Thinking

Brand or performance marketing – there is no debate

Two woman shouting at each other from far away with illustrative yellow and blue triangles representing sound waves

Digital media had a bashing in 2019. It was the bad guy in a battle between long-term branding and last-click performance marketing, portrayed as a bad investment and the scourge of creativity. The problem is, such fighting talk ignores the real story, which is about getting the balance right and galvanising people to measure brand efforts properly. Smart CMO’s know that there is a need to balance brand and sales-driving.

But a perfect storm of turbulent times combined with a heady rush of data meant marketeers chased short term sales – because without immediate results they feared there was NO future.

It also had the lucky side effect of helping them be accountable to the marketing cynics at board level. Often they over-invested against their better judgement – resenting big players like Google holding them to ransom to bid on their own names or lose it to their competitors.

So in 2020 let’s stop criticising CMO’s for falling into the performance marketing trap and pitting brand and creativity against digital.

The Binet and Field 60:40 brand to sales investment ratio is great – it is widely publicised but now is the time for action. In 2020 CMO’s need to be planning how to move forward with this information and make it work for their business.

Over the years many attempts have been made to get it right  – until around 2009 brand and direct response teams often sat separately and worked in silos with different agencies. Then it was all about integration and silos were removed, but a more complex media and agency mix meant a lot of mixing and matching. Now data allows us to see how customers really react and it is as much emotional as functional – a mix of brand and product messages which varies by segment, category and occasion. Brand work uplifts performance marketing results and performance ads need creativity, because at the end of the day everything a company does affects how people see the brand.  

Silos have long been dead. In the last few years a new era of brand and performance working together, powered by data which integrates and measures both, has begun. This new era means CMO’s need a new type of partner – one who is as passionate about brands and creativity as they are about data and performance. A team that is not siloed but has brand strategists sat with creatives working alongside performance media managers. Thinkers and doers from different backgrounds collaborating, working on both a brands future as well as the here and now with only one person at its heart the customer. To keep you centred there are 3 principles which will help you seize the opportunity analytics, customer experience design and creativity offer…

Data is table stakes – it is not what you have but what you do with what you have that matters. With so much data available there is a need for smart people to decode it, to really understand triggers in a path to purchase and emotional reactions and use it to inspire media and creativity TOGETHER.

Everything is brand – take care with EVERYTHING that you create because every single interaction contributes to brand perception. And everything means everything-  the language in search – from a link click ad in social to a promotional sales poster, and if you have times when you can only afford to do sales-focused work, remember to emotionally engage.

Measure what matters – do not judge everything by the same yardstick or get lost in multiple metrics without meaning. Work out the pieces in the mix and develop them with a plan of what success looks like now and in the future. Define ideal handoffs and the long term measures that need to be tracked, and build an understanding of this information widely – with creatives and the CEO.

A new era is upon us, but uncertainty and tight times may not be over quite yet. There’s definitely a case to be made for a more holistic marketing function with respected representation at board level and proving commercial success is key to achieving this. However, CMO’s should take things a step further – educating everyone in the organisation on the relationship between marketing principles and the dynamics of trade. If we accept customer-first thinking we can all move on from the brand v’s performance debate.

If you would like to know more about how we can help you then please download our Guide or get in touch directly with Jane via email Jhovey@vivaldigroup.com or LinkedIn. 

 

Frequently Asked Questions

What is performance marketing?

 Performance marketing is a results-driven marketing approach where companies pay for measurable outcomes such as clicks, leads, or conversions. Vivaldi explains that this model focuses on optimizing campaigns based on real-time data and analytics. By tracking performance metrics closely, organizations can allocate budgets more effectively and improve marketing return on investment.      

How does performance marketing differ from traditional marketing?

 Performance marketing differs from traditional marketing because it emphasizes measurable outcomes rather than broad awareness alone. Vivaldi highlights that traditional marketing often focuses on brand exposure, while performance marketing concentrates on actions such as website visits, customer acquisitions, or purchases. The most effective strategies often combine both approaches to build brand equity while delivering measurable results.

What channels are commonly used in performance marketing?

 Performance marketing commonly uses digital channels such as search engine marketing, social media advertising, affiliate marketing, and programmatic display advertising. Vivaldi notes that these channels allow marketers to track campaign results and optimize performance based on data insights. This flexibility enables companies to quickly adjust strategies to maximize effectiveness.

How can companies improve their performance marketing results?

 Companies can improve performance marketing results by using data analytics, testing different campaign approaches, and continuously optimizing targeting strategies. Vivaldi recommends aligning performance marketing with broader brand and customer experience strategies to ensure campaigns deliver both immediate conversions and long-term customer relationships.

Why is performance marketing important for business growth?

 Performance marketing is important because it enables companies to measure the direct impact of marketing investments on business outcomes. Vivaldi emphasizes that organizations can use performance data to refine their strategies, improve marketing efficiency, and scale successful campaigns. When integrated with strong brand strategy and customer insights, performance marketing becomes a powerful driver of growth.