Is Branding Ludicrously Overrated?

Before you get all hot and bothered, let me explain.

I’ve worked with businesses that have thrived for years before approaching me, despite a lacklustre logo and web presence.

And I’ve also seen businesses close down after just 3 years, despite having an (subjectively) amazing visual brand identity.

So does that mean that branding is, in fact, useless? Of no value whatsoever? Overrated?

Yes, and no. Here are 3 things to consider.

Branding to business mismatch

Like I previously shared before, a wonderful visual brand identity is not going to save you if your business model, product and/or service are subpar.

And whether or not you have ‘great branding’ won’t help you keep the doors open.

20 percent of businesses fail within the first year and 50 percent fail within the first five years.

And I can tell you that the reason they fail is seldom poor branding.

Just look at early AirBnb. By all measures, judging their early branding efforts alone (especially their visual brand elements) should have rendered the business fruitless.

Quick brand experience sidebar

I’ve recently dealt with an online platform (with pleasant branding) where you’re able to book from a selection of mechanics online that come to you.

I’ve ordered a battery replacement, and ever since then my car has been malfunctioning.

Apparently, with newer cars fitted from ‘head to toe’ with electronics a genuine car battery should be fitted (i.e. Volvo, Mercedes etc).

Asking for a refund, the brand I dealt with referenced me agreeing to a 20 page doc and an aftermarket battery.

That may be so. But did I also agree to subpar outcomes and unhelpful service? Certainly not.

And do you think the business will last long, unless they rethink their policies? Not sure.

You know that branding is a long-term game

Branding efforts are less like heating up a meal in a microwave and more like cooking in a pressure cooker. You don’t always see instant results, and you can’t check on progress every 5 minutes.

Is it possible to see an immediate change in sales after a branding and packaging uplift for your products? Sure.

But will that change be a predictor for long-term success? Not necessarily.

You often need years of consistent branding efforts (aligned with strategic objectives), before you see reliable patterns.

e.g. 2 years after an amazing packaging redesign for confectionary brand Bahlsen, sales have gone down in 2023. Despite fans and design aficionados alike initially praising the change.

According to their research it’s the result of a design that doesn’t completely match what consumers expect from the category.

It’s possible for branding efforts to show positive immediate results but poor long-term results. And vice versa.

You need to play the long term game of branding. Rather than hoping for a microwave ready brand.

Startup vs. scaleup branding, there’s a difference

Looking at the previous two points above, it’s clear that whether you’re a startup or a scaleup, your branding objectives should be different.

Startup branding should be focused on short bursts of branding activities aimed at ‘testing’ and learning from the market.

e.g.

1. Define an initial brand positioning (a hypothesis to be tested in the market)
2. Test 2 or 3 initial landing pages with minimal viable design/identity options
3. Select winning option and refine it to a semi-finalised, fluid brand identity
4. Start building up a library of assets (colours, messaging, website, templates, styles)
5. Refine by ditching what’s not working well, only keeping what is necessary
6. Based on data and/or market decide if repositioning is required
7. Evolve or refresh the brand to reflect the new brand positioning if necessary
8. Continue leaning into what’s working and consolidate all distinctive assets

For scaleup brands (those who have found success and thrived in the first 5–10 years, regardless of branding) tend to need to focus on steps 6 onwards only.

So does all of this mean that branding is useless? Overrated? Unnecessary even?

On the contrary, branding is something that should be present at all stages of your business, but the focus and approach should be varied based on your situation.

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