How do you scale a brand and make it profitable?

In early-stage companies, the gap between vision and investment is where most brands stall. While startups want to build something iconic, hesitation with brand spend often holds them back. So what’s the smart way to scale?

This is the question we sought to answer in our recent research and talk with the IPA, Depop and 21st Century Brands. Yet it raised more questions we didn't get time to answer (we're taking that as a sign that what we were saying was of interest). Rather than leaving these unanswered, here's a wrap-up to these additional topics on the audience's mind - from how to balance marketing spend to getting CFO buy-in.

What should startups really spend on marketing?

The 5–15% of revenue rule doesn’t always work for early-stage brands. Instead, smart startups treat marketing as a strategic growth lever, rather than a fixed expense.

• Consumer startups often spend 15–40% of total budget.
• Or 10–20% of projected revenue.
• The key: spend in line with ambition, not history.

Brand building isn’t a luxury. When done well, it reduces reliance on paid performance and increases long-term efficiency

What’s the right brand vs. performance mix?

In the earliest months:

• Go for 30% brand / 70% performance - the focus is on proving your product works.
• Performance gives fast learnings and signals.
• Brand builds memory, story, and emotional salience.

As you reach product–market fit and know your audience better:

• Shift toward 50/50 or parity assuming this aligns with your price-distribution matrix i.e. what does your media strategy demand.
• Treat brand as a multiplier, not a trade-off.
• Build your reputation while growing sales.

Once you become an established business:

• Rebalance to 60% brand, 40% performance.
• Dialling up brand focus to protect market position.

How can founders take smarter risks?

Founders often know the brand they want to be. But fear can block bold decisions. Here’s how to help them move with confidence:

1. Translate vision into metrics: Define growth based on Customer Acquisition Costs and Lifetime value or payback windows
2. Start with small experiments: Run 90-day brand pilots with lean, content-led channels.
3. Include finance in the conversation: Frame brand as a measurable contributor to driving real financial value, rather than an unpredictable expense i.e. increased pricing power, organic growth.

Are brand platforms still relevant?

Yes and more than ever.

Short-form content wins attention. But without a central narrative, it’s forgotten fast.

• Think in characters, tone of voice, or storyworlds.
• Make every micro-touchpoint part of something bigger.
• Even packaging and transaction emails should carry your brand’s personality.

Agility is key. But coherence is what builds brand equity.

Does this apply to sports and sponsorships?

Absolutely. In sports, fans don’t just watch events, they live the culture. From chanting in stadiums to sharing memes on social media, their participation is personal, tribal, and emotional.

For brands operating in or adjacent to sports—whether through apparel, fitness tech, fantasy leagues, or sponsorships, a brand platform is essential. Because success in this space is all about belonging.

A strong brand platform allows for a consistent voice, tone, and narrative that fans can connect with. It acts as the emotional thread between all touchpoints, making the brand part of the team.

What about authenticity in an AI world?

With generative content everywhere, specificity is the new scale.

The most memorable marketing will come from:

• Deep listening
• Human insight
• Observing the weird and wonderful

AI can assist, but emotional truth still wins. The strongest brands are built on observations others miss. 

Take-out?

Scaling a brand profitably is about investing strategically in brand and performance, building emotional connection through a clear platform, and treating marketing as a growth engine.

Leanne Tomasevic is UK and US Head of Insights at Tracksuit.

The opinions expressed here are those of the authors and were submitted in accordance with the IPA terms and conditions regarding the uploading and contribution of content to the IPA newsletters, IPA website, or other IPA media, and should not be interpreted as representing the opinion of the IPA.