When Upgrading Performance Marketing Means Putting the Brand First
A company performing well today, does not necessarily have an equally bright future, even with a well-known, established brand. Part of the challenge is a pool of competitors that continues to grow. In Q1 2022, 1.46 million new businesses launched in the United States—up 33.5% from Q1 2020.[1] With so many competitors vying for the same customer audiences, prospective customers in this fast-paced environment, most companies rely on what is easiest to measure, so they throw money into high-throughput performance marketing programs that focus on driving impressions and lead generation. With many competitors engaged in this race to the bottom, smart companies have an opportunity to stand out in a sea of sameness by putting together campaigns that are customer-centered, as opposed to those which are business-centered around driving vanity metrics. By taking a “brand-led” perspective to performance marketing, you benefit from gaining market trust, customer loyalty, and a consistent brand voice—all factors that boost a networked approach, and favorability for your brand in a buyer’s market.
Factor 1: Market Trust
A brand-led performance marketing approach builds reputation and earns trust from customers and prospect audiences. Trust is a potent force that promotes higher engagement and ultimately boosts conversion rates. This is especially important in highly competitive markets, where trust can be a key differentiator. When product offerings are similar, customers' purchase decisions are heavily influenced by the degree of trust they have in each brand. According to a 2022 survey, 46% of customers are also willing to pay more for products from a brand they trust [2]. Beloved brands such as Apple, Mercedes-Benz, and Phillips demonstrate that customers who trust in the quality, reliability, and integrity of the brand are likely pay premium prices despite having relatively suitable alternatives. Performance marketing campaigns can build this valuable market trust by leading with brand principles. For example, developing ad creative that incorporates brand promise and directing traffic to high-quality content that conveys the brand’s story, customer testimonials, customer reviews, case studies, and certifications.
Factor 2: Customer Loyalty
While open rates and click-through rates are more quantifiable, measuring the return on investment (ROI) of brand advocacy is a challenging endeavor. Performance marketing that incorporates brand principles nurtures the brand’s long-term relationship with customer audiences. In contrast, chasing conversions with offers and promotions only hooks customers’ short-term attention for as long as the promotion is available. Personalized, engaging content and interactions can establish these long-term relationships, demonstrating to customers they are valued and understood on an individual level. These relationships help customers stay engaged and supportive of the brand, thus enhancing customer loyalty in the process. In fact, loyal customers spend 67% more on average than those who are new to your business.[3] As a result, loyal customers are more likely to make repeat purchases and recommend your brand to their networks, both contributing positively to overall marketing ROI .
Factor 3: Consistent Brand Voice
Tiktok, Snapchat, Elon Musk’s revamped version of Twitter known as X, and now Threads—what do all these platforms have in common? Media platforms are constantly being bred and revamped, and brands that want to remain competitive will inevitably seek to earn consumer attention on the next platform that launches. While these are exciting avenues, consumers can be confused and fail to establish a meaningful perception of a brand if they present one way on TikTok but radically different on Threads. Think about it this way, would Wendys’ fiery Twitter persona be loved the same if it did not carry the same tone and voice on Threads? With a brand-led approach, the marketing message is consistent across all channels and platforms. This consistency reinforces the brand image in the minds of consumers and makes the advertising more effective overall. Consider four major factors for positioning a brand to build and maintain consistency: purpose (what the brand stands for), emotional attributes (how consumers perceive the brand), functional benefits (tangible qualities represented by the brand) and experiential qualities (how consumers experience and interact with the brand).
Conclusion:
While B2B marketers generally accept the importance of balancing brand and demand investments, winning companies show up with less of a binary formula that separates both categories. This is where brand-led performance marketing plays a role in not just bridging the gap but enhancing the value of demand-oriented direct marketing campaigns—creating a consistent and valuable networked experience for buyers across all touchpoints with the brand. In previous years, no one thought viral dances by social media influencers or integrating ecommerce links onto a photographic post would be part of performance marketing tactics. However, the most successful activations in these campaigns all have one thing in common: they lead with brand. With brand-led performance marketing, marketers can worry less about lost followers, leads and unsubscribes and instead celebrate more long-term growth. Now that’s a dance worth engaging in.
[1] How Many New Businesses Are Started Each Year? Data Reveals the Answer, Commerce Institute.
[2] 10 Branding Statistics You Need To Know In 2023, Oberlo.
[3] Returning Customers Spend 67% More Than New Customers, Business.com.