Why It Happensīrand-building activities are typically measured using metrics that have no predictive or retrospective connection to financial returns. Marketers often worry that performance marketing and its focus on short-term sales is crowding out brand-building activities aimed at enhancing customer perceptions of their brand-and sometimes works against brand strategy.

In doing so, companies are better able to make decisions that fortify the financial contributions of both and get them working better together. That is then linked to specific financial outcomes-such as revenue, shareholder value, and return on investment-and deployed as a key performance indicator for both brand building and performance marketing. To achieve performance- accountable brand building and brand-accountable performance marketing, firms must create metrics that measure the effects of both types of investments on a single North Star metric: brand equity. And performance marketing typically lacks measures that account for its impact on brand building, focusing only on sales, leads, and clicks. Marketers often worry that performance marketing and its focus on short-term sales is crowding out brand-building activities aimed at enhancing customer perceptions of their brand-and is sometimes working against brand strategy.īrand-building activities are typically measured using metrics that have no predictive or retrospective connection to financial returns.

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