Digital Lab

Every small business needs a solid marketing strategy, but not all approaches are the same. Two of the most common types (brand marketing and performance marketing) serve different purposes but can be even more effective when used together.

Understanding their differences will completely change the way you approach business.

What is Brand Marketing?

Brand marketing is about building recognition and trust. The goal is to make your business memorable and appealing, so customers choose you over competitors when they’re ready to buy.

How It Works:

Brand marketing focuses on long-term growth. It tells the story of your business and connects with your audience on an emotional level. For instance, a neighborhood bakery might share content about how they use family recipes or local ingredients to stand out.

Examples of Brand Marketing Campaigns:

• Nike’s “Just Do It” Campaign: Rather than showcasing specific products, this campaign created a motivational brand identity. Over time, this focus helped Nike grow from $877 million in revenue in 1988 to over $115 billion today.
• Local Example: A small coffee shop runs an Instagram campaign highlighting sustainable sourcing, including interviews with farmers and behind-the-scenes videos of the roasting process.

Why It’s Important:

Brand marketing is key for long-term success. While it’s harder to measure directly, its impact shows up in customer loyalty and word-of-mouth referrals.

What is Performance Marketing?

Performance marketing is all about measurable results. It’s designed to prompt specific actions, such as making a purchase or signing up for a service.

How It Works:

Performance marketing typically involves digital advertising, where you pay for specific outcomes like clicks or sales. For example, a plumber might run Google Ads targeting people searching for “leak repair near me.”

Examples of Performance Marketing Campaigns:

• Facebook Retargeting Ads: A clothing brand targets users who visited their website but didn’t buy anything, offering a 20% discount to encourage a purchase. Studies show that retargeted ads can increase conversion rates by up to 70%.
• Local Example: A pizza shop uses Instagram ads to promote a “Buy One, Get One Free” offer, driving immediate foot traffic.

Why It’s Important:

This approach delivers short-term results and can quickly generate leads and sales. It’s particularly useful for meeting urgent revenue goals or introducing new products.

Brand Marketing vs. Performance Marketing

While on the surface level, performance marketing may seem like the better choice (immediate ROI = better…right?)

However, the most powerful and memorable marketing is brand marketing.

In fact, I’d wager that every marketing campaign you can recall was a brand campaign.

That’s because brand marketing reaches more people and the entire purpose is to be memorable rather than generating short-term revenue.

Performance Marketing is immediate, brand marketing is forever.

Key Impact Metrics:

How to Use Both Together

Rather than choosing between these approaches, the best strategy is to combine them. Brand marketing lays the foundation by building trust, while performance marketing turns that trust into action.

This is what creates the ideal customer journey.

A Practical Example:

Start with Brand Marketing: A yoga studio posts videos about mindfulness and the benefits of yoga to build an audience.

Add Performance Marketing: They then run ads offering a free trial class, driving sign-ups from people already familiar with their message.

By working together, these strategies create a seamless customer journey—from awareness to conversion.

Marketing Opportunities for 2025

1. Video Content for Brand Marketing: Video is a powerful tool for brand-building. Research shows that 91% of consumers want more online video content from businesses. Even small businesses can leverage this by creating simple behind-the-scenes videos or customer testimonials.
2. AI in Performance Marketing: AI is reshaping how ads are targeted and optimized. Platforms like Google and Facebook now offer tools to predict conversions, refine audience targeting, and automate ad placement. For instance, an e-commerce store could use AI to retarget customers who abandon their carts with personalized offers.

Getting Started

1. Audit Your Current Strategy​ Review how much time and money you’re investing in brand marketing versus performance marketing. ​
2. Experiment with Video ​Start creating short, engaging videos that highlight your business values or expertise. ​
3. Use Retargeting Ads ​If you’re not already retargeting potential customers, this is an easy way to recapture lost sales.

Finding the Right Balance

If you’re unsure of how to budget consider allocating about 60% of your budget to performance marketing for immediate results, and 40% to brand marketing to build long-term recognition. As your business grows, you can adjust these ratios to match your needs.

By combining the strengths of both strategies, you’ll set your business up for short-term wins and long-term success.

Are you building long-term brand value?

Need help building a strategy that supports both short and long-term goals? Hit the button below to talk to a marketing expert who can help you make the best of 2025.