Startups focus 100% on direct-to-purchase ads, making them vulnerable. Long-term, successful brands shift to a 70/30 split between brand awareness and direct response. This builds a durable moat that performance-only marketing cannot, protecting them from competitors and rising ad costs.

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The home services industry became addicted to trackable digital marketing, leading to inflated acquisition costs. Building a strong brand makes you the default choice, driving cheaper, high-intent branded searches and lowering overall customer acquisition costs over the long term.

Before scaling paid acquisition, invest in a robust brand system. A well-defined brand DNA (art direction, voice, tone) is not a vanity project; it's the necessary infrastructure to efficiently generate the thousands of cohesive creative assets required to test and scale performance marketing campaigns successfully.

Stop viewing brand as a top-of-funnel activity. For elite companies, brand isn't a precursor to selling; it is the selling. It creates inbound demand that bypasses traditional conversion tactics like search ads or affiliate marketing, making it the most powerful and sustainable growth engine.

Relying solely on performance ads for rapid growth creates a sales machine, not a defensible business. This strategy makes you vulnerable to copycats who will replicate your product and target the same audience for less. Reinvest ad profits into organic content to build a brand moat.

Data shows that adding brand marketing to a performance-driven engine can increase median ROI by 90%. The persistent tension between brand and performance stems from short-termism and the allure of easily measured clicks, creating a false dichotomy between two essential functions.

Effective demand generation is a barbell, requiring strong top-of-funnel brand investment to create awareness and great bottom-of-funnel product marketing to convert interest. Viewing performance marketing as a standalone function and funding it in isolation is like "throwing money at a problem but not solving it."

Leading marketers confidently invest in high-cost, low-measurability channels like billboards and physical books. They understand that reaching a concentrated target audience builds brand in a way that can't be captured by direct attribution but drives long-term pipeline.

Data shows that while combining brand and performance is best, adding brand advertising to a performance-only strategy provides a significantly larger ROI lift than adding performance to a brand strategy. This suggests most marketers are over-invested in performance channels.

Data reveals a 'doom loop' of diminishing returns for companies over-relying on performance marketing. Brand investment acts as a multiplier, improving conversion and efficiency. Campaigns that combine brand and performance see a 90% higher ROI, while performance marketing for a weak brand yields a negative 40% ROI.

In a world demanding short-term results, brand marketing isn't a separate luxury. It is a critical investment that builds top-of-funnel awareness, ensuring that lower-funnel performance tactics have a sufficient audience to convert and ultimately work harder.

Mature E-commerce Brands Allocate 70% of Marketing Spend to Brand Building | RiffOn