Senior marketers are enthused by the opportunities offered by performance marketing but have underlined the need to "feed the funnel" with brand-awareness work.
These are among the issues explored by the latest in-depth Campaign report, Why Brands are Tuning in to the Power of Performance Marketing.
Mark Evans, managing director of marketing and digital at Direct Line Group, said: "Performance marketing supports the legitimacy of the marketing function in the eyes of the other senior leaders within the business and therefore alleviates the risk that marketing is perceived merely as a ‘colouring-in’ function.
"That’s because it allows you to demonstrate urgency, innovation, responsiveness and, very specifically, a short-term impact."
The beauty of performance marketing is that it creates a much more level playing field between brands big and small, according to Alistair Mills, founder of Swim Now.
He explained: "The more we measure, and the more data we gather, the more leverage we have over our competition. Performance marketing allows us to do this without the substantial upfront costs associated with traditional marketing methods."
But marketers agreed that a balance had to be found between performance and brand-building activities.
Former BT head of performance marketing Caroline Mulvihill, who is now a consultant, said she had seen "too much spend diverted to performance channels".
"It’s like Jenga – you can’t just take something out without it all falling down. You have to feed the funnel at the top and create that brand awareness for the converting channels," she added.