The Long-Term Impact of Short-Termism: Why Brand Still Matters More Than Ever
Featuring all the data you need to get that brand budget.
As marketers in the 21st Century we live in a paradox. On one hand, we know instinctively - and through years of professional experience - that brands are not built overnight. They require time, strategic consistency, and long-term vision. On the other hand, we face daily pressures to deliver performance metrics that justify our every move. Clicks. Conversions. ROAS. These metrics offer short-term validation, but if pursued at the expense of long-term brand investment, they come at a steep cost.
This tension between short-term performance and long-term brand equity is not new, but our data makes it clearer than ever: while short-term tactics may boost business by 34%, upper-funnel brand-building has nearly double the long-term business impact at 65%. So why do we keep under-investing in the thing that matters most? Let's get in to it.
Performance vs. Brand: A False Dichotomy
One of the most damaging assumptions in marketing today is that brand and performance sit on opposite ends of a budget tug-of-war. This thinking isn’t just wrong, it’s actively holding brands back. The truth is, brand and performance are not enemies. In fact, brand investment amplifies performance outcomes.
Consider this: company A increased their brand spend by 72% year-on-year. That investment delivered a 76% rise in incremental profit from brand activity, solid, steady growth that scaled with spend.
But here’s where it gets interesting. That same brand investment had a multiplier effect on performance. Performance spend only increased by 35%, but profit from those lower-funnel channels jumped by 48%.
In other words, brand isn't a drag on performance. It’s rocket fuel.
The Cost of Cutting Brand
What happens when the pendulum swings too far in the other direction; when brand budgets get slashed in favor of performance-only tactics? The data is equally conclusive, and the consequences are severe.
A 61% reduction in brand’s share of the budget mix resulted in a 22% drop in performance ROI. And because brand’s ROI had actually increased by 35% during that time, the overall 16% decline in total marketing ROI could have been even worse.
This isn’t just a theoretical warning. Real-world examples show that going “dark” on brand advertising for as little as nine months can lead to significant erosion in brand equity. That includes loss of attribute ownership, weakening of associations, and declines in key metrics like resonance and relevance. Worse still, once a brand goes off-air, it takes twice as long to rebuild what’s been lost.
Why Time Really Is of the Essence
Short-term results are important but they shouldn’t be mistaken for long-term growth. Our research shows that two-thirds of advertising’s impact occurs after the week it airs. This delayed effect means that short-term measurement windows can dramatically understate the true value of media investments, particularly for upper-funnel brand channels like TV, online video (OLV), and out-of-home (OOH).
Moreover, it takes time for advertising to reach its peak effectiveness. Most campaigns don’t achieve full impact until between 15 and 20 weeks into their run. For seasonal businesses, this insight is critical: the best results come when campaigns start early, air at high intensity during peak season, and maintain continuity with sustained media presence.
Digital: Not a Silver Bullet
Digital media has revolutionised how we target, track, and tweak marketing activity. But as the research reminds us, digital doesn’t work in a vacuum. While digital excels in short-term performance, it must be complemented by brand-building tactics to unlock its full long-term potential.
Indeed, video channels - especially TV and online video - consistently deliver the highest long-term ROI. When benchmarked against TV, channels like paid search and digital display often fall short in sustaining long-term brand equity. This doesn’t mean these channels are ineffective. It just means they’re most powerful when part of a balanced media mix.
The Long Game Is the Smart Game
The central takeaway from this body of evidence is clear: investing in brand isn’t just good for awareness - it’s good for business. Whether measured in profit margins, ROI growth, or resilience during downturns, brand-building activities deliver returns that compound over time.
Brands that maintain consistent visibility, even during tough economic cycles, recover faster and grow stronger. Those that chase only short-term gains may see immediate spikes but are left vulnerable to long-term decay.
If the short-term is the sprint, the brand is the marathon. And smart marketers know: you don’t win marathons by sprinting the first mile and collapsing at the water station.
Balancing the Funnel
So what should marketers do in practice?
Budget for Both: Allocate resources across the funnel, but ensure upper-funnel brand-building has a protected share.
Resist Short-Term Overcorrections: Performance dips shouldn’t trigger brand budget cuts. Doing so often worsens performance, not improves it.
Use Time-Adjusted Measurement: Account for delayed impact in your ROI models. Short-term metrics rarely tell the whole story.
Lean into Video and Storytelling: Especially for long-term ROI, moving images (TV, OLV, social video) outperform static media.
Plan for Continuity: Gaps in visibility erode hard-earned equity. Strive for always-on presence, even at lower intensities between campaigns.
Brand building isn’t a luxury - it’s a necessity. And it’s not at odds with performance marketing; it’s the foundation upon which performance thrives. In today’s results-driven environment, it’s tempting to chase only what’s instantly measurable. But the brands that win tomorrow are the ones making smart, sustained investments today.
So let’s stop treating brand and performance as trade-offs. Let’s treat them as what they are: teammates. Because when they work together, everything works better.
The CMO Office posts go out weekly but for a more frequent dose of data and expertise follow us on LinkedIn and/or TikTok too.