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Are you Over-Investing in Performance Marketing?
Published 11 days ago • 2 min read
Brand Vs Performance
Watch or Listen | My 2 Cents Podcast Episode #4
Brand Marketing Insights | James Hurman [Advertising Effectiveness Expert]
In this episode, our guest is James Hurman, one of the world’s leading voices on marketing effectiveness. A NZ entrepreneur, investor and author, he’s built and backed brand-led startups, advised global giants and helped rewrite the rules of what makes marketing actually work. Our conversation didn't disappoint. Spoiler alert: if you're like the majority of the marketers who responded to our Brand Vs Performance survey, you might like to re-think your strategy : )
Q: We asked marketers how much budget they allocated to Performance and brand in the last 12 months.
Our survey shows Aussie marketers are broadly in line with global peers — with most leaning heavily toward performance, with around 60–80% of spend focused on short-term activity, while only a small group report a balanced or brand-led approach.
As our podcast guest James Hurman explains, while a bias toward performance may feel sensible, it can quietly limit long-term growth. Decades of evidence show the most effective marketers invest slightly more in brand than performance, using each to play a different role over time.
“Think of marketing like an investment portfolio,” James said. “Performance delivers short-term liquidity, but brand is the equity that compounds your future returns.”
The takeaway? It’s not about choosing one over the other — it’s about balancing today’s results with tomorrow’s growth.
Q: We asked about the single biggest challenge in building long-term brand and short term performance ?
Marketers told us their biggest barriers are short-term pressure, tight budgets and difficulty proving brand ROI. Many said brand spend is the first to be questioned or cut when results aren’t immediate.
Many marketers also find themselves using performance spend as a safety net — as a reliable way to replace the reach once delivered by SEO and content marketing (channels that are heavily impacted by AI).
James sees this as a universal tension. Performance campaigns show quick wins, so they feel safer, but they can also create a cycle of short-termism that limits future demand.
“Brand investment isn’t risky — it’s proven to return three to six times what you put in,” he said. “The real risk is not investing at all.”
His advice: treat brand building like R&D — an investment in future demand, not a cost to be managed down.
Standing Still Isn't An Option
If most of your spend still leans toward performance, it might be time to start rebalancing. Even a small shift toward brand can make a big difference over time.
It’s also worth lifting your view beyond the quarter. The brands that grow are the ones that stay consistent — building recognition and trust long before someone’s ready to buy.
AI isn't going away. It’s already changed how people search and make choices. In the world of algorithms, strong brands will be the ones the machines remember.
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