Survey by Studio Graphene reveals good marketing is a challenge for startups
Starting a business is often a difficult, risky undertaking which becomes even more challenging if the product or service the business offers is not marketed well. According to a survey of over 2,000 UK adults conducted by Studio Graphene, a group specialising in developing apps and websites, 55% percent of adults believe too many new businesses today opt for obscure names that do not relate to what they do.
This insight was determined through an experiment in which participants were given 10 company names and logos with independent descriptions, then tasked with matching each company with its correct description. Each of the companies featured had received at least £3m million in Series A funding, so their names were not iconic, but they had gained a substantial amount of ground in brand awareness.
Unfortunately, the survey revealed monetary growth did not correspond with increased recognition for these companies. Only 21% of all respondents were able to correctly match a corporation with its description. The company with the highest level of recognition, HealthTech company Medopad, was still not familiar to more than half of all respondents. Conversely, Waldo, which sells contact lenses, finished with a paltry 8% familiarity level.
Additional data from the survey revealed 51% of UK adults said they usually struggle with understanding what an advert is selling, while 62% admitted to refusing engagement with a company if what the company does is not instantaneously ascertainable.
The lesson for start-ups to be learn from this survey is clear: even the greatest product in the world needs straightforward, understandable advertising if it is to be consumed en masse. As Ritam Gandhi, founder and director of Studio Graphene, says, “Today’s research underlines two things: how important branding is within consumers’ financial decisions; and just how many businesses are failing to brand themselves effectively. Indeed, with the average person exposed to hundreds of advertisements each day – whether in a newspaper, on TV or via social media – confused branding can result in businesses losing potential customers.”