How Brand Building Keeps Growth Costs Down

Strong brands secure growth

Multiple studies carried out in recent months have demonstrated that brand building is a critical driver of success. For example, the DMEXCO Brand Study conducted in early 2026 revealed that consumers are turning their backs on trends during the current period of crisis and instead gravitating toward trustworthy and reliable brands. The takeaway for companies is that building brand loyalty reduces dependence on short-term demand.

In a survey carried out in April 2025 by Harvard Business Review Analytic Services on behalf of Frontify, 93 percent of respondents stated that a long-term brand building strategy is vital for growth. 91 percent considered brand building to be a driver of sustainable commercial success. In other words, brand building has moved beyond “nice to have” to become an economic necessity for c-level execs.

Marcus Merheim (hooman EMPLOYER MARKETING GmbH), Deputy Chairman of the Digital Working Worlds panel at the German Association for the Digital Economy (BVDW), explains why brand building is so crucial:

Employer branding: From product to corporate brand

So, brand building impacts the way potential employees feel about a company. Right now, businesses are competing for the attention of skilled workers who are hard to win over. Employer branding follows the same logic as brand management in the market, with customers and applicants asking the same basic questions: What does this brand stand for? And why should I trust it?

The impact of branding permeates deep into an organization. A brand that isn’t well understood internally can’t consistently communicate its values externally. That’s why campaigns aren’t enough – what’s needed is a shared understanding of the brand that extends across teams, channels and content formats.

The interplay between branding and performance

The value of a strong brand is demonstrated through measurable metrics. Strong branding reduces the long-term costs of growth while simultaneously increasing customers’ willingness to pay. Brand strength directly impacts KPIs such as customer acquisition cost (CAC) and customer lifetime value (CLV), as well as pricing.

If you have a thriving community, CAC decreases and CLV increases. Without a strong brand identity, performance comes at a higher cost. Without performance, your brand will be slow to grow. Both are needed to scale your business sustainably.

Ensure that your reporting takes this into account – in addition to sales KPIs, brand metrics like brand awareness and community strength should be high on your agenda.

Authenticity over AI slop: Why creativity is making a comeback in the age of brands

Brands are becoming more important in the AI era because they project authenticity. A clear brand voice indicates that there are real people behind a campaign. AI can scale content, but it can never replace personality and purpose.

Meanwhile, AI is producing the opposite effect, making content faster, cheaper and more scalable – but also less distinctive. It’s also worth noting that if multiple people in your company are creating content using different AI tools, your brand can quickly start to feel disjointed. Without clear brand guidelines, scaling results in random, inconsistent messaging.

This creates a new managerial responsibility for CMOs, as brand governance becomes a prerequisite for consistent scaling.

No brand, no visibility in the AI era

At the same time, AI is fundamentally changing the rules when it comes to visibility. In AI overviews and generative search systems, it’s no longer just content that’s ranked – answers are curated. And the preferred sources of these answers are well-known, trustworthy brands. Without a strong brand, you simply won’t figure in these systems.

In a zero-click world, being found isn’t enough anymore. Your brand must already have a presence before the search is even initiated. That’s why a brand building strategy is essential to secure visibility in the AI era.

Brand building is a long-term investment

Strong brands aren’t created overnight. They’re the result of repetition, consistency and clear strategic management. Brand building isn’t a project – it’s a system.

Your strategy should take this into account:

• Plan your brand building activities for the next five or even ten years.

• Define clear interim objectives that factor in both performance and brand metrics.

• Take advantage of in-person community events and digital user-generated content (UGC) to build your brand.

• Formulate a brand identity centered on values. That way, you’ll remain consistent without limiting your ability to adapt quickly to changing market conditions.

Conclusion: A brand building strategy is a must

We find ourselves in an era dominated by crises and technological upheaval. Both factors increase the pressure on brands to establish a clear position. Performance alone is no longer enough to guarantee sustainable growth.

The conclusion is clear: Brand building is not simply a communications matter, but a critical driver of sustainable growth and company value. Without a clear identity, differentiation isn’t possible – and without differentiation, customers cannot develop brand loyalty.