Why is it crucial to improve brand awareness?

Marketing accounts for 10%-35% of a brand’s equity.

Whilst talking about brand awareness in my marketing class at NC State University, I stumbled upon the following article about brand awareness and marketing in general.

https://www.nielsen.com/insights/2021/when-it-comes-to-brand-building-awareness-is-critical/

Nielsen, a global marketing research firm, put out the article in June 2021 showing the importance of marketing and more specifically of Upper-Funnel Marketing.

More than ever, company’s goals are to maintain long-term brand equity. And that can be achieved through one thing: Brand Building. Lower-funnel Marketing activities generate short term sales and are thus not durable. However, upper-funnel marketing activities can generate an increase of 1% sales and the correlation with marketing efficiency is of 0.73 (very strong).

As the article says there is never a good time to stop advertising. However, creating long term sales and being able to have customer loyalty is more crucial than ever as new brands enter the market the everyday.