Influencer marketing has forever changed the way that brands reach customers. 

Gone are the days when audiences were persuaded by television ads and celebrity endorsements alone. Now, consumers consider social media Creators the new source of expertise for product recommendations and reviews. 

This dramatic shift in consumer behavior has created a major opportunity for consumer packaged goods (CPG) companies to build their brands through collaborations with influencers. Let’s take a closer look at the pivotal role Creators play in driving sales and success for CPG companies.

CPG Companies and Influencer Marketing

Why are Creators so trustworthy? Consumers believe that influencer marketing is more realistic than traditional ads because it demonstrates the product in action and highlights its use from multiple angles. 

Impact Online and In-Store

According to a CPG Influencer Marketing Trends survey conducted by LTK, 44 percent of Gen Z and millennial women say they search Creator content when looking for new beauty or personal care products. Influencer marketing is even impacting in-store behavior: 63 percent of the general population, 67 percent of millennials, and 77 percent of Gen Zers have made in-store buys based on influencer recommendations. 

Factors That Drive Decision-Making

The survey also found that most customers consider price the most important factor before making a purchasing decision, followed by quality, convenience, availability, and brand. 

However, LTK shoppers think differently. They value quality first, followed by brand, availability, convenience, and price. Why? LTK’s Creator content helps drive early adoption by highlighting a product’s quality through brand demonstration. 

Appeal Across Multiple Categories

It’s not only beauty influencers who have the power to sway purchasing decisions. On the LTK app (with more than 30 million monthly users), Creators are posting more content across all categories including food, beverages, and electronics. 

Fifty-nine percent of consumers say they look at Creator recommendations before visiting the grocery store. Beauty and personal care remains the most popular category to shop for among Gen Zers, but it’s followed closely by fashion, food, electronics, and cleaning supplies. 

Video Content Remains Supreme 

With the shift away from traditional advertising toward influencer marketing, one thing hasn’t changed: Video is still the most popular form of content. Sixty-six percent of consumers prefer videos that feature CPG products over other forms of media. 

Creator video content has the power to elevate and highlight a CPG company’s brand and products. In fact, LTK video drives 79 percent more views than static content. 

How Does Creator Content Help CPG Companies Boost Sales? 

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. 

Authentic Product Recommendations

Both micro and macro influencers have established relationships with their audiences, giving them the power to strongly impact consumer choices. When they promote a product, their followers are more likely to consider it, trust their recommendation, and follow through with a purchase. 

Unlike traditional advertising or celebrity endorsements, influencer recommendations tend to be a more trustworthy form of marketing. Influencers show their followers how they incorporate certain products into their daily lives, demonstrating exactly how to use them. This authenticity resonates with their audience, making them more inclined to purchase and try the product themselves.

Omni-Channel Investment

Brands that utilize Creator marketing in both direct-to-consumer advertising and through retail media networks typically find the most success, according to LTK data. Why? Each method targets a different goal and audience. 

Retail media networks focus on driving sales when the consumer is in a ready-to-buy mindset, whereas direct-to-consumer campaigns inform, educate, or remind customers about a particular product or service. Balancing both strategies will increase consumer consideration and awareness, working together to grow brand influence.

User-Generated Content

When influencers create content that showcases a CPG product, it will often lead their followers to create more user-generated content. As a Creator’s followers try the product and share their experiences on social media, this organic promotion expands the reach of the product and brand, reinforcing its value. LTK’s more than 30 million app users tend to be the “Early Majority,” sharing Creator posts in a way that scales their audience to reach the tipping point faster.

Targeted Audiences

Social media influencers often specialize in specific niches or demographics. CPG companies can strategically partner with Creators whose followers closely align with their target audience. This ensures that their marketing efforts reach the right people at the right time, increasing the likelihood of conversions. 

Trust and Authenticity

Influencers are generally viewed as reliable sources of information by their followers. Their reviews and recommendations carry a lot of weight because they’ve established a track record of giving honest opinions. This trust factor can significantly impact purchasing decisions. 

However, Creators who violate the trust of their audiences often have a difficult time establishing that rapport again. That’s why it’s important to work with Creators who have gone through a strict approval process. 

The Influencer Key to CPG Brand Growth

Creator marketing has become an indispensable tool for CPG companies looking to drive sales and achieve success in today's competitive marketplace. By harnessing the authenticity and reach of trusted influencers, these brands can connect with target audiences in more meaningful ways, resulting in increased brand visibility and sales growth. 

As more consumers look to Creators for advice in every aspect of their lives, it’s important for brands to understand how to effectively reach them. Click here to watch our CPG on-demand webinar to learn about the top influencer marketing strategies for CPG brands!

Learn why LTK is known as the top influencer marketing platform across the globe. We offer everything that CPG companies need to boost marketing efforts, increase sales, and grow a digital presence by establishing partnerships with the right Creators. Contact us to get started.