In 2020, Airbnb slashed digital ad spending in a permanent shift to brand spend and still generated 95% of the same online traffic as a year earlier. But can businesses afford to ditch one for the other? It’s difficult to create true differentiation today, but even in online-only industries you still need brand marketing to make performance marketing effective. Awareness, perception and advocacy make customer acquisition campaigns work more effectively, delivering customers for less money and ultimately increasing return on investment. As a result, consistency has become key to driving brand recall and conversion.
Smart marketers are running more controlled experiment and learn initiatives to prove what portion of performance spend truly drives incremental business outcomes versus the spend that is wasted. Data is the glue that bonds brand development and performance enhancement at a granular level across every marketing touchpoint. Put simply, the more astute you become with data, the more effective your marketing becomes.