85% of FMCG companies say their brand has been negatively affected by an 'influencer'

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6th November 2020 11:33 - Media and PR

85% of FMCG companies say their brand has been negatively affected by an 'influencer': A survey of marketing and brand managers from across Europe, the US and the Middle East has found that 85% have been negatively impacted through association with an influencer.

The Face Value Report by financial consultancy Duff & Phelps and Kroll polled 917 managers, and found that almost a quarter (24%) have been affected in a negative way more than once.

The research asked respondents the degree to which they had been financially impacted by a negative experience with an influencer, finding that a quarter (25%) had lost in the region of $100 to $250.

In the UK, managers were found to be more trusting of collaborations, according to the poll, with more than half (51%) saying they trust influencers with their brand. The report suggests that this may be because around a third (32%) of British brands use third-party verification specialists, compared to 27% across other countries polled.

Impact of Covid-19

The research found that the pandemic has not affected influencer spend for many FMCG brands, with two-thirds reporting it at the same level as before the coronavirus pandemic, or slightly more. However, one in five managers (19%) said they have upped their spend 'significantly'.

Asking respondents about their projected marketing spend in 2021, the survey found that almost half (46%) expect to spend 31-50% of their budget on working with influencers, with 8% expecting to spend 70%.

The report found that the average spend by FMCG companies on a single influencer (globally) is around $22,151 - with the average number of influencers used by a brand at any one time being 81. This compares to just 66 in the UK, which the report found uses the fewest number of influencers of any of the countries polled.

MD of Kroll’s Business Intelligence and Investigations practice, Benedict Hamilton, said: "When a negative incident with an influencer occurs, the reputational damage that follows can have long-term commercial impacts. Companies need to do their due diligence and not just take an influencer at ’face value.”

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