Why Brand Marketing Matters: Five Takeaways from “The Multiplier Effect”

1.It’s Not Brand + Performance, It’s Brand x Performance

The longstanding division between brand building and performance marketing is not only outdated, it’s counterproductive. The report demonstrates that integrating both functions produces superior results. Organizations that moved from a performance-only strategy to an integrated approach saw a median revenue ROI increase of 90%. Conversely, those who shifted away from integration suffered a 40% ROI decline. The message: Brand fuels performance and vice versa.

2. The Funnel Still Exists,but It’s Evolved

The marketing funnel hasn’t disappeared, but the ways in which consumers move through it have changed. Today, most potential buyers are out-of-market at any given time. This means brand advertising must build memory and emotional resonance long before a purchase decision is made. Performance tactics can then guide ready buyers to act. The two roles, brand for reach and memory, performance for conversion, must work together to guide modern purchase behavior.

3. Siloed TeamsCan’t Win

One of the biggest threats to marketing ROI is organizational structure. Dividing brand and performance into separate teams, budgets, and KPIs leads to misalignment and inefficiencies. The report cautions against this siloed approach, citing examples like Hyundai and Nike, which have experienced setbacks after segmenting their marketing efforts. Instead, integration at the team level fosters cohesive messaging and more accurate measurement.

As Ian Borden, global chief financial officer at McDonald's, said in the report, “When marketers think like business leaders and finance teams understand the power of brand-building, you unlock real impact and deep understanding from the C-suite."

4.Integration is a Multiplier

Case studies in the report show how integrated campaigns outperform those focused solely on short-term gains. A notable example from Instacart revealed that when brand and performance teams collaborated, cost per acquisition dropped by 20% and ad recall increased significantly. Their campaign, “Football Game, Grocery Store,” had a clear conclusion: Emotional storytelling combined with direct calls to action can drive both upper and lower funnel metrics.

5.Equity = Pricing Power

The report urges marketers to allocate a minimum of 30%, and ideally 40–60%, of their budgets to brand-led advertising. Strong brand equity not only enhances advertising efficiency across the funnel but also confers pricing power. In today’s economy, that’s a compelling reason to protect brand budgets. Companies that “go dark” on brand marketing suffer long-term setbacks that are difficult and costly to reverse.

As brands navigate economic uncertainty, “The Multiplier Effect” offers well-defined guidance: sustainable growth comes from consistent brand and performance efforts, rather than prioritizing one over the other. For CMOs, this means championing integration, proving impact with the right metrics, and advocating for investment in long-term brand value.

Posted at MediaVillage through the Thought Leadership self-publishing platform.

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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.