Unlocking Brand Potential: The Impact of community Marketing on EBITDA and Success Metrics

khaa-lo
Nov 14
3 min read

When Rhode, a beauty brand under Elf Beauty, recently published its profit and loss statement, one number stood out sharply: an EBITDA margin of 34%. This figure is remarkable in an industry where typical EBITDA margins hover between 10% and 15%. What makes this even more interesting is that Rhode spent only 11% of its budget on marketing. The secret behind this efficiency? Hailey Bieber, the founder and a celebrity, who drove most of the marketing through organic posts, leveraging her massive personal reach.

This post explores how celebrity-driven marketing can transform brand success, why traditional marketing budgets may no longer be the only path to growth, and how emerging consumer brands can learn from this model. We also look at how platforms like khaa-lo are helping new consumer packaged goods (CPG) brands build authority and visibility through smart backlink exchange and network building.

Understanding Rhode's EBITDA Success

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a key indicator of a company's operational profitability. Rhode’s 34% EBITDA margin is more than double the industry average. This means the company is generating significantly higher profits from its core operations compared to its peers.

Several factors contribute to this success:

Low marketing spend: Rhode allocated only 11% of its budget to marketing, which is unusually low for a consumer brand.
Organic reach through celebrity influence: Hailey Bieber’s personal brand and social media presence acted as the primary marketing channel.
Efficient cost management: The company likely optimized other operational expenses to maintain profitability.

This combination allowed Rhode to grow its brand without the heavy marketing costs that typically eat into profits.

How Celebrity Marketing Changes the Game

Hailey Bieber’s role as the founder and main marketing driver is a textbook example of how celebrity influence can replace traditional advertising spend. Here’s why it works:

Built-in audience: Celebrities come with millions of followers who trust their recommendations.
Authentic engagement: Organic posts from a celebrity founder feel more genuine than paid ads.
Cost savings: Brands save on expensive ad campaigns and influencer fees.
Viral potential: Celebrity posts can quickly reach a wide audience, increasing brand awareness exponentially.

For Rhode, this meant that the brand could focus on product quality and customer experience while relying on Hailey’s organic reach to drive sales.

What Emerging Brands Can Learn

Not every brand has a celebrity founder, but the principles behind Rhode’s success can still apply. Emerging CPG and consumer brands can:

Build authentic networks: Focus on genuine relationships with customers and influencers.
Leverage organic content: Create valuable, shareable content that resonates with target audiences.
Use backlink exchange: Collaborate with complementary brands to build authority and improve search visibility.
Invest in AI visibility: Use AI tools to identify trends, optimize content, and increase discoverability.

Platforms like khaa-lo specialize in helping emerging brands grow their authority and network through backlink exchange and AI-driven visibility strategies. This approach can help brands become “celebrities” in their own right within their niche markets.

The Role of khaa-lo in Brand Growth

khaa-lo offers a unique service designed to help emerging brands build credibility and expand their reach without massive marketing budgets. Here’s how it supports brand growth:

Backlink exchange: Brands exchange backlinks to improve their website authority and search engine rankings.
Network building: Facilitates connections between brands and influencers to create collaborative marketing opportunities.
AI visibility tools: Uses artificial intelligence to analyze market trends and optimize brand content for better online presence.

By using khaa-lo, brands can replicate some of the advantages that celebrity-backed brands enjoy, such as increased visibility and authority, without relying solely on paid marketing.

Why This Matters for the Future of Marketing

Rhode’s example shows that marketing budgets don’t always have to be large to be effective. With the right strategy, brands can achieve high profitability and growth by:

Leveraging personal or influencer networks
Focusing on organic, authentic content
Building authority through smart partnerships and SEO tactics

This shift could democratize brand success, allowing smaller or emerging companies to compete with established players by using innovative marketing approaches.

Rhode’s 34% EBITDA margin highlights the power of celebrity-driven marketing combined with smart budget management. For brands without celebrity founders, tools like khaa-lo offer a practical way to build authority and visibility through backlink exchange and AI insights. The takeaway is clear: success in today’s market depends on building authentic connections and using smart, cost-effective marketing strategies rather than relying on big budgets alone.

Explore how your brand can grow by visiting khaa-lo.com and learn from the new wave of marketing that is reshaping the consumer goods industry.