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Finding yourself in the advertising world is a hard nut to crack – especially when you face a choice of implementing the most accurate marketing strategy. There are generally two approaches: performance – associated with pure profit, and branding – a more value-oriented solution. However, 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.
What is branding?
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, increase customer loyalty and motivate them into taking action.
What is branding’s biggest challenge?
The hardest part of the 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 branding is not just a one-time practice – it’s an ongoing process which requires constant efforts to achieve 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 branding advertising 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 consumer’s eyes hoping that the ad and the product itself will be remembered and the client will interact with the brand sooner than later.
However, over time, the 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 kicks in.
Performance marketing: Is it all about numbers?
Performance 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.
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 agencies, and publishers.
Branding or 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 directly brings you $$ profit and allows financial liquidity. Brand recognition ensures that the profit is maintained in the long term.
The graphic above should help you understand better how the following strategies can be separated.
The concept of branding includes within itself the performance. And there is no simple way to define where branding ends and performance begins. Both approaches should learn from one another each other.
Best approach to online advertising
Are you already thinking how to apply branding or performance 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. This type of programmatic advertising catches the customers attention, generates curiosity and that’s why it stays longer in the customer’s mind.
That’s what branding wants 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.
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 image and brand awareness. Merging all these together will help you generate revenue and will bring the highest possible Return on Investment (ROI).
Keep the balance between the two and brainstorm some ways on how to reconcile branding and performance into a unique marketing strategy that will remain effective also in the short term. Try to find experienced allies, like a native advertising platform Voluum DSP, that may help you start and develop your branding & performance strategy with native ads. And then … success is yours!