We are long term Active Managers.
We invest for the long-term.
We take a long-term view.
Asset Managers love telling their long-term investment stories. However, when it comes to advertising, they seem to prefer taking a short-term view.
At its most extreme, the short-term approach in advertising is what could be viewed as fund sales promotion – supporting sales with the latest product push or top performing fund.
This is why the 95:5 rule from ‘How B2B Brands Grow’ - Ehrenberg-Bass Institute, should be a wakeup call to asset management marketeers and salespeople alike. The 95:5 rule makes the point that 95% of potential buyers aren’t ready to buy today. Which means 95% of fund buyers are not in market when they see the advert.
That statement alone should have many Asset Managers thinking about the role of their advertising. It should say to Asset Managers that if advertising is only reaching 5% of buyers in market at any given time, the 95% should definitely be focused on the long-term - those potential buyers, whilst currently out of market, will be vital drivers of future cash flow.
And if Asset Managers don’t want to waste 95% of their advertising, it means a clear need for focus on making sure that when future buyers enter the market with intent to buy, their brand is at the forefront of their minds. Because, more often than not, the most memorable brand is the most purchased brand.
Time for a re-think? Talk to us about a more effective approach to your advertising.
Email Darren, one of our Managing Partners: darrenlassiter@arthurlondon.com
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