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New Influencing Beauty Report Reveals Influencer marketing is proving effective for 98% of the beauty industry

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  • For every £1 spent on beauty influencers in 2017, brands secured an average ROI of £8.81
  • Instagram overtakes YouTube as the number one channel for beauty brand promotion
  • Digital beauty influencers have replaced celebrities as main choice for talent collaborations
  • 80% say influencers are pivotal in influencing the opinions and buying decisions of millennial customers

London, United Kingdom: Consumers are no longer shopping for beauty the way they used to and the industry has moved at a transformative speed to stay relevant in today’s social media economy, and for the rising generation of digital-born consumers.

An early adopter of influencer marketing, the beauty industry has clocked average returns of £8.81 for every £1 spent on influencer-led collaborations, bringing with it a 98% efficacy rating on such campaigns for 2017. The ‘Influencing Beauty’ research report is evidence of how well entrenched talent-led marketing is in the PR & communication strategies of beauty brands, and the value it can deliver.

A continuing trend throughout the report is the role millennials and digital natives are having upon beauty marketing strategies, with a resounding 80% saying influencers are pivotal in influencing the buying decisions of this consumer group.

It is not surprising therefore that 84% of survey respondents say they have worked with digital influencers in the past 12 months, and a similar percentage are choosing to stick with influencers rather than traditional celebrities for all future endorsement work.

A significant finding of this study is that Instagram is proving the most successful channel for talent-led collaborations for 78% of respondents, overtaking YouTube, a channel that has historically been prolific within the beauty segment. This demonstrates market maturity in that building engagement is more important for beauty brands than reach and traffic. In fact, 82% of beauty brands use social media engagement figures as a measure of success, surpassing traditional metrics such as column inches and website traffic.

The new parameters for success has forced marketers to become savvier and approach each crucial stage of influencer marketing to ensure they’re aligning themselves with influencers who are a meaningful fit and have the propensity to deliver ROI. The report notes that 70% of marketers say social media analytics, including audience insights and engagement metrics, have proven the most useful when identifying influencers to work with, signalling a more data-led approach to talent collaborations.

Findings from the report underscore the shifting digital marketing landscape as digital influencers and niche, emerging talent attach itself to the traditional celebrity endorsement space, not because of their fame or followers but purely for the influence they command online – changing the rules of engagement as we know it.

“We have entered a more considered age of influencer marketing where beauty brands are looking for stronger metrics across each social media platform, to help them differentiate between the influencers and celebrities who are achieving the highest levels of engagement, and ultimately delivering the best ROI,” said Megan Falconer-Taylor, Director of Product at Celebrity Intelligence. “I think the report findings prove that when collaborations are well thought through, there is the potential for influencer marketing to deliver ROI that easily surpasses traditional forms of advertising.”

Key findings include:

  • 98% of respondents overwhelmingly support the view that the beauty industry is working effectively with digital influencers, compared to other industries.
  • Digital influencers have overtaken celebrities and are now the number one choice of talent for 84%; 83% have influencers as their number one choice for upcoming projects
  • For every £1 spent on beauty influencers in 2017, brands secured an average ROI of £8.81
  • Instagram is the resounding channel of choice in 2018, as YouTube falls out of favour
  • 80% say influencers are pivotal in influencing the opinions and buying decisions of millennial customers
  • 73% of the beauty industry say Generation Z is pushing them to be more transparent
  • Building brand awareness, and not sales, is the primary function that influencers and celebrities serve 33%
  • A data-led approach is proving to be the most effective, for 67%
  • Influencer marketing budgets are set to increase for 70% of the beauty industry

About the report
The most comprehensive of its kind on the topic, the report was released today by Celebrity Intelligence, the leading celebrity and influencer engagement platform, in association with Fashion & Beauty Monitor. The report marks the next phase in Celebrity Intelligence’s commitment in providing all the data and insights that drive talent-led marketing forward. The report informs on the current state of influence within the beauty and lifestyle industries, the opportunities and risks posed by digital technology, the rise of social influencers and its impact on brand endorsements, the trends and spends for the year ahead and what factors equate to success on talent-led campaigns today.

The full report can be downloaded here: 

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