Building brand equity in the age of shifting consumer dynamics

Consumer attention is a precious commodity. Shoppers have an overwhelming amount of choice just a scroll away, and a recent study revealed more than a third are open to switching brands at any given moment.¹ It’s never been more important for brands to capture consumer demand and build lasting relationships to keep them coming back. Consumers are very receptive to brand messaging—59% of consumer packaged goods shoppers say their decision journey was prompted by noticing information from brands.² This reinforces the importance of brands showing up and standing out, even before consumers think they’re going to start making decisions. Creator marketing is key Savvy brands are harnessing the power of authentic, creator-first marketing to engage with today’s discerning consumers. Because 64% of CPG shoppers are more likely to consider a brand when its ads feature real people³, creators and influencers offer a powerful way to connect through relatable video content, via user platforms like YouTube. This strategy is proving increasingly effective as consumer media consumption habits shift toward social platforms, with the IAB reporting a 39% year-over-year increase in viewers consuming creator-produced content. To succeed, brands must prioritize genuine partnerships. Online users are 98% more likely to trust recommendations of creators on YouTube rather than those on other social sites.⁴ Authenticity is key, as consumers can easily spot inauthentic endorsements. By collaborating with creators who genuinely align with its brand values, companies can tap into the power of social proof and build trust with their target audience. One example of a brand’s successful creator partnership is Urban Decay’s recent relaunch of their iconic eyeshadow palette. Urban Decay wanted to build connection, conversation and buzz among a diverse community, and by collaborating with YouTube creators like Kelly Strack and Ashley LaMarca, the makeup brand was able to tap into those influencers’ followers with genuine, relatable messaging. These partnerships ran coordinated YouTube Shorts ads and drove a 3% increase in brand lift, a 278% increase in search lift and ultimately, a boost in sales at Ulta. Increasing brand equity is invaluable Building brand equity amongst younger generations requires meeting them where they spend time. Short-form video platforms like YouTube Shorts are incredibly popular—even more so than brands might realize. In fact, 84% of TikTok users already use YouTube Shorts, but 40% of YouTube Shorts users are not using TikTok at all.⁵ YouTube Shorts offers a unique opportunity to deliver brand messages and expand reach beyond traditional social channels. Take Reese’s, who wanted to strengthen brand loyalty and boost engagement among Gen Z and millennials. So they partnered with 15 YouTube creators to launch an immersive YouTube Shorts campaign leading up to their most crucial season, Halloween. The Shorts campaign sparked a dance trend that encouraged participation from a new wave of creators. This YouTube Shorts-focused strategy stemmed from the brand’s consistently strong ROI performance on the YouTube platform, and the explosive growth of short-form video content with younger generations. Beyond short term results and sales, YouTube’s impact on brand success is clear. A study showed that on average YouTube drives 2.3 times higher long-term ROAS compared with paid social.⁶ Results like this demonstrate the platform’s ability to not only build brand equity but also conversions. By focusing on building community and delivering authentic content on platforms like YouTube Shorts, brands can forge lasting connections that will drive long-term success. Want to reach new audiences and build brand equity on YouTube? Discover how brands use partnership ads powered by BrandConnect in their campaigns to turn YouTube creator-made videos into ads that achieve their marketing objectives. Sources 1 - 3. Google and Lynx, US Only, CPG Fueling Consumer Decision Making Study, June 2024, (n=603, CPG Shoppers: household supplies, personal care products and/or packaged grocery items) 4. Google/Ipsos, Video & Social Ad Impact Study, July 2023-August 2023, online survey, n=13328 US, UK, BR, FR, DE, IT, JP online users 18-54 who use social apps/sites monthly or more often (social apps/sites: Discover, YouTube, YouTube Shorts, Gmail, Facebook, Instagram, TikTok, Twitter, Snapchat). 5. AlphaWise Survey Methodology: Online survey among ~2,000 16+ gen pop U.S. consumers, conducted during March 2024. Total sample is representative of the U.S. general population in terms of age, gender and region. The margin of error on the total sample is ±1.8% at 90% confidence level; higher for subgroups. Where applicable, findings are compared to past waves conducted since 2020. 6. Equity-to-Sales MMM Meta Analysis commissioned by Google, covering a 2-year measurement period of 20 CPG brands from across the 2021-2023 timeframe. "Long-term ROAS" is defined as impact of each marketing channel in driving brand equity & this brand equity’s impact in driving sales, relative to the marketing channel’s media spend. About Google Build durable measurement. Make stronger customer connections. Generate more effective creative at scale. Put Google AI to work for you.

Building brand equity in the age of shifting consumer dynamics

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