28 Sep Choosing Between Performance and Brand Marketing
A common conflict our clients’ experience is choosing where to prioritize marketing investment when choosing between brand and performance marketing. An article from LinkedIn recently highlighted this conflict– should marketers focus on brand or performance marketing?
How does a marketer choose between long-term and short-term metrics?
Which is Better: Driving Sales or Market Share?
Performance marketing drives short-term sales, but typically with high diminishing returns. On the other hand, brand marketing leads to a net higher share in the marketplace but more long-term. Without brand building, the company won’t stay top of mind when consumers are ready to purchase. Top marketers want marketing to drive short-term sales and increase long-term market share. The good news is that these goals are not entirely mutually exclusive.
The Real Problem: Executives Must Value Brand and Performance Marketing
The real problem is balancing investment in brand and performance marketing simultaneously, especially during tough times. Executives in many industries slashed marketing budgets in 2020. Priorities continue to shift as the economy, supply chains, government regulations, and consumer expectations change rapidly. The focus was on driving sales – NOW!
Choosing the right balance between brand and performance marketing depends on the company’s resources and objectives. However, neglecting to invest in brand marketing weakens the brand’s competitive position and can lead to market share declines in the long term.