The days of relying solely on performance marketing for quick wins are fading. Stricter privacy laws, rising competition, and higher costs mean that the marketing landscape has shifted—leaving brands to reconsider their strategies. As the lines between brand loyalty and short-term results blur, one thing has become crystal clear: consumers crave more than just products. They want authenticity, emotional connection, and brands that align with their values. At Carbon, we know the secret to staying ahead is finding the right balance between brand-building and performance marketing, and we’ve got the insights to prove it.
The Shift in the Marketing Landscape
In recent years, performance marketing has become more challenging. Stricter data privacy policies and rising competition mean that it’s harder (and more expensive) to get the same results as before. According to a McKinsey survey, 72% of fashion executives plan to invest more in brand marketing in the coming year, compared to 45% who are prioritizing performance marketing. It’s a clear sign that brands, especially in competitive industries, are rethinking their strategies—and so should you.
Why Brand Marketing is More Important Than Ever
Brand marketing isn’t just about flashy ads or big budgets—it’s about building lasting relationships with your customers. It’s how brands create trust, stand out in a crowded market, and transform fleeting interactions into long-term loyalty.
Sure, it might not provide the immediate data-driven feedback that performance marketing does, but its benefits run deep. Brand marketing helps consumers remember your name, understand your story, and connect with your mission. And in a world where customer expectations are higher than ever, that connection is priceless.
Carbon Insight: Carbon recently worked with a global B2B Saas company and drove double digit awareness growth which also saw direct correlation to their growth in customer base by 3x.
Consumers Want More Than Just Products
After the pandemic, consumer behavior changed. People want more than just good products—they’re seeking emotional connections with brands. They want authenticity, purpose, and brands that align with their values. When done right, brand marketing can offer that emotional connection, differentiating your brand in ways performance marketing simply cannot.
Carbon Insight: One of our sportswear clients has been able to connect with audiences by developing a product line based on the values and embodiment of one of their sponsored athletes who was diagnosed with cancer while an endorser for the brand. This line didn’t just reflect the athlete’s journey—it resonated deeply with customers – organically gaining traction, becoming top selling products, and keeping customers coming back season after season based on the cause.
The Balance Between Brand and Performance Marketing
It’s not about choosing one over the other. At Carbon, we believe in the power of both—when used together in a strategic mix, brand and performance marketing create a powerful combination that drives both short-term revenue and long-term growth.
Performance marketing can generate quick wins, but it’s brand marketing that nurtures loyalty and fuels sustained demand over time. However, we understand that not every business has a budget to invest in both equally - the key is finding the right balance. Even if resources are limited, a thoughtful, strategic mix of performance and brand marketing will lead to better outcomes than relying on one approach alone.
Carbon Insight: For an e-commerce client expanding from Europe to the U.S., Carbon emphasized the importance of sustaining upper-funnel tactics alongside performance efforts. By investing in a strategic mix of brand and performance marketing, the client achieved impressive results—outperforming Meta’s brand lift benchmarks for purchase intent by 1510%
Moving Forward: The Next Steps
The marketing landscape is constantly evolving, but one thing remains the same: consumers connect with brands that stand for something. Investing in your brand is a long-term play that pays off. Here’s how you can get started:
- Solidify Your Story – Understand what sets your brand apart and build a narrative that resonates with your audience.
- Allocate Your Budget Wisely – Determine how much to invest in both brand and performance marketing to strike the right balance.
- Measure What Matters – While brand marketing isn’t always immediately trackable, focus on softer metrics like brand awareness, customer loyalty, and emotional engagement.