Welcome to our comprehensive list of branding statistics! Before we jump into the facts and numbers that help businesses rise or fall, we need to clear out the basics: what is branding, and how important is it?
Branding is a combination of distinctive design and marketing tactics used to promote a specific product or service.
As for its importance, branding is widely regarded as one of the key factors in any business’s success. It’s just as important for small business operations as it is for large conglomerates and multinational companies.
The Top Branding Facts and Statistics for 2020 and Beyond
- Branding’s main purpose is to raise profits.
- Successful branding leads to customer loyalty, an improved image, increased trust, and a relatable identity.
- Customer loyalty is 10 times as valuable as a single purchase.
- 59% of consumers buy new products from trusted brands.
- The majority of B2B marketers made branding a top priority in their five-year plans.
- 70% of brand managers prioritize audience-building over direct sales.
- Brands have spent over $200 million on logo design.
- Certain colors used in logo, web, and product design can boost brand recognition.
- 38% of users avoid businesses with unattractive websites.
- Companies with blogs get more leads per month.
Branding Statistics 2020 How Much Do Big Companies Spend on Branding?
1. Netflix spent $1.8 billion on branding in 2018.
Netflix has some pretty massive funds at its disposal. During 2018, the company spent around $12 billion on content. When it comes to branding and advertising, the company had a budget of $1.8 billion, which is an increase of 65% compared to 2017.
2. Coca-Cola spends an average of $3.96 billion on branding each year.
Exactly what is brand recognition? Coca-Cola is one of the companies that defines this marketing method. Taking the numbers from 2015 to 2018, we know that this company spends almost $4 billion on making itself consistently recognizable to its customers.
3. Pepsi spends an average of $2.4 billion on branding per year.
Even though this number is around 40% less than Coca-Cola’s spending, $2.4 billion is nothing to laugh at.
4. Amazon spent $10.1 billion on branding in 2018.
Amazon is one of the biggest spenders when it comes to branding. Branding stats from 2018 show that the company budgeted over $10 billion for branding and marketing, making it one of the biggest spenders in the US.
If we add to this that, as the latest small business statistics show, Amazon began as a garage-founded startup, the company’s branding spend is even more fascinating.
5. Alphabet Inc. spends $2.41 billion on branding.
Alphabet Inc. has been the parent company of Google since 2015, and, as per recent Google stats, the search engine giant processes over 63,000 search queries every second. We can safely assume that Google is responsible for most of the building and advertising expenditures for their brands.
Brand Recognition Statistics
6. 33% of consumers have a brand in mind when they go shopping.
(Kettle Fire Creative)
A great deal of effort goes into making sure consumers have one brand in mind before they even leave the house to go shopping. Regardless of their initial quality, brands such as Samsung and Apple have spent billions of dollars in branding to make sure their products are considered top-of-the-line.
7. 91.3% of 6-year-olds could match an image of Old Joe with a picture of a cigarette in 1991.
The 1991 study also included 229 preschool children. It found that 30% of 3-year-olds associated Old Joe, the cartoon character used to promote Camel cigarettes, with a picture of a cigarette.
As we can see, just three years later, the number shoots up even higher—demonstrating just how early brand name recognition starts.
8. Choosing the right color can improve brand recognition by up to 80%.
(Scotch & Ramen)
Different colors impact people differently. Using certain colors in a logo, product, ad, or web design can improve brand recognition by as much as 80%, data shows. You can read more on the use of colors among top brands later on.
9. 5–7 brand impressions are necessary for a consumer to remember a brand.
An average customer/consumer needs to interact with a brand 5–7 times before they’ll remember it. In most cases, these interactions come from social media ads. However, one’s first impression of a brand forms much more quickly.
10. It takes an average of 10 seconds for consumers to form an opinion of a company.
Statistics about first impressions show that every second counts when it comes to making a good impression. This is the reason startups will, more often than not, choose to dedicate a big chunk of their budget to branding. After all, a well-designed logo and website can play a big role in impressing a new customer.
Once they form an option about a company, 97% of consumers will make a purchasing decision based on customer reviews.
Design Statistics: The Logo
11. Startups spend $50–$50,000 on their logo.
Whether it’s by hiring freelance designers or hiring a professional design firm, startups spend up to $50,000 on their first logo. For most of them, this amount represents half of their total disposable funds.
12. 60% of small businesses dedicate up to $500 for their logo.
(Logo Design Guru)
More than half of all small businesses have a budget of $500 or less dedicated to their new logo design. Online marketing statistics reveal that just 18% of small businesses are willing to spend up to $1,000.
13. Brands have spent over $200 million on logo design.
One would expect large companies to spend millions of dollars and countless hours creating their new logo—and for most of them, this statement is true.
However, some giants, such as Coca-Cola and Google didn’t have to spend a dime. Coca-Cola’s name and logo were created by a bookkeeper, while Google got its signature brand presentation from a co-founder.
14. Twitter’s logo cost $15, and Nike’s cost $35.
Twitter and Nike also got away cheaply when it came to logo expenditure. The first company bought its logo for $15 on iStockphoto, while the second one paid $35 to a college student in need of art supplies.
15. The BBC spent $1.8 million to redesign its logo.
On the other side of the logo payment spectrum, we have the BBC. Branding stats and figures show that they paid $1.8 million in 1997 for a logo redesign that basically just added boxes around the letters.
16. BP spent $211 million on a new logo.
British Petroleum was probably the biggest spender when it comes to logo design. In 2008, the company spent $211 million on the new logo as part of their rebranding effort.
17. Of the top 100 brands, 95 use just one or two colors in their logo.
The impact branding and design have on the world of business is sometimes best displayed through simplicity; 95% of the top brands in the world have decided to keep things simple and use just one or two colors in their logo.
Additional data shows that 33% of these brands use the color blue in their logo, while 29% use red.
18. 93 of the top 100 brands use logos designed to be recognizable in small sizes.
This shows a strong majority of leading brands focus on creating easily discernible logos, even in small sizes.
19. 67 of the top 100 brands use horizontal logos.
67% of the top brands in the world have opted to use horizontal lettering in their logos. Vertical logos have become a big design no-no, as they appear outdated and can cause negative branding.
20. The average logo lasts for 10 years.
(Logo Design Guru)
There are many companies out there that have reached the point where their logo is their most valuable asset—because it’s instantly recognizable. Even so, the majority of business logos have a lifetime of 10 years. After that period, it’s wise to schedule a major design update in order to keep up with the trends.
Brand Loyalty Statistics
21. 65% of a company’s business comes from existing customers.
(Small Business Trends)
Repeat customers are the foundation of nearly every industry. With 65% of all business coming from them, it’s imperative that companies do everything in their power to retain every ounce of brand loyalty they can. Optimizing a website for mobile devices is one such thing, as 57% of users won’t refer anyone to websites that are poorly optimized for mobile.
22. 59% of consumers buy new products from trusted brands.
(Kettle Fire Creative)
When they need a new product, well over half of all shoppers prefer buying one from a familiar and trusted brand, branding statistics show.
23. 81% of customers in the US are satisfied with the service that businesses provide.
Consumer satisfaction is what leads to brand loyalty, and the majority of US customers are happy with the services they’re offered. A whopping 81% of them report that businesses are meeting their expectations.
24. US consumers are willing to spend 17% more money for excellent service.
The importance of brands providing excellent service appears to be high in America; US customers will gladly spend 17% more money on a product if it means they’ll receive a higher level of service.
Within some demographics, the percentage is even greater. Men are willing to spend 19% more. And Millennials will spend 21% on a product that comes with a better consumer experience.
When it comes to customer support channels, over two-thirds of consumers prefer live chat due to the convenience and speed it offers. Did you know that, on average, it only takes 40 seconds to resolve a problem via live chat, while with phone calls, this number increases to 120 seconds?
25. 60% of US consumers consider switching brands after 2–3 instances of poor service.
Brand loyalty goes out the window with poor service, as evident by the fact that nearly two-thirds of customers consider switching to a different brand after two or three bad experiences.
Bonus: The Most Interesting Branding Statistics for 2020
26. US brands lose $41 billion a year due to a poor customer experience.
American brands miss out on selling tons of products due to bad customer relations. In fact, 65% of customers admit that they stopped using a business after having a negative experience with their customer service.
27. Alphabet Inc. is the highest-valued brand in the world.
We already know Alphabet Inc. is one of the biggest branding spenders on the market. However, this brand, and Google as its subsidiary, can definitely afford the expense. Alphabet Inc. has an estimated value of $286.5 billion.
Apple is right behind, followed by Amazon, Microsoft, and Facebook, together making up the top five brands in the world, according to recent stats about brand voice.
28. 90% of marketers say social media marketing has been effective for them.
Social media marketing has been regarded as one of the most effective brand-building methods for nearly a decade. 90% of marketers say that social media marketing has noticeably increased their exposure. Bloggers too are fond of social media. Blogging statistics show that 96% of them are ranking social media channels as the top blog promotion tool.
29. Just 32% of small businesses invest in social marketing.
Brand awareness statistics from 2018 have shown that regardless of its effectiveness, less than a third of small businesses invest in social marketing.
30. 38% of users will avoid a business if their website is unattractive.
(Scotch & Ramen)
38% of users decide to avoid a company, or their website, and not purchase a product from it if they find the website unappealing aesthetically. This tells us that website design and branding are meant to be taken seriously—with professionals in charge of both of these tasks.
31. 64% of consumers decide to buy a product or a service after seeing a branded social video.
(Scotch & Ramen) (Kontentino)
Another statistic that shows how big a role social media marketing plays in branding is this one right here. The fact that 64% of consumers will buy a product after seeing a social video on it proves that the benefits of branding and extending brand awareness via social media are basically endless.
While we’re on the topic of social videos, here’s a fun fact – they generate 1,200% more shares than text and image content combined.
32. 72% of marketers prioritize branded content over traditional advertising methods.
The majority of marketers choose to advertise through branded content rather than paying for ads in magazines, newspapers, and other old-school mediums.
33. Content authenticity is the main reason people choose to follow a brand.
Brand trust statistics show that companies producing trustworthy branded content attract more followers. In fact, 80% of consumers say that authenticity is the reason they start following a brand.
34. Blogs produce 67% more leads per month.
Companies that maintain blogs to distribute branded content produce 67% more monthly leads than businesses that haven’t started a blog yet. The success behind employer branding also depends on their blogs’ social sharing.
35. 77% of B2B marketers say branding is critical to their growth.
Branding is one of the key factors in business success and growth. And 77% of B2B marketers agree with this statement.
Branding in the world of social media and the internet can be a tricky thing. Unfortunately, not many business owners are aware of the potential benefits it could bring their company—not to mention the potential damage it could cause if managed improperly.
With all that in mind, we hope this list of branding statistics and facts has demonstrated that you should exploit all of the benefits branding offers.