Baking Brand Equity With Social Media

Jan 30 • Business, Front Page • 2600 Views

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It’s a fact: brand equity social media strategies outperform ROI strategies on social media. Brand equity is the consumer’s positive perception, association and familiarity toward a brand.  Specifically, brand equity is:

  • Awareness
  • Loyalty & Attachment
  • Perception
  • Preference
  • Perceived Quality
  • Association

Brand Equity Social Media Strategies Trump ROI Approaches

Brands have two approaches to social media. The first (and most common) is to directly sell products or services with ROI-driven goals. The second is leveraging social media to build brand equity. The most effective brands leveraging social media understand that consumers are on social media to connect with friends, share their own stories and consume, share and engage with other relevant and entertaining content. These brands align their social media goals and strategies to the inherent nature of the medium and focus their performance indicators on brand equity. Social media provides the most efficient medium for brands to push their brand equity agenda and is less efficient for strategies directly tied to ROI goals.

Brand Equity Equates to Revenue

Brand equity is financially significant to a brand’s revenue. Brand equity surges profits in categories with higher margins. In some cases, this can be explained as the premium price consumers are willing to pay for a brand that possesses high brand equity over other competitor brands with inferior equity. Furthermore, brand equity is advantageous in markets where consumers are more price-sensitive by affecting sales volume. Meaning, when price is a major factor in the purchase decision, brand equity will not justify a premium price; however, it will positively influence the frequency at which consumers choose the product with high brand equity over competitors with inferior brand equity. (Sethurman, et al)


Brand equity surges profits

Using Social Media to Affect Brand Equity

Social media offers the perfect conditions favorable to influencing brand equity. Insights powered by social media data help brands understand their brand’s equity. Furthermore, these insights can show brands where and how to efficiently invest in brand equity.

Social media insights help brands understand their brand equity.

Here are some brand’s leveraging social media tactics to build awareness, loyalty, perceived quality, attachment, association and preference…



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Southwest Airlines



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The Effect of Consumer Brand Equity on Firm Brand Profitability: Insights from Equilibrium Analysis of Duopoly Models
Authors: Raj Sethuraman, William Dillon, Richard Briesch


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