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5 TRUTHS ABOUT BRAND ROI TO OPTIMIZE EVERY DOLLAR OF MARKETING BUDGET (PART 2)
Last updated: 17 Mar 2026Truth 4: Creative Quality Determines 49% of ROI
Beyond budget allocation, creative quality also plays a critical role in determining ROI. Even with the same channel and level of investment, different creative ideas can result in ROI varying by several times.
Analysis from Kantar’s LiftROI database shows that creative quality can influence advertising effectiveness by as much as 49%, potentially having an even greater impact than investment strategy and channel selection.
So, what constitutes high-quality creative?
In today’s rapidly changing, highly fragmented media environment, truly high-quality creative needs to be tailored to the specific characteristics of each channel.
Kantar partnered with TikTok and used LINK AI to test 3,500 advertisements on the platform. The results showed that advertisements aligned with the characteristics of the platform outperformed benchmarks by 15% to 20% across all metrics.
Truth 5: ROI on Regular Days > ROI During Peak Shopping Seasons
One seemingly counterintuitive phenomenon is that brand ROI during major shopping festivals is often lower than on regular days.
Although peak shopping periods can generate significant increases in sales, intense competition for traffic pushes conversion costs higher, resulting in actual ROI that is lower than during normal periods.
Kantar’s data analysis for an FMCG brand showed that its ROI during peak shopping periods was 30% lower than on regular days.
Brands therefore need to be cautious about becoming overly dependent on peak shopping seasons.
The vicious cycle of “sales only happen when there is a promotion” is, in essence, an indication of insufficient Brand Equity in consumers’ minds.
The core value of peak shopping periods should be to activate customers who have been “dormant” and expand Brand Penetration, rather than simply pursuing short-term ROI.
On this issue, Kantar recommends:
Begin Brand promotion 1–2 months before the peak shopping season, using Content Marketing and emotional communication to reduce subsequent conversion barriers.
Escape the short-term trap: Move away from an “ROI above all else” mindset, incorporate Customer Lifetime Value (LTV) into the evaluation system, and focus on how promotional campaigns can drive long-term repeat purchases.
Has Your Marketing Model Calculated the True ROI Correctly?
The traditional Last-click Attribution Model has significant limitations.
It often overstates the immediate conversion contribution of Performance Advertising while seriously underestimating the long-term value of Brand Building.
Through multi-channel quantitative analysis, Kantar LiftROI reconstructs the actual impact of different marketing activities, helping businesses address three core challenges:
Balanced Budget Allocation:
Accurately calculate the combined effects of Brand and Performance activities to identify the optimal budget allocation ratio.
Resource Efficiency Optimization:
Identify underperforming investment channels and avoid unnecessary budget waste.
Long-term Value Forecasting:
Move beyond the short-term ROI trap and build growth forecasting models based on Customer Lifetime Value (LTV).
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