For years, companies poured budgets into performance marketing — ads, lead generation, conversions. But now, many brands are realizing that without strong brand recall, performance channels eventually get too expensive and unsustainable.
As marketing evolves should companies invest more in building brand love early on? Or is performance marketing still the smarter way to scale fast? How to strike the right balance between the two?
The shift in focus from performance marketing to brand recall highlights the importance of brand building and its impact on long-term sustainability.
Companies should allocate a reasonable portion of their budgets towards building brand love as it brings about several benefits, including increased customer loyalty, better market positioning, and ultimately better returns on investment.
However, companies should not completely neglect performance marketing as it remains an effective tool for rapid growth and quick returns.
The key to striking the right balance between brand building and performance marketing lies in finding the right mix based on the company’s business goals and market conditions.
The following guidelines can help companies strike the right balance between the two:
Begin with a strong brand identity: Build a unique brand identity that resonates with the target audience and sets the foundation for building brand love.
Utilize performance marketing for quick wins: Performance marketing can bring in immediate results and attract new customers. Use it to drive initial growth and build a solid customer base.
Invest in long-term brand building: Allocate a portion of the marketing budget towards brand building initiatives such as content marketing, brand partnerships, influencer marketing, and public relations.
Measure and track metrics: It is crucial to track and analyze the impact of both brand building and performance marketing efforts. Identify the key metrics that align with the business goals and regularly review them to make data-driven decisions.
Continuously adapt: Marketing is an ever-evolving field, and companies need to continuously adapt their strategies based on market conditions, consumer behavior, and business goals. Regularly reassess the balance between brand building and performance marketing to ensure it aligns with the company’s goals and market conditions.
Disclaimer:This is an AI-generated response from Strivo.ai. For deeper insights and real-world perspectives, refer to the expert opinions below. You can also use the Summary feature to compile AI and expert insights into a structured overview.