Summary

In this conversation, Preston and Thomas discuss the connection between brand building and financial results. They explore the short tenure of CMOs and the transition to Chief Revenue Officers (CROs), highlighting the importance of financial alignment for marketers. They review different methods of valuing brands, including intangible assets, balance sheet approaches, and income approaches. They also discuss the role of consulting firms in brand valuation and the potential for biased incentives. Overall, they emphasize the need for marketers to understand the financial side of their role and the strategic goal of brand building in driving profit growth. In this conversation, Preston and Tom discuss the connection between brand building, brand value, and finance. They explore the use of digital data to measure brand health and relevance, highlighting the limitations of traditional non-digital methods. They also discuss the importance of understanding financial statements and the financial feedback loop to drive sustainable increases in profit. The key takeaway is that building a brand is in service of profits and requires a reframing of its purpose.

Takeaways

The short tenure of CMOs and the transition to CROs highlight the importance of financial alignment for marketers.
Different methods of valuing brands exist, but many are not actionable or accurate.
Consulting firms may have biased incentives in brand valuation.
Marketers need to understand the financial side of their role and the strategic goal of brand building in driving profit growth. Digital data can be used to track brand health and relevance, complementing traditional non-digital methods.
Understanding financial statements and the financial feedback loop is crucial for driving sustainable increases in profit.
Focusing on digital metrics alone may not fully capture brand value and should be complemented with a broader set of digital behaviors.
Building a brand is ultimately in service of profits and requires a shift in perspective.

Chapters

00:00 Introduction and Recap of Section Two
01:23 Gaining Insight About Your Brand and Quantifying Its Stature
24:30 Measuring Brand Relevance and Health
26:14 Digital Data and Brand Measurement
30:12 Non-Purchase Behaviors and Brand Health
36:10 Brackets on Metrics and Understanding the P&L