Baseline Demand
Baseline demand represents the volume of customer interest and sales that exists independently of current paid marketing efforts. It is driven by brand equity, word-of-mouth, SEO, and past marketing cumulative effects. Growing baseline demand is the ultimate goal of long-term brand building.
The Short Version
The sales that walk in the door because they know who you are.
Prerequisites
Renting vs Owning
Performance marketing 'rents' customers instantly. Brand building 'owns' baseline demand.
If you only focus on performance, your baseline demand stagnates. You become addicted to paid spend to maintain revenue.
How it works
Measure revenue when paid spend is minimal
Track the 'intercept' value in marketing mix models
Monitor unrelated direct traffic trends
Common Misconceptions
Cutting brand spend because it doesn't show immediate ROAS (This erodes baseline over time)
Confusing Baseline with 'Organic Search' (Organic is part of baseline, but so is Direct and Referral)
Trying to maximize ROAS by killing baseline growth
Related Terms
Frequently Asked Questions
QHow do I increase baseline demand?
Creative brand campaigns, great product experiences, PR, and viral loops. These build the 'Brand Mote' that generates baseline revenue.
QDoes Performance Marketing help baseline?
Yes, indirectly. High frequency paid ads can build memory structures that eventually turn into baseline demand later.