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Influencer Marketing Scale-up Methodology

How to scale up Influencer Marketing spending efficiently, while ensuring stable and improving performance over time? This is the holy grail of a successful program.

 

We have scaled up several major campaigns using our “OTD-LTD methodology”. This paper includes data from 4 different subscription-app campaigns with a +50k USD budget per month.

 

Performance tracking was done using our client’s internal or 3rd party reporting tools, and conversions were attributed to each influencer and collaboration individually.

 

These are our main findings:

  1. Initially, the campaign requires a testing period to find the top-performing content creators. LTDs budget is lower than 15% and budget allocation is not efficient at this point.

  2. After the testing period, a portfolio of LTDs is built at ~30% budget allocation. This ensures the possibility to scale up and consolidate performance in time. 

  3. In stages 2 and 3 remaining budget for OTDs allows testing and exploration of different content creators with a minimum impact on the KPIs.

  4. LTDs should always bring more purchasing/revenue volume and acquisition price (CAC) as this is a proven pool of top-performing channels.

  5. At later stages, the budget can increase significantly with a very low risk of negative impact on CAC. We recommend managing the campaign with a high rate of LTDs vs OTDs, while leaving budget to find new great channels