Marketing
fromThe Drum
20 hours agoBusiness effectiveness unpacked: what it means for brand marketing
Creative effectiveness is essential for overall business effectiveness and future-proofing brands against market challenges.
The new identity sharpens its focus around four commitments that guide its behavior and decision-making: empathy, expertise, responsiveness and certainty. Those principles are intended to frame both customer experience and internal culture.
Retailer-owned products not being seen as a cheap alternative anymore, but instead, a way to convey luxury and exclusivity. Price-Led Positioning is No Longer Dominating UK Supermarkets. Small UK businesses are aggressively growing, with price-led positioning becoming a dated trend. It's becoming evident that brands are no longer using their own branded products as a way to be a cheap alternative.
Performance has always been the foundation of commerce media because it tied spend to measurable behavior. From sponsored search to sponsored products, the category scaled by delivering outcomes that could be directly attributed to transactions. Automation, AI-driven optimization and closed-loop measurement accelerated that model and made outcomes-based buying the norm. Outcomes still matter. But as AI reduces friction and increases competition, outcomes alone no longer create separation.
This year has been volatile for brands. With tariffs taking effect, the job market slowing, and consumer spending barely keeping pace with inflation, it's no surprise that ad spend has slowed in tandem. Amidst economic uncertainty and an onslaught of unanswered questions, brands are increasingly looking for demonstrable ROI in their marketing and design budgets. Some may choose to invest in a costly new campaign or commit to a new brand identity, while others will default to slashing their budgets altogether.
So the brand reinvents itself to pull in a younger segment of the market, often by borrowing ideas from cooler competitors to seem more "on-trend." But instead of younger and cooler, the rebrand comes off as insincere, stilted, or cringey. Worse, the brand's older, core customers, who liked the brand as it was, are irritated by the changes. Instead of spurring new growth, the effort drives off some of the existing customers, leaving the brand worse off than when it started.
Discounting has been part of retail's toolkit for decades, and it can be effective, especially during high-stakes shopping seasons. But as promotions become more frequent across the industry, companies are taking a closer look at the downside: Short-term sales gains don't always come with long-term loyalty or durable margins, and customers remember how a brand made them feel far more than what they saved at checkout.