Finding yourself in the online advertising world is a hard nut to crack – especially when you face a choice of implementing the most accurate digital marketing strategy for your business. There are generally two approaches: brand and performance marketing.
Branding is a more value-oriented marketing solution, whereas performance marketing is associated with pure profit. Well, what if the only right way to go is the mix of both? Let’s check and see why.
Not as Simple as it Sounds
It is impossible to measure the value of the brand. Years ago, companies recognized the value of intangible assets since they demonstrated the actual needs of potential customers. Understanding the underlying need is crucial since businesses cannot easily buy positive brand perception.
Customers need to be convinced and consciously (or unconsciously) decide to purchase a product or a service. Appealing to their need is the most certain way to do so. According to Edelman, around 81% of customers need to be able to trust the brand in order to buy from them.
Branding Basics: What is It?
To put this simply, branding is the promise that the brand gives to the customers for the long-term. A promise based on values, culture, image, and identity. A promise about the quality of the product/service, the vision and future development direction. All these components define the brand’s essence and create a client’s expectations of how the brand identity should be.
What Does Branding Want to Achieve?
The main goal of branding as a process is to evoke an emotional response, a direct reaction from the target audience and, finally, the client’s engagement. It seeks to build trust and credibility, improve level of customer loyalty and motivate them into taking action. Based on the research, consistent branding across all channels increases revenue by up to 23%.
What is Branding’s Biggest Challenge?
The hardest part of the online branding strategy is to develop a strong set of positive associations for the brand and keep it going for a long time. You should be aware that brand building is not just a one-time practice – it’s an ongoing process which requires constant efforts to achieve successful brand image and brand recognition among your target audience.
Sounds easy? Believe me, it’s extremely difficult to achieve, especially now – at the time of the information overload and promoted ads! Something, as a performance marketer, you should be well aware already.
Major Branding Concerns
What keeps many advertisers from investing more in brand marketing campaigns is that it’s difficult to directly monitor how successful these ads are. We see them on a daily basis and the companies do their best to place their brand in front of client’s eyes hoping that the ad and the product itself will be remembered and the consumer will interact with the brand sooner than later.
However, over time, the business strategy has to become more precise than solemn branding. The best way to do so is to ensure that your new initiative is based on data analytics and website measurement tools like Google Analytics and KPIs from performance campaigns. That’s where performance marketing strategy kicks in.
Performance Marketing: Is it All About Numbers?
Performance marketing is characterized by reaching specific objectives, measurable results, proven data in the initial client-base, etc. Altogether these lead to a dynamic company growth. It’s all about staying result-oriented and getting paid when a desired action takes place. These actions typically are:
- lead generation,
- deposit, or couponing.
Measuring the final actions will not be enough if you do not pay attention to the whole campaign funnel. That’s why marketers should also keep an eye on all the KPI’s including CTR, iCTR, eCPA, eCPM, CPV to see how successful the campaign, creatives, headlines, content of the Landing Page or Prelander is.
Digital performance marketing is treated as a win-win marketing strategy as each stage of generating results has its own benefits. That’s why performance metrics are important not only to the product owner, but also affiliates, performance marketers, and publishers.
Branding vs Performance Marketing: Which One is Better?
The best way to ensure your company’s growth and to make yourself a name in the advertising world you should definitely consider putting both approaches together. Performance marketing solutions directly bring you $$ profit and allow financial liquidity. Brand recognition ensures that the profit is maintained in the long term.
The graphic below should help you understand better how the following strategies can be separated.
The concept of online branding includes within itself the performance. And there is no simple way to define where branding process ends and performance begins. Brand vs performance marketing? Both approaches should learn from one another each other.
Best Approach to Online Advertising
Are you already thinking how to apply branding essentials or performance marketing strategy to your business? Clever you! I have one more insight that might help your products dominate in online advertising.
The answer is simple:
This is a type of paid ads that, surprisingly, doesn’t truly look like an ad. Native ads come off as a harmonious component of the publisher’s website providing your targeted users the information they are looking for or they may be interested in. According to Statista, native advertising spend in 2020 is expected to reach $52.7 billion, which is 64.8% of all US digital display ad spend.
This type of programmatic advertising catches customer’s attention, generates curiosity, and in fact stays longer in the customer’s mind. And that’s exactly what brand marketing campaigns want to achieve. There is also a huge chance that if a native-ad offer convinces potential customers to take action, you’d be able to kill two birds with one stone 🙂
So, don’t waste more time! Try to find experienced allies, just like native advertising platform Voluum DSP, that may help you start and develop your brand and performance marketing techniques with native ads. And then … success is yours!
The dynamic programmatic world requires constant attention and flexibility. That’s why we need to accept that nowadays, performance will not last long without constant efforts to enhance brand identity and brand awareness. Some things just work better in pairs.
In this day and age, it’s not performance marketing vs brand marketing. It’s brand marketing plus performance marketing. Merging all these together will help you generate revenue and will bring the highest possible Return on Investment (ROI).
So, keep the balance between the two and brainstorm some ways on how to reconcile online branding and performance into a unique marketing strategy that will remain effective also in the short term.