Consumer marketing is going through a profound transformation in 2024. Marketers are shifting back from an over-reliance on performance marketing and investing in brand marketing to help their brands standout in the market. The Business of Fashion is heralding this year as “The Year of the Brand”. 2024 will be a year of marketing creativity and innovation.  

Why is the market shifting?

In the past few years, we’ve seen an explosion of new consumer brands entering the market. Stimulus-fueled entrepreneurship, growing consumer demand, and simple ecommerce through tools like Shopify, led to an overwhelming number of options for consumers.  

Consumer behavior is starting to shift now in a post-COVID era too; with consumers being more discerning around the brands that they buy from and the products that they buy.  

The changing market and consumer behavior is resulting in brands being forced to identify ways to engage with their core consumers and differentiate themselves from other brands (outside of price).  

The importance of brand marketing

Enter brand marketing. A brand’s ability to resonate with its audience, tell a compelling story, and to embody values that align with those of its consumers is now a critical determinant of success.  

In a survey by Salsify, 46% of consumers said they would pay more to purchase from brands that they can trust. The survey signals the value of brand marketing and building brand trust with consumers.  

We also see the impact of brand marketing on acquisition channels. As customer acquisition costs continue to increase and budgets become tighter in performance marketing, marketers are forced to find ways to increase the effectiveness of their marketing.  

Harvard Business Review shared thoughts on “How Brand Building and Performance Marketing Can Work Together”. In the article, the authors identified that a 4% increase in brand equity could lead to a 1.0% increase in additional revenue growth with a 1.3x ROI. As brands are looking for new channels - brand marketing shouldn’t be left out of the marketing mix.  

HBR source

Lastly, brand marketing improves customer loyalty and word of mouth. Customers are more likely to talk about the brand and share the brand story if it’s one they resonate with.  

Why is brand loyalty so important? In a study completed by Acquia, they found that 59% of American consumers said that once they had loyalty to a brand, they kept loyalty for life.  

What should you do to build your brand?

The first thing you need to do is get started. Brand building is not a quick endeavor and it requires thoughtfulness, strategic vision, and persistence. Start by creating an effective foundation from which you can build.  

You need to be able to define the following for your brand: What do you stand for? What are your core values? What is your vision and mission? Who is your tribe? Who is not your tribe? How do you appear in the market (color, design, tone, and personality).  

Get the basics right and really understand what the brand is, but don’t get too attached to it. Once you’ve written it all done, engage with your consumers and validate your thinking and what your audience actually believes it to be.

Once you have a clear understanding of your brand and where you need to go; start building it. You won’t build the brand through advertising, instead focus on living your brand both internally and externally.  

The most important thing to remember is that it’s not performance marketing versus brand marketing. The reality is that brand marketing and performance marketing need to work together to lift the business overall.  

TL;DR

Consumer marketing is experiencing a transformation in 2024; shifting away from an over-reliance on performance marketing to a renewed focus on brand marketing.  

Brand marketing's role is becoming crucial, as trust and resonance with consumers' values significantly impact success. Studies show brand marketing not only justifies higher consumer spending but also enhances customer acquisition efficiency and loyalty.  

Marketers now have to focus on building a strong brand foundation, engaging their audience to validate their brand expectations, and activate programs that build the brand. All the while, ensuring a balance between brand and performance marketing for overall business growth.