The strategic balance between branding and performance: Key to modern marketing success
At NATEEVO, as part of our promise of "digital fullness", we must offer a holistic strategic vision for our clients to make their marketing investments profitable. In this sense, and beyond our own experience, we wanted to rely on empirical studies to have a more complete perspective on one of the great dilemmas for professionals, the choice between strategies of branding or of performance.
- While the objective of branding (long term) is to create awareness and connect emotionally with the audience, the objective of performance (short term) is to generate measurable results such as leads or sales.
- Branding uses creativity and market insights to convey unique values and messages and performance is driven by data, constant analysis and optimization to maximize ROI.
- While the former works on key channels such as TV, social media and events, the latter uses strategic channels such as SEM, email marketing and retargeting.
- Combining the emotion of branding with the efficiency of performance is the best way to obtain more effective and sustainable campaigns.
Over the past few years, short-term results-oriented campaigns, especially those focused on sales conversion, have gained ground due to the increasing pressure for quick results. However, recent studies and analyses by experts such as Les Binet and Peter Field (IPA) highlight the importance of balancing the two strategies to maximize the campaign effectiveness.
The brandingBranding, by its nature, is a long-term investment. It consists of building and maintaining a positive and consistent perception of the brand in the minds of consumers. This approach generates emotional value, builds trust and fosters lasting customer relationships. Studies have shown that long term branding campaigns can be up to three times more efficient than short term performance campaignsThis means a greater impact on market share and customer loyalty.
The performance marketing focuses on delivering immediate results. Through techniques such as conversion optimization and precise targeting of specific audiences, this approach generates sales directly. However, despite its short-term effectiveness, relying solely on performance can undermine sustainable brand growth. Performance can fluctuate, and overexposure to transactional campaigns can erode the perception of brand value in the consumer's mind.
Finding the right balance between branding and performance
The real challenge lies in finding the appropriate balance between the two strategies. According to Binet and Field's analysis, the optimal mix is to devote 60% of the budget to brand building and 40% to sales activation. This balanced approach not only ensures immediate results, but also lays the groundwork for future growth. Companies that achieve this synergy are more likely to experience significant improvements in profitability and market share over the long term.
An emerging trend is the return of the branding as a key strategic pillar, after a period where it had been downplayed. Post-pandemic thinking has shown that, in a hyper-connected world with increasingly informed consumers, differentiation through purpose and brand values is essential. Consumers are not just looking for products, they want to relate to brands that reflect their values and generate an emotional connection.
In short, the marketing of the future is not about a choice between branding o performancebut to learn how to manage them together. Building a solid and consistent brand is an investment that, although it takes longer to generate results, guarantees sustained growth. Meanwhile, performance campaigns are essential to keep sales flowing in the short term. Both approaches must be integrated into an ambidextrous strategy that allows brands to respond to both the needs of the present and the demands of the future.
In the end, marketers who understand and embrace this holistic approach will be better prepared to meet the challenges of an increasingly competitive and changing environment. The balance between branding and performance is not just a matter of strategy, but a matter of survival in today's market.
