Case study
Benefits of Brand Equity in Advertising Efficiency
Branding isn’t just about creating a logo or catchy tagline—it’s about building trust, recognition, and value. A strong brand allows products to stand out in a crowded marketplace, increasing conversion rates and making advertising more effective. At One Apollo, our Branding and Content Creation services are designed to elevate brands and maximize their equity, delivering measurable results in return on advertising spend (ROAS).
The Impact of Brand Equity on Advertising Efficiency
Our experience managing various brands across e-commerce platforms demonstrates a clear relationship between brand equity and advertising efficiency. Brands with stronger equity enjoy significantly lower Average Cost of Sales (ACOS) and higher Return on Ad Spend (ROAS), meaning they can convert more sales for less ad spend.
Our experience managing various brands across e-commerce platforms demonstrates a clear relationship between brand equity and advertising efficiency. Brands with stronger equity enjoy significantly lower Average Cost of Sales (ACOS) and higher Return on Ad Spend (ROAS), meaning they can convert more sales for less ad spend.
Bar graph depicting Return (Sales) per Dollar of Ad Spend for each brand, with color distinctions for the different brand tiers.
Breaking Down the Metrics by Brand Tiers
Tier 1 (High Equity)
Well-established brands with strong market presence, trusted by consumers. These brands experience high conversion rates and lower advertising costs due to their strong brand trust and recognition.
Average ACOS: 9.17%
Average ROAS: 11.15 (For every $1 spent on advertising, these brands generate $11.15 in sales)
These Tier 1 brands are category leaders. Their well-established equity allows them to dominate their market with minimal ad spend while generating high returns. Strong brand loyalty and consumer trust keep their ACOS low and their advertising performance consistently strong.
Tier 2 (Mid Equity)
Brands that are growing in recognition but haven’t fully solidified their market dominance. These brands are on the right track and see competitive returns on their advertising spend.
Average ACOS: 11.80%
Average ROAS: 8.56 (For every $1 spent on advertising, these brands generate $8.56 in sales)
Tier 2 brands are building solid recognition but still have room for growth. While their advertising costs are slightly higher than Tier 1 brands, they still perform well compared to industry standards. These brands are in the process of establishing long-term loyalty and stronger market presence.
Average ACOS: 11.80%
Average ROAS: 8.56 (For every $1 spent on advertising, these brands generate $8.56 in sales)
Tier 2 brands are building solid recognition but still have room for growth. While their advertising costs are slightly higher than Tier 1 brands, they still perform well compared to industry standards. These brands are in the process of establishing long-term loyalty and stronger market presence.
Tier 3 (Emerging Equity)
Newer brands with limited recognition. They have higher advertising costs as they try to carve out their place in the market, but their potential for growth is significant.
Average ACOS: 25.01%
Average ROAS: 4.21 (For every $1 spent on advertising, these brands generate $4.21 in sales)
Tier 3 brands are still growing their equity and facing higher advertising costs. While their returns are lower, the foundation is being laid for future growth. These brands need further investment in both advertising and brand building to improve their standing in the market.
Average ACOS: 25.01%
Average ROAS: 4.21 (For every $1 spent on advertising, these brands generate $4.21 in sales)
Tier 3 brands are still growing their equity and facing higher advertising costs. While their returns are lower, the foundation is being laid for future growth. These brands need further investment in both advertising and brand building to improve their standing in the market.
Tier 4 (Generic/No Brand)
Generic, non-branded products that face steep challenges in generating sales due to their lack of brand recognition. These products have extremely high advertising costs and struggle to see meaningful returns.
Average ACOS: 80% to ∞
Average ROAS: 1.25 to 0 (For every $1 spent on advertising, these products generate $1.25 or less in sales, sometimes resulting in no sales at all)
Tier 4 brands, or non-branded generic products, lack the brand equity needed to stand out in competitive markets. With no unique selling points or consumer trust, these products face high advertising costs and low conversions. Their sales performance is often unsustainable without significant investment in branding.
Average ACOS: 80% to ∞
Average ROAS: 1.25 to 0 (For every $1 spent on advertising, these products generate $1.25 or less in sales, sometimes resulting in no sales at all)
Tier 4 brands, or non-branded generic products, lack the brand equity needed to stand out in competitive markets. With no unique selling points or consumer trust, these products face high advertising costs and low conversions. Their sales performance is often unsustainable without significant investment in branding.
Strong Branding Makes Advertising Easier
As shown by the data, stronger brands enjoy a lower ACOS, meaning they get a higher return on their advertising spend. Brands with no equity face significant challenges, with ACOS ranging from 80% to no sales at all. Well-established brands in Tier 1 convert more traffic into customers, making every advertising dollar go further.
Our Branding Process
Every visual, from product photography to digital designs, is crafted with purpose to build trust, drive engagement, and enhance your brand’s equity across platforms.
Every visual, from product photography to digital designs, is crafted with purpose to build trust, drive engagement, and enhance your brand’s equity across platforms.
Every image tells a story.
At One Apollo, each product shoot begins with meticulous spec writing, where we detail the angle, emotion, and message behind every image. Whether we’re highlighting product features or emphasizing unique selling points, our Amazon-standard infographics help brands stand out and build trust. This precision-driven photography increases conversions by clearly communicating product value.
Video content that captivates and converts.
Video content is essential for engaging modern audiences. We produce unboxing videos, product overviews, and tutorials that are tailored for every major platform. These videos help build brand equity by presenting products professionally and consistently, resulting in increased engagement and customer trust.Consistency is key to building trust.
Whether it’s creating an Amazon Brand Store, a Shopify storefront, or print materials, we ensure your brand is consistent across all touch points. This cohesiveness helps build long-term trust with customers, leading to higher conversion rates and better advertising performance.
Consistent content builds recognition.
Regular posting of engaging content on social media is critical for maintaining visibility and building long-term brand equity. Through consistent content, brands stay top-of-mind for customers, strengthening recognition and trust. This consistency translates into better advertising results and organic growth.The Results: Better Brand Equity, Better Performance
The data is clear: the stronger your brand, the better your advertising results. Investing in professional branding and content creation not only improves your immediate results but builds long-term equity that enhances the effectiveness of future campaigns.
At One Apollo, we believe branding is the cornerstone of long-term e-commerce success. Let us help you build a brand that not only stands out but delivers measurable results across all platforms.
The data is clear: the stronger your brand, the better your advertising results. Investing in professional branding and content creation not only improves your immediate results but builds long-term equity that enhances the effectiveness of future campaigns.
At One Apollo, we believe branding is the cornerstone of long-term e-commerce success. Let us help you build a brand that not only stands out but delivers measurable results across all platforms.
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What are you waiting for?
Get in touch with us today to start your journey to eCommerce success.
We value your privacy. Your information will never be shared. By clicking the button you agree to our Privacy Policy.