Man, this is just hard to fathom.

How can businesses, especially ones of the scale evaluated in this study, screw this up so badly? Didn’t they read The Long and Short Of It by Peter Field and Les Benet back in business school? Don’t they read the data? The decades of data?

This obsession with short-term performance marketing is eroding brand equity and, thereby, enterprise value. The allure of immediate ROI appears to be blinding the C-suite to how long-term value and sustainability are created– it happens through relationships, not clicks. Focusing solely on performance tactics is no way to build long-term sustainable revenue or shareholder value. They’re gonna learn the hard way.

Performance marketing can certainly convert existing demand but does nothing to create it. It is a great way to empty your funnel. It’s a low-hanging fruit strategy. Consider the evidence: According to Binet and Field's seminal research, brands that balance long-term brand building with short-term activation achieve 10-20% higher ROI than those focused purely on performance. The reasons why, to most, are blatantly obvious. Strong brands command premium prices, attract better talent, enjoy lower customer acquisition costs, and significantly greater loyalty and advocacy. Among a shit ton of other benefits.

When everyone competes with the same performance marketing tactics, effectiveness erodes rapidly, retargeting dies off, CPCs increase, and the race to the bottom begins. Meanwhile, brands that have invested in building authentic, emotional relationships can withstand market dynamic shifts and competitive pressure while maintaining margins.

Brand building, through creative storytelling and emotional resonance, bypasses these barriers by creating voluntary attention and organic advocacy. Brand love is a good thing.

The right answer is found in balance. The companies that balance performance tactics with building long-term connections and emotional relationships will be the ones left standing.

Hey, all you leaders out there! Your brand is an APPRECIATING ASSET. 

Treat it like one.