Perception Builds Prosperity: The ROI of Place Brands

When you hear “place branding,” a few high-profile campaigns probably come to mind. But place branding is more than tourism commercials — it’s a critical tool for any locale or shared space. Place branding isn’t just for “top destinations,” and it’s not always glamorous, to tell the truth. An effective place brand attracts tourists and investors while strengthening the emotional connection residents feel with their city.

Studies back this up: Public perception directly correlates with a location’s economic well-being. Research shows that perception accounts for 23% of tourism receipts for a city; accounts for 37% of outside investment in a city; and inspires 22% of the net migration of new talent to a city. (Bloom Consulting, “The Impact of Nation and Place Brands on the Local and Global Economy”). With that in mind, every single region, city, or shared space can benefit from strong branding to shape their narratives and gain trust. 

What are place brands?

By our definition, place brands foster a sense of identity and pride in a physical space where people live, work, or visit. This could be a city, but this could also be a third place, a cultural touchstone, or an entire region. These brands involve many stakeholders (i.e. everybody in town) and require meticulous attention to consistency and accessibility. On a deeper level, place brands foster a sense of belonging. 

Branding vs. placemaking

Place branding is just one piece of placemaking: the collaborative process of reimagining public spaces to make them more engaging and reflective of local character. When cities infuse culture and history into public spaces — through art, architecture, events, or branding — they strengthen their identity. Done right, placemaking improves quality of life, boosts social interaction, and attracts businesses and visitors, driving economic development.

Placemaking and city branding are deeply connected. Branding defines a city’s story and visual identity, while placemaking brings it to life through tangible experiences. Together they shape a city’s character in ways that resonate with both residents and visitors.

When Redhead built a brand for the City of Mount Clemens, we tied the brand launch to entities and experiences that already held deep roots within the community, from beloved festivals to trusted media organizations. We found spaces for the city’s new mascot, Paddles the Rubber Duck, to shine at a Rubber Duck Race on the river. (If you’re new here, the rubber duck is a nod to the city’s historic mineral baths.) These well-researched placemaking tie-ins helped establish credibility with the locals and keep everyone engaged.

Start with authenticity

Strong place brands start by considering how the brand fits into the broader placemaking ecosystem, then using thoughtful, community-centered strategies to integrate it into the place’s rhythm. (TL;DR: community involvement.) Engaging residents through surveys, forums, or design sessions ensures the brand reflects local values and fosters pride. Real resident data highlights essential tonal elements and represents voices that can’t be ignored.

With this information and data, we can embrace authentic storytelling. A place brand isn’t about what you want to be; it’s about what you are. (Very deep, we know.) In fact, studies show that residents tend to reject city brands that are glamourized or “picture perfect,” decreasing their credibility (Erasmus University, “Residents' Perceptions of City Branding in a Superdiverse City”). An effective brand captures a city or iconic institution’s unique identity — whether through its history, culture, or defining quirks. Using narrative-driven campaigns and visual storytelling helps cities express their character in a genuine way.

Authenticity was key when we worked with Lansing 5:01 on the Lansing: Be Our Neighbor campaign. The campaign aims to position Lansing as an ideal place to live, work, and thrive, particularly for new talent from out of the area. One element of this campaign was the extensive “517 Reasons Our City is a Great City” list, which (as the title suggests) outlines hundreds of quirks and qualities that make Lansing shine. This isn’t the overly polished version of Lansing; this is Lansing embracing what it is and, in turn, shifting public perspectives. 

Brands aren’t born out of nothing

With places like cities, neighborhoods, and cultural institutions, it’s tempting to think a brand will effortlessly shape itself over time. Sure, it may look like a place was simply born with its seamless brand; but in reality, this requires proactive planning, budgeting, and support. When a place invests in its branding — from research to design to implementation — you can tell. (Your local economy can tell, too.)

Your city’s vibe may have come naturally, but it takes commitment to translate this into a full-out brand — and, as the numbers show, that investment pays off. At Redhead, we believe place branding is more than just a logo. We also believe it’s for all places and spaces that increase quality of life, whether your main focus is tourism, new talent attraction, or creating a space for people to connect. When done right, place brands don’t just catch a visitor’s eye — they foster pride and loyalty, paving the way for sustainable growth and a thriving community.