Performance vs. branding? You’re asking the wrong question

Nov 18, 2024 | Publications

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In today’s fast-paced market, performance marketing beckons like a siren—promising instant results and quick returns. Many businesses, especially start-ups, pour their marketing budgets into highly targeted adverts, chasing immediate wins. Who can blame them?

Performance marketing delivers clear metrics, predictable ROI, and instant sales gratification. But branding? It’s the marathon runner to performance marketing’s sprinter—slower to show results, harder to measure.

But here’s the catch: Relying solely on performance marketing is like trying to win a marathon by sprinting the first hundred metres. Those hundred-metre sprints matter, but they won’t win you the race. Brand building is your marathon, and sales growth should be its natural byproduct, not its sole purpose.

But then you ask: Why build a brand when sales are flowing without it?

Well, for one, performance marketing eventually hits a wall. The pool of ready-to-buy customers dries up. Without groundbreaking product innovations or deep pockets to outspend competitors, growth flatlines. Here’s the brutal truth: Any rival with deeper pockets can drown out your advert spend, pushing your brand into obscurity.

Long-term success demands more than fleeting spikes from Facebook or Meta adverts. You need to claim permanent real estate in consumers’ minds—that’s branding’s territory. Branding operates on a different wavelength than performance marketing. While performance hunts for immediate conversions from high-intent buyers, branding casts a wider net. It’s not about today’s sale; it’s about occupying tomorrow’s mindspace.

Whether through TV commercials, social campaigns, print ads, or billboards, branding’s mission is memory penetration. It keeps you front-of-mind until purchase day arrives. Performance ads, conversely, demand action now, deploying urgent calls-to-action that brook no delay. A powerful branding campaign leaves an invisible tattoo on public consciousness. Consider Fevicol’s unbreakable bond promise or Dove’s real beauty revolution—they forge connections through creativity and consistency. While performance adverts chase clicks, branding builds bridges to the future. Performance marketing captures today’s customers; branding secures tomorrow’s loyalty.

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The ‘performance vs branding’ debate is well drawn-out, stale and artificial—and frankly, more industry jargon than strategic reality. Because even in today’s day and age and against the digital backdrop, smart brands harness both: Performance marketing for immediate gains, branding for lasting security. Even with a superior product, neglecting branding surrenders control of your narrative to the masses. Active brand storytelling ensures consumers think the “right kind” of good about you.

Let’s dispel a myth: Branding isn’t about flashy adverts and lavish campaigns. It’s about weaving compelling narratives consistently over time. This creative work—often undervalued—commands investment, typically exceeding performance marketing’s analytical approach.

Balancing branding and performance marketing—especially on a limited budget—requires synergy that optimises both approaches. Don’t get tangled in unnecessary complexity; both can coexist harmoniously, even with tight finances. Start with performance campaigns to generate revenue, then reinvest in branding at the earliest opportunity.

Modern marketing’s beauty lies in its flexibility and simplicity. Trust your marketing team when they signal it’s time to prioritise one or the other, and be crystal clear about your desired brand narrative. The most effective campaigns emerge not from overthinking, but from deep understanding of your business, audience, and goals, and that’s when you truly stand out.

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