The ROI of Branding: How to Evaluate If Your Investment in Branding Is Worth It

Desi Velikova

Branding is one of the most misunderstood investments in business. Unlike performance marketing, where ROI is often immediate, branding pays off over time - but how do you measure if it’s worth it?

This guide will show you practical ways to estimate the impact of branding, whether you're considering a rebrand or evaluating an existing brand strategy.

Why Branding ROI Is Hard to Measure (But Essential)

Many businesses hesitate to invest in branding because the ROI isn't as obvious as direct advertising. However, strong branding reduces acquisition costs, improves conversions, and increases customer retention - all of which impact your bottom line.

Key Questions to Ask Before Investing in a Rebrand

Are you struggling with low brand awareness or recognition?
Do customers perceive your brand as outdated or misaligned with your market?
Are competitors commanding higher prices for similar products/services?
Is customer loyalty weak, leading to high churn?
Is your website’s conversion rate low despite high traffic?

If you answered yes to any of these, a rebrand could drive measurable results.

How to Measure Branding ROI (Key Metrics & Examples)

To determine if branding is worth the investment, track both financial and brand equity metrics.

Financial Impact Metrics (Tangible ROI)

These metrics directly affect revenue and profitability.

Below are some practical examples of what you could be tracking. The exact metrics depend, of course, on your business model and offering.

Quick ROI Calculation Example

Let’s say your business currently converts 2% of website visitors into customers. If a branding investment, including a website redesign, increases that to 4%, you double your sales without increasing ad spend.

Brand Perception Metrics (Intangible ROI)

These measure how your brand is perceived, which directly influences financial performance over time.

Example: A B2B SaaS company rebranded and saw a 30% increase in branded search volume, which led to a 15% increase in inbound leads without increasing their ad budget.

Is a Rebrand Worth It? The 3-Step ROI Test

Before committing to a rebrand, follow this ROI validation framework.

Step 1: Identify Your Problem Areas

Ask yourself:

Are we struggling with low recognition in our market?
Do our competitors appear more premium or modern?
Is our conversion rate lower than industry benchmarks?

If branding is the cause, a rebrand can fix the issue.

Step 2: Estimate Potential Gains from a Rebrand

Use benchmark data from past projects or industry trends to forecast how branding could impact revenue.

Example:

A DTC skincare brand with $2M annual revenue is considering a rebrand.

Their current conversion rate is 2%.
A better brand identity and storytelling could increase it to 3.5%.

New revenue estimate:

2M × (3.5%/2%) = 3.5M

Potential ROI = $1.5M increase in sales from branding.

Step 3: Compare Cost vs. Long-Term Returns

Branding isn’t cheap, but if executed correctly, the long-term ROI far outweighs the upfront cost.

Example Rebrand Budget Breakdown

Small business ($5M revenue) → $50k-$100k for branding
Mid-size company ($10M+ revenue) → $100k-$500k
Enterprise brand ($100M+ revenue) → $1M+ investment

Real Example: Slack Rebrand (2019)

Slack invested in a brand refresh to streamline its identity. The result?

Increased brand clarity → stronger market positioning
Grew enterprise adoption, contributing to a $27B acquisition by Salesforce

Key Indicators That Your Branding Investment is Paying Off

Short-Term (3-12 Months)

Increased website traffic & organic brand searches
Higher engagement rates on social media
Better lead-to-sale conversion rates
Lower ad spend required to generate sales

Long-Term (1-3 Years)

Higher customer retention and loyalty
More direct and referral sales (word-of-mouth marketing)
Ability to command premium pricing
Increased market share & revenue growth

A well-executed rebrand is an investment in long-term growth, not just a cost. When done correctly, it increases revenue by improving conversion rates and pricing power, reduces marketing costs by building recognition and trust, and strengthens customer loyalty and lifetime value.

If you can quantify these improvements, your branding investment is 100% worth it.