The Shift Is On: Paid Ads Are Losing Their Punch
Brands are increasingly shifting budgets from traditional paid ads like Google and Meta to influencer marketing as a smarter strategy for customer acquisition and ROI. This article explains how influencer and affiliate marketing can lower costs, improve brand trust, and deliver stronger performance outcomes.
When CAC Spikes, Budgets Move
When Gymshark saw a 30% dip in Meta ROAS, they didn’t double down on ads—they doubled down on influencers. They’re not alone.
- Meta’s CPM rose from $7.15 to $7.50 in the past year; TikTok's also jumped (MarketingBrew, June 2025).
- Publicis confirmed in their 2025 Q2 earnings call that clients are reallocating digital ad spend toward influencer-driven media buys (Digiday, May 2025).
📅 TL;DR: Paid ads aren’t dead, but they’re increasingly inefficient. Influencer channels are now essential to protect ROAS.
Influencers and Affiliates as Media Channels: A Performance Mindset
Metrics That Matter: CAC, ROAS, ICPO
- Brands are applying hard KPIs to influencer and Affiliate programs:
- CAC: Cost per acquisition
- ROAS: Return on ad spend
- ICPO: Influencer Cost Per Outcome (engagement + reach + conversion)
ICPO is emerging as a unifying benchmark across tiers, from nano to mega. It helps normalize diverse creator output.
Case Study: A DTC skincare brand ran 20 nano campaigns and found CAC dropped from $85 (Meta) to $49 through affiliate-tied creator content.
📅 TL;DR: Think like a media buyer—just with humans, not pixels.
Building In-House Influencer Programs
Why Not Just Use an Agency?
- Agencies can slow feedback loops and limit data access.
- Publicis acquiring Captiv8 signals the value of owned influencer infrastructure.
Table: Build vs. Buy Influencer Infrastructure
📅 TL;DR: The future is fast, flexible, and internal.
Attribution Is Evolving
Mid-Funnel Impact, Finally Accounted For
- Multi-touch attribution is catching up.
- Platforms like Triple Whale and KnoCommerce help track post-view influence, not just last-click conversions.
- Learn how the Endlss platform helps brands measure influencer ROI alongside paid ads.
Pro Tip: Add UTMs + track view-throughs in platform-native analytics (Instagram Insights, TikTok Creator Center).
📅 TL;DR: Influence isn’t linear—your attribution model shouldn’t be either.
Smart Tactics for Budget Migration
- Pilot Programs
Start with 3–5 creators. Use ICPO to compare them against Meta ROAS. - Bundled Gifting + Paid Collabs
Send products + performance incentives. Track outcomes through affiliate links. - Hybrid Pay Models
Use base pay + CPA bonuses: e.g., $200/post + $10/signup + $500 at 100K impressions.
📅 TL;DR: Mix creativity with KPIs—and test relentlessly.
The Rise of ICPO
ICPO = Total Spend / Total Outcomes (Reach + Engagement + Conversions)
Comparison Table: CPM vs. ICPO Benchmarks
📅 TL;DR: ICPO is the new gold standard—more holistic, more honest.
Practical Use Cases for Influencer & Affiliate Marketing
- Ecommerce: Reduce reliance on paid social while boosting content reach.
- DTC Brands: Lower CAC compared to rising Meta ad costs.
- B2B Tech: Use influencers for thought leadership and trust signals.
- Retail: Launch new products with influencer-generated content and track results via ICPO.
