How Can You Reduce CAC with Influencer-based Ads and Whitelisting in 2025?

As marketing strategies continue to evolve, many brands find themselves caught in a cycle of escalating customer acquisition costs (CAC). Traditional advertising avenues, often saturated and overly competitive, frequently fail to deliver the desired return on investment.

However, more brands are now focusing on a combination of influencer-based ads and whitelisting to break this cycle and become more efficient in their marketing spend. We’ve seen brands reduce CAC by 15% to 61.14% using this method.

Unlike conventional influencer marketing, which can sometimes be hit or miss, the strategic use of whitelisting—where brands ask permission to advertise through an influencer's account—offers a unique and potent blend of authenticity, reach, and control.

This article discusses advanced strategies for leveraging influencer-based ads and whitelisting.

Understanding influencer-based ads

Influencer-based ads are simply paid social ads that use content created by your influencers. These ads can take various forms, including social media posts, stories, and videos.

The primary benefits of influencer-based ads include:

1. Highly engaging because content creators are in tune with platform-specific trends and their audience’s preferences. This makes their ads stand out in users’ feeds and encourages interaction, similar to organic posts. They look just like the native content users are scrolling through.

2. Perceived as genuine because influencers have built trustable relationships with their followers over time. This authenticity helps cut through the noise of traditional advertising, making users more likely to view and trust the content as they would a recommendation from a friend.

3. Influencers act as single-person production teams who can quickly create eye-catching content. Unlike professional photoshoots, which can take months, influencers can deliver content in days or weeks.

4. By collaborating with influencers from diverse backgrounds, brands can produce a wide variety of content featuring different people, locations, and products. This diversity allows for highly personalized messaging, enabling brands to reach a broad and segmented audience with targeted content.

5. Content can be repurposed across various brand channels, including email marketing, social media campaigns, website landing pages, and paid ads.

6. It helps acquire better customers by building relationships with influencers who resonate with your brand and align with the values of their followers. An impressive 85% of marketers report that influencer marketing is improving their customer acquisition efforts, indicating its effectiveness in reaching high-quality customers who are more likely to engage with and remain loyal to the brand.

Comparison of CAC for influencer-based ads vs. highly produced content

When making this comparison, it's essential to look beyond the surface-level production costs and understand what makes a campaign more effective.

Here are a few factors that come into play:

Speed and flexibility: Traditional highly produced content requires extensive planning, scripting, filming, and editing, often taking weeks or even months to execute. In contrast, influencers can create and publish content quickly, allowing brands to respond promptly to market trends and feedback.

Content volume and iteration: Another critical factor is the ability to produce and test a high volume of content. With the same budget, brands can often engage multiple influencers to create diverse content pieces, each tailored to different segments of their audience. This multiplicity allows for more rapid iteration and optimization based on performance data.

Highly produced content, while impactful, typically results in fewer pieces of content for the same investment, limiting the ability to experiment and optimize on the fly.

For example, MakeupEraser co-founder Elexsis McCarthy used to invest $3,500 for a single professionally produced video. Now, for that same amount, she collaborates with influencers to obtain 10 videos and 30 photos.

Integrated storytelling: Influencers are great at integrating the brand’s messaging into their content seamlessly, providing a storytelling experience that highly produced content may struggle to match. This integrated approach can lead to higher engagement and resonance with the audience.

For example, an influencer can demonstrate a product in their daily routine, offering practical insights and authentic use cases that highly produced ads might not convey as effectively.

Cost transparency and control: Influencer partnerships typically offer clearer and more predictable cost structures compared to the potentially hidden costs of highly produced content, such as talent fees, location expenses, and post-production adjustments.

With influencers, brands often negotiate a flat fee or performance-based compensation, providing better budget control and transparency.

Types of whitelisting

In influencer marketing, whitelisting involves giving brands access to an influencer's account to create and manage ads.

Simply put: Whitelisting = running ads on behalf of your partnered influencer.

This method improves campaign effectiveness by leveraging the influencer's established audience.

Here are the methods of whitelisting and the factors to consider when choosing the best approach for your brand.

1. Boosting branded content

Boosting branded content involves the influencer creating authentic content that tags the brand. The brand then gains access to the influencer's account to boost the post, expanding its reach to a broader audience.

Example: An Instagram post tagged with the brand and marked as an ad but managed by either the influencer or the brand.

Advantages:

• Content created by the influencer feels genuine and engaging.
• Brands only need limited access to boost the post, making it a scalable approach for multiple influencers.

Drawbacks:

• Boosting only reaches the influencer's existing audience without extending to lookalike audiences.
• Brands have limited ability to optimize or adjust the content.

2. Partnership ads

Partnership ads involve the influencer creating sponsored content, typically marked with hashtags like #ad or #sponsored. The brand gets access to the influencer's account to manage the ad's audience and performance.

Example: A Facebook or Instagram post where the influencer tags the partnership, allowing the brand to control who sees the post and create ad variations.

Advantages:

• Brands can experiment with different ad variations using the influencer’s handle and content.
• Access to the influencer's audience data enables better targeting and the creation of lookalike audiences for future campaigns.

Drawbacks:

• Gaining access might involve navigating platform-specific permissions and restrictions.
• Influencer restrictions can limit the brand’s control over the audience and performance metrics.

3. Dark posting

Dark posting refers to creating sponsored ads that do not appear on the influencer's feed but only on the targeted audience's news feed. This method is highly effective for experimentation and A/B testing.

Example: An Instagram ad that appears under the influencer’s handle but is only visible to the targeted audience, not the influencer’s entire follower base.

Advantages:

• Ads are shown only to the most relevant audience segments.
• Brands can test different variations of the ad without cluttering the influencer's feed.
• Utilizes the influencer’s credibility without relying on their organic posts.

Drawbacks:

• The post is hidden from the influencer’s general follower base, potentially missing some engaged followers.
• Success heavily relies on effective ad spend and targeting strategies.

4. Allowlisting

Allowlisting is another term for whitelisting where influencers give brands full permissions to their accounts. This access allows brands to upload, edit content, view audience data, and manage ads comprehensively.

Example: A brand managing an influencer's Facebook or Instagram account via Meta's Business Portfolio, with full partner permissions granted by the influencer.

Advantages:

• Brands have extensive control over content creation, audience targeting, and performance metrics.
• Full permissions allow brands to respond to followers, use audience data, and optimize campaigns effectively.

Drawbacks:

• Influencers must trust the brand completely to hand over full account access.
• Full access can pose significant security risks if not managed properly.

Factors to consider when choosing the best whitelisting approach for your brand

Before you go deeper into different factors, a quick recommendation would be to gain access to the influencer’s account for whitelisting and this way you can run ads like you normally do.

1. Marketing objectives and campaign goals

If your primary goal is to increase brand awareness, methods like boosting branded content may be more suitable due to their broad reach. For direct response campaigns aimed at driving conversions, partnership ads or dark posting could be more effective due to their precise targeting capabilities.

Determine whether your campaign requires frequent updates and creative variations. If so, partnership ads or full account access will allow you to iterate quickly and test different creatives.

2. Control and oversight needs

Assess how much control your brand needs over ad creation and optimization. Full account access provides maximum control, allowing you to manage every aspect of the campaign.

Partial access or collaboration tools might offer sufficient control with lower complexity. Consider whether your team needs the ability to make real-time adjustments to ad spend, targeting, and creative elements. Higher control methods facilitate rapid changes in response to performance data.

3. Influencer relationship and trust

Gauge the trust level between your brand and the influencers. Full account access requires a high degree of trust, as influencers must feel confident in allowing brands to manage their accounts. Building strong, transparent relationships can ease concerns.

Understand the preferences and comfort levels of your influencers. Some may prefer limited access to maintain control over their accounts, while others might be open to granting more extensive permissions.

4. Double-check permissions

When working with influencers, focus on ensuring that those with access to your business manager account are trustworthy and understand the necessary permissions. Here’s what to keep in mind:

• Double-check the permissions granted to influencers and ensure they have only the access needed to run the ads. Full account access isn't typically required; instead, limit permissions to manage ads and view performance.
• Make sure your approach to whitelisting and audience targeting aligns with data protection regulations and advertising standards. This involves verifying that the data shared is minimal and handled appropriately.

5. Speak with your team or agency

Speak with your agency or in-house paid ads manager to help set up whitelisting. They can guide you through the process and ensure you have the necessary access and tools in place.

For a step-by-step guide on setting up whitelisting, you can follow this guide.

6. Cost considerations

Analyze the costs associated with each whitelisting method. Influencers usually charge 20-30% of their standard base rate for whitelisting. For example, if their base rate for a reel is $1,000, they would typically charge $200-$300 for whitelisting.

Consider the potential ROI of each approach. Methods that offer more control and targeting precision, such as dark posting and partnership ads, can lead to higher conversion rates and better campaign performance.

7. Targeting and audience insights

Determine the level of audience insight and segmentation required for your campaign. Full access and dark posting provide detailed audience data and targeting capabilities, allowing for more refined and effective campaigns.

Evaluate whether you need the ability to create and target lookalike audiences. Full access and some partnership ad setups enable the use of influencer audience data to build and target similar audience segments.

8. Long-term strategy and scalability

Consider the scalability of each method for your long-term marketing strategy. Full account access is often more suitable for ongoing partnerships, allowing for deeper integration and consistent brand messaging.

Approach boosting branded content with caution:

• It's generally not an effective use of spend unless you have no resources for proper paid social ads.
• If considering boosting, reassess your overall marketing strategy and resource allocation.

Instead, focus on developing a comprehensive paid social strategy that complements your influencer partnerships:

• Use influencer collaboration insights to inform ad targeting and creative direction.
• Consider using influencer-generated content in your paid social ads.
• Implement robust tracking (MightyScout can assist) to measure and optimize performance across all efforts.

Approaching influencers for whitelisting

Approaching influencers for whitelisting requires tact and strategic planning. Here are some best practices and considerations for timing and context to ensure your request is well-received and effective.

1. Build existing relationships

Start by initiating a test partnership with influencers through seeding or paid collaborations. Use these initial interactions to gauge alignment and effectiveness. Propose a 30-day test period for whitelisting to assess ROI and performance before committing to a long-term arrangement.

Personalize your outreach by referencing specific insights from the test, showing that you value their contribution and are committed to a mutually beneficial partnership.

Example:

“We were impressed with the results from your recent eco-friendly skincare post. We’d like to propose a 30-day test for whitelisting to further evaluate its impact. Based on the results, we can discuss a more extensive partnership.”

2. Clearly explain the benefits

Outline how the whitelisting arrangement benefits the influencer, not just your brand. Emphasize increased visibility, the potential for higher engagement rates, and the professional growth opportunities it presents.

Assure influencers that they will maintain creative control and have transparency over how their content is used. Provide examples of how you’ve worked with other influencers to successfully run whitelisted ads.

Example:

"By allowing us to run whitelisted ads using your content, we can significantly boost its reach. You’ll retain full creative control, and we’ll ensure the collaboration enhances your profile, as seen in our work with [Influencer Name]."

3. Provide detailed information and support

Offer a clear, concise guide on how to set up whitelisting permissions, using simple language and visuals. This reduces the burden and complexity of the process.

Quick Step Guide: Setting Up Whitelisting Permissions on Instagram

1. Open Instagram and go to your profile

2. Tap the menu icon (three lines) in the top right corner

3. Select 'Settings and Privacy'

4. Scroll down and tap 'Branded Content'

5. Toggle on 'Allow Business Partners to Promote'

6. In the 'Approved Business Partners' section, tap 'Add Partners'

7. Search for and select the brand's Instagram handle

8. Review and accept the partner's request

Ensure that your team is readily available to assist the influencer at any step, providing technical support and answering any questions they might have about the process.

Example message to influencers:

"We understand that setting up whitelisting permissions can seem complex. We've prepared this step-by-step guide to make the process as smooth as possible. If you encounter any issues or have questions, our team is here to assist you every step of the way. Your partnership is valuable to us, and we want to ensure a seamless experience."

By providing this quick step guide along with assurance of support, you're making the process more approachable for influencers. This can lead to higher compliance rates and a smoother onboarding process for your whitelisting campaigns.

4. Offer compensation and incentives

Discuss fair compensation for their participation, reflecting the additional value and effort required for whitelisting. Consider offering performance-based incentives to further align interests.

Beyond financial compensation, offer perks such as exclusive brand previews, access to new products, or unique promotional opportunities.

Example:

“For your participation, we’re offering a $500 flat fee plus a performance-based bonus for every sale driven by your content. Additionally, you’ll receive early access to our upcoming product line and exclusive promotional opportunities to enhance our partnership's value.”

Timing and context for making the whitelisting request

1. Leverage existing relationships

Initiate the whitelisting conversation with influencers you've previously worked with, ideally after a successful campaign. This builds on established trust and proven collaboration. When discussing potential new opportunities, suggest starting with a 30-day test period for whitelisting.

This approach allows you to evaluate the content's performance and determine if an expanded, paid collaboration would be mutually beneficial.

2. Ensure contextual fit

Propose whitelisting when an influencer’s recent content aligns well with your campaign goals. If they are already involved in relevant trends, this is an opportune moment to integrate your content. The contextual relevance enhances the effectiveness of the whitelisting and boosts the overall impact of the campaign.

Example:

“Given the success of our last campaign together, we’d like to discuss a 30-day test for whitelisting your content. If the results are promising, we can explore a more extensive paid collaboration.”

Whitelisting costs and pricing

Whitelisting costs can vary significantly based on several factors, including the influencer’s reach, engagement rates, and the specifics of the campaign.

Generally, you can expect:

• Flat fees: Influencers may charge a flat fee per month or per campaign to grant whitelisting permissions. These fees typically range from $250 to $5,000, depending on the influencer’s popularity, niche expertise, and the anticipated reach of the campaign.
• Percentage of ad spend: In some cases, influencers may opt for a percentage of the ad spend allocated to promoting the whitelisted content. This method is more common among larger influencers or those represented by talent managers. For instance, an influencer might charge 4% of the total ad spend, ensuring compensation scales with the campaign’s success.
• Inclusion in collaboration fees: Increasingly, influencers are integrating whitelisting into their collaboration packages. This approach may result in higher overall collaboration fees but eliminates separate whitelisting charges.

Several key factors influence how influencers price their whitelisting services:

• Influencer reach and engagement: Influencers with larger, more engaged audiences typically command higher fees for whitelisting. Higher engagement rates often translate to better performance metrics for whitelisted ads.

• Exclusivity and usage rights: The duration and exclusivity of whitelisting rights impact pricing. Longer usage periods or exclusive use agreements generally attract higher fees as they limit the influencer’s ability to work with competitors during that time.

• Content complexity and quality: The complexity and quality of the influencer’s content also play a role. High-production value or highly creative content may warrant higher fees due to its potential impact on audience engagement and brand perception.

• Campaign objectives: The specific goals of the campaign influence pricing. Campaigns aimed at brand awareness might differ in pricing from those focused on driving sales or conversions, reflecting varying expectations and performance metrics.

Outsourcing whitelisting campaigns

Outsourcing your whitelisting campaigns to a specialist can be a strategic move. Here’s why:

• Specialists have a deep understanding of the nuances of whitelisting, from identifying suitable influencers to negotiating terms and managing campaigns effectively.
• Agencies often have pre-existing relationships with a wide network of influencers, making it easier to find the right match for your brand.
• Outsourcing frees up your internal team to focus on other strategic initiatives, while the specialist handles the complexities of whitelisting.
• Specialists use advanced tools and strategies to monitor and optimize the performance of your whitelisted ads, ensuring you get the best results possible.

Here are the points to consider when outsourcing whitelisting:

• Before engaging a specialist, clearly define what you aim to achieve with your whitelisting campaigns. This will help in aligning strategies and expectations.
• Look for agencies or specialists with a proven track record in whitelisting. Check case studies, client testimonials, and ask for references.
• Whitelisting campaigns can have different pricing models. Ensure you understand how the specialist charges and what is included in their services.
• Effective communication is crucial for the success of your campaigns. Set up regular check-ins and ensure there’s a clear process for reporting and feedback.
• Work with your specialist to establish KPIs and regularly review the campaign’s performance. Be ready to make adjustments based on data and insights.

Measuring the success of whitelisting campaigns

To ensure you get the success you want with whitelisting campaigns, you need to make sure you’re going with the right influencers as well.

Start by thinking of whitelisted ads as an A/B test against your regular paid social ads. Compare the same key metrics you would use for your standard paid social campaigns. This approach provides a familiar framework for assessing performance.

Here are the metrics you should take care of while engaging with an influencer:

1. Organic performance metrics: Analyze the influencer’s organic reach, engagement rates, and specific indicators like video views and average view duration.

2. Cost efficiency netrics: Evaluate the influencer’s impact on CPA and CPC. A noticeable reduction in CPA after initial seeding or influencer campaigns suggests cost-effective audience engagement and potential for scaling through whitelisting.

3. Paid ad performance metrics: Transition to paid ad metrics once the organic performance is promising. Track metrics such as CTR, Conversion Rate, and ROAS from whitelisted ads. For example, a high CTR and ROAS indicate that the influencer’s audience responds well to paid promotions.

4. Audience warmth and conversion potential: Assess the quality of audience engagement beyond metrics, including the nature of comments and interactions. Directly attributable sales or leads from the influencer’s organic posts further validate the audience’s conversion potential for whitelisting.

5. Testing and scaling potential: Prioritize testing with small-scale paid promotions and affiliate programs before committing to whitelisting. This approach allows for validating the influencer’s effectiveness in driving conversions through paid channels.

Now, here are the KPIs for whitelisting campaigns you should track:

1. Reach and impressions: Measure the total reach and impressions generated by the whitelisted ads.

2. Engagement rates: Track engagement rates, including likes, comments, shares, and clicks.

3. Conversion rates: Measure conversion rates to assess the effectiveness of the campaign in driving sales or leads.

4. ROAS: Calculate the return on ad spend to evaluate the financial performance of the campaign.

5. CAC: Monitor CAC to determine the cost-effectiveness of the whitelisting campaign compared to other marketing efforts.

To determine the effectiveness of whitelisting, compare the performance of whitelisted ads with non-whitelisted ads:

• Compare engagement and reach metrics to assess the amplification effect of whitelisting.
• Evaluate conversion rates to determine if whitelisted ads are driving more sales or leads.
• Analyze the cost efficiency by comparing CAC and ROAS for both types of ads.

Conclusion

Traditional marketing methods often fall short in a competitive environment. Influencer-based ads offer a compelling alternative, leveraging genuine connections and extensive reach. Adding whitelisting can further enhance your ad spend efficiency.

To understand which approach—whether influencer-based or whitelisted ads—works best, thorough testing is key.

Given the diversity in content and creators, it's important to test these ads across different audience segments. This will help you gauge their effectiveness in various contexts and provide valuable insights into reach, engagement, and return on ad spend.

By comparing the performance of both types of ads within different segments, you’ll be able to refine your strategy and make data-driven decisions that drive growth.