Are CMOs Prioritizing Short-Term Wins Over Long-Term Brand Building?

0
8

In today’s marketing landscape, classic campaigns that created memorable brand identities are becoming increasingly rare. Iconic slogans like “Hamara Bajaj” from Bajaj Auto, Cadbury’s “Kya swaad hai zindagi mein,” and Airtel’s tune by A.R. Rahman have demonstrated the power of long-term brand building. However, as Chief Marketing Officers (CMOs) are increasingly pushed to deliver quick results, some industry leaders are warning that this shift to short-term strategies could compromise brand loyalty and erode long-term value.

With financial pressures intensifying, CMOs now face a critical choice: achieve quick, measurable outcomes or prioritize building enduring brand identity. Experts argue that a relentless focus on instant returns could have lasting consequences on brands and customer loyalty.

Shift from Long-Term Brand Building to Immediate Results

Today’s marketing environment is more fast-paced and results-oriented than ever, and CMOs are feeling the pressure to keep up. Marit Nagpal, CEO of Tata Play, reflects on a noticeable shift in marketing strategy over the years. “A brand that is built in a hurry, with weak bonds to customers, risks being dislodged just as quickly by someone offering a better deal,” he explained. Nagpal, who previously served as marketing director at Vodafone, recalls a time when brands invested deeply in building emotional connections with consumers. Campaigns like “Har ghar kuch kehta hai” by Asian Paints struck a chord with audiences because they prioritized connection over short-term reach.

In the past, brands adhered to the AIDA model—Attention, Interest, Desire, Action—nurturing consumer loyalty through gradual engagement. Campaigns were considered long-term investments, not projects to generate immediate returns. “Early in my career, I was never asked to provide instant bottom-line impact for a campaign, let alone quarterly results,” Nagpal shared. The push from “Tell, Tell, Tell” to “Sell” has led to campaigns focused exclusively on metrics, often at the expense of building a strong, memorable brand identity.

Financial Pressure and the Focus on Short-Term Metrics

The shift toward immediate results is partly driven by the influence of financial investors who prioritize fast outcomes over sustained growth. Unlike strategic investors who understand the value of brand building, financial investors push for quick returns. According to Nagpal, this pressure has trimmed the AIDA model down to “Action,” bypassing the storytelling that once forged strong customer loyalty.

Sandeep Goyal, chairman of advertising agency Rediffusion, emphasizes that CMOs today often have limited freedom to pursue long-term brand building due to financial constraints. “CEOs are bound by quarterly performance demands, which shape both company and brand agendas,” Goyal explained. This constant push for quick results leaves little room for the slow cultivation of brand identity. He compares brand building to a “nine-month gestation period,” where rushing compromises depth and distinctiveness.

Evolving Role of the CMO

As companies become more results-driven, the role of CMOs has evolved from being brand stewards to performance-focused executives. Sreeraman Thiagarajan, co-founder of Agrahyah Technologies, notes that CMOs, once the voice of the customer, are now largely growth-driven. “CMOs today are constantly chasing consumers across platforms, often through influencer marketing or AI-driven initiatives,” he said. However, in the drive to stay current, some brands may adopt trends that don’t align with their core values, diluting their message and weakening customer connections.

Brand equity, a valuable asset built over years, is increasingly sacrificed in today’s marketing cycles. When campaigns focus more on instant sales than on storytelling, they risk undermining the emotional connection that fosters loyalty. Nagpal points to this risk, noting that today’s campaigns, while generating high click-through rates, often lack the enduring appeal of taglines like “Hamara Bajaj.” This scarcity of lasting slogans underscores the current trend of prioritizing short-term sales over brand building.

Balancing Immediate Gains with Brand Equity

The shift toward quick results has created a challenge for CMOs: how to achieve short-term wins without sacrificing long-term brand health. Some brands are adopting hybrid approaches that combine calls to action with storytelling to create campaigns with lasting impact. “Nailing the balance is essential,” says a CMO from a two-year-old startup. “While many focus solely on brand building or immediate results, we’re committed to both. Performance marketing drives quick wins, but brand equity is our foundation, and that’s non-negotiable.”

Sidharth Shakdher, CMO and business head at Paytm, explains that the emphasis on short-term wins reflects the environments in which many CMOs operate. “Organizations today are often racing for valuations, where fast growth and ‘winner-takes-all’ narratives dominate,” he said. Additionally, executive compensation is often tied to short-term financial goals, reinforcing the focus on quarterly metrics over long-term brand health. Shakdher noted that many CMOs prioritize short-term wins as their outcomes are now more closely linked to immediate business results than before.

Can CMOs Reclaim Their Role in Brand Building?

Despite the pressure to deliver quick wins, some CMOs are rethinking their approach to balance immediate goals with long-term brand equity. Brands that successfully balance both often rely on hybrid strategies that blend data-driven insights with traditional storytelling. For example, an automotive company might launch a performance-driven campaign to boost sales while simultaneously running an ad that emphasizes brand values like safety and tradition.

Brands committed to balancing immediate and long-term goals are beginning to see the value in focusing on trust, authenticity, and connection over fleeting metrics. Creating a memorable brand, Goyal believes, requires patience and time—qualities that are in short supply today. However, CMOs who prioritize brand equity find that the rewards—loyalty, resilience, and strong consumer affinity—outweigh the fleeting benefits of short-term gains.

The Future of Marketing: Quick Wins or Lasting Brand Value?

With financial pressures intensifying, the emphasis in marketing often skews toward immediate returns. However, the debate over short-term wins and long-term brand building raises important questions about the sustainability of current practices. Today’s CMOs face a pivotal choice: prioritize short-term victories or focus on building a brand that resonates with consumers for years to come.

Ultimately, balancing quick results with long-term brand equity may prove to be the winning strategy. For CMOs willing to invest in both, the enduring benefits of strong brand identity—loyalty, resilience, and lasting appeal—suggest that a balanced approach could serve brands best. In the words of a CMO from a prominent tech company, “Performance marketing is essential, but in the end, brand equity is the bedrock on which we build lasting relationships with our customers.”

As the marketing landscape evolves, the question remains: can CMOs navigate the pressure for quick wins without compromising the enduring value of their brands? For those willing to resist the pull of instant metrics, the path forward may lie in blending the best of both worlds, crafting campaigns that drive immediate results while strengthening brand identity for the long haul.

Disclaimer: The thoughts and opinions stated in this article are solely those of the author and do not necessarily reflect the views or positions of any entities represented and we recommend referring to more recent and reliable sources for up-to-date information.