Traackr and Talk PR have released a white paper on the significant impact that influencer marketing delivers to global brands in the beauty sector—which continues to be one of the hottest categories in the CPG/FMCG space.
The first of its kind global research report, “Global Influencer Marketing: Insights from Beauty,” highlights the evolution and sophistication of influencer marketing practices that can benefit brand executives from the beauty sector as well as those in the consumer and lifestyle sectors.
Interviews with brand leaders Sephora, NYX, L’Oréal and American International Industries identify eight beauty influencer archetypes and ways to engage them; insights into the top 17 performing independent beauty brands including Huda Beauty, Deciem’s The Ordinary and Milk Cosmetics; and the importance of influencer audience measurement and analysis for strategic influencer identification
The report reveals the seven top priorities brand executives should focus on in 2018 to optimize commercial potential and take full advantage of the strategic evolution of influencer marketing.
The beauty category was a pioneer industry player in exploring social media influencers and researching their inherent powers for revenue generation, engagement and the organizational shifts required in global brands.
“We’ve seen major transformations in the beauty sector where working with the right influencers, in the right way has enabled brands to rise to dominance or even reinvent themselves,” said Pierre-Loic Assayag, CEO, Traackr. “Our report presents exciting examples of how brands are working to scale, optimizing their work with influencers to drive awareness and advocacy, while maintaining authentic relationships and compliance with regulatory shifts.”
The report identifies influencer archetypes including the Celebrity, the Expert, the Beauty Editor, the Founder, the Lifestylist, the Thought Leader, the Disruptor and the Personal Brand and the best ways to engage with each.
Key insights include:
● The majority of influencers will grow their audience by less than 50% per year
● 10% of all influencers will lose audience members
● Only 5% of all influencers, no matter if they are micro-influencers, rising stars or top tier, will manage to grow their audience substantially in a year
● For the average micro-influencer to reach top-tier status (more than 500K followers), they need to be in the 95th percentile for audience growth for three consecutive years
Disclosure Doesn’t Equal the End of Engagement:
● Usage of #ad and #spon has increased by 54% over the last year and engagement with those posts has more than quadrupled
● When done authentically, a #ad post can better an influencer’s average organic posts; when done poorly, a #ad post will see 50% – 80% less engagement than organic posts
Greatest Indie Brand Growth:
● Among 17 independent cosmetics, skincare and haircare brands, only 5 managed to sizably increase their Share of Influence between 2016 and 2017 to date
● Top performers include: Milk Makeup, Glossier, Amika, Deciem’s The Ordinary and Drunk Elephant
Traackr’s SaaS platform leverages Influencer Relationship Management (IRM) technology that lets brands manage, measure and scale influencer strategies, and their clients include L’Oréal, The Coca Cola Company, Samsung, Microsoft, Merck, Roche and Capital One.
Talk PR founded SERMO, the first global communications network focused on luxury and lifestyle and clients include COTY, Johnson & Johnson, Pernod Ricard, Mercedes-Benz, Lindt and adidas.
“We’ve always been in the business of influence,” said Tanya Hughes, President, SERMO Communications at Talk PR. “But now that influencers are proliferating and commanding more consumer and brands’ attention, budgets are following. As spend on influencers increases, so does the scrutiny on their return. Influencers can work as a highly effective and strategic business tool for brands if they collaborate with the right people, in the right way. This report aims to bring some clarity to the ever-changing, sometimes confusing, but always fascinating world of influence.”
The complete report, “Global Influencer Marketing: Insights from Beauty” is available for free download here.