The importance of consistent brand advertising in asset management

The article Why does brand matter in-B2B asset management marketing explained why having a strong brand is critical for the long-term success of every asset management brand. The article touched on one of the factors that is required to build a strong brand – consistency.

This article expands on this factor and discusses the compelling arguments and robust evidence which support the need for consistent brand advertising in the asset management industry, irrespective of the market environment.

Continuous brand-building is of strategic importance; ongoing engagement not only strengthens market presence and client trust but also positions firms to remain competitive over the long term. Drawing on global research insights and foundational B2B marketing principles, we argue that maintaining brand visibility is vital for sustaining client awareness and confidence in decision-making, especially in a sector marked by complex, infrequent transactions.

We also offer tools and strategies for navigating internal pressures and market headwinds that may arise from broader geopolitical disruptions.

The importance of continuity

Especially in challenging economic periods, some asset managers reduce advertising and marketing spend, believing that these efforts are less critical during times of volatility and crises. This strategy, however, overlooks the unique dynamics of asset management, where client acquisition and retention is a lengthy process often involving multiple stakeholders.

For investment funds, consistent brand advertising is not a “nice-to-have” but a strategic necessity. Research suggests that consistent brand visibility fosters client trust, reinforces brand awareness and keeps a brand top-of-mind, ensuring it is well-positioned when clients re-enter the market.

Research by Fundamental Group among professional fund buyers shows a direct link between unprompted brand recall and purchase intentions, illustrating that brands with high, consistent visibility – such as BlackRock, Vanguard and J.P. Morgan – perform best across client retention and acquisition metrics in the US as well as in European markets.

Continuous advertising efforts during downturns strengthen a brand's resilience and market position, supporting asset managers through economic cycles.

The science

We are all very familiar with the academic research which shows both:

1. The opportunity – Insights from Binet & Field

Les Binet and Peter Field, two of the UK’s most respected marketing effectiveness experts, have shown through extensive analysis of the IPA (Institute of Practitioners in Advertising) Databank that maintaining or increasing advertising investment during economic downturns is one of the most powerful strategies a brand can pursue. Their research highlights the importance of Share of Voice (SOV) – the proportion of total advertising expenditure a brand commands in its category – and its relationship with market share. When a brand’s SOV exceeds its market share, a condition known as Excess Share of Voice (ESOV), it is highly likely to see market share growth over time.

Economic downturns create an unusual opportunity in the media landscape: many competitors reduce spend or go completely dark, leading to lower advertising costs and less crowded messaging environments. Brands that continue to invest during these periods can effectively achieve greater visibility at a lower cost, reaching consumers more easily and embedding their brand more deeply in consumers’ minds.

Binet and Field’s analysis shows that the brands which maintain or grow their SOV during recessions often reap disproportionate rewards in the recovery phase, growing faster and more profitably than those who cut back. Historical examples reinforce this: Procter & Gamble famously increased its investment in brand-building during the Great Depression, gaining significant long-term advantage. More recently, Amazon expanded its marketing and innovation efforts during the 2008 financial crisis, fuelling its rapid rise in market dominance in the years that followed.

Binet and Field’s research confirms that advertising during a downturn is not simply a means of survival, but a strategy for market leadership. By taking advantage of quieter competition and cheaper media, brands can achieve long-lasting gains at a fraction of the usual cost.

2. The threat – long-term consequences revealed by PIMS

The Profit Impact of Market Strategy (PIMS) database, one of the most comprehensive and enduring studies in business strategy, provides strong empirical evidence of the dangers of reducing marketing spend in hard times. Originally developed in the 1970s by General Electric and Harvard Business School, the PIMS project has compiled millions of data points from thousands of businesses across industries and markets, tracking the long-term outcomes of various strategic decisions.

A key insight from PIMS is that cutting marketing budgets may not lead to immediate harm – a factor that often makes such cuts appear sensible or even responsible to finance teams. However, over time, the effects are stark: brands that reduce visibility tend to experience declines in customer awareness, brand equity and long-term competitiveness. This results in a much slower recovery once market conditions improve, as well as a higher cost of re-establishing the brand in consumers’ consideration sets.

The PIMS data reveals a lagging negative effect: companies that reduce investment in marketing and innovation often face stunted growth and weakened profitability in the years that follow. In contrast, businesses that continue to invest (even modestly) tend to outperform their competitors on measures such as return on capital employed, market share growth and long-term financial health.

In essence, PIMS demonstrates that marketing should not be seen as a short-term cost to be slashed during uncertainty, but rather as a strategic investment – one that determines how strongly a brand will bounce back. Brands that "go dark" risk losing salience, and when they eventually return to the market, they often find it harder and more expensive to regain their former position.

However, the academics’ view is very abstract and technical; therefore, let us look at it from a different perspective.

Home truths

The most important factor influencing the buying process is your client. That probably doesn’t come as a surprise, yet it is very often ignored and overlooked.

Time for some home truths. Asset managers aren’t candy stores; buying an investment fund is not something that you necessarily do frequently, let alone on impulse. This holds certainly true for the professional investor but also for the self-directed retail investor.

Truth #1:    6.3 or: Committee-driven decisions and brand influence

Asset management purchases often involve large committees where no single member has the exclusive authority to decide on a purchase. Bain & Co. estimates that B2B decision-making involves an average of 6.3 people, each influencing the final choice in unique ways.

Reaching all committee members effectively requires sustained advertising that builds brand familiarity across all involved stakeholders. Sales teams alone are unlikely to reach all decision-makers, making consistent brand advertising essential in establishing influence across each committee member's perception.

This becomes even more important in times of uncertainty where you need to reach all stakeholders timely and regularly with the right messages that reassure all of them. Marketing is a critical support to sales in times where messages need to get out quickly to all parties involved.

Truth #2:    80% or: Just be there

The Gartner report expects 80% of B2B sales interactions between suppliers and buyers to occur in digital channels.

While many clients will reach out to sales now for information and reassurance, they may need information at times when sales is not available.

This means that your website and all other digital channels you employ must work hard and effectively for you. You must ensure now that you offer enough self-serve content on all aspects of the current environment and your position and ensure that it is promoted effectively.

Truth #3:    16% or: The opportunity

LinkedIn’s research into B2B sales and marketing coordination reveals a substantial misalignment: only 16% of companies report significant overlap in their sales and marketing efforts.

In normal times this provides a challenge in optimisation of sales and marketing efforts. In the current environment it provides an opportunity.

Not all asset managers will be effective in communicating and some will indeed go silent. These prospects/future buyers will be much more receptive to your messaging in times of upheaval, especially if their suppliers have gone dark.

Truth #4:    95-5 or: Memory links and market positioning

On the topic of the prospect/future client – not only are they more receptive but they’ll need to be nurtured throughout. After all, each tumultuous time comes to an end and once the dust has settled the asset managers who’ve been consistent throughout will reap the rewards.

The concept of memory-link activation, as posited by Dawes of the Ehrenberg-Bass Institute, argues that up to 95% of potential B2B clients are not actively seeking products at any one time. In asset management, this insight underscores the need for consistent advertising, as brand interactions create memory links that keep a brand relevant until clients re-enter the market. Without frequent brand reinforcement, asset managers risk becoming less recognisable and less trusted by prospective clients over time.

All marketing strategies and budget allocations need to be cognisant of the fact that tactical marketing activities such as lead generation are geared towards capturing the 5% of in-market buyers.

It is brand advertising that creates the demand among the 95% of out-market buyers. These are your future buyers.

Truth #5:    192 days or: Prolonged client journeys and the need for constant engagement

Asset management marketing is a marathon, not a sprint. We need to practice what we preach and take a long-term view. Market movements come and go quite quickly, yet the customer journey in B2B asset management can extend over six months, often spanning a full year or more for institutional clients. Research from Dreamdata highlights the need for steady marketing touchpoints throughout this journey, as customers engage with a brand multiple times before making a purchase decision.

Consistent advertising efforts provide the repeated exposure necessary to solidify the brand’s role as a trusted option, which becomes critical in decision-making phases.

All of these truths are compelling arguments to be in market consistently throughout the year. Firms have the best intentions to do so and actually put strategies in place. Very often these are abandoned though when there are unexpected market events. Positive events are capitalised on but when it comes to negative events, we’re very often the proverbial rabbit caught in the headlights. We either don’t know how to react or we feel it’s inappropriate to react.

This is not only a missed opportunity to take the lead and stand out when others disappear, it’s also detrimental to your standing in the market. To underline the importance to continue with continuity here a couple of additional home truths for a market in turmoil and upheaval.

Truth #6:    63% or: Silence is weakness

Your clients expect and deserve that you are there for them in times of upheaval. Forrester Research has found that in volatile times inaction is interpreted as instability.

63% of investors say that they “lose confidence in firms that disappear during market stress”.

Marketing communicates stability, confidence and capability.

Truth #7:    81% or: Trust buys

Clients want clear and credible communication during volatile times. Firms delivering this are seen as more competent and ethical. Investors seek stability and leadership in times of uncertainty.

You need and want to be a trusted partner through times of uncertainty with campaigns that educate, reassure and connect with investors.

Research by Edelman shows that brand trust is a deciding purchasing factor for 81%.

Yes, but…..

…these truths don’t apply to asset management! Very often we get this pushback when it comes to maintaining or increasing marketing budgets.

A prevailing belief in the asset management industry is that professional investors – those managing significant portfolios or institutional funds – are purely objective, relying solely on quantitative metrics such as returns, risk-adjusted performance and other financial indicators.

This perspective assumes that advertising and branding efforts have minimal influence over these fact-driven clients. However, while performance is undoubtedly critical, evidence from multiple markets and case studies suggests that consistent brand visibility and familiarity are equally essential, particularly in crowded asset classes where differentiation is challenging.

The reality is rather that performance alone is insufficient for brand loyalty. Indeed, there are examples of "blockbuster" funds that supposedly thrived on performance alone, such as those managed by notable figures like Carmignac, Flossbach von Storch and Woodford, who gained substantial recognition without traditional advertising due to exceptional performance records.

However, what is forgotten is that these managers were frequently covered by financial media, effectively receiving free brand reinforcement. However, even in these cases, it was not the lack of marketing but rather the sustained media visibility that kept these funds in the public eye. In other words, it was the constant exposure through earned media that contributed significantly to their brand presence. This is confirmed by the professional fund buyer who says consistently that brand matters.

In summary, while performance is critical, it does not eliminate the need for consistent branding efforts. For asset managers who lack blockbuster performance, a strong brand presence is not only advantageous but necessary to remain competitive. Establishing brand familiarity from day one, and ensuring it endures, creates a foundation upon which competitive funds can thrive, regardless of the ever-changing landscape of performance rankings.

This is even more pertinent in a market environment like the one we’re currently experiencing. We’re not necessarily looking at acquisition but at a retention strategy – and effective and consistent communication of your capabilities has positive effects in any market environment.

The charts below illustrate the correlation of brand recall and organic growth of asset managers in the US in the asset class fixed income.

Not only does a strong brand recall foster strong organic growth, it also protects an asset manager if and when the asset class is out of favour by delivering a much better retention than that of lesser-known competitors.