The Importance of Brand Awareness in 2022 and Why It's Becoming a Priority for Businesses

Discover why marketing experts believe brand recognition will become more important in 2022, and what this means for your business strategy. It's not always obvious how important brand awareness is. It's often overshadowed in the boardroom by more commercial indicators with concrete worth. As a result, many businesses will not report on brand awareness, let alone track and quantify it. The annual Not Another State of Marketing report from the growth platform, on the other hand, shows that attitudes are changing. In its 2021 survey, based on responses from over 1,500 marketing leaders around the world, 'improving brand recognition' was chosen as the top-third marketing goal for the year ahead. As a marketing goal, it came in top, narrowly beating out sales' outperforming lead generation' and raising revenue' by a significant margin.

List of the importance of brand awareness:

1. Purchasing habits are shifting.
2. A more competitive environment.
3. There is an increasing need for brand authenticity.
4. In 2022, businesses will recognize the importance of brand recognition.

"The top-third marketing aim for the coming year was indicated as 'increasing brand awareness.'" 'Not Another State of Marketing Report,' says the report.

What is the definition of brand awareness?

We're talking about your company's position within its main market when we talk about brand recognition. Brand recognition refers to the possibility that consumers (B2C or B2B) will recognize a company's brand, products, or services.

As a result, whether launching new items or bringing a new offering to market, brand awareness is critical. A high level of brand awareness, particularly within an organization's target market, will aid in gaining traction and moving sales for those items or services. Brand awareness is also essential as a measure of how well-known a company is in general. When a buyer is ready to research or make their next purchase, companies with effective brand awareness strategies will not only be among the first to come to mind, but they will also be perceived as an industry authority, especially if they have increased their brand awareness through an educational blog, frequent thought leadership, or other inbound marketing tactics.

Purchasing habits are shifting

It's been well documented how, within weeks of the first national lockdown going into force, digital use across sectors soared. According to McKinsey & Company's podcast on the changing consumer:

1. Virtual appointments increased by a factor of ten in just 15 days.
2. Disney+ created a membership base in five months that took Netflix seven years to reach.
3. Remote working, learning, and purchasing have all risen in popularity.

"The ongoing COVID-19 situation has changed the way we shop, when we shop, and where we shop, as well as what we buy." It claims that "digital has become more essential than ever [and] brand loyalty has been challenged." These changes give brands a better chance to raise brand awareness in new markets or customer profiles that weren't previously accessible online. Targeted marketing strategies can deliver relevant content to prospects who aren't actively looking for specific products or solutions, while shattered brand loyalty opens new ways for organizations to disrupt repeat purchases and build new relationships.

A more competitive environment

"Digital reliance was expanding before the epidemic began," writes McKinsey & Company, "and a significant portion of this online penetration is projected to persist once the pandemic is finished." With new buying patterns presenting chances for brands to disrupt the market and no sign of customers' digital habits shifting, it's no surprise that so many businesses have shifted their strategies to digital in the last two years.

From digital marketing, PPC promotions, and new content initiatives to social media strategies and a general shift toward digital transformation, online competition has never been fiercer, necessitating a greater focus on brand awareness to break through the noise, reach new audiences, and capitalize on the commercial opportunities associated with digital transformation.

There is an increasing need for brand authenticity

Customer experience was the top growth driver in 2021. In line with McKinsey & Company's findings on brand loyalty, this makes customer service and the experience that brands provide their prospects and consumers a top business priority in 2022 and beyond.

Brand recognition alone will not solve this problem; instead, a coordinated plan with marketing, sales, and service units that all work together to focus on the consumer is required. However, raising brand recognition is an excellent way for businesses to start forming new relationships with customers, communicating fundamental values, and establishing trust. Customers are increasingly seeking out firms with whom they can identify and relate.

In 2022, businesses will recognize the importance of brand recognition

As the pace of digital transformation accelerates and traditional outbound marketing tactics become less effective at reaching prospects and generating leads, shifting the focus of the strategy to focus on or at least incorporate brand awareness will pay off in terms of driving long-term, sustainable growth and generating a return. Inbound marketing, which promotes excellent, relevant content customized to your customer profiles and their needs and generates important future referral traffic, is the simplest approach to implement this move. "Despite the fact that inbound marketing has been around for years, 27% of marketers say they will use it for the first time in 2022, and 11% say it will be their biggest expenditure in the coming year." Marketing Trends of 2022'

In other words, brand recognition has gone from being a soft marketing goal to being a strategic imperative. Because of this increased importance, businesses seeking to expand their reach and remain competitive in 2022 and beyond will need to change their marketing tactics.