Brand vs Performance Marketing: How to Split Your Budget for Long-Term Growth
Short answer
Performance marketing drives immediate, measurable sales from people ready to buy, while brand marketing builds memory and preference among people who will buy later. Research by Les Binet and Peter Field for the IPA suggested many brands do best investing roughly 60% in brand and 40% in activation over the long term, though the right split varies by category, stage and budget. Small or new businesses usually lean more towards performance at first, then increase brand investment as they grow.
Key takeaways
- ✓Performance captures existing demand; brand creates future demand.
- ✓Brands that only do performance often see rising costs over time.
- ✓Binet and Field's widely cited benchmark is around 60:40 brand to activation.
- ✓Start performance-heavy, then add brand as you grow.
Why do you need both?
Only a small share of your market is ready to buy at any moment. Performance ads compete for that group, often at rising prices. Brand marketing builds familiarity with everyone else, so when they are ready, they already know and trust you, which makes performance ads cheaper and more effective.
How does the split change with growth?
| Stage | Typical emphasis |
|---|---|
| New business | Mostly performance, with a strong brand identity in every ad |
| Growing | Add brand content, creators and community |
| Established | Closer to a balanced long-term split |
How do you measure brand marketing?
- Branded search volume over time
- Direct website traffic
- Share of voice in your category
- Brand recall surveys
- Falling cost per sale as awareness grows
Related reading: brand positioning for small businesses and marketing budget for small businesses in the UAE.
Frequently asked questions
What is the ideal brand to performance split?+
Binet and Field's research suggested around 60:40 for many established brands, but the right split depends on your category, stage and goals.
Should a startup spend on brand marketing?+
Usually a smaller share at first, but every ad should still build a clear, consistent brand.
How long does brand marketing take to show results?+
Brand effects build over months and years, which is why short-term reports can undervalue them.
Sources
- Binet, L., and Field, P. (2013). The Long and the Short of It. IPA.
Team Husbar
Husbar Editorial
Team Husbar is the strategy, psychology and research team at Husbar, a psychology-led growth agency headquartered in Dubai. Together we have worked with 100+ brands over 10+ years.
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