When performance marketing reaches the limits of current demand

How does brand marketing improve performance marketing returns?

Brand marketing can improve performance marketing returns by building familiarity and positive associations before buyers enter the market. In this WFA webinar, James Hurman, Founder and Chair of Previously Unavailable, argues that conversion activity produces diminishing returns when advertisers do not also create future demand. The session links brand investment with commercial outcomes, including conversion efficiency, growth and margin.

• A study of US marketers cited in the webinar found that 75% were experiencing diminishing returns on performance marketing spend.
• Research presented by WPP Media and Oxford University found that 84% of purchase journeys ended with the buyer choosing a brand already favoured before entering the market.

What is driving diminishing performance marketing returns?

• Performance activity focuses on people who are ready to buy, while brand activity seeks to build familiarity among the larger group who may buy later.
• Brand familiarity can influence which businesses buyers consider before performance marketing reaches them.

What does this mean for marketing leaders?

• Advertisers that focus only on existing demand may find that additional conversion spending produces progressively weaker returns.
• Marketing leaders may face greater pressure to show how brand activity contributes to conversion efficiency and wider commercial performance.

What will members learn?

The full webinar covers the relationship between brand and performance marketing, the distinction between current and future demand, and the roles of familiarity, creativity, emotion and reach. Members can also hear the audience discussion about applying these ideas across categories and organisations.

Available to WFA members here.