Unilever’s new CEO, Fernando Fernandez, says brands “are default suspicious” and has laid out plans to increase marketing via social media influencers from 30 to 50 per cent of the consumer giant’s total advertising spend.
So what? The maker of Marmite and Magnums is adopting a “love it or hate it” strategy. Traditional ads are being increasingly ignored and there’s a strong business case to prioritise meeting consumers “face-to-face” in the digital spaces where they spend most of their time. But handing over message control to individuals is inherently risky. Off-script remarks or personal controversies can quickly erode trust at a time when the credibility of institutions is low across the board.
Spreading like (in)flu(encer). “Influencer marketing was once just fashion and beauty – now it spans every sector,” says Ben Craig, head of digital and campaigns at Montfort. “Brands are recognising in the new information environment we live in, attention is everything.” No area is too niche, with brands piggybacking outlandish trends like
Micro is the new macro. Fernandez, who took the helm at Unilever following Hein Schumacher’s surprise exit, says he wants a “machine of content creation” with “at least one influencer” promoting its brands in every region of every country, including in 19,000 Indian zipcodes and 5,764 municipalities in Brazil. After the US, it’s these two countries that account for the largest share, equivalent to more than a fifth, of influencer-sponsored posts online.
Needless to say these regional influencers won’t have the same clout as David Beckham. Instead, Unilever is likely to employ “micro influencers” – creators with smaller, highly engaged audiences whose recommendations feel more word-of-mouth than broadcast. A recent survey of 400 firms found that nearly 90 per cent of influencers employed fit the category of “nano” or “micro”, with between 1,000 and 50,000 followers.
Running the risks. Influencers are in a new category of “information broker” – as are journalists and review sites – that help consumers navigate choices, says Craig. Their appeal comes from authenticity, but if they become overly commercial they risk losing trust and audience. Brands need to tread carefully: “Too much control kills authenticity, too little invites chaos.” Risks fall into three main buckets:
Social purpose. Unilever’s enthusiastic embrace of ESG made it a target for activists when the share price didn’t perform and since Schumacher the company has been much more careful about raising its head above the parapet on social and political issues. In that context, delegating marketing to influencers with opinions might seem foolhardy. Unilever would be wise to vet carefully anyone it plans to work with.
What’s more… The number of influencer-focused marketing agencies globally has risen from 1,120 in 2019 to nearly 7,000 today, while the sector as a whole is expected to reach $32 billion in total value this year. Cutting back on costs has obvious appeal, but caveat emptor. Giving up control has costs as well.