The space between characters is called kerning. This is very important because when type doesn’t have good kerning, you are often lead to read the wrong words. Kerning’s goal is to ‘ensure that the space between each letter is visually even to make for a neat and orderly piece of text’1.
When it comes to brand identity, kerning is just as important because you want to ensure people can read who you are clearly especially if you’re using type for you visual identity/logo.
Example of bad kerning are: