Contents
- What is brandformance
- Why is brandformance needed
- Tools in brandformance marketing
- How to evaluate the effectiveness of brandformance
What is brandformance
Brandformance or brandformance marketing is an integrated approach that combines the principles of branding and performance marketing. In the traditional model, brand managers and performance marketing specialists work in isolation, being in different teams with their own promotion strategies and budgets. The first group focuses on creating recognition and customer loyalty, while the second is responsible for quantitative metrics: number of clicks, leads, and completed sales.
Thus, branding covers the top and bottom parts of the sales funnel, while performance marketing addresses its middle section. Brandformance, in turn, allows covering all levels of the funnel, including working with retention managers who enhance customer loyalty and turn customers into brand advocates.
Why is brandformance needed
The main goal of brandformance is to create a unified strategy that combines the advantages of branding and performance marketing. This solution helps address several key tasks:
- Attracting a new audience: Performance marketing often targets users who are already interested in the company or its services. However, collaborating with brand marketers opens up the opportunity to attract a "cold audience" that is not yet familiar with the company's products or services.
- Reducing lead cost: Optimizing the work with a "warm" audience within a single advertising campaign leads to a greater number of potential customers and reduced cost per lead. By working on brand recognition, the company makes attracting new leads more accessible and effective.
- Simplifying the user journey: Brandformance integrates image advertising with sales, which is clearly reflected in the user journey (CJM). In the absence of collaboration between performance specialists and brand marketers, users go through multiple stages before making a purchase, complicating the process and increasing the decision-making time.
Tools in brandformance marketing
Brandformance uses the same tools as traditional branding and performance marketing, but with differences in their application. For example, a company planning an advertising campaign can use various approaches:
- Paid advertising:
- Branding: outdoor advertising featuring images of happy children and the company logo to create recognition.
- Performance: targeted ads aimed at women with young children, offering specific services.
- Brandformance: a combination of outdoor advertising with a QR code leading to a website where more about the services can be learned.
- Organic promotion:
- Branding: publishing useful materials for women aged 20 to 35.
- Performance: creating a sales landing page with product information and service offers.
- Brandformance: articles that lead smoothly to the company's services and drive sales.
How to evaluate the effectiveness of brandformance
For successful application of brandformance, a data-driven approach based on accurate data is essential. In performance marketing, it is easy to track specific metrics such as ROI, LTV, AOV, CPA, and CAC, allowing for the evaluation of advertising campaign effectiveness. However, in branding, obtaining accurate data can be more challenging, as measuring the impact of image advertising or offline events on the company's perception is difficult.
Nevertheless, for brandformance, it is important to use quantitative evaluation methods such as Brand Lift and Sales Lift, which help understand how brandformance impacts the final results. It is also crucial to track the entire customer journey, from the first encounter with the brand to repeat purchases, which allows for end-to-end analytics to gain a more complete picture of the customer's interaction with the product.