A Brand Strategists Guide To CPG Influencer Marketing.

While it may appear that leveraging influencers is a new marketing strategy, CPG brands have been using this form of social proof for decades. CPG influencer marketing dates back to 1882. At this time, a London socialite and West End stage actress Lillie Langtry became the poster girl for Pears Soap, making her the first celebrity to endorse a commercial product. What has changed is the accessibility to influencers for brands of all sizes. 

In this article, we unpack the risks and rewards of influencer marketing. You will learn the preliminary steps CPG brands must take before looking for influencers. You will also learn how to gauge their credibility, understand their audience metrics, and determine the right strategy for your marketing initiative.

What is Influencer Marketing For CPG Brands

Influencer marketing for CPG brands is collaborating with someone of influence with an audience base that may find your product of interest. Through a single, one-time promotion or long-term agreement, consumer packaged goods can use an influencer to increase brand awareness or create a direct call to action for immediate sales. 

Why CPG Influencer Marketing Matters

Like it or not, we all make decisions based on some level of influence from another person. 48% of people surveyed said they depend on influencers for most of the products they purchase. Thus clarifying how associating the right influencers related to your brand can play a big part in the success of your product. 

There are two primary reasons a CPG brand should allocate a portion of its marketing budget to influencer product promotion.

Retailers Demand Them

For CPG brands who sell their products on-shelf or through ecommerce retailers, having influencers is a standard request from big players. While retailers like Wal-Mart and Target may have asked for your print advertising contracts, they now ask for your digital marketing strategy, which includes your influencer campaign.

These retailers understand that CPG shoppers spend more money with the right influencer. An influencer campaign also opens the door to a three-point collaboration with the influencer, the product, and the retailer. 

Your Competition Has Them

A truth we all need to recognize is that a mediocre product will often outsell better quality and better value with the right marketing strategy in place. Influencers can be the deciding factor that changes a consumer’s purchase decision away from your brand and to your competition. 

Influencer Marketing Statistics

Influencer Marketing Hub has created a comprehensive list of statistics. Here is a summarized top-10 list as it relates to the CPG industry. 

1. Influencer marketing industry to reach $16.4B in 2022.
2. Instagram is the preferred social media channel for brands that engage in influencer marketing.
3. Video ads are one of the top-performing ad formats on Facebook.
4. Instagram is still a viable avenue for users to find new products and services.
5. In 2022, Brands expect to increase their budgets for influencer marketing.
6. More brands are opting to run influencer campaigns in-house.
7. 93% of marketers have used influencer marketing.
8. The market share of micro-influencers continues to grow, now reaching 91%.
9. The lifestyle industry has the greatest distribution of Instagram influencers.
10. The rise in social commerce is reshaping influencer marketing.

These statistics confirm much of what we will cover in this article. 

CPG Influencer Marketing Best Practices

Whether you choose to use an influencer marketing agency or find influencers yourself, there are a set of steps that you should take across any influencer campaign. These steps help you get the most out of your partnership with the right influencer. 

Determine Your Budget

The cost of an influencer varies, and like buying any high-ticket item, it’s easy to get distracted by the bells and whistles. A budget in advance creates constraints that make it easier to have the right conversations with the right influencer.

Have a Clearly Defined Goal

A critical component to the success of any CPG marketing campaign is to begin with the end in mind. At the end of this campaign, what type of success do you want for your CPG product? Are you looking to land a big retailer? Increase revenues in an existing retailer? Increase sales by 2x with your DTC business model?

Clearly defining your goal in advance makes every aspect of the campaign more manageable. Your target helps to identify the right influencer, set an appropriate campaign duration, and keep your team on the same page about influencer content. It’s all improved when you have a SMART (specific, measurable, achievable, relevant, & timely). 

Review Audience Demographics

Before looking for the best influencer, you need to understand who’s on each platform, where they are, what they like, and what actions they take. Each social media demographic provides clarity about where to look for influencers. 

It isn’t always about how much influence a person has. It might come as a surprise, but even celebrity influencer The Rock is the wrong fit for some brands. 

Understand Influencer Pricing

Many pricing differentiators change the total cost of the campaign. You must see and understand each aspect before signing on the dotted line. Before deciding on the right influencer to work with, here’s a look at each factor you should know.

1. Platforms promoted
2. Content Format
3. Engagement on each platform
4. Social shares
5. The success of past promotions
6. Online recognition
7. Exclusivity agreement

While confusing at first, over time, you will understand the pricing factors. Our advice is to start small with your influencer marketing efforts so that you can learn through experience. Begin with a single promotion, understanding that it is less about ROI and more about education. 

Interview The Influencer

You must communicate with real influencers to truly understand how influencer marketing works. But that’s not the point of this best practice. Scheduling a meeting with a potential influencer helps determine if they are the appropriate fit for your CPG company as a long-term strategy.

Include a Copywriter

Content creators are well-versed in keeping their audience engaged, but that does not make them effective copywriters. Having a copywriter on hand is a good idea to assist with the tone of voice, message, and call to action to get the biggest bang for your buck. The previous statement is essential for DTC brands looking for immediate purchases rather than branding alone. 

When Influencers Go Rogue

Wouldn’t it be nice if every partnership worked out? Unfortunately, that isn’t the reality of being in the CPG market. We’ve seen it through retailer relationships, distribution contracts, and contract-manufacturer agreements. The fact is, not every influencer is going to do what they say.

We strongly recommend reading and personalizing your influencer agreement to protect your brand from any less-than-ideal actions they take. Not only do we live in a society that avoids supporting brands associated with bad press, but it’s important to remember that influencers are human. Humans always carry the potential for moral error. 

Clearly define your influencer exit strategy to protect brand equity if the partnership goes sour.

Influencer Investments as a Brand Strategy

One of the latest trends in the CPG industry is having influencers commit financially to a brand launch or a later round of investments. This strategic partnership benefits both parties as the influencer understands how they may not have success on their preferred social platform forever. The brand wins by having an exclusive relationship that gives them an enhanced ability to market the influencer’s recommendation.

Creating Your Influencer Marketing Campaign

Now that you understand the prerequisites for bringing on an influencer, it’s time to develop your campaign. For your influencer marketing strategy, there are a few areas where we want to focus. 

Brand Awareness VS Call To Action

Are you looking to build name recognition or cause people to take action? In most cases, both is the appropriate answer. In almost every marketing situation, it makes sense to have the consumer take action, which is no different in influencer marketing. 

A call to action doesn’t always mean making a purchase. It could mean signing up for a free recipe book, private influencer event, or sampling program. It’s an unfortunate truth that most brands who work with a partnership miss this vital point. 

Leveraging Influencers Across Your Brand Marketing Strategy

Even when only partnering for single post promotions, leverage your influencer investment across any marketing channel you have. Whether it’s podcasts, print ads, retargeting campaigns, or social media marketing, use their name recognition to your advantage.

Not only does this apply to celebrity influencers, but it also works for small mom bloggers with 20,000 followers. Even when their name recognition doesn’t apply to other marketing platforms, a level of intrigue gets created when stating “as recommended by TikTok influencer (insert name here). 

Do This Before Influencer Marketing

If your objective is a successful influencer marketing campaign, doesn’t it make sense that you build your product packaging for peak performance? At SmashBrand we use data analytics and simulated buyer environments to create product packaging that performs on-shelf, online, and in the hands of influencers.

If you are a CPG brand looking for a successful new product launch or a brand refresh, book a time to discuss your project with our team.