How to cooperate with influencer on CPS basis

1. Affiliate Marketing CPS Model
As The Future Of Influencer Marketing
during Pandemic

2. About me
• Nick Shigov
• Head Of Business Development at Indoleads
• Background: 6 years in affiliate marketing sphere
• worked as Senior CPA Advertising Manager in Adsterra
Advertising Network (Russia)
• Affiliate department Team Leader in Qmobi Agency
(Russia)
• 3 years as Business Development Manager in Indoleads
affiliate network (Malaysia).

3. What is the issue?
• We tend to believe Youtube bloggers/influencers more because it
doesn’t look like actual advertising, rather advice from people we
think we are familiar with.
• According to TAKUMI research, 32% of consumers across the UK,
US and Germany find influencer content more relatable to their
real lives than brands’ own advertising content.
• According to WARC report, advertising investment is set to fall
8.1% — $496bn –worldwide last year. This compares to a pre-
outbreak forecast of +7.1%, equating to an absolute downgrade of
$96.4bn.
• The coronavirus changed the rules of the game. While food
delivery and online entertainment companies were counting
profits, the rest of the business was cutting ad spending.

4. What is the issue?
• The biggest issue with influencer marketing has always been
estimating the return on investment(ROI).
• The market needs new, more transparent and predictable
formats of cooperation, as well as tools for conducting massive
advertising campaigns with a large number of bloggers.
• The traditional advertising model of cooperation between
bloggers and advertisers, as a rule, is a flat fee for placing a native
ad, stories or video integration. It doesn’t give any guarantees.

5. What is exactly CPS?
CPS stands for “cost per sale” which means the marketer pays
only for results. Actually, it is one of the forms of broader CPA
which is “cost per action”.
While CPA model covers quite a range of actions: from a
simple “like” or comment on Instagram to an actual purchase,
CPS is limited only to the ultimate result aka “sale”.

6. Is it profitable for a blogger?
• The analytics of advertising campaigns on the GetBlogger PLUS
platform showed that 35% of bloggers had more than 2 times
higher income than traditional format of cooperation with fixed
payout for ad integration. Another 40% had the same income,
and only 25% had lower returns by 10–40%.
• In a situation where the payment is directly connected with the
result, the blogger has to be especially selective in the choice of
advertising offers.
• Now blogger is your affiliate!

7. Is it profitable for a blogger?
• According to research the biggest Russian companies such as
Okko, Kinopoisk HD, Tinkoff Bank, Papa John’s, L’Etoile, Skillbox
have already launched ad campaigns with influencers using CPS
model in 2020.
• 5000 bloggers participated in the campaigns and generated a
revenue of 2 670 000$, while influencers earned more than 534
000$.

8. How To Make CPS Work
1
• Choose approximately 50-100 high-quality bloggers with your target audience and
negotiate with them to work using CPS
• Do not target celebrity bloggers, focus on nano & micro bloggers(1k-50k subscribers)
2
• Prepare wisely exclusive offer with the promo code
3
• Set up the amount of commission
• It can be fixed payout or % ( depends on your business and net income). Later it can
be increased individually based on blogger performance.

9. How To Make CPS Work
4
• Create a terms of reference and introduce it to all the bloggers engaged
5
• Put up CRM system or affiliate tracking platform to track actual sales for every
influencer involved
6
• Generate and provide unique voucher codes to your influencers or unique utm tags or
use affiliate tracking links

10. Is This For Your Business?
 you work on B2C market and sell mass-market products/services
 your brand is already a well-established one
 you are up to sales scaling and attracting new clients
• CPS doesn’t cancel traditional influencer marketing, and actually
it doesn’t have to. The two can and will coexist freely.

11. What to expect
• Pandemic will eventually end, but the trends it brought us
will most probably stay. That’s why the life in the nearest
future will not be the same life as before. Influencer
marketing already proved its efficiency in highly stressful and
unstable circumstances.
• CPS may be the best way of cooperation for Travel, Dining,
Cinema, Fitness sphere next year after pandemic.
• Paying influencers on CPS model is ideal for most brands
because it enables optimization: audience, content, terms of
the agreement — can and should be optimized. It makes the
results much more predictable and measurable.