Striking the balance

Let’s talk about why brand matters more than ever today, how Canadian brand values are driving loyalty, examples from Nike and Patagonia, and more.

There’s an ongoing challenge in the world of marketing — balancing short-term sales with building long-term brand equity. This isn’t something new, but it’s come to the forefront in my circles a lot lately.

The reality has been that organizations and businesses that over-index on immediate conversions risk losing trust, while those investing in brand alone may struggle to prove ROI in the short term.

With higher ad costs and shifting consumer behaviour with the economy and “trade war”, this tension is even more pronounced.

The Super Bowl saw a big return on brand-led campaigns this year — showing that even the biggest companies recognize the need to invest in long-term equity. At the same time, performance marketing stays strong given its ability to closely track immediate results and adjust in real time.

So, how do we find the right balance?

This week I participated in a small roundtable discussion hosted by the Canadian Marketing Association at their new headquarters called Striking The Balance: Reimagining Brand Building and Performance Marketing.

While there, I appreciated the perspectives of marketers from various industries — from telecom to B2B, associations and consumer brands. We all had different perspectives, but there was a lot in common. We explored how organizations are approaching the balance between brand-building and performance marketing.

The shift toward performance-driven decisions

One observation made during the session was how finance teams are increasingly calling the shots in marketing. This shift has led to a short-term focus, where the pressure is on immediate ROI rather than long-term brand equity.

However I was recently reviewing an RFP for a nonprofit, and instead of just pushing for driving donations directly as the goal, they wanted to focus on storytelling and showcasing impact. It’s rare but refreshing that the request would come from them proactively.

This is the step in the right direction in terms of investing in long-term strategies to build real trust. But the reality is that many organizations still default to direct-response campaigns — ads that just ask people to donate immediately — rather than investing in content that nurtures engagement over time.

Why brand matters more than ever

Consumers are growing skeptical of purely performance-driven marketing. As I pointed out in the discussion, if you look at the comments on some DTC Instagram ads, you’ll see people questioning why a brand they’ve never heard of is suddenly in their feed pushing an offer. People want to trust a brand before they buy.

This is why successful brands invest in content, influencers, and storytelling before jumping into hard sales tactics.

A recent report by Nielsen shared that brand-building contributes to at least 60% of long-term sales growth, yet many companies still allocate the majority of their budgets toward performance marketing. A study by the IPA found that companies optimizing for both brand and activation see nearly double the effectiveness of those focused solely on performance.

It’s not all about conversions. One great example that came up was Patagonia. Unlike most retailers, Patagonia actively discourages overconsumption — look at their “Don’t Buy This Jacket” campaign from a few years ago. That kind of authenticity builds long-term brand loyalty, which in turn drives sales when you do in fact need a jacket. If they had only focused on selling more jackets instead of their mission, they wouldn’t have the same devoted customer base today. (They’ve also done a lot of other things right, staying true to their brand values, which I wrote about here).

Performance marketing without brand-building is like a house without a foundation — eventually, it collapses.

Nike had a wake-up call

Nike recently had a major realization when it comes to brand vs performance. The company overhauled its entire marketing leadership after noticing its brand score had dropped by 23 points. Their response wasn’t to run more sales ads. It was a massive reinvestment in brand advertising. When discussing the company’s latest earnings results, Nike executives said the company is moving more dollars away from performance marketing toward brand building, with sports receiving fresh focus as a North Star.

This includes their first Super Bowl ad in 27 years. (“So Win.” is a bold, inspiring campaign that I just had to share with students in my advertising community and culture classes).

During the roundtable discussion, Dave said that Nike realized they had gone too far into performance marketing and lost what made them an iconic brand, and now they’re course-correcting.

This is a huge lesson. Even the biggest brands can lose their way if they prioritize transactions over long-term brand value. If Nike, with its immense global recognition, felt the impact of underinvesting in brand-building, think about what that means for smaller players.

Embracing the Canadian identity: Brand values are driving loyalty

I can’t not mention the noticeable surge in patriotism here in Canada, following the tariff threats from the U.S. It’s been incredible seeing so many Canadians rallying behind the Buy Canadian movement, choosing to support homegrown businesses instead. You’ve likely seen a handful of Canadian companies who’ve been tapping into this wave of national pride by emphasizing their Canadian roots and (brand) values.

This trend just emphasizes the importance of a brand-first approach that I often speak about, where companies highlight their core values and cultural identity to foster deeper connections with consumers. Authentically showcasing their commitment to Canadian heritage and quality is allowing these brands to not only differentiate themselves in a crowded marketplace but also build lasting loyalty among consumers who share those values. (I filmed a video about this, stay tuned).

So as Canadian consumers prioritize local products, companies that authentically embody and showcase their Canadian identity have been well-positioned to drive sales today, while cultivating lasting customer relationships.

The path forward: integration, not isolation

Back to the discussion from earlier this week. One of the biggest takeaways was the need to rethink how we frame brand vs. performance. Brand Marketing vs Product Marketing is a proposed way to look at it.

Because they both “perform”. Instead of seeing these as competing forces, we should focus on building strategies that integrate both. As a whole, marketing drives performance. It’s not about choosing between brand and performance, it’s aligning them to work together.

For marketers, this means making a stronger case for why brand-building matters, even in industries where transactions dominate.

Whether it’s positioning a food franchise as a premium investment for potential franchisees, using brand storytelling to drive nonprofit donations, or balancing lead generation with thought leadership in B2B, the key is to create a full-funnel strategy that nurtures audiences rather than just selling to them.

What’s next?

This week’s conversation was a reminder that while digital marketing and short-term metrics have changed the game, the fundamentals of brand trust and storytelling still matter. The challenge continues to be reminding decision-makers that investing in brand isn’t a nice-to-have — it’s a necessity for long-term success.

As marketers, we need to reframe the conversation. Instead of justifying brand-building as a standalone effort, we need to show how it supports performance.

You’re already investing in ads — why not make them work harder by building trust?

By making the case that strong brands drive stronger conversions, we can bring balance and ensure that marketing continues to be seen as an investment, not just an expense.

What about you?

Whether you’re in marketing or running an organization or brand, I’d love to know your thoughts and experiences when it comes to this “debate”.

Thanks so much as always for reading until the end, and for subscribing!

Daniel

Speaking of trust, here’s a clip from a recent talk where I shared how long it takes to build trust. You can find more (hopefully valuable) videos on my YouTube here.