The consumer packaged goods (CPG) industry is a highly saturated market. However, some recent shifts in consumer behavior could present the perfect opportunity for consumer packaged goods brands: Consumers have become more willing to try new brands and products they see online, and they follow purchase advice from trusted Creators for products of all kinds.
Brand loyalists today are open to seeing what’s out there, given that CPG products are easily attainable online and lower-priced—and they require a “lower involvement” decision compared to bigger-ticket items.
Influencer marketing provides the perfect platform for CPG businesses to go straight to already-engaged consumers who trust influencers over typical commercial content.
In this guide, you’ll learn how CPG brands can use influencer marketing to regain market share, increase brand exposure, and attract and retain new customers.
A dramatic shift in consumer behavior has created a major opportunity for CPG companies to build their brands through collaborations with influencers. With a data-centric strategy, CPG brands work with influencers to strategically and authentically promote their products through social content.
By partnering with influencers who have accumulated followers across social media platforms like Instagram, YouTube, TikTok, and Facebook, CPG companies gain access to audiences that may have once been inaccessible.
What is a CPG marketing influencer?
A CPG influencer has the power to influence your consumer’s opinion and purchase decisions.
Content Creators are now the most influential drivers of purchase decisions online, above brands, retailers, celebrities, and store associates. As more consumers look to their favorite influencers for book recommendations, workout regimens, and favorite recipes, content Creators have become the top-ranked influential resource for what to do and buy.
- In tune with followers’ needs and spending behaviors
- More influential than paid advertising according to LTK’s Influential Shopper Study
- The most cost-effective and trackable sales channel
- Excellent digital content creators and collaborators
- Able to tap into brand-relevant niches for specific campaigns
- A source of escapism, lifestyle inspiration, and knowledge
- On-trend, business-minded, and adaptable
CPG Influencer Marketing: Leveraging Creators to Drive Results
Access this on-demand webinar to find out how top brands are utilizing influencer marketing to successfully promote CPG brands, and hear directly from the LTK Creators who connect with the target audience to make it happen.
PLUS! Download the 2023 CPG Influencer Marketing Trends Whitepaper to follow along!
How can your CPG brand benefit from influencer marketing?
Leveraging Creators to create compelling content can ensure your brand stands out from the competition. CPG brands can harness the power of influencers to create engaging content that resonates with their audience.
Whether you’re in pet food, grocery, cosmetics, cleaning products, home care, over-the-counter healthcare, paper products, or personal care, there are content Creators available to improve your brand perception.
Helping smaller CPG brands grow
Influencer marketing platforms like LTK Connect, our self-serve product, help small businesses grow sales and improve brand awareness. Our studies have shown that 44 percent of Gen Z and millennial women say they search Creator content when looking for new beauty or personal care products.
Influencer marketing can also help smaller brands make the most of their marketing spend through licensed influencer content. Over the course of your influencer campaigns, you’ll build a collection of licensed evergreen and reusable content that continues to convert across your owned channels.
Helping larger CPG brands scale
Larger brands are often more established in a saturated market, but it’s still critical to stay relevant and top of mind. Paid influencers help large CPG brands scale by expanding influencer campaigns for increased reach and revenue.
Through influencer marketing management, large brands build and maintain relationships with content Creators and identify effective brand ambassadors to increase awareness and sales.
These brands work with us to develop a layered, full-funnel approach to scale their influencer marketing programs with new influencers, test new channels and verticals, and create multichannel campaign strategies.
How can your CPG brand benefit from working with LTK?
We are unique because we give your brand immediate access to 30 million consumers who are there not just to scroll but to really engage with Creator content. One differentiator of LTK is that consumers come to LTK Creator shops to be inspired, interact, and participate in consuming Creator content.
Through research from LTK national studies, we have seen consistently that Creators are the most trusted to influence decisions. LTK curates Creators who are early adopters—and they’re trusted more than ads and celebrities by Gen Z and millennials.
Helping impact LTK consumer priorities
The results CPG brands and retailers experience from LTK consumers are so impactful that many lean on our platform for large company initiatives, such as reaching audiences they’ve never been able to reach before and turning around brand perception.
Most members of the general population care most about price and least about brand. In contrast, LTK consumers value quality and brand overall, with price at the bottom of their considerations.
When you work with LTK, your content not only scales across influential consumers; it also scales organically across Creators, who, in turn, further expand reach and engagement at no incremental costs to brands.
Stretch Your Budget
Use consumer data to understand how to stretch marketing dollars further and reach the tipping point faster
Up Your Social Strategy
Create a 360 approach to own your social strategy and include social boosting to reach incremental priority consumers
Create Unique Moments
Balance Campaign Types
Establish a balance between Retail Media Networks and DTC campaigns
Diversify Your Audience
Prioritize a diverse set of Gen Z and Mom creators to reach a high intent audience
Incorporate an authentic video strategy as part of each of your CPG campaigns
Comfort, Functionality, and Quality
CPG products are lifestyle products. It’s important to show how they make daily life easier and more comfortable. Consumers value functionality, durability, and quality. Influencers know how to present CPG products as part of an authentic lifestyle, inspiring their followers to buy.
There’s a rising movement for goods to be more eco-friendly and ethical. Buyers are more aware of what goes into manufacturing and shipping a product than ever before. When consumers have the right information, they’ll reward CPG brands that are doing the right thing. Influencers know how to tell your story in a personal way that gives buyers confidence.
Consumers value real reviews and recommendations. As lifestyle spokespersons, tastemakers, and key opinion leaders, influencers have a finger on the pulse of what buyers want from everyday CPG products. Let them promote your product with honest reviews their audience will trust.
The world is diverse, and consumers want to relate to the brands they buy from more than ever. That means seeing themselves and seeing diversity represented equally across media. With millions of Creators in the influencer community on social media, your CPG brand can find plenty of influencers of diverse backgrounds to work with.
Most social media users are on a path to improve their lives and often look to their favorite influencers for inspiration, guidance, and knowledge. Influencers educate their followers through tips, how-to’s, tutorials, and reviews—raising awareness about your brand.
Customers are actively searching for content and products that provide them with a sense of comfort and positivity. In particular, they have a strong desire for creative content featuring products from CPG brands in the food, beauty, and beverage sectors. Influencers are seamlessly integrating CPG products into visually appealing lifestyle content that brings happiness to their audience.
According to our 2023 Gen Z Shopper Study, Creators are the most trusted source on social media by Gen Z with the overwhelming majority saying they trust Creators more than social media ads and celebrities. In fact, Creators are 3.5X more influential to Gen Z consumers than social media ads. When influencers offer brand discount codes and promote quality guarantees and return policies, it’s even more likely consumers will buy.
When they shop in-store, consumers expect their choices to be limited by the physical space. Online, they expect a greater selection from certain brands and suppliers. Brands that offer a variety of choices along with customizable options and subscription models will see success. Influencers can promote your unique services and diverse products to help your brand stand out.
CPG is the #1 category for in-store Creator shopping
The top 4 CPG categories for the general population are:
34% of consumers follow Creators because
they have a similar lifestyle as them.
What influencers want in a CPG Brand
To keep their loyal followers and inspire them to buy, influencers must maintain their authenticity. That means they have several things to consider before signing with a consumer packaged goods brand.
Here’s what CPG marketing influencers are looking for in brands:
Personal brand alignment
The key to an influencer’s success is the authentic connection they have with their followers, which is based on their personal brand. Influencers work with brands that embrace their unique style and trust that they will maintain the brand’s identity.
Products that add value
Influencers choose brands and products they already use or will use regularly. A new product must add value to their lives and the lives of their followers. Staying on-trend also aids in your brand’s success because influencers are known for keeping their followers up to speed on what’s new and now.
Special offers and discounts make it easy for consumers to try new products and brands, risk-free. Influencers leverage discount codes as a catalyst for brand loyalty.
Updated stock levels
Influencers want to work with brands that are transparent and constantly communicate stock levels. Their audience is looking to buy exactly what they promote, so it needs to be available. When stock is low, it’s important to keep Creators in the loop.
A long-term partnership
How to create a successful influencer marketing campaign: Have a healthy brand/influencer relationship. With time, effort, and the right approach, this can turn into a long-lasting, mutually beneficial brand ambassador program.
Does your brand have any environmentally conscious values, statements, or initiatives? Paid influencers can spread the word about how you’re impacting the world. This helps improve your brand perception and sets your business apart.
A clear proposal
Your contract is the start of a collaborative partnership. Provide your influencers talking points, brand information, and helpful tips for deliverables without being too prescriptive. A partner in influencer marketing can help you create a thorough influencer collaboration agreement template.
Casting the most effective influencers for your CPG brand
The key to a successful CPG influencer campaign lies in selecting the right influencers to collaborate with. CPG brands should consider influencers whose values align with their brand and whose audience closely resembles their target demographic. Of course, Creators who are currently and organically using their products are also a good fit. Authenticity is crucial; consumers can easily detect insincerity.
Casting CPG marketing influencers is a complex process. Here are some best practices as you begin your search:
Creating successful influencer marketing campaigns
With substantial influencer data from an influencer marketing platform, the right lifestyle influencers can help you regularly reach niche audiences, improve brand perception, build brand identity, and set your brand apart in the marketplace.
By leveraging an influencer network platform and expert in Creator management, you can confidently execute a successful influencer marketing strategy based on unmatched influencer data in the CPG sector.
Influencer marketing campaigns can be complex; therefore, it is important to start off on the right foot. Before you can begin your first campaign with a CPG content Creator, you need to:
- Determine your goals and budget
- Conduct influencer research and casting
- Determine target deliverables
- Write and facilitate contracts
- Negotiate influencer rates
- Determine how you will ensure contract fulfillment
- Set up monitoring for KPIs to prove ROI
Consider these six tips as you’re strategizing your first influencer campaign:
1 — Allocate enough budget
Make sure to allocate a budget that will allow you to meet all your campaign goals. Stretching a small budget across too many goals will likely yield an unsuccessful campaign.
2 — Be generous with offers and gifting
Give your influencers a way to incentivize their followers to risk leaving the brands they know to try your product. A discount code or offer is the way to get consumers on board.
Gifting can be a great way to start influencer campaigns on the right foot. This sweetens the influencer’s experience and gives them time to truly test your product and report back to their audience authentically.
3 — Utilize social good campaigns
Partnering with influencers on a good cause associates your brand with values the influencer and their followers align with, builds consumer trust, and increases brand exposure by word-of-mouth.
4 — Be patient while you grow influence
When managing your influencer marketing campaign, return on ad spend and results don’t always happen instantly. Influence and reputation, just like with other marketing media, are built over time with lifestyle influencers.
The LTK Benchmark™ is a proprietary benchmark that identifies progress and areas for improvement to reach optimal performance. The LTK Score™ provides insights into how your brand’s influence ranks and best opportunities to improve.
5 — Consider geo-targeting
Geo-targeting branded content can be very beneficial for CPG brands, especially those looking to focus on specific markets. Consider your outreach goals and let those influence how you cater your campaigns for selling products sold in certain locations, online, or in-store.
6 — Stay agile
As powerful as influencers are, unexpected things happen. Try to stay positive, diversify your influencer mix, and roll with the punches. Should any issues arise, the LTK team goes above and beyond to troubleshoot and find a solution during an influencer campaign.
Benefits of an influencer marketing management platform
An effective influencer marketing platform can help brands and businesses connect with different types of influencers. It offers tools that help organizations identify and contact Creators whose content and branding align with theirs, serving as a central hub where both parties can collaborate through strategic campaigns.
An influencer marketing platform like LTK helps companies boost their digital presence with strategic and planned campaigns with Creators. LTK generates billions of dollars in sales for brands annually and offers 11 years of historical Creator data with an experienced team of marketers who curate the very best Creators to grow sales for brands like no other. LTK also helps brands drive sales and engagement through our five-star consumer shopping app.
GROW with the LTK Benchmark™
LTK Benchmark™ is an industry-first benchmark to show where brands are with influence among peers—and to help brands develop the best strategy to GROW their influence.
- Gather the right curated creators with Advanced Audience Insights
- Reach with automated influencer management tools and payments
- Optimize with simplified creator communication and integrations for better execution
- Win! Advanced Audience Campaign Reporting shows you what’s working and where you can adjust to achieve the best possible results
LTK Benchmark™ provides insights into how your brand’s influence ranks and points you toward your best opportunities to improve.