Brand Marketing vs. Growth Marketing
Why pitting brand and performance marketing against each other is hurting your business (and how to fix it).
Striking the right balance between brand marketing and growth (or performance) marketing can mean the difference between fleeting success and lasting dominance. In this article, we’ll discuss this marketing melee with a mix of insightful analysis, real-world case studies, and a dash of humor. We'll guide you through the strategic nuances, backed by industry experts and successful brand stories, and even throw in an improv-inspired exercise to spark your creative genius. Get ready to blend the art of brand building with the precision of growth tactics, crafting a marketing strategy that's not just effective, but sustainable.
The History Behind the Divide
Let’s cut to the chase and demystify the legendary face-off: Brand Marketing vs. Growth Marketing. While Growth is the metric ninja, slicing through the market with short-term tactics, Brand is the spectacular magician, winning customers over with narrative and playing the long game. One's about quick wins, the other's about building legacies. Per HBR, the two have traditionally been seen as a trade-off, pitted against each other in a competition for budget and attention. Here, we show how a symbiotic approach has spelled SUCCESS for brands in 3 different categories.
What’s the Ideal Marketing Mix?
Over the past 20 years, growth (or performance) marketing has become the dominant approach companies use to connect with consumers. But, according to Les Binet, the godfather of marketing effectiveness, a 60/40 split favoring brand is the ideal approach. “The digital revolution is making activation easier, so brand building is becoming more important, not less. Budgets need to be re-balanced,” says Binet.
In the throes of digital bombardment, here’s the punchline: Branding is getting hotter by the minute and needs to be considered in the overall equation.
Gusto!’s Balanced Diet
In 2017, gusto! was all in on performance. But without brand love, they were perpetually relying on ads. 80% of customers came through ads and only 20% was organic. Once the company found a balanced approach, they retained awareness, familiarity, and continued cashflow.
Airbnb's Brand Bonanza
The grandmaster of staycations, Airbnb shifted gears beginning in 2019 from search advertising to broad marketing campaigns and PR to build the brand. The result? Reaching their strongest and most profitable quarter to date.
The LinkedIn Lore
Rewinding to LinkedIn’s credit card campaign: Pure growth tactics scored a measly 0.2% conversion. But, when they blended brand messaging in, the conversion rates more than tripled to 1.2%.
So, if you’re a startup or scaleup that’s only focused on growth...
Think of your marketing as a dynamic duo. Walter White & Jesse Pinkman. Chewie & Han Solo. Axe & Wags. The blend of brand’s strategic depth and growth’s tactical edge is your ticket to sustainable success.
In essence, dance the fine line between brand and growth with grace. It’s not about picking sides; it’s about harnessing the strengths of each to catapult your brand to stardom. Remember, in the great marketing odyssey, harmony between brand and growth is the secret sauce to epic achievements.