Are You Investing in Performance Marketing for the Right Reasons?
Balancing Brand and Performance
Marketing campaigns today require a delicate balance between brand and performance marketing to maximise visibility across the funnel. Despite the established 60:40 rule proposed by Binet and Field, recent trends show a significant shift towards performance marketing, often at the expense of brand building.
Short-term Pressures
Companies face immense pressure to deliver quick results due to changing market conditions and consumer trends. This often leads to a focus on bottom-funnel activities, which target consumers ready to purchase, offering immediate returns on media spend. However, two major pitfalls arise from this approach:
Attribution Missteps: Sales are often wrongly attributed to the last impression, neglecting the cumulative impact of earlier brand interactions.
Neglecting Long-term Health: Relying solely on short-term wins can undermine long-term growth, as short-term effects don’t accumulate into sustainable outcomes.
Perceived Effectiveness
Performance marketing channels like social media, search, and online video are perceived as highly effective due to their addressability and measurability. However, it’s crucial to distinguish between perceived and actual performance, ensuring strategic budget allocation based on hard data.
The Importance of Measurement
Holistic measurement across channels is vital to determine the right mix of brand and performance marketing. Despite the importance, only 38% of marketers measure traditional and digital marketing together. Embracing cross-channel KPIs can significantly enhance strategic decisions.
Embracing New Channels
Exploring new marketing channels, such as CTV and influencer marketing, can add value as long as they are measured consistently. Strategic, data-driven decisions ensure the right balance between brand and performance marketing, driving both short-term wins and long-term growth.