How Brand Power Can Make or Break Marketing Profitability

A Deep Dive into How Atari’s Nostalgia Boosts Sales — Or Loses Money

Adrian Pedrin Valencia
5 min readNov 8, 2024

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Marketing profitability isn’t as straightforward as people often think. Behind every campaign lies a complex web of metrics and scenarios that can drastically shift the outcome — from a break-even situation to significant profit, or even a loss. And while many people grasp the basics of clicks, conversions, and ad frequency, the role of brand power is often overlooked in shaping the cost-effectiveness of a campaign. Brand recognition and consumer trust can influence everything from how many times a consumer needs to see an ad before buying to the rate at which they click or convert.

This article explores the profound influence brand equity has on profitability through a real-world-inspired case study: an Atari Joystick Decanter Set. We’ll analyze how a strong brand, audience segmentation, and strategic adjustments in ad spend can yield wildly different results. Whether you’re a marketing professional or an entrepreneur, understanding the intricate relationship between brand equity and profitability can provide a powerful edge.

1. Breaking Down Brand Impact on Profitability

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Adrian Pedrin Valencia
Adrian Pedrin Valencia

Written by Adrian Pedrin Valencia

Marketing expert with a passion for branding and paid social media advertising. Film director at heart, master of lighting, and avid gamer.