An interesting article by CREATIVE INC. – a leading global marketing agency
It is interesting to know that though performance marketing is effective in driving short-term results and conversions, it may not be the best thought out strategy for growing a brand in the long run. Therefore, it is important for brands to keep farsightedness and look at their performance marketing strategies. If you need help in that, you can always seek guidance from a good digital marketing agency . Through this informative blog, a social media marketing agency shares some of the possible reasons why performance marketing alone cannot promise brand growth.
Lesser focus on brand building: In performance marketing, the focus is majorly on immediate actions like clicks, conversions and sales. According to a branding and marketing agency , performance marketing often neglects the essential aspect of brand building like brand awareness, brand perception, etc.
Focus is always short-term: The focus is always on achieving immediate wins and short-term results. This can cause fixation on metrics like ROI, cost per acquisition (CPA), click through rates (CTR) rather than long-term brand equity. Building a brands reputation and loyalty takes time and consistent effort.
Leads to dilution of brand: Depending more on performance marketing will make a brand focus on offering discounts, promotions and incentives. This can work against the brand making it look cheap in the eyes of its audience. A strong brand should command premium pricing and customer loyalty based on its values.
Limited audience engagement: Performance marketing only looks at targeting and talking to a specific audience with likelihood to convert. Though it will help the brand increase sales but in the long run lose out on tapping a wider pool of target audience. The name of the game is to nurture potential customers over time and performance marketing being focused on short-term wins loses out there.
Lacks focus on storytelling and content: Brand building requires creating a compelling story, sharing valuable content, connecting with the audience at a deeper level, which performance marketing alone cannot do.
To foster brand growth, it is vital to strike a balance between performance marketing and brand building. An integrated marketing agency with specialisation in content marketing, social media marketing, public relations, can help in creating a strong brand image and also drive short-term performance.