Branding strategies resurging as performance marketing costs rise

Marketing strategies are shifting back toward branding as the era of prioritizing short-term performance metrics reaches a limit. For years, digital channels encouraged a focus on immediate ROI, with some major brands investing up to 90% of their media budgets into pure performance levers.

However, this approach has led to rising costs, with the price of performance-oriented media increasing significantly over the last decade. The average cost of acquiring a new customer has tripled, reaching approximately $29. To combat declining profitability and high acquisition costs, companies are reconsidering “top of funnel” strategies.

Modern advertising now offers more measurable branding tools, such as Connected TV (CTV), Digital Out-of-Home (DOOH), and online video, allowing brands to rebuild long-term desirability and brand equity while maintaining better tracking than traditional media.