Brand vs performance marketing for SMEs: finding the right balance for growth

For ambitious SMEs, the biggest marketing challenge isn’t choosing between brand or performance, it’s finding the balance. Focus too much on short-term performance and your brand risks becoming forgettable. Invest only in brand, and growth can stall before momentum builds.

That balance was the focus of our recent breakfast panel on Brand vs Performance: how can SMEs establish the right marketing mix, co-hosted with Active Partners. Moderated by Amanda Hogeboom, Growth Marketing Manager at OakNorth, the session brought together Anna Creed (fractional CMO and former CMO of The Inkey List and REN Skincare), Anna Brook (CMO at Creature Comforts) and Simon Ellis (Founder of Clockwise) to share how founders and their marketing teams can unlock sustainable growth through clever marketing.

Why brand matters for scaling SMEs

For scaling businesses, brand is what sets you apart in the minds of your customers.

“Brand isn’t about big budgets,” said Anna Creed. “It’s who you are, how your team behaves, and how consistently you show up.” She warned that when customers understand what you sell but not why it matters, you have leaned too far into performance.

Simon Ellis agreed: “We see startups chasing conversions and discounting too often. You can drive quick wins that way, but you erode long-term value.”

The takeaway? Your brand is your business’s credibility. Without it, performance marketing has nothing to build on.

Build strong foundations before optimising performance

Brand building doesn’t have to mean large campaigns. It starts with consistent storytelling and customer experience.

For SMEs with limited budgets, authenticity is the real differentiator. As Anna Creed put it, “It’s the human moments that make your brand memorable.” She cited Octopus Energy as a great example, a company that has made a sector that is usually considered unexciting feel personal and human through empathy and service, not just advertising.

How brand and performance marketing work together

For Anna Brook, testing and learning have been essential to growth at Creature Comforts.

“When we opened our eighth clinic, we allocated more budget upfront to brand awareness, such as out-of-home and local campaigns. It felt bold, but it was our best launch yet,” she said. “Our performance channels became more efficient because people already recognised us.”

The lesson for SMEs: brand awareness amplifies performance. Community engagement, local partnerships and grassroots ambassadors can build familiarity that makes every marketing pound go further.

What big brands can learn from small businesses

Startups have one clear advantage: agility. “Smaller businesses can pivot faster, test more, and stay closer to their audience,” said Simon. “Larger brands lose that flexibility as they grow.”

But agility without focus can quickly become chaos. “Founders love to experiment,” joked Anna Creed. “Sometimes the hardest question to answer is, what are we really trying to achieve?”

The key for businesses of any size is clarity. Align your strategy, story, and creative around a shared goal.

Make creative work harder

When under pressure to deliver, creative consistency can slip. “Too often, we see performance ads that don’t feel on-brand,” said Simon. “Every impression shapes how people perceive you.”

Anna Brook added, “Your performance creative is a chance to build and optimise your brand. Every click tells you what connects; it’s all valuable brand data.”

Her advice: make every asset reflect your identity. Consistency builds trust, and trust converts.

Proving brand impact with the right metrics

When leadership teams focus on quick results, brand marketing can be seen as a ‘nice to have’. But it is a key driver of long-term value.

“Brand protects your pricing power,” said Anna Creed. “It means you don’t have to rely on discounts or constant promotions.”

Beyond clicks and conversions, the panel cited Net Promoter Scores (NPS), customer sentiment, and repeat rates as essential measures of brand strength. “Acquisition gets the attention,” said Anna, “but retention is where sustainable growth happens.”

Using AI and automation without losing identity

The conversation also turned to AI. The panel agreed it is a powerful enabler, but not a substitute for creativity.

“AI can help us do more with less,” said Anna Creed, “but it still needs human judgment.” Anna Brook added, “Right now, it’s a tool to support teams, not replace them. Use it to strengthen strategy, not flatten your brand identity.”

The takeaway: performance fuels growth, brand builds meaning

The consensus was clear: Performance marketing delivers momentum. Brand marketing builds meaning. The best businesses find strength in both. You can’t have one without the other.

Short-term wins may keep the numbers moving, but long-term success comes from building something people believe in. For scaling businesses, the power lies in integration, using data-driven performance to inform creative storytelling and brand strategy to make every conversion more meaningful.

In a landscape where competition is constant and customer attention fleeting, the businesses that thrive will be those that treat brand and performance not as separate disciplines, but as two sides of the same strategy. When they work together, they compound, driving not just growth but lasting impact.

Thank you to our panellists, attendees, and our partners at Active Partners for an insightful discussion.


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