If you don’t choose the right method, no matter how much advertising money you spend, it will be wasted!

If you want to sell your product well, you have to find ways to establish relationships with consumers, and this requires various forms of advertising. It can be said that one of the important weapons in the competition between enterprises is advertising and marketing .

Generally speaking, advertising product forms can be mainly divided into performance advertising and brand advertising.

So, what is the difference between these two forms of advertising, and what are their respective advantages and disadvantages?

1. Immediately effective advertising

It is becoming more and more popular

Performance advertising is advertising that aims at achieving advertising results. Typical performance advertising includes e-commerce advertising, search advertising, and information flow advertising. Pricing is based on commissions collected based on transactions or sales leads generated, and advertising can produce quantifiable results.

The biggest advantage of performance advertising is that it produces immediate results. Advertisers only need to pay for measurable results. The amount of money spent on mobile advertising, the number of clicks, the number of conversions, the number of readings and comments, etc. can all be monitored and displayed with data.

The picture comes from the official website

Faced with the question of many advertisers, "I know that half of my advertising budget is wasted, but I don't know which half is wasted," performance advertising can give a clear answer. For every penny spent on performance advertising, you can clearly see which ones have brought in users and which ones have been wasted.

Performance advertising is indeed more intuitive, but after all, it is easy to learn how to be short, flat and fast. A fast and effective method will naturally attract many powerful big brands. Nowadays, the easier it is to see results from performance advertising, the more intense the competition for bidding is, which ultimately leads to higher advertising costs. When performance advertising is no longer "cost-effective", it is finally necessary to consider other marketing methods.

In the short term, performance advertising can directly bring in visible new traffic, but this traffic is often attracted by some short-term benefits in the advertisement and can easily be lured away by other similar temptations. The amount of traffic that can remain is actually limited, and it is difficult to form brand awareness. During the Hundred Regiments Campaign, various food delivery platforms advertised and offered discounts, and users rushed back and forth between several platforms. In the end, although the major platforms had traffic, there were few winners.

In recent years, with the development of the Internet, performance advertising has become widely popular. However, while performance advertising can achieve promotion and conversion in one step, it also fails to leave any impression on people.

2. Brand advertising that captures consumers’ minds

It's a protracted war

In contrast to performance advertising, brand advertising focuses on establishing a product brand image, with the direct purpose of increasing the brand's market share, and more prominently communicating the brand's position in the minds of consumers. Whether it is video, picture or text, brand advertising always highlights the selling points of the product and conveys the product's tone to users.

The most important point about brand advertising is its durability. Brands like Wanglaoji, Nongfu Spring, and Coca-Cola have been repeating the same selling point over and over again for decades, thus occupying the minds of users over time.

The picture comes from the official website

Once brand advertising occupies the minds of users, its effectiveness is a hundred times stronger than performance advertising. It can be more deeply rooted in people’s hearts and is also something that a brand must do for its long-term development. Just like when we think of refrigerators today, Haier and Midea come to mind; when we think of milk, Mengniu, Yili, etc. come to mind. These are brands that often place brand advertisements in the market.

However, brand advertising also has its own limitations. Brand promotion takes a long time to take effect and requires time to settle. If the brand invests too much in this area, it will affect the company's cash flow. For an enterprise, survival is the first rule. Only when the company operates normally can it have the possibility of development and growth.

If performance advertising makes you feel that "this thing is cheap", then brand advertising will make you feel that "this thing is valuable".

3. Do “brand advertising” or “performance advertising”?

In fact, many times, companies are faced with the question of whether to do "brand advertising" or "performance advertising."

In the short term, performance advertising can directly bring in visible new traffic, but this traffic is often attracted by some short-term benefits in the advertisement and can easily be lured away by other similar temptations. The amount of traffic that can remain is actually limited, and it is difficult to form brand awareness.

In the long run, the impact of a successful brand advertisement is far greater than that of performance advertising. The reason is that users who come through brand advertising basically have a strong awareness of the product, and it is easy for them to form high stickiness and loyalty, and they can easily be converted into high-quality users of the platform.

Therefore, it is unfair to simply compare the effects of the two, and the dimension of time must be considered. It is difficult for a company that only promotes performance advertising or only promotes brand advertising to grow big. The best way is to promote them in a mixed way. Use brand advertising to first occupy the minds of a certain category, and then use performance advertising to accelerate the increase in the number of consumers.

For example, Luckin Coffee’s previous print ads in elevators would place a QR code in the corner and indicate that one could scan the code to receive a free cup of coffee. In fact, this is equivalent to using offline advertising to no longer limit advertising to exposure, but also to guide followers to become users.

The picture comes from the official website

In future marketing, brand advertising and performance advertising will continue to merge and penetrate each other. Advertising is sales, and fans are also core consumers.

Obviously, for brands, advertising is now more calm and systematic than the previous stage of competing for channels and volume. Each effect and brand has its own advantages. It requires exploration and testing to decide when to promote which one. Each brand is different, and each stage of brand development is also different. What is suitable for others may not be suitable for you.

Author: Lao Luo

Source: Brand Marketing News ( PPYX007 )