The essential guide to brand awareness research.

Brand awareness is the level of familiarity and recognition a consumer has with a particular brand or product. It is typically measured by asking consumers if they are familiar with a brand and if they can recognise it when presented with it. Brand awareness is also known as brand recognition or brand recall. The responsibility for brand awareness within an organization typically falls to the marketing and advertising departments.

There is no maximum amount of brand awareness that a brand can expect, as it can vary greatly depending on the industry and competition. A well-known brand has a high level of brand awareness among consumers. Brand awareness can be good or bad, depending on the reputation and perception of the brand.

Brand awareness metrics are vital for brands because they can understand how well their marketing efforts resonate with consumers and make strategic decisions accordingly. An organization should start measuring brand awareness as early as possible, ideally during the development and launching of a new product or brand.

As of 2021, the most valuable brand in the world is technology giant Apple. According to Interbrand’s “Best Global Brands” report, Apple’s brand value is estimated at around $234 billion. Apple has consistently been ranked as the most valuable brand globally for several years, thanks to its strong reputation for innovation, design, and customer loyalty. The company also has a diverse product portfolio that includes iPhones, iPads, Macs, Apple Watches, AirPods, and services like the App Store, Apple Music, and iCloud.

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Other top brands worldwide include Google, Microsoft, Amazon, Coca-Cola, and Samsung, which also have strong brand values and reputations. These brands have a strong presence in their respective industries and consistently show strong financial performance.

It’s important to note that brand value is subjective and can fluctuate depending on factors such as market conditions and brand performance. Factors that cause brands to lose awareness include changes in consumer preferences, increased competition, and negative publicity.

The history of brand awareness research

The first examples of brand awareness research can be traced back to the early 20th century with the advent of advertising and the growth of consumer culture.

One of the earliest examples of brand awareness research is the “Top of Mind” study, which was first conducted in the 1930s by George Gallup, the founder of the Gallup Poll. The study aimed to identify which brands were most frequently mentioned by consumers when asked to name a brand in a particular product category without any prompts or cues.

The “Top of Mind” study was a pioneering research method in brand awareness. Advertisers and marketers widely use “Top of Mind” research studies to understand consumer preferences and measure the effectiveness of advertising campaigns.

Additionally, in the 1940s, Louis Cheskin, an American psychologist and design consultant, developed the “Association Test,” which measured brand awareness and brand association by asking consumers to list the first word or phrase that comes to mind when thinking about a brand.

These early examples of brand awareness research laid the foundation for modern brand research and have been adapted and developed over the years to include more advanced methods and technologies such as online surveys, focus groups, and social media analytics.

Measuring brand awareness has changed over the years with the advent of new technology, such as online metrics and social media analytics. Modern technology has made researching brand awareness more efficient and cost-effective.

What is the best formula or method for measuring brand awareness?

There is no specific formula for measuring brand awareness, as the methods used can vary depending on the research objectives.

There are different ways to measure brand awareness, and some methods include the following:

Unaided recall: This method measures the percentage of people who can spontaneously recall a brand without any prompts or cues. It’s a measure of top-of-mind awareness.
Aided recall: This method measures the percentage of people who can recall a brand after being prompted or given a list of options. It’s a measure of brand recognition.
Brand association: This method measures the strength and relevance of consumers’ associations with a brand. It can be done by asking consumers to list the first word or phrase that comes to mind when thinking about a brand.
Brand loyalty: This method measures the degree to which consumers are loyal to a brand. It can be done by asking consumers how likely they are to repurchase a brand or recommend it to others.
Brand consideration: This method measures the degree to which a brand is considered by consumers when they are making a purchasing decision. It can be done by asking consumers if they would consider purchasing a brand in the future.
Brand tracking: Brand tracking measures changes in brand awareness over time by conducting regular surveys and comparing the results.

Different methods may be more appropriate for different types of research and various industries. Additionally, the sample size, the formulated questions, and the study’s context should be considered when measuring brand awareness.

How do you calculate the value of a brand?

There are different ways to evaluate a brand or trademark, including:

Brand Value: This is the most common method which measures the financial value a brand name or trademark contributes to the company. It is calculated using a combination of factors such as revenue, market share, customer loyalty, and brand awareness.

Brand Equity: This method refers to the added value that a brand name gives to a product or service beyond its functional attributes. Brand equity is built over time by creating positive associations in customers’ minds and can be measured by how consumers perceive the brand in terms of quality, reputation, and loyalty.

Brand Strength Index (BSI): This method calculates brand value by measuring the power of a brand in the marketplace. BSI takes into account factors such as brand loyalty, brand awareness, and brand perceptions.

Royalty Relief: This method calculates brand value by estimating the amount of money a company would have to pay to license the brand if it did not already own it. This method considers factors such as the brand’s strength, market conditions, and the company’s projected revenues.

Cost of Replication: This method calculates brand value by estimating the cost of creating an equivalent brand from scratch. This method considers factors such as the cost of developing the brand name, logo, and other intellectual property, as well as the cost of advertising and building brand awareness.

Brand Contribution: This method calculates brand value by estimating the revenue or profit a brand contributes to a company. This method takes into account factors such as market share, customer loyalty, and brand awareness.

Regardless of the method chosen, brand awareness is a critical aspect of a brand’s value. High levels of brand awareness can contribute to a strong reputation and customer loyalty and ultimately increase the financial value of the brand.

Can brands with higher awareness charge more?

While brand awareness is a key factor in a brand’s value, brands with a strong reputation for quality, for example, may be able to charge higher prices than others. Brands that have a loyal customer base and have built a strong emotional connection with them may also be able to charge a premium.

A brand with a strong level of awareness is often easier to license and can command a higher value for licensing agreements.

Consumers may be willing to pay a premium for a product or service from a brand they are familiar with and trust, as they perceive it to be of higher quality or offer more value than similar products from lesser-known brands.

Luxury brands may charge higher prices based on the exclusivity and prestige associated with the brand.

However, charging higher prices is only sometimes possible or appropriate for all brands. Brand awareness can be a factor in charging higher prices, but it is not the only one. It’s important to consider the competition, target market, brand reputation, positioning, and emotional connection with its customers.

Additionally, it’s essential to ensure that the higher prices are justified by the brand’s value and that the prices are not too high to discourage potential customers.

How can brands grow their brand awareness?

Brands can help grow brand awareness by implementing various marketing strategies, such as:

Building a strong visual identity and consistent brand messaging
Investing in advertising and promotions
Building relationships with influencers and media outlets
Creating engaging and shareable content
Leveraging social media and digital marketing
Hosting events and sponsorships
Creating a strong customer service experience
Building a solid reputation and positive brand image

It’s important to note that while these strategies can help increase brand awareness, it’s crucial to tailor them to the specific audience and objectives of the brand and to measure the strategy’s effectiveness to ensure they are working.

What happens to brands that fail to measure brand awareness?

If a brand fails to build brand awareness, it can have many negative consequences. Some of the most significant ones include:

Reduced sales: Without brand awareness, consumers may not be able to find or recognise a brand’s products or services, leading to reduced sales and revenue.
Difficulty standing out in a crowded market: A lack of brand awareness can make it difficult for a brand to differentiate itself from competitors and stand out in a crowded market.
Difficulty building customer loyalty: Without brand awareness, it can be difficult for a brand to build customer loyalty, as consumers may not have a strong emotional connection to the brand.
Difficulty attracting new customers: Without brand awareness, it can be difficult for a brand to attract new customers, as they may not know that the brand exists or what it offers.
Difficulty creating a strong reputation: Without brand awareness, it can be difficult for a brand to create a strong reputation and be perceived positively by consumers.
Difficulty in launching new products or services: Without brand awareness, it can be difficult to launch new products or services, as consumers may not be familiar with the brand or its offering.
Difficulty in expanding to new markets: Without brand awareness, a brand may find it difficult to expand to new markets, as consumers in those markets may not be familiar with the brand.
Difficulty in negotiating with suppliers and partners: Without brand awareness, a brand may find it difficult to negotiate favourable terms with suppliers and partners, as they may not see the brand as a valuable partner.

Overall, building brand awareness is an important part of building a successful business. It helps to create a strong emotional connection with consumers, increase sales and revenue, and create a competitive advantage in the marketplace.

Can brands reverse a trend of declining awareness?

Reversing a trend of declining brand awareness can be a challenging task. Still, there are several strategies that brands can use to improve their brand awareness and regain consumer recognition and trust. Some of these strategies include:

Re-evaluating brand positioning and messaging: Brands should review their current positioning and messaging to ensure they are relevant and resonate with consumers. They should re-position and re-brand themselves if necessary.
Investing in advertising and promotions: Brands should invest in advertising and promotions to increase consumer exposure to the brand. This can include traditional advertising, such as TV and print ads, digital marketing, and social media advertising.
Building relationships with influencers and media outlets: Brands should build relationships with influencers and media outlets to increase exposure and credibility.
Creating engaging and shareable content: Brands should create engaging and shareable content such as videos, infographics, and blog posts to increase brand visibility and build an emotional connection with consumers.
Leveraging social media: Brands should leverage social media to engage with consumers and build a community around the brand.
Building a solid reputation and positive brand image: Brands should focus on building a strong reputation and positive brand image through positive customer experiences and word-of-mouth marketing.
Reviewing and adjusting the customer service experience: Brands should review and adapt their customer service experience to ensure that it aligns with the brand’s values and goals and helps build a positive brand image.
Investing in market research: Brands should invest in market research to understand the brand’s current awareness and perception and identify the areas that need improvement.

Reversing a trend of declining brand awareness takes time and effort, and it’s not a one-time task. Brands should continuously monitor and measure the effectiveness of their strategies and make adjustments as necessary.

What insight can be gained through a brand awareness research study?

When gathering information about brand awareness, areas that should be researched include consumer recognition and familiarity with the brand, brand loyalty, and brand perception.

You can use metrics such as market share or brand recall to compare a brand’s brand awareness over its competitors.

Gathering brand awareness metrics can be different in international or foreign markets, as cultural and language differences may affect consumer recognition and perception of the brand.

It is essential to use a variety of research methods and to consider factors such as sample size and representation so that the information gathered in brand awareness research is correct and trustworthy.

Different types of brand awareness research include surveys, focus groups, and online metrics.

Gathering information about the awareness of brands is important because it allows companies to understand how well their marketing efforts resonate with consumers and make strategic decisions accordingly.

What factors and steps should you consider when conducting a brand awareness study?

When researching brand awareness, important considerations include sample size, representation, and research methods.

The steps for calculating brand awareness can vary depending on the specific research methods and objectives, but generally, the process includes the following steps:

Define the research objectives: Identify the specific information you wish to gather about brand awareness, such as consumer recognition and familiarity with the brand, brand loyalty, and brand perception.
Develop a research plan: Determine the research methods that will be used to gather information about brand awareness. This may include surveys, focus groups, or online metrics.
Conduct the research: Use the research methods identified in the research plan to gather information about brand awareness.
Analyze the data: Organise and analyse the data collected during the research phase to identify patterns and trends in brand awareness.
Make strategic decisions: Use the insights gained from the research to make strategic decisions about how to improve brand awareness, such as adjusting marketing strategies or targeting specific groups of consumers.

Brand awareness should be measured regularly, depending on the brand’s specific needs and the industry. Some brands may measure brand awareness quarterly, while others may measure it annually. The frequency of measuring brand awareness also depends on the level of competition, the product or service, and the market conditions.

What types of questions are typically asked during brand awareness research?

When collecting information about brand awareness, it is important to include metrics such as consumer recognition and familiarity with the brand, brand loyalty, and brand perception.

It’s important to remember that the research questions used, whether qualitative or quantitative, will depend on the survey’s specific research objectives and goals.

Several types of research questions should be asked to gather valuable information about consumer recognition and familiarity with the brand.

Some examples of these types of research questions include:

Recognition: “Are you familiar with [brand name]?”
Recall: “Can you name a brand in [product category]?”
Top of mind: “What is the first brand that comes to mind when you think of [product category]?”
Spontaneous: “What brand did you last purchase in [product category]?”
Aided: “Can you name a brand of [product category] that you have seen advertised recently?”
Unaided: “Can you name a brand of [product category] without any prompts or cues?”
Brand loyalty: “Would you consider purchasing from [brand name] again in the future?”
Brand preference: “Which brand of [product category] is your personal favourite?”
Brand association: “What words or phrases come to mind when you think of [brand name]?”
Brand perception: “How would you rate [brand name] in terms of quality, value, and customer service?”

After the data is collected, it is generally recommended to segment the responses to the brand awareness survey based on demographic factors such as race, age, income, and education.

Segmenting the data in this way can help identify patterns or differences in brand awareness and perception among different groups of consumers. For example, segmenting responses by age can reveal discrepancies in brand recognition and loyalty among different age groups. Segmenting by income helps to understand how brand awareness and perception differ among consumers with different financial means. Segmenting by education can reveal how brand awareness and perception may vary among consumers with different levels of education.

It is important to note that demographic segmentation may not be suitable or appropriate in all cases, and it is essential to consider the ethical and legal implications of collecting and using demographic data in research. Additionally, it’s crucial to ensure that any data collected is handled and reported in a way that respects the privacy and confidentiality of survey participants.

It’s also important to remember that demographic segmentation is one of many ways to segment the data. Other ways to segment the data include:

Behavioural segmentation (e.g., purchase history, brand loyalty, frequency of purchase)
Psychographic segmentation (e.g., personality, values, lifestyle, interests)
Geographic segmentation (e.g., region, urban or rural)

Why consider a research partner like Kadence International to conduct your brand awareness research?

There are several reasons to use a research agency when conducting brand awareness studies.

Expertise: Research agencies have the knowledge and experience in conducting research studies, including brand awareness studies. They can design a study tailored to the brand’s specific needs and provide actionable insights.
Objectivity: Research agencies are independent of the brand, which can provide a more objective perspective on the brand’s awareness and perception.
Resources: Research agencies typically have a wide range of resources, including staff, technology, and data collection tools, which can help conduct a brand awareness study.
Time-saving: Outsourcing the research to a research agency can free up time for the brand to focus on other important tasks, such as building the brand or developing new products.

Using a research agency like Kadence International when conducting brand awareness studies can provide valuable expertise and objectivity.

Kadence International partners with the world’s largest and fast-growing, emerging brands to help them make game-changing decisions. If you would like to discuss your brand’s awareness and how research can help, please reach out.