Get all your news in one place.
100's of premium titles.
One app.
Start reading
inkl
inkl
Annastatia Flynn

CAC Has Risen 222%: Why Brands Are Rebuilding Their Marketing Economics

Regina Iakupova

UGC creator Regina Iakupova on why corporations are abandoning one-off influencer ads in favor of modular video production and commercial rights buyouts

Brands are searching for new ways to grow their customer base. The cost of acquiring a single buyer has risen 222% over the past eight years — a figure drawn from the Customer Acquisition Cost metric that marketers use as their primary indicator of advertising effectiveness. Meanwhile, influencer integrations, which once seemed like a silver bullet, are converting views into sales less and less effectively: consumers have learned to spot sponsored content and trust it far less than genuine reviews from ordinary people. In response, brands are rethinking how they buy advertising — shifting away from paying for reach and toward a model where they pay for specific, measurable results. This kind of content is produced by UGC creators, who film videos that look like personal recommendations rather than ads, and that is precisely why they perform better. We spoke with Regina Iakupova — UGC creator, founder of Regina Media LLC, and senior member of the E-Commerce & Digital Marketing Association (ECDMA) — about how this model works from the inside and why a systematic approach to content helps businesses spend less without sacrificing results.

The Reach Model in Crisis: Budget Shifts Toward Performance Marketing

Historically, the relationship between businesses and public figures was built on the straightforward purchase of audience reach. Companies paid bloggers for access to their followers and for the mere fact of a product appearing on a third-party platform, counting on a brand-awareness effect. But as social media became saturated with advertising, consumers developed a strong cognitive resistance to formulaic sponsored integrations. In an attempt to win back conversions, marketing departments were forced to test alternative content formats with bloggers — from aggressive hard-sell approaches, which audiences scrolled past immediately, to subtle integrations that produced no measurable commercial result. These experiments only confirmed the limitations of the old model: buying placements on other people's platforms generates abstract reach but guarantees no financial return. The scheme in which a company pays simply for a blogger post — with no predictable ROI — has definitively lost its profitability.

The answer to this crisis was a shift toward a concept where what matters is not the recognizable face on screen but the measurable advertising asset. Under this model, a corporation purchases from a contractor only one thing: the skill of producing native, conversion-driven video. Businesses delegate this task to specialized professionals — performance creative developers who design videos based on marketing analytics. UGC creator Regina Iakupova, who works with Valentino Beauty, Ulta Beauty, Sephora Collection, and other major brands, is one such specialist.

The short videos Regina produces — from lifestyle integrations to close-up product shots — are styled to look like organic posts from everyday users, yet they are structurally sophisticated lead-generation mechanisms.

"Every video is built around a precise algorithm and opens with an audiovisual hook designed to stop the scroll within the first two to three seconds. That's followed by a framing of the target audience's problem, a presentation of the product as the solution, visual proof of its effectiveness, and a clear call to action," she explains.

This narrative structure, executed in 4K with clean audio and smooth editing, preserves the brand's premium positioning while keeping the video feeling alive and free of the sterility typical of traditional advertising.

The creator-to-camera format — where the author speaks directly to the viewer — compensates for the declining trust in conventional ads. The consumer sees a natural, relatable experience; the business gets a tool that works not toward abstract reach but toward directly reducing acquisition costs. Statistics show that UGC creatives used in targeted campaigns can lower cost per click (CPC) by 50% and increase click-through rate (CTR) fourfold compared to standard studio formats.

The Economics of the Content System: Protecting Ad Budgets from Algorithmic Burnout

As social platforms shifted to algorithmic content distribution, a new problem emerged: creative burnout. Once a particular visual becomes familiar to audiences, the algorithm deprioritizes it, and media investments begin to go to waste.

According to Regina Iakupova, the industry is testing various approaches to outpace the algorithms. Marketers constantly expand their targeting parameters to serve old videos to new audience segments, and they are widely adopting AI tools to automatically generate hundreds of visual variations. But tweaking audience settings only delays the inevitable drop in conversions, while neural networks produce results that aren't organic enough — viewers spot them instantly and tune out. Corporations need fundamentally different methods: ones that allow them to produce varied yet genuinely authentic advertising units quickly and without exponential cost increases.

The answer has been a rethinking of the video production process itself, shifting focus away from automating creativity and toward standardizing "live" filming.

"To keep pace with the algorithms and maintain a low customer acquisition cost, content can't be produced one piece at a time — it has to come in whole packages of independent marketing hypotheses," says Iakupova.

Faced in her own practice with the need to scale client campaigns without sacrificing video quality, Regina abandoned the traditional approach to filming in favor of what she calls the content system method. She now uses this system to produce content for major brands including Bubble Skincare and Nutrafol.

"Within a single working session, I shoot a core semantic unit — the main product demonstration — along with a bank of elements that can be combined in different ways around that foundation. Typically, that means three to ten versions of opening hooks that capture attention through different text or visual approaches, plus alternative formulations of the final offer," she explains.

In the editing stage, these separate building blocks are assembled into a package of unique creatives. This standardized process integrates seamlessly with the algorithms used by automated ad-buying platforms. Media buyers upload the full package and let the system allocate budget toward whichever combinations convert best. If analytics show that viewers are dropping off at the two-second mark, the system switches to a version with a different hook. This flexibility turns content from a static product into a controllable variable — speeding up product launches and protecting company budgets from inefficient spending.

Commercializing Rights: Turning Video into a Long-Term Corporate Asset

Scaling digital sales requires businesses to have full control over their content. To confidently invest large budgets in algorithmically promoted videos, a company needs to own the commercial rights to them. For a long time, the primary source of user-style video was integrations on independent creators' channels. But this format left companies exposed: a brand would pay for a one-time placement without acquiring any legal basis for using the material in its own ad accounts.

Once corporations recognized that buying ad space on other people's channels gave them no way to build marketing assets, they changed strategy and began assembling their own libraries of legally owned content, says Iakupova. The industry tested a range of approaches — from stock footage, which consistently drove down conversions due to banner blindness, to building in-house studios, which required expanding headcount and slowed creative output.

Iakupova points to the defining mistake of this transitional period: "The marketing ecosystem remained severely fragmented for a long time. Companies were buying videos from freelancers en masse without proper documentation, which made standardization impossible, complicated ROI assessment, and regularly resulted in claims of unauthorized commercial use."

To optimize financial flows, major corporations began moving toward structured B2B relationships, replacing ad hoc freelance orders with long-term contracts with reliable partners. These agreements cover not only the video production process itself but also the legal transfer of rights to broadcast the content.

Fitting into this trend, leading specialists are shifting to retainer agreements — contracts spanning six to twelve months. Iakupova, for example, works on a retainer basis with clients such as retail giant Ulta Beauty, which pays her a fixed monthly fee for an agreed package of content. The foundation of this model is strict commercialization of rights: the brand pays not just for the physical work of shooting the footage but also licenses its use in targeted campaigns. The markup for perpetual commercial usage rights can increase the base production cost by 200–250%.

"The base price covers production only, with no rights transfer — but if the client plans to run the video in their own ad campaigns, buying the license changes the status of the material entirely, turning it into a proper commercial asset on the company's balance sheet," she emphasizes.

By acquiring full rights to packages of creatives, corporations gain the ability to manage their own traffic, collect internal analytics, and run high-performing videos in paid campaigns for as long as they choose. This approach allows companies to decouple their revenue from the algorithms of third-party social networks and the unpredictability of media personalities — transforming content creators into production partners.

The era of uncontrolled reach is over. As advertising costs rise, corporations can no longer afford to pay for image-building posts with no predictable return on investment. Content production has become a standardized business process: modular creative assembly, continuous hypothesis testing, and full commercial rights buyouts make video a measurable asset. The work of specialists like Regina Iakupova proves that in the new marketing economy, results depend not on an influencer's media clout but on analytical discipline — where every video is accountable to a specific financial metric: lowering the cost of customer acquisition.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.