81% of B2B Ads Fail: Here’s How Better Branding Can Fix It

In other words, 81% of the money spent on B2B advertising fails to achieve one of the most fundamental goals—brand recognition. That’s a staggering amount of waste, considering the billions poured into B2B marketing annually.

At first glance, the numbers point to a simple solution: better branding. The report makes a solid case for how improved branding can unlock more effective advertising, and it offers four clear recommendations to help B2B brands stand out and connect with their audience. But as I read the report, one question kept rising to the surface for me: how many B2B brands are truly ready to implement these strategies?

In my experience, many B2B brands are built on shaky foundations—weak, generic brand identities that do little to stand out in the market. While the report offers great advice on how to execute better branding, I believe the real opportunity lies in ensuring these brands have the foundational strength to make those tactics work. Let me explain.

The Missed Opportunity: Strong Brand Foundations

Before we get into the specifics of the report, I want to highlight what I see as a crucial missing piece. Many B2B brands suffer from what I call “McValues”—generic, overused brand values that do nothing to differentiate the business. In a study I conducted across 35 large B2B tech brands, I found these common values repeated again and again:

• Integrity: 18 times
• Performance: 16 times
• Innovation: 15 times
• Teamwork: 15 times
• Safety: 13 times
• People: 10 times
• Customers: 8 times

These values don’t tell us what makes each business unique. They’re just placeholders, and too often they’re featured prominently on websites and in annual reports as if they’re defining characteristics. But this kind of generic branding does nothing to highlight the distinctive nature of the brand and to drive standout for the customer and the internal audience (e.g. creating a clear culture). Without something more ownable, it’ll be difficult to support the bold, distinctive strategies recommended by the B2B Institute. If a brand doesn’t have a strong, clear identity, even the best advertising tactics will fall flat.

A Complementary Approach: The Report’s Recommendations

Now, let’s turn to the B2B Institute’s study. It delivers important insights into how to capture audience attention and improve brand recall in advertising. The report identifies four key recommendations for B2B marketers:

1. Capture attention early: Given that the average viewer pays attention to a B2B ad for just 3.7 seconds, marketers need to make sure those first few seconds count. The brand should be the focus right from the start.
2. Brand early and often: Ads that frequently mention the brand name perform better in terms of brand recognition and recall. The report shows that ads with three or more brand mentions significantly improve brand attribution.
3. Use shorter, focused messages: Simplicity is key. Shorter ads tend to hold attention better, and focused, succinct messaging can make a stronger impact.
4. Leverage distinctive brand assets: Using unique colours, logos, or sounds helps brands stand out. The report emphasizes the importance of consistently using these assets across all brand touchpoints.

These recommendations are spot on. But they work best when the brand already has a strong identity in place. Without that, there’s a risk of applying these strategies to a brand that’s too weak or generic to truly benefit.

Why Strong Brand Foundations Matter

The four recommendations from the report are practical and actionable, but they rely on one assumption: that the brand in question is distinct, clearly defined, and memorable. In my experience, that’s not always the case. Many B2B brands haven’t done the foundational work of defining their identity in a way that truly stands out.

At Good, we believe that a strong brand is built on three essential elements:

Vision: What does the brand ultimately aim to achieve? This is the overarching goal that the business is striving toward.

Mission: How does the brand operate day-to-day to move toward that vision? This is the practical roadmap that guides the business.

Values: What are the principles that guide every decision and action within the business? And importantly, these values need to be unique, not generic traits like “integrity” or “innovation.”

These foundational elements create a strong, distinct identity that can support the kind of branding tactics outlined in the report. Without them, a brand risks being just another voice in the crowd.

The Limitations of Purpose-Driven Branding

Over the last decade, there’s been a trend toward purpose-driven branding - trying to connect the brand to a larger societal mission - rather than doing the hard yards of defining the vision, mission and values. While this works for some companies, it can also lead brands down a path where they lose focus on what they do best.

In B2B, it’s more effective to focus on the brand’s core strengths and the practical value it provides to its customers. Trying to tie an industrial brand to a lofty, unrelated purpose often feels forced and risks diluting the brand’s core message.

Conclusion: Branding from the Ground Up

The B2B Institute’s report offers a clear and powerful roadmap for improving the effectiveness of B2B advertising. Its four recommendations—capturing attention early, branding often, using focused messaging, and leveraging distinctive assets—are essential for making ads work harder. But before those strategies can deliver their full potential, brands need to ensure their foundations are solid.

A well-defined vision, mission, and set of unique values are the bedrock of any strong brand. Once these are in place, the strategies outlined in the report will help take the brand to the next level. Without them, even the best advertising tactics can’t fix a weak brand identity.

In a world where 81% of ad dollars are wasted, there’s no room for complacency. Strong branding isn’t just a nice-to-have—it’s the key to maximizing every penny spent on marketing.