Should you invest in building your brand or focus on performance? For years, performance marketing seemed like the obvious answer, but as 2026 arrives, the calculus appears to be changing.Learn more at https://www.thelolaagency.com/post/brand-is-back-why-2026-marks-the-rebirth-of-long-term-brand-building
For the better part of a decade, performance marketing has dominated boardroom conversations, and the reason was simple: you could see exactly what you were getting. Every click, conversion, and customer acquisition had a number attached to it, which made CFOs happy and dashboards light up green.
Suddenly, the long game of brand building started to feel like an indulgence companies couldn’t afford. Brand campaigns, with their fuzzy metrics and delayed returns, were pushed aside as companies became enamored with data they could track and optimize in real time.
The difference between these two approaches comes down to time and intent.
Performance campaigns are built for immediate action: click here, buy now, sign up today. They’re the digital equivalent of a salesperson asking for the close, so success is measured in conversions, cost per acquisition, and return on ad spend, all tracked in real time.
Brand campaigns work on a completely different timeline. They’re about building recognition and trust over months or years, telling stories, and establishing values rather than asking for a sale right away. The payoff isn’t instant, and it’s considerably harder to track on a spreadsheet, which is precisely why brand campaigns fell out of favor when marketing budgets tightened.
Here are the scenarios that merit brand building:
Entering a crowded market where differentiation matters more than price. When ten companies offer similar products at similar price points, the one people remember and connect with emotionally is the one that wins.
Focusing on customer lifetime value rather than one-time transactions. If you need people to come back month after month or year after year, investing in brand equity pays dividends over time.
Launching something new or repositioning an existing product. Performance campaigns can drive traffic to your site, but if no one knows who you are or what you stand for, that traffic won’t convert at the rates needed to justify the spend.
And now, here are the situations that call for performance marketing:
Clear conversion goals and urgent results. If you need 500 sign-ups by the end of the quarter or want to move inventory before the season ends, performance campaigns provide a direct path, with metrics that are clean and ROI that’s easy to justify to stakeholders.
Testing new markets or products without committing major resources. You can launch a campaign, measure responses in real time, and pivot quickly based on what the data tells you, without betting the farm on a massive brand push that might not resonate.
An already established and trusted brand. If people know your name and understand your value proposition, you don’t need to convince them of anything fundamental; you just need to remind them to buy or give them a reason to act now.
There is, however, a massive anticipated shift in 2026 worth noting: CMOs across Europe are putting branding back at the top of their priority lists. After years of chasing short-term wins and optimizing ad spend down to the penny, executives are realizing that sustainable growth requires more than efficient conversion funnels.
The market has become saturated with messages, and consumers are overwhelmed with choices. In that chaos, brand becomes the anchor people hold onto when everything else feels uncertain.
Performance marketing isn’t going anywhere—it’s too useful and measurable to disappear—but the companies that win in the next few years will be those that remember how to build something lasting, beyond the next quarterly report.
If you want to know more, click the link in the description.
London : Los Angeles (LO:LA) City: El Segundo Address: 840 Apollo Street Website: https://www.thelolaagency.com