Calculating return on investment (ROI) is crucial for Australian SMEs, but often focuses on direct response – the immediate result from a specific campaign. However, many marketing activities create a ‘brand halo effect’. This is the positive influence a strong brand has on the performance of *all* your marketing, even channels you aren’t directly measuring. Ignoring this means you’re significantly underestimating the true value of your marketing spend.
The challenge is that halo effects aren’t easily isolated. A customer might see a social media post, then search for your brand directly, and finally purchase. Which touchpoint gets the credit? The answer is, they all do, but the brand awareness built over time – the halo – made that final search and purchase more likely. Here’s how we can start to account for it:
- Baseline Measurement: Before launching significant brand-building activities, establish a baseline for ‘unbranded’ search volume. This is people searching for the *problem* you solve, not specifically for your brand. Monitor this consistently.
- Incremental Lift: After your brand campaign, measure the increase in unbranded search. A rise suggests more people are considering your category and, crucially, are aware of you as a potential solution. This lift represents a portion of the halo effect.
- Attribution Modelling: Move beyond last-click attribution. Consider data-driven models that distribute credit across multiple touchpoints. While not perfect, they acknowledge the influence of earlier, brand-focused interactions.
- Control Groups (where possible): If you have geographically distinct markets, run brand campaigns in one area and not another. Compare the overall sales lift in both regions to isolate the impact of the campaign.
It’s important to remember that quantifying the halo effect precisely is difficult. We’re aiming for a more holistic understanding, not absolute accuracy. Don’t get bogged down trying to assign a precise dollar value to every nuance. Instead, focus on identifying trends and directional improvements.
By incorporating these approaches, you’ll gain a more realistic view of your marketing ROI and justify continued investment in brand building. The benefits extend beyond immediate sales, creating a stronger, more resilient business positioned for growth in 2026 and beyond. Your next step should be to review your current attribution model and identify opportunities to incorporate baseline measurement of unbranded search terms.
