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Brand Awareness

Brand Awareness Definition

“Brand awareness is the extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services.” As defined by Investopedia.

Brand awareness refers to the ability of the customers to recognize a brand amongst many brands in the marketplace. Consumers with high brand awareness are more likely to go straight to a particular brand when they need a product instead of searching for other products and brands.

For example, companies such as Nike, Coca-Cola, BMW, etc., have built brand awareness to the extent that people can immediately identify the brand just by seeing their logo. 

Brand awareness comes in during the first stage of influencing the customer’s decision-making process. Brands are spending huge amounts just to bring awareness to their brands. 

Brand Awareness Advantages

Brand awareness occupies a lot of importance for companies and brings a whole lot of advantages: 

1. Increases Market Share:

Brand awareness drives performance goals, such as leads and sales. By improving brand awareness, you can increase the chance of conversion thereby, increasing sales and market share. 

2. Business expansion:

Brand awareness gives the opportunity to a company to spread its business into new products and new geographies by using the positive brand name that already exists.   

3. Competitive edge:

Brand awareness offers a competitive edge in the market. Customers identify a brand and are loyal to a brand. This leads to improving the competitive edge of the products. When there is higher brand awareness for a company, there is higher brand equity, which automatically gives a competitive edge over other well-known brands. 

4. Increase in margin:

A brand can charge higher than the market price when it enjoys higher brand awareness, as customers are ready to pay a premium for your brand. The additional value that customers pay in the name of brand awareness will boost your profit margins. 

Brand Awareness Example


See how the fashion brand Ralph Lauren worked towards building brand awareness. For its 50th anniversary, Ralph Lauren wanted to bring in higher brand awareness among global millennial audiences, Gen Z audiences, and Gen-X audiences.

For this, the brand showcased its products on Instagram and Facebook using the launch in-feed video ads and Instagram Stories. Through these social media platforms, the brand was introduced clearly with multiple scenes to attract people’s attention.

The 50th anniversary was highlighted with bold and clear images. Ralph Lauren’s brand awareness drive brought in an 18% increase in sales among the millennials and saw a 7.1-fold return on ad spend.