5 Ways to Advertising Impact: Insights from SXSW 2025

Fresh from SXSW 2025, the buzz around evolving advertising effectiveness is palpable. A recent session, “The New Rules of Brand Engagement,” featuring Join Han Wen, Chief Digital Marketing Officer for L’Oréal in the US, and Josh Feldman, Chief Marketing Officer, NBCUniversal Advertising & Partnerships, resonated deeply with key themes highlighted in a recent Madison and Wall Substack article. These insights, further supported by NCSolutions’ “Five Keys to Advertising Effectiveness” report, paint a clear picture: modern advertising demands a nuanced approach that values both immediate impact and long-term brand building. This report synthesizes these perspectives to provide a contemporary understanding of what drives advertising that truly connects with consumers.

The Enduring Power of Creative in Advertising

The Madison and Wall article rightly emphasizes the foundational role of creative in advertising. This aligns perfectly with NCSolutions’ data, which pinpoints creative quality as the primary driver of incremental sales, accounting for a significant 49% of sales impact . No matter how sophisticated the targeting or extensive the reach, it’s the compelling and resonant creative that ultimately captures consumer attention and drives action. This enduring importance underscores the necessity for marketers to continually invest in and prioritize the development of high-quality, engaging content that speaks directly to their target audiences.  

The Ascending Importance of Brand Building

A key shift in advertising effectiveness is the growing influence of brand factors. NCSolutions reports a notable increase in the contribution of brand building to incremental sales, rising from 15% in 2017 to 21% in 2023. This encompasses consumer loyalty, market share, and overall brand penetration, highlighting that in today’s environment, a strong brand foundation is more critical than ever. This trend strongly echoes the discussions at SXSW, where Join Han Wen emphasized a move towards an “earned first approach” . She highlighted the importance of “building community and authenticity with consumers over the long term, focusing on brand love and connection rather than solely chasing short-term KPIs.” This highlights the importance of “balancing performance marketing, which focuses on immediate, measurable results, with brand building efforts that cultivate long-term consumer relationships.” Sam Carter, CEO at Fospha, also emphasised the importance of full-funnel measurement is crucial here, as it “allows marketers to see the complete picture of how their advertising investments, including brand-focused creative, contribute to overall business outcomes.”

The Evolving Dynamics of Targeting and Reach

The landscape of how advertisers connect with their audiences is also shifting. The Madison and Wall piece likely touched upon the changing roles of targeting and reach, and NCSolutions’ data provides valuable context. While targeting has seen a slight increase in its impact on incremental sales (from 9% to 11% between 2017 and 2023). This reflects the increasing sophistication of targeting technologies, allowing marketers to reach specific, relevant audiences more effectively, thus reducing the reliance on casting a wide net. The focus is now on the quality of reach, ensuring messages are seen by those most likely to engage.  

The Necessity of Measurement and Adaptation

Both the Madison and Wall article and the insights from SXSW underscore the critical need for robust measurement and continuous adaptation in advertising strategies. As Han Wen aptly stated, using an analogy of a healthy diet,

This highlights the importance of balancing performance marketing, which focuses on immediate, measurable results, with brand building efforts that cultivate long-term consumer relationships. Sam Carter’s emphasis on full-funnel measurement is crucial here, as it allows marketers to see the complete picture of how their advertising investments, including brand-focused creative, contribute to overall business outcomes .  

The Significance of Timely Recency

Finally, NCSolutions’ data consistently shows that recency, the timing of ad exposure relative to a purchase, contributes 5% to incremental sales . This reinforces the importance of connecting with consumers at the right moment in their decision-making process. Strategies that ensure brand visibility and relevance close to the point of purchase can have a significant impact on conversion.  

Table 1: Shift in Impact of Advertising Effectiveness Keys (2017 vs. 2023)

This table visually represents the shifting dynamics of advertising effectiveness, highlighting the increased importance of brand and targeting, the decreased influence of reach, and the consistent impact of creative and recency. These changes underscore the need for advertisers to adapt their strategies to the evolving landscape.

Conclusion: Balancing Brand and Performance for Sustained Impact

The insights from SXSW 2025, coupled with the analysis from Madison and Wall and the data from NCSolutions, paint a clear picture of an evolving advertising landscape. While creative excellence remains paramount, the increasing importance of brand building, as highlighted by Join Han Wen’s emphasis on fostering brand love and connection, cannot be overstated. Marketers must move beyond a purely performance-driven approach and recognize the long-term value of cultivating strong brand awareness and loyalty. As Han Wen wisely noted, a balanced approach, akin to a healthy diet, is essential for sustained success. This means strategically allocating budgets and efforts towards both performance marketing for immediate results and brand-building initiatives that create lasting consumer relationships. By embracing this holistic perspective and leveraging sophisticated measurement techniques like those advocated by Sam Carter, advertisers can navigate the complexities of the modern landscape and achieve truly impactful results.