This article explores how brand building and performance marketing work best when combined, creating compound growth. While many businesses over-rely on promotions, research shows that balancing long-term brand investment with short-term performance delivers stronger growth, higher margins, and greater efficiency. Case studies from Lightforce Solar, Blind Low Vision NZ, and Bendon demonstrate how bold creative platforms can both build fame and drive measurable results. The article outlines principles for challengers: think long and short, make every execution interesting, benchmark beyond competitors, and embrace boldness. By aligning brand and performance, challengers can escape the trap of constant discounting and build businesses that thrive long-term.
This is the ninth article in our Challenger Marketing series you can find article eight here, Be Bold: Why Challenger Brands Win with Brave Ideas
When it comes to marketing, one of the biggest myths is the idea that you must choose between building your brand or driving performance. The reality is clear: brand and performance aren’t opposites - they’re teammates. When they work together, they deliver compound growth.
For challenger brands, getting this balance right is critical. Promotions and performance tactics might deliver short-term spikes, but without brand building you’ll never escape the treadmill of discounting. Likewise, brand fame without the mechanics of performance means attention won’t convert into revenue. To grow sustainably and profitably, challengers need both.
Research consistently shows that brands investing 10 - 20% of revenue into marketing see stronger growth, margins, and market share. Higher marketing investment generally correlates with higher returns, but where you put that spend matters.
When combined, the effect compounds. Brand campaigns prime the market, making performance spend more efficient. Performance campaigns keep the brand front of mind, showing customers you’re active and relevant.
“Businesses get hooked on the drug of promotion. They fear that if they turn it off, the world will fall. The reality is, it won’t. The world won’t fall – but your long-term growth will stall if you don’t build your brand.”
Unfortunately, in New Zealand many businesses are still addicted to promotions. Daily deals, discounts, and tactical campaigns feel safe, because you can see the instant return. But that short-term comfort comes at a cost: eroding margins, fatigued audiences, and the inability to build sustainable equity.
Getting the brand/performance balance right is not about risk. The real risk is staying hooked on short-term sales. For challengers, brand building is your way out of that cycle. The way out of a promotionally dominant spend is to reallocate existing spend to brand. Move from 90:10 Promo : Brand to 60 : 40 as a first step. Benchmarked best practice is 40% Promo, 60% Brand. But take it one step at a time. The key is moving enough allocation to make a difference.
Here are the principles to guide the way:
Lightforce approached YoungShand to drive better media performance – and sales improved by 15%. But performance alone wasn’t enough. The brand needed fame.
The solution was The Future is Obvious: a brand platform built around the obvious benefits of solar power, fronted by All Black brothers Beauden, Scott, and Jordie Barrett, and their dad, Kevin. The campaign highlighted power resilience, cost savings, and renewable energy in a way that was simple, logical, and distinctly Kiwi.
“Sales increased by 100% – without any extra media spend”
We also switched the media spend from 100% promotionally focused, to 50/50 brand/performance. Media placements were also prioritised to high-visibility outdoor, video, radio, and social, with Beauden’s star power leading the charge. The results? Sales increased by 100%. The lesson: combine brand fame with performance mechanics, and you amplify both.
In a crowded charity sector, Blind Low Vision NZ struggled to stand out. Traditional charity appeals were getting lost among 28,000 other charity organisations competing for the donation dollar in New Zealand.
The solution wasn’t another awareness ad, it was a product. Doggy Doonations turned the humble dog poop bag into a revenue stream and a brand statement. The product solved a real customer need, raised funds for guide dogs, and made people smile.
This wasn’t just a gimmick. It built brand distinctiveness, created a talking point, and delivered tangible sales. A perfect example of brand and performance working hand in hand.
Bendon’s bold Bra Better platform is a good example of how driving brand fame also delivers measurable performance. By reframing bras around real women’s real lives, the campaign reignited relevance, re-energised internal culture, and boosted sales.
It showed how bold brand work doesn’t just build awareness – it drives purchase intent and performance too. This was explored in detail in article eight.
From solar panels to charity donations to lingerie, the lesson is the same: brand and performance fuel each other. Here’s how to apply it in your own marketing:
From principle to practice: one lesson in particular, building a modern media mix, deserves a deeper dive. Many brands underestimate how fragmented audiences have become and how important it is to show up consistently across multiple touchpoints. Here’s how challengers can put this into practice.
To cut through today’s fragmented landscape, challengers need to be present in more places, with more purpose. Yesterday two or three channels might have been enough. Today, it often takes four to six to get the reach and impact you need. A modern media mix works across three dimensions:
1. Breadth: Maximise Reach, Build ResilienceThe Challenger’s Payoff
Strong brands don’t just drive awareness – they drive margin. They make customers less price-sensitive, more loyal, and more likely to recommend you.
For challengers, brand building is not a luxury. It’s the multiplier that makes your performance spend work harder. And performance marketing isn’t the enemy of brand, it’s the engine that keeps momentum alive. Together, they create compound growth.
The challenge is simple: will you keep chasing discounts and deals, or will you balance bold brand work with sharp performance to build a business that thrives long-term?
In the end long-term success comes down to combining bold creative with a strong performance approach that builds brands and drives growth.