Even those who frequently use the phrases may also get confused about the difference between advertising and branding. Both seem closely aligned and stem from marketing, so it’s natural for some people to use the terms interchangeably. But you need to know the difference between advertising and branding if you’re a small business owner, entrepreneur, or freelancer in the gig economy. It helps to know the difference.
The primary reason you should know the difference between advertising and branding is that it will allow you to focus your efforts. If you don’t know the difference between advertising and branding, you may draw the wrong conclusion about whether your marketing efforts succeed or not.
You may also be lured into making the kind of investment if you’re not sure about the difference between branding and advertising. So, to optimize your marketing communication, let’s understand the concepts, beginning with branding.
What is branding?
Branding is the cumulative effect of all aspects of a brand’s identity on a consumer’s mind. A company’s branding conveys to consumers why they consider buying that product or service over others. Branding encompasses the name, logo, design, tagline, typeface, color scheme, atmosphere, character, tone of voice, belief systems, and attitudes toward societal issues.
When someone says they love a brand, they’re saying that they like the combined effect all these factors produce in them. In that sense, branding is a brand’s personality that’s way beyond the product or service. Whether it’s a tech giant or a neighborhood cafe, these attributes will decide whether consumers prefer that brand over others.
Components of branding
Name: The name is the first thing that comes to people’s minds when they think of a brand. It takes a lot of investment for a name to register, which is the reason why brands are hesitant to change their names once they’re established.
Logo: This is the visual representation of the name with certain design elements. A logo isn’t an image added to the name. It captures the spirit of the brand. In certain exceptionally successful instances, a brand may not need to state its name. Like in the case of Nike’s swoosh, the logo would be enough.
Tagline: Decades ago, when branding was elementary, the purpose of a tagline was to demonstrate the usage of the product or service. But with the evolution of branding, taglines now convey the mission, vision, or expected behavioral change. Coca-Cola’s “Open Happiness” isn’t about the product. It’s about what the brand can do to consumers’ lives.
Typeface & color scheme: Unlike the brand name, the other elements, including the typeface and color scheme, can change with the times. That’s one of the most common ways in which companies refresh their branding.
Atmosphere: This is relevant for brands that have an experiential aspect. For fast food, and restaurant chains, and even websites and social media, how the brand physically feels plays an important part in its overall branding experience.
Character & tone of voice: Is the brand conservative or edgy? Is it brash, playful, or subdued? Those intangible attributes are important components of a brand’s identity and need to be defined early on. Importantly, it’s pointless to needlessly change a brand’s character.
Belief systems & attitudes: Brands aren’t just products or services. People expect them to be aware of the larger movements in society. While it’s risky for brands to have opinions on trending or sensitive issues, the ones that have progressive attitudes tend to outperform others.
What is advertising?
All these attributes put together will define the brand for the consumer. The process of communicating these to persuade consumers is advertising. Advertising defines the consumers a brand wants to attract, creates an aspirational brand identity, and encourages customers to choose the brand.
Advertising informs, educates, and convinces customers that a particular brand is better than others in solving their problems, adding value to their lives, and importantly, is in sync with their world views. It uses paid media in traditional, online, retail, outdoors, and mobile platforms to reach and influence consumers.
Traditional: Companies have traditionally used newspapers, television, and radio to reach larger audiences. While these would be reasonably priced and make the brand seem larger than life, there was no accountability. It was difficult for companies to know which advertising campaign was a success and, if so, to what extent.
Online: Ads placed on websites are the primary form of online advertising. These allow advertisers to focus on and reach the right consumer groups based on their behavior. These also allow brands to direct consumers to act immediately, like buying a product or signing up for a service.
Retail: Fashion brands, big-box retailers and shopping malls rely heavily on retail advertising where they place product displays, digital screens, and standees with the marketing messages. It offers brands an opportunity to interact with a captive audience.
Outdoors: Banners and billboards placed outside constitute outdoor advertising. From the traditional static media, outdoor ads have now become dynamic and engaging.
Mobile: Advertisers can also offer targeted communication to users through their mobile phones in the form of banners, ads, and text messages.
Social media: One of the most important channels of advertising is social media which allows brands to constantly engage with their followers. It opens up a world of opportunities for brands to not just communicate but also interact with their customers.
In short
Branding is the act of personifying attributes that will create a distinct and likable identity in the minds of consumers. Advertising then communicates that identity and its proposition in an interesting and compelling way to persuade customers.
Branding is what needs to be defined at the very beginning. Once finalized, it needs to be consistently communicated across all platforms. Advertising strategies may change depending on their efficacy, but the brand attributes shouldn’t needlessly change.
Finally, branding should be designed with a long-term view. Any expense on branding should be seen as an investment because a brand identity, from the logo to the character, is eventually an asset.