Brand- vs. Performance Marketing

In the marketing world, one question keeps sparking debate: Should the focus lie on short-term successes like clicks, leads, and conversions – or do long-term values like trust, brand recognition, and customer loyalty matter more? While some prioritize measurable performance, others believe in the power of brand building. But do these two approaches really have to be mutually exclusive?

In this article, we take a closer look at brand and performance marketing, explain their differences, explore their strengths and weaknesses, and show why the right balance is essential. 

What is Brand Marketing? 

Brand marketing aims to build trust, increase brand recognition, and create a strong emotional connection with consumers. At its core, it’s about establishing a lasting brand that stands out from the competition and remains top of mind.  Various channels are used for this purpose: 

• Traditional media such as TV, radio, and out-of-home ensure everyday presence 

• Display advertising allows for scalable brand communication in the digital space – visually impactful, targeted, and wide-reaching

• Content marketing (e.g. blog articles, storytelling, podcasts) delivers value and conveys brand values 

• PR, events, and sponsorships create emotional experiences and strengthen brand image 

• Influencer marketing positions the brand authentically – not through products, but through values 

A typical example:

Adidas set out to boost brand awareness and visibility among a young, sports-minded target audience with its “You Got This” campaign. The focus was a motivational video message, strategically delivered at the right moments for maximum emotional impact. To achieve this, high-impact ad formats like the YOC Mystery Ad® and Understitial Ad® were used. These formats were placed in high-quality mobile environments and achieved outstanding results in terms of ad recall, engagement, and intent to act – a clear demonstration of the effectiveness of digital brand campaigns. 

Discover more about the Adidas campaign in the full case study:

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Strengths of Brand Marketing

Strengthens emotional brand connection – A strong brand creates trust and loyalty. Customers don’t just choose based on the product but also due to the emotional bond with the brand. 

Increases price elasticity – Brands with strong recognition and positive associations can charge higher prices without losing customers. 

Makes companies more resilient – Established brands are less vulnerable to short-term market changes and are more trusted in times of crisis. 

Challenges of Brand Marketing

Long-term impact – Branding campaigns often take weeks or months to show full results – patience is key. 

ROI is harder to measure – As the impact on purchasing behavior is indirect, the return on investment isn't always clearly quantifiable.  High budgets for traditional campaigns – Major brand/image campaigns in TV or outdoor media can be costly. 

Few direct conversions – Brand marketing focuses on perception and image, not immediate sales. 

What is Performance Marketing? 

If brand marketing is a marathon, performance marketing is the sprint. The focus lies on concrete, measurable results – clicks, conversions, leads, and sales.  Performance marketing is: 

Data-driven and KPI-focused – Decisions are based on performance indicators like CTR, conversion rates, or ROAS (Return on Ad Spend). This allows for objective evaluation and ongoing optimization. 

Budget-efficient and scalable – Advertising budgets are deployed where they deliver the most value. You can start small and scale up quickly. 

Flexible and real-time optimizable – Campaigns can be adjusted anytime – e.g. through A/B testing, new targeting, or creative variations – and respond immediately to market changes or user behavior.  Common formats include: 

• Search engine advertising (e.g. Google Ads) 

• Social media ads on Instagram, Facebook, LinkedIn, or TikTok 

• Affiliate and retargeting campaigns 

• Performance email marketing 

A typical example:

A sportswear online shop launches a new sneaker collection and runs a Facebook Ads campaign with precise targeting and clear CTAs (“Buy now”). The ads lead to a conversion-optimized landing page featuring an exclusive discount code. A/B tests help identify the best creatives – the campaign is continuously optimized based on conversion data. The goal: maximum ROAS with minimal waste coverage. 

Strengths of Performance Marketing 

Fast execution – Campaigns can be launched within hours or days – ideal for time-sensitive promotions or quick wins. 

Clear performance measurement – With defined KPIs and tracking, it's easy to see what’s working and what’s not. 

Great for A/B testing and short-term actions – You can test different versions of creatives, audiences, or landing pages and directly compare results. 

Weaknesses of Performance Marketing

Little brand building – With the focus on short-term conversion, there’s less space for emotional storytelling or long-term brand value. 

Low emotional connection – Users might act on a CTA but rarely develop a deeper bond with the brand. 

Risk of KPI obsession – If decisions are made purely based on numbers, long-term brand goals like differentiation or trust may fall by the wayside. 

Brandformance: Where Branding Meets Performance 

A current buzzword in marketing is “Brandformance.” The idea behind it: The customer journey is not linear – consumers encounter brands across various touchpoints and expect a consistent brand experience. 

Brandformance means strategically combining branding and performance goals within a unified campaign logic. It’s not about running two separate campaigns, but creating ads that emotionally resonate and drive measurable action. 

Brandformance campaigns typically include: 

Cross-channel, integrated strategies – Branding and performance goals are aligned across platforms. 

Creative formats with clear functionality – Creatives reflect brand values while encouraging actions (e.g. visits, purchases). 

KPIs for both branding and performance – Metrics track both brand awareness and performance targets like conversions or CTR. 

Dynamic delivery and targeting – Content is tailored to audience segments and context, maximizing relevance and impact. 

The result? A brand presence that generates attention and delivers results – emotional and efficient at the same time. 

What’s the Right Mix? 

The ideal balance depends on factors like: 

• Campaign objectives 

• Company size and stage 

• Product category 

• Market environment 

A widely accepted benchmark comes from marketing experts Les Binet and Peter Field: 

They recommend a 60/40 budget split – 60% for brand marketing, 40% for performance (“The Long and the Short of It”). 

In their follow-up, “Effectiveness in Context,” they note that start-ups benefit more from performance at first, thanks to innovation or PR-driven reach. But over time, strong brand building is essential for sustainable growth. 

A helpful metric is the Share of Voice (SOV) – your brand’s share of total advertising activity in your market. 

Rule of thumb: 

If your SOV is higher than your market share, your brand is on a growth trajectory.  The prerequisite? Know your audience, understand their needs – and reach them through the right channels with relevant messaging. 

Conclusion

Brand and performance marketing are not competing approaches, but complementary pillars of a successful marketing strategy. While branding builds trust and emotional connections over the long term, performance marketing delivers measurable results and rapid optimizations. The key lies in finding the right balance – combining both worlds creates visible impact and sustainable growth. Brands that understand their audiences, leverage the right channels, and manage campaigns strategically can maximize both brand equity and performance.

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