The importance of your marketing budget allocation
13.03.2024
E-commerce and marketing executives face new challenges in today's digital landscape. The digital shopping street is saturated; consumers are bombarded with ads and messages from all sides. In this sea of touchpoints, it is not enough to simply be seen. Brands must resonate, connect and convert. This is where the synergy between performance marketing and branding becomes crucial. It's time for performance branding.
Performance branding is not just a buzzword; it is the future of digital marketing. Which seamlessly combines the measurable aspects of performance marketing with the brand-focused content of branding. This fusion creates a unified strategy that maximizes long-term profitability for businesses. Throughout the marketing funnel - from awareness to conversion.
The biggest benefit of performance branding is that you get to work on the scalability of your brand. You get away from percentage growth and go for (international) scalability. This is because old approaches were either too focused on the top of the funnel (branding) or too focused on the bottom (performance marketing). Instead, it adopts a full funnel approach that considers every stage of the customer journey. Not isolation, but full optimization.
Rapidly changing consumer needs require a sustainable strategy that delivers both short-term and long-term results. Consumer behavior is increasingly shifting to online discovery and research for purchasing decisions, making it essential to provide a consistent and engaging brand experience at every point in the customer journey.
With the increase in online shopping and information overload, consumers are becoming more selective in what they consume. Brand preferences are created based on the online experience. A strong brand identity makes you recognizable and trustworthy.
Pure focus on short-term results of performance marketing can hurt your brand in the long run. Balance between building a brand and generating direct sales maximizes overall ROI.
Integrating data from both performance marketing and branding provides a complete picture of the customer journey. This insight is crucial for adjusting and improving strategies in real-time.
Brands with a strong brand identity and loyal customer base are better able to withstand economic fluctuations. Diversifying your marketing budget means not putting all your eggs in one basket.
The market waits for no one. In an era when marketing budgets are scrutinized and every dollar must count, performance branding provides a strategic framework that not only delivers immediate results, but also promotes long-term brand growth.
The key lies in understanding your brand goals and how each channel - both performance and branding - contributes to those goals. It requires constant evaluation and adjustment of your strategies to ensure that they both meet short-term needs and help build long-term brand equity.
Working with a partner like Redkiwi can help you find and maintain this balance. With expertise in both performance marketing and brand strategies, we can support you in navigating this complex landscape, ensuring that you not only survive, but thrive in today's market.
Want to know more? Then read our in-depth blog on performance branding. Here we explain our model for achieving successful performance branding. We also discuss dashboards and integrating all the necessary kpi's.
Let's look together at how you're really going to grow by 2024. By thinking bigger than addressing the 5% ready-to-buy consumers.
Linkedin says so. Harvard business review and McKinsey too. Performance branding is the future. The winning combination of branding with performance marketing.
