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Growth efficiency:
Marketing’s existential metric

Some have questioned the continued relevance of effectiveness principles in an e-commerce-led ecosystem dominated by digital marketplaces. Two years ago, we urged the industry to reframe its thinking and to view brand-building as ‘future demand’, when new customers become aware of a brand and add it to their consideration set. Yet the last 12 months have been tough for advocates of brand-building. Faced with rampant inflation and a cost-of-living crisis, many marketers have pivoted towards performance.

In response, WARC partnered with brand tracking company Tracksuit and Perpetua, a sibling company, for an unprecedented study into the role of brand in helping performance marketing to work harder. The results reinforce what we and others have been saying for some time, namely that brand awareness drives greater effectiveness in performance marketing. Smart marketers should understand and monitor their brand’s ‘growth efficiency’, a new metric proposed in this report.

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