How Much % Should Be Spent on Branding vs Performance Marketing?

Finding the Right Marketing Mix for Startup Success in Pakistan

Launching a startup is exciting—but also a financial balancing act. One of the most crucial decisions you’ll make early on is how to allocate your marketing budget. Should you invest in branding that builds long-term recognition, or focus on performance marketing that drives immediate results?

In this article, we’ll break down the ideal branding vs performance marketing spend, with specific insight for Pakistani startups, and guide you towards building the right mix for lasting growth and ROI.

Understanding the Two Sides of Marketing

Before we get into numbers, let’s clearly define what branding and performance marketing actually mean.

Branding: The Long-Term Game

Branding is about crafting a memorable image of your business. It includes your logo, tone of voice, visual identity, values, and your positioning in the market. It’s what makes people recognize, trust, and remember your business.

Examples of branding channels:

• Social media content (non-promotional)
• Influencer collaborations (awareness-based)
• PR campaigns
• Logo, design, packaging
• Brand videos and storytelling
• Contents

Performance Marketing: The Immediate Push

Performance marketing is focused on driving measurable actions: sales, sign-ups, downloads, clicks, or leads. It is direct, trackable, and ROI-focused.

Examples of performance marketing channels:

• Google Ads (Search & Display)
• Facebook/Instagram Ads (Conversion campaigns)
• Email marketing (offers)
• Affiliate or influencer campaigns with conversion goals

Why the Right Mix Matters for Pakistani Startups

Pakistan’s startup ecosystem is rapidly growing, with increasing digital adoption, mobile usage, and young entrepreneurs entering the market. But with limited budgets, every rupee must count.

Here’s where the challenge comes in:
Too much focus on performance marketing might get you quick sales, but it won’t build long-term loyalty. On the other hand, investing only in branding might build a great image, but not enough cash flow to survive the early days.

So, what’s the solution? A balanced marketing mix.

The Ideal % Split: Branding vs Performance Marketing

While there is no “one-size-fits-all” answer, global marketing experts and local industry insights suggest the following rule of thumb for startups:

 Recommended Split for Pakistani Startups:

• 60% Performance Marketing
• 40% Branding

Let’s break this down:

60% Performance Marketing (Immediate Growth Focus)

Startups in Pakistan, especially in their first 1–2 years, need to show revenue and growth to survive. Performance marketing gives you:

• Quick feedback on what works
• Direct ROI from every rupee spent
• Opportunities to test offers, landing pages, and audiences

You can measure everything: Cost per click (CPC), cost per lead (CPL), return on ad spend (ROAS), etc.

40% Branding (Building Trust & Recall)

While you’re driving sales, you also need to build your brand for long-term success. Branding helps you:

• Build customer loyalty
• Increase brand recognition
• Reduce cost per acquisition in the long run
• Stand out in a crowded market

If you’re only running sales campaigns without strong branding, your audience may forget you after one purchase.

Stage-Based Strategy for Startups

Here’s a better way to look at the marketing mix: adjust your spending based on your startup’s stage.

This flexible approach allows you to survive the early hustle while preparing for long-term impact.

Tips for Building Your Own Marketing Mix

Here are a few steps to create your own effective mix of branding and performance:

1. Set Clear Goals

What’s your priority right now—sales, app downloads, awareness, or loyalty?

2. Track Everything

Use tools like Google Analytics, Meta Ads Manager, and Hotjar to measure performance campaigns.

3. Reinvest from Results

Use some of the earnings from your successful campaigns to fund branding projects like videos or content series.

4. Think Long-Term

Don’t treat branding as a luxury. It’s a slow burn that will make your performance campaigns cheaper and more effective over time.

5. Work with Experts

Collaborate with agencies like DMT Lahore who understand how to balance both worlds with local insights and global strategies.

Choosing how much to spend on branding vs performance marketing is like balancing today’s hunger with tomorrow’s harvest. For startups in Pakistan, especially with limited resources, this decision can make or break your growth.

With the right mix—adjusted over time—you can drive short-term results and build a brand that thrives in the long run.

Frequently Asked Questions (FAQs)

1. What is the difference between branding and performance marketing?
   Branding is long-term and focused on building awareness and trust, while performance marketing is short-term and aimed at driving measurable actions like sales or sign-ups.
2. How much should a Pakistani startup spend on marketing?
   A general rule is to spend around 10-20% of your revenue on marketing, depending on your growth goals and industry.
3. Can I skip branding in the beginning and only do performance marketing?
   Yes, but it’s not ideal. Performance campaigns without branding can become expensive and less effective over time due to lack of customer loyalty.
4. Is influencer marketing branding or performance?
   It can be both. If you’re paying for awareness, it’s branding. If you’re paying per sale or lead, it’s performance.
5. How can DMT Lahore help my startup with the right marketing mix?
   DMT Lahore offers expert-led digital marketing training and consultancy tailored to the Pakistani market, helping startups create balanced and effective marketing strategies.