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Unilever’s New Direction: A Shift to Social Media and Influencer Marketing

Unilever embraces a new marketing direction with influencer partnerships.

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News Summary

Unilever, under new CEO Fernando Fernandez, is shifting its marketing strategy towards a social-first model and increasing investments in influencer marketing. The company plans to allocate 50% of its budget to social media, work with 20 times more influencers, and adopt AI technology for optimized campaign strategies. This localized approach aims to connect better with consumers globally.

Unilever’s New Direction: A Shift to Social Media and Influencer Marketing

Big news is brewing at Unilever! With Fernando Fernandez stepping in as the new CEO after Hein Schumacher stepped down, the company is gearing up to make some exciting changes in how it connects with consumers. Having spent nearly four decades at Unilever, Fernandez brings a mountain of experience to the table, previously holding positions as the CFO and president of beauty and well-being.

A Major Shift in Marketing Strategy

As part of an effort to reconnect with consumers, Unilever is taking a bold leap towards a social-first advertising model. This means that the company plans to increase its media spending on social channels from an already significant 30% to 50% of its total marketing budget. Now that’s a hearty commitment to engaging with the online community!

Fernandez is also ready to embrace the power of influencers by planning to work with 20 times more influencers in the upcoming campaigns. This shift is largely in response to the growing skepticism consumers have towards traditional corporate messaging. People are naturally more inclined to trust recommendations from real people, and Unilever is keenly aware of that.

What This Means for Local Markets

Fernandez believes that influencer marketing will reshape the way Unilever connects with consumers at a local level. For example, they plan to fine-tune their marketing outreach so that it targets every municipality in Brazil and every ZIP code in India. This localized approach could give consumers a more personalized experience with the brand.

Leveraging Technology for Impact

Another major change on the horizon is Unilever’s decision to adopt a “machine-like” approach to content creation. By utilizing cutting-edge AI technology, they aim to optimize their marketing strategies, ensuring that their campaigns are not just effective but also efficient. Given that Unilever’s marketing investment has already risen to 15.5% from 13% just two years ago, it’s clear that the company is making marketing a top priority.

The Bigger Picture: What’s Happening in Marketing?

6%. Analyst Claudia Ratterman from Gartner notes that other companies might be hesitant to mimic Unilever’s changes right away, given the scale of these adjustments. However, one thing is evident: the direct-to-consumer revolution is real, and brands are pouring their resources into social-first marketing strategies.

As changes in social media algorithms make it increasingly challenging for brands to engage with audiences organically, there’s likely to be an uptick in investments in influencer marketing. Brands now recognize that to avoid backlash and remain effective, they need to ensure their investments in creator content are hitting the right audience.

Long-Term Partnerships are Key

What’s noteworthy is that successful creator marketing no longer revolves around one-off campaigns. Instead, brands are realizing the importance of building long-term partnerships with influencers. This evolution means that influencer marketing is becoming a core component of performance marketing, rather than just a tool to generate brand awareness.

Focusing on Key Markets

With a keen eye on market demands and consumer preferences, Unilever aims to better utilize its resources by concentrating efforts on key markets such as the U.S., India, China, and Indonesia. This targeted approach is likely to result in more tailored marketing strategies that resonate with local audiences.

As Unilever makes these significant strides in reshaping its marketing strategies, it will be interesting to watch how this revisited focus on social media and influencer partnerships changes the landscape of brand-consumer relationships in the years to come.