Building Brand Power Over Traffic Growth: A Business Imperative

For the development of businesses, the question of whether to invest in increasing traffic or in building a brand is always a topic of much debate. Businesses face challenges such as production costs, sales, and survival, especially in the post-COVID period. Simply maintaining stability to continue existing is a significant issue for many companies, which further increases the negligence of businesses in the industry regarding strengthening brand-building investments. Additionally, some companies do not know how to leverage their existing product features to turn them into brand advantages

Increasing traffic delivers immediate, tangible results—money flows in more visibly than with brand building. But what many fail to realize is that businesses solely focused on traffic growth often fall behind brands with strong reputations. Eventually, they disappear in the competitive marketplace. It is clear: chasing traffic alone leads to failure, while brands are the true long-term victors.

1. The Budget Dilemma: Traffic Growth vs. Brand Investment

Budget constraints are often the core issue behind the hesitation to invest in branding. Many businesses, particularly small and medium-sized enterprises (SMEs), struggle with the high costs, long-term commitment, and slower return on investment (ROI) associated with branding. In contrast, traffic growth initiatives like marketing campaigns or live-stream sales show immediate increases in sales. This makes it tempting for businesses, especially those without established brands, to abandon brand building in favor of short-term sales gains.

However, this short-term approach is akin to "killing the goose that lays the golden egg." Once your market traffic advantage diminishes, your customers will lose interest, and sales will gradually decline. After 3-6 months of sustained traffic growth, businesses often hit a ceiling. Relying solely on traffic strategies offers only short-term gains, leading to long-term stagnation.

Ultimately, brand power is the sustainable, long-term source of traffic, while paid traffic is fleeting, withering like a flower by nightfall.

2. Can Branding and Performance Advertising Align?

Many business leaders view branding as a cost with little immediate return, reinforcing the idea that performance advertising is the only efficient route. Guo Zhifeng, Chairman and CEO of Chicilon Media, argues that branding that fails to resonate emotionally with consumers is indeed a waste of resources.

Successful branding hinges on three pillars: product differentiation, competitive advantage, and consumer needs. To assess whether a branding campaign works, consider these factors: Do consumers recognize it? Do sales teams want to use this positioning? Do competitors view the campaign as a threat?

Guo also emphasizes that the notion of merging brand-building and performance advertising is a false premise. Branding is a long-term strategy, whereas performance advertising provides short-term results. They must work in tandem, not as a unified approach. For example, a pet store may invest in a brand campaign, but this won’t instantly drive up sales. However, over time, the brand will leave a lasting impression on the target audience, eventually influencing their purchasing decisions.

Therefore, the key is to shorten the time it takes to see results from branding efforts through strategic tools, brand positioning, and offline engagement.

3. The Path to Explosive Brand Growth

Businesses recognize the importance of brand power but often struggle with how to harness it. For new brands, it’s tempting to follow the entertainment trends or invest heavily in large-scale advertising. However, Guo advises against this for emerging brands.

Unlike established brands, new brands risk being overshadowed when competing in major events or collaborations. Instead, they should focus on niche positioning and targeted segments. For example, Dr. Thanh’s success story is a prime case of finding the right market positioning. Initially plagued by misconceptions about its product, the brand redefined itself with the simple message "Cooling Your Body, No Heat," which immediately resonated with customers, driving significant sales growth.

4. Does B2B Marketing Need Brand Awareness?

Some traditional B2B companies believe they don’t need to invest in branding since they don’t rely on direct consumer payments. However, Guo explains that even in B2B, consumer awareness plays a vital role in purchasing decisions.

For instance, traditional home appliance companies depend on strong distribution channels. Yet, the end consumer’s brand recognition is still key to their final purchase decision. That’s why many companies in this sector invest in brand advertising at airports and train stations to build consumer trust and strengthen their sales channels.

The challenge is not about reaching a mass market but targeting the right audience segments.

5. Why Businesses Trust Chicilon Media for Branding

Guo Zhifeng’s leadership at Chicilon Media has been instrumental in the company's success, earning the trust of brands like Vinamilk, Samsung, and Unilever. Over the past five years, Chicilon Media has not only navigated the decline of traditional advertising but also thrived in the rise of digital media.

Chicilon Media’s unique approach lies in delivering targeted media in everyday consumer environments, offering a stronger, more effective connection than online advertising. By leveraging its precision and impact, Chicilon Media provides businesses with a path out of the traffic-chasing frenzy, guiding them toward sustainable brand success.