Eric Siu argues that large companies rely too heavily on performance marketing and neglect branding. Once performance channels hit their ceiling, companies like Coca-Cola and Nike invest in brand building through Super Bowl ads and other high-reach campaigns to keep growing.
Biggest marketing mistake large companies have been making over the last few years. Here's the thing, I thought early in the days when I was learning marketing that it was all about performance marketing, brand doesn't matter anymore. But what you actually learn is that once you start to cap out, 'cause every channel you can cap out, there's only so much reach or impressions you can get, right? You start to cap out and if you still have more to spend, then that's when you start to consider branding at the base level, right? Like these brands aren't stupid. Coca-Cola's not stupid, Nike's not stupid. And so why does Gary Vee like to say that the Super Bowl ad is still the best spend? Because you can still get in front of people. For $8 million, you can get in front of 120 million people. People. Still good spend. That's all branding spend.
