Marketing industry shifts to dual approach as brand strategies flourish – report
By Felicia Nwosu
The marketing industry is undergoing a significant transformation, shifting towards a dual-path economy where the effectiveness of performance marketing is diminishing, while brand initiatives are on the rise. Insights from the Data & Marketing Association (DMA) reveal this emerging trend, as outlined in their Value of Creativity Report 2024.
This comprehensive report emphasizes the advantages of prioritizing brand development over short-term performance tactics. By analyzing data from the DMA’s effectiveness databank, which includes 1,508 award-entered campaigns, the report introduces four distinct effectiveness metrics: response effects, linked to performance marketing campaigns; brand effects, associated with efforts aimed at brand building; business effects, reflecting financial performance; and campaign delivery effects, focused on the reach and execution of marketing campaigns.
A notable finding in the report is the alarming decline in the effectiveness of performance advertising, which has halved since 2020. This significant drop underscores the urgent need for marketers to rethink their strategies, emphasizing the importance of fostering long-term brand engagement and creativity.
As the industry navigates this evolving landscape, embracing a holistic approach that balances both brand and performance marketing will be crucial for sustained success. By aligning their efforts with the growing emphasis on brand initiatives, marketers can not only enhance their effectiveness but also drive meaningful connections with consumers in an increasingly competitive environment.
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