The Marketing Budget Mistake Even Nike Made – And How to Avoid It
Brand vs. Performance Marketing – it’s a dilemma anyone in charge of a marketing budget knows well. So which of these strategies actually fuels sustainable growth and builds long-term success, and which is a waste of your brand’s time and money?
Every business wants growth – but the path to getting there isn’t always clear. Should you focus on building a strong, recognisable brand, or double-down on performance marketing for fast, cost-effective conversions?
Here's what other performance marketing agencies might not tell you:
Pouring all your resources into paid campaigns might bring a surge of quick wins, but without strong brand equity, those sales will dry up and your business will be left chasing the next conversion.
On the flip side, investing only in brand marketing can make you memorable, but without performance-driven tactics to turn awareness into action, that recognition won’t translate to revenue. The real key to sustainable growth? A holistic marketing strategy that recognises the crucial importance of both.
Performance vs. Brand
Performance marketing – focused on measurable, tangible results like leads and sales – is the engine that drives revenue and fuels growth. It’s vital for immediate returns, but without brand marketing to build trust, recognition, and emotional connection, performance efforts lose steam. Customers may convert once, but they’re unlikely to return.
Brand marketing, on the other hand, builds the long-term foundation. It’s about crafting your story, values, and positioning in the market. This fuels awareness, establishes brand equity and fosters loyalty – all essential ingredients for long-term success. Yet, brand alone won’t deliver the instant, trackable ROI that performance marketing can achieve.
At PH Digital, we understand that these two marketing arms aren’t rivals – they’re partners. Brand marketing makes performance more effective, while performance marketing ensures brand investment translates into tangible returns.
The Nike Case Study: Even Giants Get It Wrong
Even the biggest brands aren’t immune to getting the balance wrong.
Take Nike, for example: a global powerhouse with one of the most recognisable brands on the planet. In the late 2010s, Nike made significant changes to its marketing strategy, including cutting back on brand marketing in favour of performance-driven, conversion-focused campaigns.
The result? A noticeable drop in market share as competitors gained ground. Consumers still recognised the swoosh, but without continued investment in emotional storytelling and brand equity, Nike’s connection with its audience weakened – and sales followed suit.
Still rebounding from such a strategic misstep, the Nike case study perfectly illustrates the importance of brand and performance marketing working in tandem, and the risks of channelling all your efforts in one direction.
What’s the Ideal Marketing Split?
While there’s no one-size-fits-all answer, a balanced approach often works best. Many businesses find a 60/40 or 70/30 split favouring brand marketing sets them up for both immediate wins and lasting success. However, the right mix depends on factors such as your industry, audience, and growth stage.
PH Digital’s expert strategists can help guide this decision with bespoke advice tailored to your business. Whether it’s luxury fashion, FMCG or financial services, we understand that the most effective strategy is fluid. It involves continuously analysing performance data, adjusting campaigns and ensuring brand and performance efforts work hand-in-hand.
If your performance marketing agency is out for themselves, they’re likely to push for the lion’s share of your budget. We believe in a data-informed approach that drives quick, guaranteed wins while nurturing long-term brand loyalty – ensuring your business stays top of mind, and ahead of the competition.
Why PH Digital is Your Trusted Partner
Trusted by over 150 category-leading brands, PH Digital specialises in performance marketing, but our team’s marketing expertise extends far beyond technical digital strategy.
Most importantly, we’re business owners, too. The performance-versus-brand balancing act is something we navigate ourselves every day, and we build this understanding into every paid digital strategy we develop and implement.
Ultimately, we know that performance delivers the now, but brand builds the future. To succeed, you need both working symbiotically.
That’s what we call digital chemistry.
Want to learn more about the right marketing split for your business?