Estee Lauder make big bets when we are talking about influential persons in the beauty industry: cosmetics company spends 75% of their budget allocated to digital marketing in order to attract influencers.
This statistic was represented by the President and CEO Fabrizio Freda in the income statement Estee Lauder in the second quarter. In particular, the document States that the vast majority of marketing funds of the company currently in digital advertising, with the bulk of investments designated for influencers. This is a special kind of marketing, also known as the marketing agents of influence or promotion through opinion leaders.
“We invested much more in advertising now and I would say that each of our brands have a certain investment depending on where they are, said Fred. – These investments are now mostly in digital format. 75% of our investments are now focused on influential members of social networks, and the results show that these investments are very productive.”
Mr. Freda also noted that investment in marketing agents of influence are extremely important for Estee Lauder, because they are part of more important strategic step towards the transformation of marketing expenses in innovation and initiatives that are effective when it comes to the development of the company. The use of influential individuals has far-reaching implications for the cosmetic giant, ranging from individuals representing the brands and stars of the advertising companies, to influencers working through YouTube and Instagram.
That is one of the world’s largest cosmetic companies – Estee Lauder, invests such a significant investment in the marketing of agents of influence is a major sign of the growing recognition of influencers in the beauty industry. According to analysts Mediakix, the industry marketers spend 8.5 billion dollars on promotion through opinion leaders. According to Statista, Estee Lauder spent more than $ 900 million on marketing impact in 2017 in the U.S. alone – a number that has probably increased in recent years, in view of the commitment of the company to cooperate with influencers.