MARTECHCUBE
May 21, 2025
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CMOs must balance short-term wins with long-term brand health—don’t fall into the diminishing returns trap of performance marketing.
In the 1960s and 70s, when they wanted to sell a soft drink or a sedan, companies leaned on mass-media channels like TV, radio, print ads and billboards, mounting relatively one-size-fits-all campaigns with very limited segmentation and personalization. Everyone was basically watching the same ad, so a brand had to commit to one big, overarching story that defined the brand’s whole vibe. In the 2000s, the advent of the internet, social media and data analytics helped to reach specific demographics with tailored content, to track consumer behavior, and to adjust strategies in real time for better efficiency and engagement.
Yet, in today’s far more complex marketing landscape, companies are navigating tightening returns, cookie-less measurement challenges and a fragmented marketplace. These pressures have driven boards and investors to prioritize quick wins and rapid profits, often leading to an over-reliance on performance-based channels. While this approach can deliver a head-rush of short-term gains, an inevitable hangover looms: namely, escalating costs, declining efficiencies and diminishing returns from subdividing into narrow segments diluting your brand equity influence.