Old Navy struggled with declining summer sales despite heavy investment in discounted promotional ads, signaling that price-based performance marketing alone cannot sustain growth. The brand shifted strategy to a 60/40 budget split (60% brand-building, 40% performance marketing), emphasizing flagship products, cultural storytelling, and mental availability over daily promotions. Thai SME marketers should learn that discounts attract temporary buyers but brands build loyal customers—over-reliance on ROAS metrics and promotional fatigue erode brand equity and increase ad costs over time.