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CPG Influencer Marketing

How does one stand out in the crowded CPG (consumer packaged goods) industry? Well, targeting the consumer's perspective is the answer and CPG influencer marketing can do just that for brands and products.

Old school advertising channels like commercials are no longer as effective as before, plus many people are annoyed by pop-up ads and banners. 40% of them use ad blockers on their devices, while a majority would rather mute an advertisement. Consumers would rather pay a fee than watch ads before, during, or after their favorite videos or movies. Thus, media streaming services have enabled clients to subscribe to premium versions of the product that do not feature advertisements.

Traditional advertisement is waning but that doesn't mean advertising is dead. Similar to the replacement of TV media with streaming services, creators have replaced traditional endorsers to advertise products.
What is Influencer Marketing?
Social media has given rise to prominent online personalities who are not necessarily celebrities, but everyday creative individuals. They are a broad spectrum who have a decent to large following on platforms like Instagram, TikTok, Twitter, Linkedin etc.

CPG marketing firms mainly comprise of FMCGs (Fast Moving Consumer Goods) Thus, CPG influencer marketing is the collaboration between companies and these individuals to promote a brand or market a product. It has gained popularity among large and small CPG firms with reports suggesting that it grew seven-fold in a span of five years from 2016.
The CPG and Influencer Relationship
Influencer marketing is a strategic approach that leverages the relationship between online personalities and their audience. Influencers, as the name suggests, are persuasive as a result of the relationships they've established. Research highlights that people trusts contributors more than commercials.

Besides, many CPG companies are using content makers to market a brand or product. If you don't know anything or you're a beginner, you've come to the right place. Before going further, let us consider their importance by crunching the numbers.

  • 9 out of 10 marketers believe that creators are crucial to achieving their objectives.
  • 2 out of 3 CPG customers prefer influencer marketing to traditional advertisements.
  • Among the gen z, 2 out of 5 discover of a new brand or product through social media, especially within the food and makeup niche.
  • 3 out of 4 customers are open to trying a new brand if they share the same values with influencers.
  • 84% of customers who intend to purchase end up doing so after they are redirected by online personalities.
Benefits of Influencers
They are an efficient alternative to celebrity endorsements since they offer high ROIs. The high conversion rates can efficiently market brands and products.

The CPG influencer marketing industry has experienced tremendous growth over the last couple of years. Influencers not only advertise but also demonstrate how to use a given product. This is useful when launching brands that consumers are unfamiliar with.

Generally, an influencer is flexible and relatively cheaper. 57% of marketers have adopted the pay-per-post pricing model where they pay flat rates based on engagements to create and publish content that promotes a firm and its values. 36% offer free samples or discounts to marketers. Based on various factors, compensating them is well within the budget of many companies.
Tips for A Great Campaign
Now that we know the whys let us turn to the hows. An effective campaign is based on transparency, high-quality, diversity, coupons and discounts, and product reviews.

Transparency - Brand strategies should feature explicit commercial intent. Research shows people appreciate content with commercial intent; they are more likely to purchase from these brands. They are wary of subtle tactics because they feel like they may be duped.
    High-quality
    High quality campaigns feature authentic and informative marketer who are like-minded and connect with the consumer. Partnering with bloggers who share the same values as the customers is important, it increases a company's web traffic.

    60% of consumers have followed a brand because of their favorite creator. Moreover, content contributors can create or hop on a trend using hashtags and captions to make the content viral.
      Use bloggers from diverse backgrounds
      CPG's low barrier of entry means that it is saturated with competitors which is good news. Customers don't have to think hard about their purchases, they are easily convinced into impulsive buying or trying a new brand.

      Thus, firms benefit a lot by collaborating with many diverse makers because they are exposed to a wide range of creative content that can be optimized through market segmentation.
        Coupons and giveaways
        Who wouldn't mind a coupon or better yet a giveaway? Consider giving coupons, promo codes, or giveaways. This is especially useful for new launches as it allows one to solicit feedback from the public.
          Solicit the audience's reviews
          A review is a form of social proof that is indispensable to the younger generation. It adds the human touch to your campaign since they can convince undecided consumers to try out new products. Micro and nano bloggers are perfect for reviews since they are more connected with their audience.
            Stages of the Strategy
            The first stage involves setting and defining the objectives of the campaign. Is the goal raising awareness or increasing conversion? A clear objective is a roadmap to success.

            The whole process follows and requires close collaboration with the entrepreneur to creatively align the objectives with the audience's interest. Choose micro and nano contributors with high engagement rates. They should be willing to promote or review through their channels.

            Next, coupons, vouchers and giveaways are offered to the audience through tracking links that measure the campaign's effectiveness. Measuring and analyzing data and feedback provides consumer insights to better your services. Remember, failing to plan is planning to fail.