Why Brand Marketing Unlocks Growth?

Why Performance Marketing Alone Will Keep You Small (And Why Brand is Your Only Path Up)

For years, marketers have preached a familiar narrative: Performance marketing can drive growth, but without brand marketing as a foundation, you’ll eventually stall out.

Yet, if that’s true, why do we see so many examples of companies growing profitably without ever investing in brand marketing? Why are there FMCG brands that have existed for decades, never run a single brand ad, and still manage to survive and even thrive?

This tension exposes a critical question:
If brand marketing is so essential, why do performance-only strategies work for so many companies—at least for a while?

The answer lies in understanding the two-tiered market and why brand is what ultimately determines your ceiling for growth.

The Inconvenient Reality: Performance Marketing Works… But Only to a Point

Dale W. Harrison’s recent piece, The Unreasonable Effectiveness of Performance Marketing, challenges the simplistic “brand is everything” narrative.

He points out:

• In FMCG, 65%–80% of brands have never run brand ads.
• Most survive purely on shelf placement (the B2C equivalent of performance marketing).
• And yet, they’re still profitable and well-known enough to persist.

But here’s the catch:
These brands almost never cross 5%–10% market share, lack pricing power, and operate with thinner margins.

In other words: performance marketing alone works—to grow small businesses into decent-sized ones. But it doesn’t create market leaders.

The Data: Why Brand Marketing Unlocks Growth

The same pattern holds true in B2B, where research from Gartner, BCG, and 6Sense reveals:

• 80–85% of buyers start with a pre-set list of 2–3 brands (their “day-one consideration set”).
• 90% of purchases come from that initial set.
• Only ~25% of buyers are influenced after entering the buying process—where performance marketing can still capture them.

This means:

• Performance marketing taps into only 25% of the market, and even then, win rates are just 15–20%.
• That caps potential market share for performance-only companies at ~3–5%.

Brand marketing is what gets you into the day-one consideration set—and therefore, what unlocks the other 75% of the market.

The Two-Tiered Market: Why Brand Creates Upward Mobility

Think of the market as two tiers:

1. Tier One: The Consideration Set
   • These are the brands people already know and trust.
   • They dominate most purchase decisions (75%+ of deals).
2. Tier Two: The Challenger Slice
   • This is where smaller or emerging brands compete, largely through precision-targeted performance marketing.
   • It’s enough to reach a plateau of sustainable success—but rarely market leadership.

If you stay in tier two, you’ll always be fighting over the same sliver of late-stage buyers, in a crowded space, where win rates are low and margins thin.

Brand marketing is what moves you up a tier—by building mental availability, reach, and trust before buyers even enter the funnel.

Why Brand Marketing Feels “Optional” (Until It Isn’t)

It’s easy to see why businesses defer brand marketing:

• Performance marketing gives instant feedback loops (clicks, conversions, ROAS).
• Brand building is long-term, harder to measure, and less tied to immediate sales.
• Early on, there’s enough market share available in tier two that performance-only feels “good enough.”

But over time, you hit the ceiling:

• CAC rises as you saturate the same small pool of in-market buyers.
• Competitors with stronger brand presence take the lion’s share of deals (and pricing power).
• Growth slows—not because your product is worse, but because you’re invisible to most buyers when it matters.

The Role of Brand: Memory, Recall, and Scale

Brand marketing isn’t about clicks or conversions. It’s about creating memory traces that pay off later when buyers enter the market.

• It prioritizes reach over precision.
• It’s designed to facilitate recall, not immediate action.
• It puts your name in the buyer’s head months (or years) before the buying window opens.

And because most purchases are won before the buying process even begins, this is the only way to access the majority of your market.

What This Means for Growth-Minded Businesses

Here’s the blunt truth:

• You can build a profitable, stable business with performance marketing alone.
• But you will remain small.
• To cross that ceiling—to win market share, pricing power, and category leadership—you must invest in brand.

Brand isn’t a luxury you pursue once you’re big.
It’s what determines whether you ever get big in the first place.

Final Word: Why This Isn’t Binary

This isn’t about pitting brand against performance. Both matter. But they serve different roles:

• Performance marketing captures demand now.
• Brand marketing creates demand later.

The most successful companies understand this duality:
They leverage performance to fuel early traction but transition into brand to scale beyond the plateau.

In short: performance gets you started. Brand gets you to the top.

The Blurring Lines Between SEO and Brand Marketing

The lines between SEO and brand marketing are dissolving, and it’s changing how we think about visibility, authority, and growth.

What used to be two distinct playbooks—one focused on rankings, the other on perception—is now merging into a single, unified approach.

• SEO is no longer just about ranking on Google.
• Brand marketing is no longer just aesthetics and storytelling.

In the era of LLM-driven search and AI-powered context gathering, the question has shifted from:
👉 “How do we rank?”
to
👉 “How do we show up everywhere answers are being pulled from?”

Why Traditional SEO Alone is No Longer Enough

AI models don’t just scrape indexed pages anymore—they pull from blogs, social posts, podcasts, interviews, videos, newsletters, and even Reddit threads.

Your visibility isn’t tied to a single platform; it’s shaped by the breadth and consistency of your presence across the web.

The brands that are winning in this environment understand that:

• Every brand asset is part of your SEO footprint. Your thought leadership, social commentary, and even off-site mentions influence how AI perceives your authority.
• Consistency is a credibility signal. AI (and humans) recognize coherent, aligned narratives across multiple surfaces as a marker of trustworthiness.
• Authority is distributed. It’s no longer just about Google backlinks; it’s about being cited, referenced, and contextually relevant across diverse sources.

From Keywords to Context: The New SEO-Brand Hybrid

Traditional SEO—keywords, on-page optimization, backlinks—still matters. But it’s incomplete without brand thinking layered on top.

Why?
Because AI-driven discovery doesn’t just reward optimized pages; it rewards recognizable, trusted brands.

• A well-optimized page might rank in Google.
• A well-positioned brand shows up in AI-generated answers, social threads, curated newsletters, and industry conversations—places where buyers increasingly make decisions.

This isn’t SEO versus brand. It’s SEO powered by brand.

The New Mandate for Marketers

To win in this environment, brands must go beyond search engines and build a footprint that LLMs can’t ignore. That means:

1. Publishing narrative-driven content that travels across multiple channels.
2. Owning your story everywhere—LinkedIn, podcasts, interviews, niche communities.
3. Creating consistency in language and positioning so AI can connect the dots and reinforce authority.
4. Measuring beyond traffic. Visibility now spans brand mentions, contextual references, and presence in AI-generated results.

The Bottom Line

SEO isn’t dead. It’s just evolving.

Ranking on Google will always matter—but it’s no longer the whole game. Your brand’s visibility now depends on how well you merge traditional SEO discipline with brand-driven narrative building.

If your brand isn’t being referenced, cited, and contextually linked across multiple surfaces, you’re not just losing search traffic—you’re vanishing from the places where the next generation of buyers are finding answers.

This is the future: SEO and brand are no longer parallel tracks. They are the same track.

Why Incremental Marketing Won’t Get You to Category-Defining Growth

Incrementally increasing marketing spend based on proven ROI feels safe. It feels logical. Spend a dollar, get a dollar back, then spend more.

But here’s the uncomfortable truth: this approach almost never produces game-changing growth. It misunderstands how marketing actually works at scale.

The Trap of “Prove It First” Marketing

Many companies adopt the mindset: “Let’s prove out marketing first before we invest heavily.”

On the surface, it’s prudent. In practice, it almost always leads to a narrow focus on short-term performance marketing—ads, campaigns, and tactics designed to deliver immediate, trackable ROI.

And yes, precision-driven performance marketing works… at first. It shows quick returns, gives confidence to leadership, and feels controllable. But it comes with a built-in ceiling.

The Plateau: Why Performance Alone Fails

Performance marketing works linearly and predictably—until it doesn’t.

Here’s why: it only reaches the small portion of your market that is actively in-market today. Those people respond to well-timed ads because they’re already looking to buy.

Who are they?

• Inexperienced buyers
• Highly price-sensitive shoppers
• High risk-tolerance buyers
• Or just those coincidentally shopping at the right time

Once you’ve exhausted this group, growth slows. Your ROI plateaus. And doubling down on the same approach just squeezes the same small pool harder.

The Bigger Market: Brand-Driven Buyers

The vast majority of buyers don’t respond to precision performance marketing. They buy from brands they already know, trust, and mentally “see” as leaders.

Their decisions are shaped long before they enter the market. This is where mental availability—the memory structures and familiarity that make your brand the default choice—becomes everything.

To reach this larger market, you need broad-reach, brand-driven marketing. That means:

• Building awareness far ahead of buying cycles
• Prioritizing reach over precision
• Creating familiarity and preference that lingers

This is not about quick wins. It’s about setting up future buying behavior at scale.

Why Brand Marketing Breaks the ROI Model

Here’s the catch: broad-reach brand building fails the “dollar in, dollar out” test. It won’t show immediate ROI because its impact is distributed over time.

As more of the audience you’ve reached eventually enters the market, revenue follows. But if you hold brand marketing to the same short-term ROI metrics as performance campaigns, you’ll kill it before it works.

Performance Gets You Healthy. Brand Gets You Big.

Performance marketing is a powerful tool—but it’s only a starting point. It gets you to a healthy size.

Brand marketing is what takes you further. It’s the disruptive lever that expands your market, shifts perception, and builds the kind of mental availability that competitors can’t easily match.

To unlock this, you must:

• Accept delayed attribution
• Commit to broad-reach campaigns
• Measure success differently (share of voice, brand recall, future pipeline)

Because incremental spending tied to short-term ROI simply won’t compound into category-defining growth.

The Leap Requires Intentionality

If you want to move from incremental growth to market-shaping impact, you need intentional brand-building.

This isn’t about abandoning performance marketing—it’s about balancing it with the reach and memory creation required to win the bigger market.

Companies that make this leap stop thinking in “prove it first” terms. They commit to scale. They understand that brand creates demand, and performance harvests it.

In other words:

• Use performance marketing to win now.
• Use brand marketing to win tomorrow.

The difference between the two is the difference between being healthy—and being dominant.