Branding vs Performance Marketing
This article aims to clarify what performance marketing is and what brand marketing is in simple terms and explain why there should be no dilemma regarding which one a company should use. Unfortunately, many business owners in the present day still struggle to see the difference between those terms and meaning and the need for branding marketing in general. Branding vs Performance Marketing
Difference
From a click to purchase, performance marketing aims at getting consumers/guests or users to do “something” to take action.
Marketing that aims to create a different and attractive image for the product/service and company in the minds of consumers is called branding marketing. Performance marketing is like asking someone on a date, and brand marketing is what makes them say yes!
Many small company owners think of brand marketing as a non-tangible investment, missing the main idea behind it. To explain it, I will start with what a “brand” is.
Rather than repeat what has been said in thousands of articles (“a brand is not only its name, its logo, its slogan, but it’s the values it represents”), here’s what I’ll say:
Branding
Brands encompass everything around a product and the company, including how the company interacts with society and its customers. Starting from texts and visuals to how you welcome the customer in a physical store/hotel, agency or any other institution you are running. For example, the brand can be created or damaged by how you respond to negative comments and what position you choose on social issues like sustainability or other topics. Also, choosing not to take action can influence a brand; for example, not following the local community’s advice regarding pollution or not supporting the local community.
Therefore, companies that “do branding” shape the brand in the minds of consumers by focusing on product characteristics and brand positioning by using the 7P model *
The branding process should also include performance marketing. Performance marketers familiar with the brand they are representing will choose the appropriate advertising channels, texts, and images for the creative and advertising message to strengthen it.
There is a struggle most of the time when the company owner will ask the marketer or sales about sales at the end of the month, not the perception that society and consumers hold about us.
In this case, it is essential to convince the owner that your communication should contain: both performance and branding.
But Why?
Why must branding marketing always be accompanied when performance marketing is needed to bring sales? By doing this, you will be able to differentiate yourself from your competitors and lay the foundations so that you will need to do less performance marketing in the future with better sales results.
How can we do this?
Sales will come from the loyalty of customers who will not even think about your competitors and the feeling that audiences will have developed for your brand.
In light of its benefits, why isn’t everyone doing branding?
Besides the fact that it takes time and money to see results (what you and the owner of your company are looking for), small companies lack the reserves to invest in the future, which is uncertain, especially in recent years due to the pandemic and another geopolitical happening in the world.
However, if we don’t do brand marketing, we leave “space” for well-known companies to “dominate” and monopolize the mind of consumers with their brands. Moreover, these things don’t only happen in “hard times”.
Despite no economic problems, most entrepreneurs chose the easy way of selling without taking care to develop their brands.
Is there a “formula” for allocating budget to branding versus performance? No. This will vary depending on your brand, budget, needs, and market. It is recommendable that at least 20% of your budget goes to branding if you have a completely unknown brand, but your finances are sound. If your concern is whether you will be able to pay your employees at the end of the month, you should probably take a look at performance first.
You must also invest in branding if you wish to remain in your market. In contrast, branding will not bring you any value if you see the market declining and have to change your focus.
Get in touch!
So as a closure to this analysis, we would like to ask you to get in touch with us for a free consultation by sending us a message.
Consider building your brand by joining our community and creating a listing for your business.
For more exciting and educational articles like this, join our monthly newsletter at the bottom of the page.
Photo by davisuko on Unsplash
*The seven Ps of marketing include product, price, promotion, place, people, process, and physical evidence.
