Lately, there’s been a noticeable shift in how marketing teams are approaching their work. In the post-COVID era, many companies increased their marketing budgets to keep up with a surge in demand. However, a significant portion of this spending was funneled into short-term performance marketing rather than long-term branding efforts. Now, as we face higher interest rates, global uncertainties, and shifting consumer behaviors that are becoming more permanent, these companies are feeling the impact of not having invested enough in brand-building. With tighter budgets today, the focus has shifted heavily towards efficiency rather than growth. While being efficient is always important, this shift comes with potential downsides that we need to keep in mind.
The Hidden Cost of Skipping Branding
It makes sense to focus on quick wins and lower-funnel activities that bring in immediate revenue, especially when budgets are tight. But here’s the catch: underinvesting in branding can have long-term consequences. Branding isn’t just about getting your name out there; it’s about creating a lasting impression, building relationships, and standing out from the crowd. Without steady investment in this area, growth can start to stall, and the momentum can slow down.
Are We Measuring the Right Things?
A big challenge we face is in how we measure success. Many web analytics tools and advertising platforms often tend to favor activities at the lower end of the funnel—those that directly lead to conversions. This can paint a misleading picture of what’s really driving growth and lead to less-than-ideal budget decisions.
While lower-funnel tactics like retargeting and paid search are important, they often capture demand that would’ve happened anyway. The result? It looks like growth on paper, but in reality, we might just be picking the low-hanging fruit.
Getting Marketing and Finance on the Same Page
It’s not uncommon for this push towards efficiency to come from the CFO’s office. With a focus on short-term gains, financial leaders often drive these decisions. However, this approach highlights the need for closer collaboration between the CMO and CFO.
For any business to grow in a sustainable way, there needs to be a balance between cutting costs and investing in growth. It’s about getting everyone on the same page about what really adds value and helps the company move forward. Good communication and a strong partnership between marketing and finance can make all the difference.
Lessons Learned from Both Sides: Agency and Client Perspectives
Working across both the agency side and the client side has shown that an overemphasis on lower-funnel metrics can be detrimental. It’s crucial to implement balanced strategies that integrate branding and performance marketing, ensuring that companies avoid the trap of short-term thinking.
When leveraging data-driven insights and fostering effective stakeholder management, brands can move towards more sustainable, long-term growth strategies. The positive impact of striking the right balance between brand-building and performance marketing becomes evident when using holistic measurement. A comprehensive view of marketing activities—one that accounts for both upper and lower funnel impacts—allows companies to more accurately assess their efforts and achieve a stronger, more consistent growth trajectory.
How AI is Changing the Game, Even with Fewer Cookies
We’re also in a time where AI is transforming how we think about marketing. Technologies like Generative AI (GenAI) are opening up new ways for agencies and brands to get more from their media spend and media stack and to measure the impact of their marketing more accurately, even as cookies start to disappear.
AI tools are helping us move towards better multi-touch attribution, more insightful marketing mix modeling, and even more advanced predictive analytics. With GenAI, for example, it’s possible to create personalized content on a massive scale, optimize campaigns in real-time, and dig deeper into the data we already have. These advancements make it easier to ensure that every dollar spent is doing double duty—driving short-term results and building long-term brand value.
The beauty of AI is that it allows us to see the whole customer journey more clearly, even when we don’t have the same level of tracking we once did. It’s about moving beyond just cookies and understanding the real impact of our marketing efforts across all touchpoints.
An Opportunity to Stand Out
All these changes mean there’s a real chance for brands to set themselves apart. Finding that balance between building a brand and focusing on conversions isn’t just a nice-to-have; it’s a must-have. It’s about making sure that every investment you make is working hard for you in both the short and long term.
Taking a thoughtful approach to how we measure success and where we invest can help us not just survive but thrive. It’s all about making smarter choices that lead to sustained growth, even in a challenging market.
A Thought to Leave You With
The main point is this: Don’t let the pressure for quick wins overshadow the need for long-term brand health. Finding the right balance where efficiency and growth work together is not easy—it requires careful planning, patience, and a willingness to look beyond immediate results. It also means having the right conversations and managing stakeholders effectively to align on a shared vision for both short-term and long-term success.
This is challenging work, and it doesn’t happen overnight. But with thoughtful strategy and strong collaboration, it’s possible to create marketing efforts that are not only efficient but also set the foundation for sustainable growth. As we continue to navigate this ever-changing landscape, let’s remain committed to strategies that drive meaningful, lasting impact. After all, that’s what great marketing is all about.
If you’re interested in sparring on these ideas or need more insights on how to navigate these challenges, feel free to reach out. I’m always open to a good conversation on how we can push our marketing efforts further.
Leave a Reply