The Multiplier Effect: Brand vs. Performance marketing - why scaleups can't afford to choose one over the other

Many scaleups fall into the same trap: chasing quick wins through performance marketing while leaving brand-building for “later.”

The logic can feel sound and I can see why people do it - performance marketing is measurable - you can see the click-through rate, the cost per acquisition, the return on ad spend. Brand-building, by contrast, often feels vague or intangible, can seem risky and longer-term. So, it tends to be "something to think about once revenue is stable".

But new research from WARC shows the opposite is true. Over-investing in performance marketing can reduce ROI by 20–50%. By contrast, businesses that balance brand-building with performance can see ROI increase by up to 90%. For scaleup CEOs and founders under pressure from boards and investors, this insight is critical: growth is not about choosing brand or performance. It’s about understanding how the two work together as one system.

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The false divide between brand and performance

At OSER, we see this play out again and again with scaleups:

• Investors want to see proof in the numbers: CAC, LTV, pipeline velocity.
• Marketing teams chase channel-specific KPIs: CTRs, ROAS, impressions.

The CEO is caught between the pressure to deliver short-term results and the need to build a long-term growth story. The problem isn’t choosing the wrong side, it’s treating brand and performance as separate forces. In reality, they’re interdependent.

Brand creates trust, familiarity and demand. Performance converts that demand into pipeline, sales and revenue. Remove one, and the other loses power.

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What the Data Shows

WARC’s Multiplier Effect report highlights just how much brand and performance amplify each other:

• Performance-only strategies: diminishing returns and short-lived gains.
• Balanced strategies (brand + performance): compounding ROI growth, with an average uplift of +90%.

This balance matters even more in the scaleup phase. Performance alone might drive early traction, but brand equity is what sustains growth, reduces customer acquisition costs, and increases valuation multiples when investors come knocking.

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Why This Matters for Scaleups

Scaleups that focus solely on performance risk three major problems:

1. Rising costs. Without brand-driven awareness, paid acquisition gets more expensive over time.
2. Investor scepticism. Growth hacks may deliver numbers today, but investors want to see sustainable demand and defensible equity.
3. Team misalignment. Marketing and sales chase their own KPIs, while leadership struggles to connect them to commercial outcomes.

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On the other hand, scaleups that integrate brand and performance gain three big advantages:

1. Efficiency. Awareness lowers acquisition costs and increases conversion rates.
2. Resilience. A strong brand creates insulation against market shocks and competitor moves.
3. Valuation. Investors reward companies that demonstrate long-term demand, not just short-term wins.

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Three Steps for Founders and CEOs

Here’s how to start rebalancing your growth engine:

1. Audit your spend ratio. If 80–90% of your budget goes to performance, reallocate 10–20% into brand storytelling. The sweet spot is often 60/40 or 70/30 (brand/performance).
2. Set “both/and” KPIs. Track awareness, consideration, and preference alongside CAC, LTV and revenue. This ensures brand-building and performance both serve the same growth objectives.
3. Unify your narrative. Your ads, your sales decks, and your investor updates should all reinforce the same story. Brand and performance are not two separate conversations - they’re one growth narrative told in different contexts.

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The fastest-growing scaleups don’t see brand and performance as a trade-off. They see them as two gears in the same engine.

When you rebalance your approach, you not only improve ROI: you build the trust, efficiency, and investor confidence needed for the next stage of growth.

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OSER helps scaleups simplify the noise, align strategy with investor metrics, and build creative growth systems that work.

Book a Discovery Call to explore how to align your brand + performance strategy for sustainable growth.