulfilling. The happiness and satisfaction of consumers after using the product, like completing a marathon with a smile, adds to the overall excitement.

In the bustling markets of Asia, where tradition dances with innovation, the battle between brand marketing and demand generation rages on. As companies vie for attention and market share, they grapple with a fundamental question: Which path leads to sustainable growth?  

Brand Marketing: The Art of Storytelling

Brand marketing is the soul of a company – the narrative that weaves through its DNA. It’s the symphony of colors, fonts, and emotions that evoke recognition and loyalty.  

In Asia, brand marketing transcends mere aesthetics; it encapsulates cultural intricacies. It is about preserving heritage while embracing the future. It is the delicate brushstroke that paints cultural nuances, the scent of incense in a bustling marketplace, and the whispered promise of authenticity. Imagine your brand as a tea ceremony – an intricate choreography of leaves, water, and time. Each cup tells a story, and every sip carries centuries of tradition. Moreover, Asia’s consumers crave authenticity. They seek brands that honor their roots while embracing modernity. Your brand is not just a design; but a bridge between generations.  

Take MUJI for example, the iconic home goods retailer, whose “no-brand” philosophy echoes Japan’s minimalist aesthetic and lifestyle. Their products design and eco-friendly practices embody simplicity, functionality, and sustainability. Similarly, up and coming fragrance brand To Summer artfully marries traditional Chinese scents with contemporary sensibilities, symbolizing a bridge between legacy and innovation. At the core of its product designs, To Summer is committed to restoring Eastern botanical scents, while incorporating modern elements in its packaging and retail experiences. 

Demand Generation: The Science of Conversion

Demand generation, on the other hand, is the alchemist’s potion – data-driven marketing that turns curiosity into action. It’s the digital bazaar where clicks become conversions.  

In Asia, it is the neon glow of a night market, the haggling over prices, and the thrill of discovery. Picture your demand generation as a street food stall with the inviting sizzle of skewers and aroma of spices. For Asian consumers, demand generation is synonymous with urgency, akin to a street vendor’s cry of “Limited stock, last chance!”  

Luckin Coffee’s rise in China exemplifies this urgency, capturing consumers’ attention through exciting product launches and brand partnership campaigns. This allowed them to seize the China market with break-neck speed, swiftly surpassing industry giant Starbucks last June. In 2023, Luckin Coffee launched 102 new products, including one Baijiu-infused coffee in collaboration with China’s esteemed liquor brand Maotai. 

The Dance of Growth

Harmonize the Yin and Yang

Successful growth in Asia requires a harmonious blend of brand marketing and demand generation. They are not rivals but rather synergistic dance partners, with brand storytelling setting the stage while demand generation fills the seats. The key lies in regularly fine-tuning your brand-to-demand ratios based on the goals of your brand, the product/campaign and audience response. Brand and demand teams also need to commit to open communication and engagement to achieve an integrated decision-making process.  

In the past two years, Prophet has interviewed brand and demand marketing leaders across the world to understand how these functions can be brought together to drive greater impact. Our research found that the majority (60%) of marketers have a ‘balanced approach’ to Brand and Demand. It’s the orchestration of both channels that often defines their effectiveness. (Download our global report here.) 

A great example of how balancing brand and demand can drive uncommon growth is Lululemon. Consumers in Asia are increasingly health-conscious, yearning for meaningful experiences with physical and mental wellbeing. Capturing these unmet needs, Lululemon markets a healthy lifestyle by placing a great emphasis on building confidence and empowering people through innovative products and positive experiences. By focusing on its core values, Lululemon creates a brand that resonates with its audience. On the other hand, Lululemon focuses on creating a deep connection with its customers through community building on top of brick-and-mortar and e-commerce expansion in Asia. This creates a sense of scarcity while urging customers to join its events. It also allows Lululemon to listen more closely to what the local customers need (e.g. launching Asia Fit line). This strategy helps Lululemon to continuously drive demand, loyalty and advocacy. 

Localizing the Choreography

Asia isn’t a monolith; it’s a mosaic. Brands must adapt their moves to each cultural tile. While it is important to adhere to consistent brand essence and offerings across all global markets, local cultural nuances must be considered when developing a go-to-market strategy for each Asian region. From Japan’s deep bows to India’s respectful nods, cultural sensitivity is paramount in crafting a bespoke go-to-market strategy tailored to each locale. Localization isn’t a checkbox; it’s a pas de deux with the fast-evolving tradition, subcultures and behaviors of the diverse region.  

For example, UGG sought to enhance its relevance and engage Gen-Z consumers globally in a compelling and authentic manner. Partnering with Prophet, UGG embarked on a comprehensive segmentation research, delving into multiple APAC countries to craft tailored consumer journey maps that accounted for regional nuances and cultural intricacies. 

Similarly, Prophet’s collaboration with The North Face yielded a unique positioning and localized customer experience for its loyalty program in Greater China. The brand hoped to expand on the types of benefits provided by the program beyond monetary rewards, ensuring representation of the organization’s brand DNA while elevating consumer perceptions, building greater engagement and further differentiating itself from competitors.  

Orchestrating Moments

In Asia, cultural festivities serve as pivotal crescendos for brand narratives. From Chinese New Year’s jubilant fireworks to Diwali’s vibrant rangolis, brands must choreograph their presence amidst these cultural symphonies.  

Singtel, a Singaporean telecommunications conglomerate, has made a tradition of releasing heartwarming short films for Chinese New Year. These films celebrate the power of technology in connecting families and friends. For instance, their 2023 film, “Don’t Worry, Be Hoppy!” showcases the role the telco plays in bringing families and friends together. Continuing the tradition, Singtel launched a three-minute film titled “A Date With Spring” in 2024 which is a nod to the power of technology to inspire and empower all generations. Singtel’s previous Chinese New Year’s series since 2020 collectively garnered over 50 million views to date as their commitment to storytelling resonated strongly with viewers. Furthermore, Singtel recognizes National Day, one of Singapore’s most significant holidays, by creating annual tributes. Last year in 2023, Singtel released a powerful documentary “From Mudflats to Smart Nation”. This 23-minute film explores Singapore’s remarkable journey of innovation and pivotal role of technology in shaping the country into a smart nation. 

The advertising industry is experiencing a seismic shift. Earlier this year, during the Upfronts and Newfronts – annual showcases where media companies and digital platforms unveil their upcoming content and advertising opportunities to potential buyers – it was made abundantly clear: we’re living in a buyer’s market, not a seller’s world. In a survey of over 300 U.S. marketers and agency executives, only 49%  said they’d be making Upfront deals – down from 56% a year ago, indicating softer ad spending. On top of that,  spending is expected to rise only slightly, remaining nearly flat moving into the 2024 season. Advertisers are faced with more choices, while budgets are getting tighter. Traditional boundaries that have defined advertising platforms have dissolved, and, as such, opportunities have expanded.

In this era where everyone is grappling for offsite ad spend to support their bottom line and diversify revenue streams—from platforms like Uber, which offers advertising surfaces on its cars and in its app, to retailers like Walmart, which is pushing into in-store advertising, convenience stores like Walgreens, which have turned freezer doors into paid advertising spots and of course, the streamers who all announced their own version of ad-supported tiers—securing your fair share of the advertising pie is imperative. This becomes particularly true as budgets undergo meticulous scrutiny and advertisers are looking to do more with less. In this new, buyer’s world of constrained budgets and limitless options, a sharp value proposition for “why you” over the multitude of alternatives is a necessity.   

To stand out as an advertising platform in this dynamic landscape, consider these core tenets for a compelling value proposition that can guide how you market to advertisers, while also helping you focus on how to deliver internally. 

Lead With Flexibility to Help Advertisers do More With Less  

In this buyer’s market, advertisers are looking to optimize their spends based on performance, seeking the flexibility to move, adjust, or even cancel portions of their budgets as they attempt to do more with fewer resources. They’re looking for partners who can guide them in maximizing investments across all pieces of their interconnected channels. Beyond scaling budgets up or down, they want to be able to move dollars around to effectively allocate over a wider slate of inventory. For example, in NBCUniversal’s pitch, they highlighted that advertisers can easily shift funds between language markets (i.e., English to Spanish) or from sports to entertainment based on real-time performance.  

Measure to Win and Connect to Business Impact 

Being a flexible partner also means offering flexible measurement options – a critical capability in today’s ad landscape. Advertisers don’t want to scatter their budgets across various platforms and hope for a favorable outcome. They’re increasingly seeking partners who can demonstrate how investments in their channels drive tangible business outcomes, moving beyond traditional forms of currency – the measurement system used to evaluate the performance of a campaign. In particular, they’re looking for partners with a handle on KPIs that advertisers haven’t traditionally been able to measure, like advanced audience targeting, engagement and attention. At this year’s Newfronts, Disney announced its measurement effort with outcomes-based measurement provider Innovid, tying ad exposures in Disney video to specific outcomes such as web visits or app downloads. This approach transforms a platform into an “always-on,” adaptable partner rather than a one-off arrangement.   

Embrace Experimentation in a World of Accelerated AI  

While proven strategies remain important, embracing experimentation, particularly in the realm of accelerated AI, is equally important. Digital-first platforms have provided inspiration for innovative tactics to boost value for advertisers. At the 2023 Newfronts, Roku debuted a new “Contextual AI” tool that scans the Roku Channel content library for “iconic plot moments,” matching a brand’s message to relevant parts of shows and movies and placing their ads in real-time. Meanwhile, Meta announced a generative AI “Sandbox” for advertisers, helping smaller businesses create alternative copies and backgrounds while keeping the core message of their ads similar. Most recently, YouTube announced new AI-powered solutions for demand gen, allowing for an advertiser’s best-performing video and image assets to be integrated across touchpoints with the highest traffic and optimizing conversions.  

Offer Multi-Dimensional Value and Return 

In today’s growing retail media landscape, there is no shortage of advertising options. Yet, advertisers and agencies are looking for more with fewer resources. More reach, more return, more measurement – less juggling, less apples-to-oranges conversions, less headaches. With many of the media giants having the ability to sell at a broader portfolio level and offering consolidated buys, across platforms, formats and audiences, individual platforms and channels will be challenged to offer differentiated value based on the status quo. There will need to be a compelling reason, the ability to reach niche audiences, higher ad performance – anything to make the ad buy multi-dimensional in value, return, and overall fit in an ongoing media model mix.