For years, marketers have been caught between two seemingly opposing strategies: performance marketing and brand marketing. Performance marketing is all about driving immediate results — clicks, conversions, and revenue — while brand marketing focuses on building long-term brand equity and recognition. But marketers know that neither approach alone is enough.
Enter: performance branding.
Performance branding is the strategic mix of direct-response marketing tactics with brand-building efforts. It goes beyond the short-term focus of traditional performance marketing and integrates full-funnel investment, ensuring that brands reach new audiences while also nurturing long-term customer relationships.
The ultimate goal? Sustainable growth, lower customer acquisition costs (CAC), and increased customer lifetime value (LTV).
This approach is particularly relevant when considering the 95–5 rule in digital marketing. The rule states that at any given time, only 5% of potential customers are actively looking to make a purchase, while the remaining 95% are not yet in the buying phase. This insight underscores the importance of consistent brand-building efforts to create mental availability so that when the 95% do enter the market, your brand is top of mind.
Performance branding ensures that businesses are investing in both immediate conversions and long-term growth, making it a more sustainable strategy compared to a purely performance-driven approach.
Historically, brands have leaned heavily on performance marketing, optimizing every campaign for immediate return on investment. But the truth is, performance marketing comes with limitations and overreliance on it can often lead to diminishing returns. Eventually, it becomes too expensive to acquire new customers without tapping into broader, upper-funnel strategies.
Performance branding shifts the focus from purely transactional interactions to a more holistic, scalable approach. This leads to:
65% of marketers say they use Connected TV (CTV) to achieve both their brand and performance goals. Why? CTV has the unique ability to capture the attention of a hyper-targeted audience, making it ideal for both brand storytelling and driving the right outcomes.
Key advantages:
The era of siloed marketing strategies is over. Brands that thrive in 2025 and beyond will be those that embrace performance branding — a data-driven, full-funnel approach that fuels both short-term wins and long-term success. The key to sustained growth is understanding that brand equity and performance marketing aren’t separate. They’re two sides of the same coin.
Ready to make the shift? Learn how in our upcoming webinar, Power Your Growth with Performance Branding, in partnership with Playbook Media and Rockerbox. RSVP now to save your seat.