For years, marketers have been hooked on performance marketing—pouring budgets into activation tactics like paid search, lead gen, and retargeting.
The promise?
Quick wins, instant ROI, and a never-ending stream of leads.
But here’s the truth: That gold rush is over.
The Problem with Over-Reliance on Activation
Performance marketing only works if there’s a demand to capture. You can only convert people who are already in the market and willing to buy from you. That’s a limited pool. If your entire budget is going into activation, you’ll hit a wall fast.
Worse yet, too much activation clogs up your sales pipeline with unqualified leads wastes your team’s time, and ultimately eats into profits. Chasing clicks isn’t the same as building a business.
Shift to Brand Investment for Sustainable Growth
If you want to break out of this cycle, the key is investing in the brand. A strong brand expands the percentage of people willing to buy from you—before they’re even in-market. That means you’re already top of mind when they do need a solution. No need for aggressive retargeting or endless cold outreach.
Without brand investment, performance marketing is just expensive noise. With a solid brand, every marketing dollar stretches further. Prospects trust you before they click, conversion rates go up, and your sales team works smarter, not harder.
A Simple Formula for Growth
Here’s how to think about it:
AP = ICP * % IM * % WBFU
Where:
- AP = Available Prospects
- ICP = Ideal Customer Profile
- % IM = Percentage In-Market (rule of thumb: ~5%)
- % WBFU = Percentage Willing to Buy From You (Brand Strength)
Your total addressable market isn’t just about who could buy—it’s about who wants to buy from you.
Increase the % WBFU, and everything else gets easier.
From Demand Capture to Demand Creation
Activation is about capturing demand.
But if you want to grow, you need to create demand.
That happens when you build a brand people trust, remember, and talk about.
That means:
- Investing in creativity and storytelling
- Building community and word-of-mouth
- Delivering experiences people want to share
These are the things that make brands last. Not just another ad, but a real connection with your audience.
Final Thought: Play the Long Game
If your entire strategy is built on chasing conversions, you’re running on a treadmill.
It’s time to step off and start playing a smarter game.
Performance marketing isn’t dead—but its dominance is done. The brands that win now are the ones who invest in relationships, not just transactions.