Over the past two decades, performance marketing has grown to become a leading strategy for B2B companies, in many cases taking priority over brand marketing. Roughly 25% of B2B companies commit less than a fifth of their marketing budget to brand.
This, studies show, is a missed opportunity.
While performance marketing creates value by generating website traffic, leads and sales — all important for keeping the lights on at a B2B firm — without a strong brand, your company will get lost in a sea of competitors. In other words, without brand marketing, you may see positive metrics in the short term but fail to make an impact over time.
Brand marketing establishes the essence and values of the brand, fostering long-term trust and recognition. It’s the cornerstone of an effective marketing plan and a key part of an ironclad business strategy. Performance marketing serves a complementary but secondary role, delivering measurable results and driving immediate action. The two approaches work in concert, but brand should be the foundation.
The foundation: brand marketing.
Brand marketing means establishing and consistently communicating a brand’s identity, values and promise — crafting narratives and imagery that resonate with current and prospective customers, partners and investors. Brand marketing is the distinguishing factor that helps companies stand out in a crowded marketplace.
Every organization needs a clear, compelling identity. Not just its logo, of course, although that’s important, but a whole verbal and visual identity system strategically developed, launched and refreshed over time to build trust and strengthen connections with your customer base. Your brand marketing is what sets you apart, and it’s what fuels loyalty and generates enthusiasm when the time comes to extend what you offer.
Proof of brand marketing’s value.
As much as it’s true that the effectiveness of brand marketing isn’t as easily measurable as that of performance marketing, the big-picture numbers do reflect the ROI of a brand people recognize and trust. Here are a few:
- More than 80% of customers say trusting a brand is the deal breaker or deciding factor in purchase decisions.
- 57% of consumers will increase their spending on a brand they feel connected to.
- 76% of consumers will choose a brand they have some affinity for over a competitor.
While these statistics may seem to reflect B2C market forces more than B2B, the fact is that every business is made up of decision-makers who are looking for the same qualities in a partner or vendor that consumers are in the companies they patronize.
In fact, a recent study shows that brand marketing may have an even greater impact at B2B companies than B2C ones, with more mature brands delivering a much higher lifetime ROI. Another study indicates that B2B companies with strong brands outperform weak ones by 20%.
The tactical component: performance marketing.
Performance marketing provides the tactical execution that drives short-term results.
Organizations can leverage performance marketing through targeted strategies to generate leads and drive conversions. Whether it’s optimizing pay-per-click campaigns, nurturing leads through email marketing or leveraging account-based marketing tactics, performance marketing delivers measurable outcomes that contribute to the bottom line.
Importantly, performance marketing should always align with and reinforce the brand strategy. Even the smallest and most targeted touch points should reflect the greater message and voice of the brand. While brand marketing lays the groundwork for long-term brand equity, performance marketing delivers the immediate results and tangible ROI that can keep B2B organizations afloat.
Finding the right balance.
Brand marketing and performance marketing each play a vital role in any B2B brand’s journey toward success. In fact, despite the funky nomenclature, brand marketing does perform, and performance marketing should always reinforce and benefit from the strength of the brand.
The right agency partner can help you establish a brand and a brand marketing strategy that, in concert with efficient performance marketing tactics, will set your organization up to win in the market today and flourish in the future. If you need any help with your B2B brand marketing — or if you’d like a free competitive audit of your brand by our team of experts — get in touch.
