The Effect of Brand Communication: Balancing Product and Brand Communication for Success

By Søren Fromberg on in MMM

In the ever evolving world of business, brand communication plays a vital role in the success of companies. It is more important than ever to strike a balance between product communication and branded communication. A balanced strategic approach ensures that businesses achieve both short-term and long-term effects, which are crucial for building a strong and enduring brand identity.

Within the last decade Les Binet and Peter Field have emphasized the importance of finding the right balance between short-term and long-term marketing effects. Traditional marketing approaches have often focused on short-term measurements and immediate sales results. However, Binet and Field argue that brand communication, although not directly driving instant sales, have a significant impact on a company’s long-term success and growth.


In Annalect we have conducted various studies that support the importance of prioritizing brand building communication. According to our research, brand communication can have a multiplier effect ranging from 1.5x to 2.0x compared to short-term effects.

Though brand communication might not lead to immediate conversions, it will yield valuable long-term results by building strong customer relationships and creating a differentiated brand identity

A well-balanced marketing strategy encompasses a combination of both product communication and branding communication. Product communication focuses on presenting and promoting specific products or services, while brand communication revolves around conveying values, and the unique character of the overall company. while building a strong and long term customer relation, This means the consumers will keep the brand top of mind in buying situations

By integrating both aspects, businesses can have a broader impact on their target audience. Product communication is about rational, consciously processed messaging that can attract attention and generate interest in specific offers, often focused on current customers. Product communication engages Kahneman’s ‘System 2’ slow- thinking, “effortful” mode and demands attention.

While brand communication builds trust and loyalty with customers over time. Combined with product communication, these two forms of communication create a holistic and robust marketing strategy.

The effect of not communicating with media at all

In an era where consumers are more conscious and demanding than ever, it is crucial for companies to invest in brand communication. More and more companies recognize that it isn’t enough solely to do tactical communication that converts to sale instantly. It is obvious that it also is about building brand identity and reputation that differentiates  the company  from competitors and creates long-term value as well as a stronger sales baseline.

A study made in Denmark shows the importance of brand communication has significantly important implications for the brands opportunity to grow and drive sales. A complete stop of communication can impact with up to a 16% decrease in sales the first year and up to 58% decrease over 5 years.

Finding the right balance

By striking the right balance between product communication and branding communication, businesses can position themselves as trusted brands, establish emotional connections with customers, and foster loyalty. The multiplier effect of brand communication, as evidenced by Annalect’s studies, showcases the long-term impact it can have on building company’s success.

The allocated budget spend on brand communication is however depending on the specific industry. In Some industries, companies need to invest a very limited part of the budget on brand communication, whereas others will use brand communication as the accelerator for future customer growth and engagement.

Finding the right mix of product communication and brand communication is essential for businesses. The power of brand communication goes beyond immediate sales, with its ability to create a lasting impression, foster customer loyalty, and generate significant long-term results. By investing in a well-rounded marketing strategy that balances both aspects, companies can effectively navigate the competitive landscape and build enduring brand equity. Analects’ studies across several clients and industries show that the optimal balance often is between 20%-35% allocated to brand communication.

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