The Debate for Brand vs. Performance Advertising

Like anything to do with the internet, the digital marketing industry is rapidly changing and evolving. The advent of different platforms, mobile phones, the different thing you can do online, and ever-increasing global access to the internet has made marketing online a big part of any business’s advertising budget. Performance advertising is seen as one such evolution of the ad industry. It is often compared and contrasted to its predecessor, brand advertising. Here we’d like to look at some of their differences.

Brand advertising can be seen as the predecessor to modern digital marketing models. It is the old, Mad Men-style model where the advertiser’s goal is to help a business create a connection with a brand over time. This connection creates brand loyalty and the strength of the brand is what drives sales and continued consumer loyalty over time. It is the strategy of the big companies like Coca-Cola and Apple. It is a truly tried and true method of advertising in the old world of big ad agencies.

Brand advertising has one big flaw,  it is a method that makes it difficult to track and measure results. There’s no way to do it in real time and it can be hard to measure in the short term if an ad is really making a connection with a user until sales are made and little-by-little changes can be seen. The majority of ads that users will see in traditional media, like tv, magazines and newspaper are brand advertising.

Performance-based advertising, which came along with the digital world of internet, online content consumption and mobile solves the problem of real-time results. Performance based advertising is a form of advertising where the retailer pays the advertiser only when the consumer performs a specific action. When a user clicks on an ad, makes a purchase or signs up for a mailing list. Performance advertising is data-driven, results can be tracked immediately and because of tis typically offer a better return on investment than brand advertising and allow a business or advertiser to make changes in order to improve the businesses’ success.

Publishers may prefer to run brand based advertisements because they get paid immediately when the ad is displayed, whereas they may need to display many performance ads before getting a response and payment. Users many times do not like to see too many performance ads, but when it comes down to it, it all depends on the marketing strategy and specific goals of a business.

Leave a Reply

Your email address will not be published. Required fields are marked *