Can a strong brand improve performance marketing?

Like, does performance marketing perform better if you have a strong brand?

Tracksuit worked with TikTok to find out. 

They studied 3 years of TikTok data from AUS/NZ for 11 brands running ads for at least 10 months each. Aided brand awareness ranged from 10% - 60% for the brands. 

And they measured conversion in a few different ways, including actions & sales on brand websites, to make a combined conversion number.

It turns out that brands that had higher awareness didn’t just have more total conversions (we’d kinda expect that, since they’re usually bigger brands too) — they also had a higher conversion RATE.

In other words, having a well-known brand makes your performance marketing dollars go further.

This seems to be yet another way Big Brands Win (aka the Tyranny of Market Share, of which Double Jeopardy is one formal example).

Caveats galore, but read the report: “The Awareness Advantage.” Good stuff.

SO some lessons:

🍊 If your brand is small, anticipate lower-than-average conversion rates (all else being equal, which it never is).

🍊 Don’t skimp on brand-building, awareness-building activities.