Thinking Beyond Binary: Brand, Performance, & the False Opposition That Holds Back Growth

The power struggle between brand marketing and performance marketing has raged – or simmered, at least – for decades. 

Many companies treat them as opposing forces; sides of the same coin, maybe, but undeniably, mutually exclusive. To put it in a nutshell – brand marketing is often seen as a long-term investment in awareness and reputation, while performance marketing is for immediate sales and measurable ROI. But this is a false choice.

New research we’ve conducted in collaboration with WARC – The Multiplier Effect – arrives at a very different conclusion: the most effective advertising strategies actually don’t separate brand and performance. They combine them. 

Because brand marketing isn’t just about reputation-building, and performance marketing isn’t only concerned with here-and-now sales spikes. Rather, the two work synergistically – almost symbiotically – insofar as brand marketing (done right) directly amplifies the effectiveness of performance campaigns. This, in turn, drives greater efficiency and long-term revenue growth.

So, what is brand marketing, in light of this evolved perspective? Why does it matter? And more importantly, how can CMOs use it as a multiplier to supercharge performance marketing efforts?

An unreal division: brand vs performance advertising

For years, marketing teams have been split into two camps. 

• Brand marketing teams focus on storytelling, emotional connections, and building a strong brand identity. Their work enhances brand equity, customer loyalty, and long-term market positioning.
• Meanwhile, performance marketing teams prioritize conversions, direct response campaigns, and measurable results, using channels like PPC, email, and targeted social media ads.

Historically, businesses have tended to swing their strategy in favour of either one approach. Some might focus on brand-building without overly concerning themselves with its impact, while others chase short-term performance gains, putting to one side the trust, consistency, and awareness that we know fuel sustainable growth.

The problem? Overinvesting in performance marketing at the expense of brand-driven efforts leads to diminishing returns: what The Multiplier Effect calls the “performance penalty”.

Why performance-only strategies struggle to get take root

Data from our research reveals that over-reliance on performance advertising reduces revenue returns by 20% to 50%. Why? Because performance marketing is most effective when built on a foundation of strong brand equity. 

Without brand recognition, ads must work harder (and cost more) to drive conversions. Customers are less likely to trust an unknown brand, increasing cost per acquisition (CPA) and reducing lifetime value (LTV).

By contrast, brands that shift to a more balanced strategy – investing in both brand equity and performance marketing – see revenue lifts between 25% and 100%. And the median uplift? A staggering 90%.

 

The multiplier effect: how brand boosts performance

Rather than treating brand and performance as separate silos, marketers should view them as multipliers of each other. The Multiplier Effect research finds that strong brand equity enhances performance marketing efficiency in several ways:

• Lower acquisition costs: customers are more likely to click on and trust ads from brands they recognize and respect.
• Higher conversions: performance ads from well-known brands convert at a higher rate because brand trust reduces friction in the buying process.
• Increased lifetime value: a strong brand fosters customer loyalty and repeat purchases, making each acquisition more valuable over time.
• Greater pricing power: customers are willing to pay a premium for brands they perceive as high-quality and reputable, reducing reliance on discounting.
• Recall & engagement: brand-led campaigns create deeper emotional connections, making performance ads more effective in retargeting and direct response efforts.

 

So how do you balance brand & performance marketing?

The most successful brands – both in the long and the short term – follow a full-funnel approach, where brand marketing and performance advertising reinforce each other. To create that synergistic symbiosis:

1. Allocate budget strategically

As we found in The Multiplier Effect, a good and healthy media mix allocates at least 30% of the budget to brand marketing; with 40% to 60% being the optimal range. 

This ensures a baseline level of brand equity – something to hang your hat on – while giving performance campaigns the budget to operate at full potential.

 2. Avoid siloed campaign planning

Brand and performance teams need to collaborate rather than work in isolation. No marketing team is itself an island. A consumer-first approach means planning full-funnel creative platforms, where different ad types reinforce each other.

• Go deep: ensure all creative assets – whether TV ads, social media content, or paid search – align under a unified brand narrative.
• Go long: build campaigns designed to last, using consistent brand assets across different platforms to maximize compound effects over time.

3. Make performance ads brand-centric

Too often, performance ads prioritize conversion at the expense of brand messaging. 

Instead, CMOs should ensure that every ad – whether it’s a Google search ad or a TikTok video – reinforces brand equity. This means:

• Using consistent brand voice, logos, and messaging
• Prioritizing storytelling and emotion, even in direct response ads
• Connecting promotions and offers to the broader brand identity

 

 4. Run a smarter measurement stack

Attempting to prove the ROI of brand marketing via short-term performance metrics is a fast road to a big nowhere. They’re like chalk and cheese. Instead, brands should develop a measurement stack that captures:

• Baseline brand revenue (ie., sales generated by existing brand equity)
• Incremental impact of brand campaigns over time
• Pricing effects (how brand strength affects price elasticity)
• The long-term halo effect of brand investments on future performance campaigns

 

Brand + performance = sustainable growth

CMOs who embrace and leverage brand marketing as a performance multiplier will see the greatest gains. Because, when push comes to shove, the best-performing brands aren’t choosing between the two – they’re strategically integrating both.

Binet and Field’s seminal research, The Long and Short of It, proved that the most effective marketing balances short-term activation with long-term brand building. The Multiplier Effect builds on this foundation, showing that strong brand equity doesn’t just complement performance: it amplifies its impact, making every dollar invested go further, for longer.

 

Want to learn more?

The Multiplier Effect is a must-read for CMOs looking to optimize the marketing mix. To get the full insights, download the research for free today.