Regardless of whether they are start-ups, SMEs and globally active companies — whether B2B, B2C or D2C: Companies of all sizes and from almost every industry are now using branding measures to build brands. But at the latest when it comes to the distribution of marketing budgets, there is always a fight between branding and performance. One of the most common arguments from performance teams: “We directly generate sales.” But that is only half the story. Because branding drives long-term company growth — also with a direct impact on sales.
Between news, trust, recognition and employee motivation
Especially when it comes to product launches, the advertising drum is often stirred up in the form of branding campaigns. Logical, because brands and products that no one knows yet, no one can consume. This is also where the sales power of branding is evident. For example, brands that present their products or services on the well-known TV format “Die Höhle der Löwen” regularly have absolute search peaks around the broadcast. Of course, it doesn't have to be an appearance on a well-known TV show; classic branding measures such as TV or outdoor advertising also have a similar result. Conversely, well-known brands that regularly invest in branding have an easier time establishing new products on the market. You have a leap of faith with customers standing in front of the (digital) shelf. This leap of trust is not simply given because a brand is well-known, but has been worked hard. Brands such as NIKE have built up their brand core over the years and backed it up with corresponding claims (“Just do it.”), the world-famous Swoosh logo and testimonials (e.g. Michael Jordan or Cristiano Ronaldo). Through clever brand development, a simple sports manufacturer has become a brand that shapes an entire lifestyle and accompanies its products for generations. The trust gained and media presence also increases the recognition value of brands. Let's take the highly competitive beer market as an example. The differences between individual breweries are marginal and two main factors contribute to the purchase decision: price & brand image. This image is created in the consumer's mind. It is the mix of public image, experience, expectations and experiences that is associated with the respective brand. Since the competition on the market is at a fairly similar price level, the brand image is becoming a decisive success factor. Here, for example, the brand “Astra” shows how to transform from an “ugly duckling” to a strong brand with its own character through clever and aggressive communication. And branding also has an enormous impact on your own or potential new employees — it is not for nothing that employer branding has now established itself as a separate marketing discipline. A strong brand conveys a clear image to the outside world. This increases the identification and motivation of employees and at the same time makes the company more interesting for applicants. A nice additional effect that can be further promoted through targeted employer branding measures.
Problem area measurability
Another argument that you often hear in the discussion between branding and performance is that the effects of branding measures cannot be measured at all. An argument that arose at a time when it was really difficult to evaluate the success of TV campaigns or sponsorships. However, technological developments have made the argument a myth. Many effects of TV campaigns can now be measured in the right setup, and surveys on brand recognition are also much easier to implement than just a few years ago. New trends such as CTV or DOOH will also come onto the market with many options for (comprehensive) measurability, thus ensuring a stronger integration of branding and performance. Better control options also contribute to a smooth transition between the two approaches.
It doesn't work without it - but it's better together
Sustainable brand development and thus corporate success without investments in branding measures is virtually impossible. Nevertheless, pure brand marketing is not a panacea for corporate success. The best strategy is useless if it doesn't reach the desired target group. Just as optimal target group reach only results in little output if the strategy does not convey what it should. For most companies, a holistic approach, in which branding and performance measures go hand in hand, is the right tool of choice to utilize their full potential and grow sustainably. It is particularly important that there is a uniform strategy that includes both approaches. This paves the way for successful corporate development.
