Podcast Summary: The Marketing Architects – Episode "When It's Time to Invest in 'Brand'"

Episode Overview

In this insightful episode of The Marketing Architects, host Alena Jasper, along with co-hosts Angela Voss (CEO) and Rob DeMars (Chief Product Architect), delve deep into the pivotal question: When and why should performance marketers begin to invest in brand marketing? Through a blend of research-backed discussions, real-world case studies, and practical advice, the team explores the signs indicating diminishing returns from performance-heavy strategies and offers strategies to seamlessly integrate and measure brand marketing efforts.

1. Introduction to Brand vs. Performance Marketing

Alena Jasper kicks off the episode by emphasizing the importance of academic research in understanding the dynamics between brand and performance marketing. She references a study from the International Journal of Online Marketing by Anuprit Kuramoka, highlighting that brand equity significantly influences consumer behavior in e-commerce, enhancing customer satisfaction and differentiation in crowded markets.

"Investing in brand shouldn't be a trade-off, it should be a multiplier."
— Alena Jasper [00:31]

2. Identifying Signs of Diminishing Returns in Performance Marketing

Angela Voss outlines the critical indicators that suggest a shift from performance to brand investment may be necessary:

• Stagnant Ad Performance: Slowing growth in ad effectiveness and increasing costs per acquisition.
• Audience Saturation: Ads repeatedly reaching the same audience with declining click-through rates.
• Market Share Issues: Competitors with stronger brands outbidding on key keywords.
• Funnel Drying Up: Decrease in brand searches, direct site visits, and social media chatter.
• Reliance on Discounts: Increased use of discounts to drive sales without genuine growth.

"If three or more of these signs stick around for six months, your performance engine is possibly flattening out."
— Angela Voss [03:07]

3. Challenges in Transitioning to Brand Investment

Rob DeMars discusses the reluctance among performance marketers to invest in brand marketing despite clear indicators. The allure of immediate, measurable results from performance tactics often overshadows the longer-term benefits of brand building.

"Anything that doesn't spike the graft by end of day feels risky."
— Rob DeMars [04:54]

Angela Voss echoes these sentiments, highlighting the diverse definitions of "brand" across departments, which can lead to misaligned strategies and budgets.

"A designer might see a brand as the visible stuff—logo, colors, taglines."
— Angela Voss [06:27]

4. Defining and Aligning on Brand

To overcome confusion, Angela Voss stresses the importance of establishing a shared definition of "brand" within the organization. This alignment ensures that brand and performance marketing efforts complement rather than conflict with each other.

"The fix is to agree first on one shared definition."
— Angela Voss [07:20]

Alena Jasper adds that understanding how brand campaigns enhance performance channels is crucial for integrated marketing strategies.

"Brand does help performance. It's not just like those effects are isolated on their own."
— Alena Jasper [08:20]

5. The Multiplier Effect of Brand Investment

Angela Voss introduces the concept of brand as a "turbocharger" for paid ads, explaining how brand-awareness campaigns can enhance the effectiveness of performance marketing efforts.

"Brand you should think of as a turbocharger of your paid ads because it really warms people up before they meet your call to action."
— Angela Voss [09:24]

This synergy leads to:

• Increased Click-Through Rates: Enhanced brand recognition leads to higher engagement.
• Lower Cost Per Click: Improved quality scores reduce advertising costs.
• Enhanced Organic Traffic: Boosts in direct visits and word-of-mouth referrals.
• Greater Audience for Retargeting: Expands the pool for performance marketing campaigns.

6. Case Studies: Success Stories of Brand Investment

Angela Voss shares a B2B client example where layering TV ads significantly boosted brand awareness and allowed the client to reduce dependency on costly non-branded search terms.

"Brand awareness did shoot up, 10% aided, 36% unaided... They were able to trim overall paid search substantially while still growing revenue."
— Angela Voss [14:56]

Rob DeMars recounts Stuffies, a product launched by Marketing Architects, where a brand-first approach with a memorable jingle led to national TV success and retail partnerships like Target's end cap placement.

"We had to make money along the way, but we had to build a big brand if we were going to make it to that next level."
— Rob DeMars [18:34]

7. Integrating Brand and Performance Budgets

Angela Voss and Alena Jasper discuss the traditional 60:40 brand-to-performance budget split, advocating for flexibility based on specific business contexts. They suggest conducting A/B testing by running incremental brand budgets in select regions to identify the optimal mix that enhances overall marketing effectiveness.

"Think about live AB testing... Let the test run for at least a full purchase cycle."
— Angela Voss [25:30]

8. Measuring Brand Effectiveness

Effective brand measurement goes beyond periodic brand studies. Angela Voss recommends:

• Establishing Baselines: Analyzing current branded vs. non-branded search traffic, direct visits, and organic traffic.
• Monitoring Key Indicators: Using tools like Google Trends, Google Ads metrics, and social media listening to track brand strength.
• Linking to Revenue: Continuously tying brand metrics back to business performance for actionable insights.

"The idea that brand can only be measured by a brand study that you run every six months or year is a false thought."
— Angela Voss [27:38]

9. Interactive Segment: Brand Investment Guessing Game

To wrap up, the hosts engage in a fun guessing game, highlighting various brands that successfully leveraged brand investments to transform their market presence. Examples include:

• Dollar Shave Club: Gained attention through a viral funny video.
• Nike: Became a household name by sponsoring Olympic athletes pre-fame.
• Liquid Death: Went viral with ads comparing their product to death metal and office scenarios.
• Oatly: Invested in a podcast series about modern travel.

These examples underscore that bold brand investments can significantly alter a company's trajectory, often leading to long-term growth and market dominance.

10. Final Thoughts

The episode concludes with Alena Jasper and Angela Voss reinforcing the importance of a balanced approach to marketing. By intelligently blending brand and performance strategies, marketers can achieve both immediate results and sustainable growth.

"Brand is a turbo. You guys know what turbos are?"
— Angela Voss [33:26]

Key Takeaways

• Brand Investment as a Multiplier: Instead of viewing brand and performance marketing as trade-offs, recognize how brand investment can amplify performance marketing results.
• Indicators for Shift: Recognize signs of diminishing returns in performance marketing to timely invest in brand strategies.
• Unified Brand Definition: Establish a common understanding of "brand" across all departments to ensure cohesive strategies.
• Flexible Budget Allocation: Use A/B testing to determine the optimal brand-to-performance budget mix tailored to your business needs.
• Continuous Brand Measurement: Implement ongoing metrics to assess brand strength and its impact on business performance, moving beyond periodic studies.

By navigating the intricate balance between brand and performance marketing, this episode equips marketers with the knowledge and tools to make informed decisions that drive both immediate and long-term success.