Thu, Oct 29, 2020

Face Value Report - Returns and Risks Associated with Influencer Marketing

Kroll commissioned a survey of over 900 marketing professionals working in fast moving consumer goods (FMCG) businesses to assess the current state of influencer marketing for FMCG brands. Our aim was to analyze the increase in sales provided by influencers, establish whether the COVID-19 pandemic has affected spend on influencers and assess the financial and reputational impact of negative influencer experiences.

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Key highlights include:

  • Nearly a quarter of FMCG companies suffered a $100,000-$250,000 loss from a negative influencer experience
  • By 2021 almost half of respondents are set to spend 31-50% of their marketing budget on influencers 
  • More than one in 10 marketers at FMCG companies gained $1.1 mn-$5 mn from their most successful influencer campaign
Securing Success

Our survey included respondents from the UK, U.S., France, Germany, Ireland, Netherlands, Spain, Italy and the United Arab Emirates. Clear winners emerge when comparing how much companies make from their influencer campaigns against what they spend running them.

The data suggests that the average amount spent per influencer among marketers at FMCG companies is $22,151 per year. Marketers at FMCG companies in the U.S. stand out as paying their influencers the least, around $13,153 per year. In contrast, Italian respondents pay the most at around $29,972 per year. 


Face Value Report 

Looking at the average sales increase by country, the countries with the most successful single influencer experience for an individual product were France resulting in $1,246,039 worth of sales from an influencer, UAE with $1,006,651 worth of sales and Spain with $949,304.

Face Value Report

Relationship Problems

Almost a third of UK marketers at FMCG companies claim to have never had a bad experience with an influencer—the highest number for any of the nine countries surveyed—and two-fifths of respondents have rarely had an incident.

The UAE has the next strongest track record, with nearly a quarter of respondents avoiding an influencer-related issue.

The U.S. experience is variable. Behind the UK, marketers at FMCG companies in the U.S. are the least likely to report multiple incidents, but they are also the least likely to have never had an issue.

Face Value Report 

To view the full results, download the report.

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