Gad study, ‘The Era of Overbranding’ discusses how technology has generated personalized experiences and what its consequences are
A study conducted by the consultancy Gad analyzed the behavior of brands over the last year. The result was ‘The Era of Overbranding’, a report that brought insights that discuss how technological advances empower the end consumer and generate ultra-personalized experiences.
The study concludes that overexposure can lead to three major consequences: brands themselves risk losing their identity by spreading themselves too thin; consumers are increasingly overwhelmed, constantly bombarded with stimuli and invitations to interact with brands; and finally, society as a whole is impacted, with public spaces and community experiences increasingly mediated by brands.
Gad CEO Luciano Deos talked about the study with propmark. According to him, the current moment is crucial for brands. Deos said that it is necessary to understand the limits of branding and build more ‘genuine and sustainable’ connections with the public.
“Excess can often be a brand’s greatest enemy,” he said.
Why are we in the era of Overbranding?
Artificial intelligence empowers the end consumer and accelerates a process that has been underway since the 2000s: the brandification of the world. This process has several dimensions. On the one hand, with the advancement of technology, anyone can become a brand or product, market or distribute it, contributing to the emergence of “one-person businesses”. The topic of branding has never been so present on social media, being widely explored, explained and taught. On the other hand, companies have used these technological advances to create increasingly ultra-personalized experiences. This “mass ultra-personalization” allows brands to penetrate more aspects of human life: the home, the bathroom, domestic leisure, walks on the street, and even our imagination and memory. With the help of AI, virtual reality, “expanded reality”, and augmented reality devices such as the Apple Vision Pro, we are entering the Era of Overbranding – where brands not only coexist with us, but become an integral part of our very lives. Some insights from the study deal precisely with these excesses, such as “Naming Rights or Wrongs”, which deals with Overbranding dominating collective spaces – now transformed into branded spaces. Or “On the ground, in the sky, in the air”, with drone shows that try to connect with consumers in their moments of disconnection, for example. In this process, with the ease of technology and AI, brands want to be in everything, all the time. And you can’t be everything to everyone all the time!
How can the concept of Overbranding impact the construction of long-term brand value?
O Overburning poses significant challenges for brands. The relentless pursuit of capturing consumers’ attention and affections can result in a loss of identity. When a company overextends its activities, it risks fragmenting. Being present everywhere may seem advantageous, but should (or need) all brands do this? Perhaps, in some cases, offering consumers a break from constant brand exposure is more beneficial. The second major consequence of Overburning falls on consumers themselves, who find themselves increasingly overwhelmed by an avalanche of content, information and experiences. The pressures of modern life – at work, at home, and at leisure – are now compounded by the demands of brands: “be active, be creative, don’t forget me, be everywhere.” In an already anxious and overwhelmed world, should we really be promoting even more experiences? The third impact of Overburning It affects our society and our sense of community. Brands that invade public space not only transform the physical environment, but also influence our imagination, memories and community experiences. Culture, habits, traditions, transportation and leisure are mediated by brands that compartmentalize public space and reduce citizens to consumers. Brands are also being held accountable for their political and social positioning. This should also be a question for brands, whether this could also lead to overexposure and even polarization. This theoretical need to always take a position, whether politically or socially, could also be a question of overbranding, and could also be at risk in a context of global polarization. This is a point to be considered. Could this not cause overexposure in a very sensitive and polarized environment? A pause for reflection is needed!
Can excessive branding erode the perception of brand authenticity or exclusivity?
Yes, excessive branding can erode a brand’s perception of authenticity and exclusivity. In the current context, where many brands are trying to expand their portfolios into unusual segments and transform themselves into “ecosystems,” the challenge is to maintain coherence with the original value proposition. While this expansion offers opportunities for the brand to become more present in consumers’ daily lives, there are significant risks. When the brand tries to extend itself beyond its expertise, it runs the risk of distancing itself from its essence and losing the authenticity that attracted its original audience. The concept of overburningin which brands invade all aspects of the consumer’s life (such as clothing, food and leisure), can generate saturation. Instead of strengthening the bond with the consumer, this omnipresence can dilute the perception of exclusivity and authenticity, making the brand seem generic or forced. It is crucial that brands understand the limits of their expansion so as not to stray from their core values and, thus, avoid losing the attention and trust of consumers.
How is the advancement of Artificial Intelligence influencing the way consumers perceive the purpose and personality of brands?
The rise of Artificial Intelligence (AI) is profoundly impacting how consumers perceive brand purpose and personality, while also raising new questions about the role of the creative consumer and the limits of self-expression. With new AI tools, many brands are leveraging this technology to engage audiences at levels never seen before, urging consumers to express themselves and collaborate on their dynamics. This phenomenon hyper-stimulates the “creative consumer,” encouraging them to actively participate in building a brand – whether by creating content, customizing products, or interacting with the brand narrative. However, this pressure for self-expression, fueled by AI, can become excessive. While creative engagement can empower consumers and create stronger emotional bonds with the brand, it can also create overload and discomfort.
