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.

 

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These are our main findings:

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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