Thinking traditionally is no longer sufficient when it comes to how branding is measured.

Data-driven decision-making is trending. Organizations have been shifting their media budgets towards ‘easy-to-quantify’ performance campaigns. While this has led to organizations being more aware of ROI and performance campaigns, it has also led to marketing departments finding it increasingly challenging to quantify the long-term impact of branding on bottom-line sales, and to balance branding and performance. 

This challenge has resulted in the emergence of a reactionary trend; organizations are paying more attention to the role that a long-term integrated strategy between branding and performance plays in delivering the best results in the long run.  

It is easier for a strong brand to reach performance goals, because when a brand grows in strength, it will result in more sales and traffic. Building a strong brand is therefore essential to reaching long-term performance goals. 

balance branding and performance

Tips

Taking a data-driven perspective suggests that a long-term relationship exists in the data between brand and performance KPIs. In order to measure the long-term effects of branding on sales, it is necessary to find a long-term investment strategy to balance or leverage the media investment between branding and performance campaigns. 

Here are some tips on achieving the balance between branding and performance campaigns:

  • Branding campaigns have a strong impact on sales. It is extremely important to take branding into account when making long-term investment plans. 
  • A strong relationship exists between branding campaigns and consideration (especially with regards to mass media campaigns).
  • Performance campaigns do not significantly affect brand KPIs, and therefore do not significantly grow or decline the brand. 
  • Split marketing budgets to balance between growing the brand for long-term strength and reaching KPIs for short-term performance. 

Combining branding and performance allows for a holistic view as well as the synchronization of short- and long-term results. This encourages a greater level of synergy through an increase of clarity across the organization; in addition, it also provides practical handles to make well-defined decisions on media investments and strategy.