Estée Lauder is going all in with influencer marketing after reporting that they will be allocating 75% of their total marketing budget on influencers, in 2017 they spent over $675Million on influencers alone.
CEO and president of Estée Fabrizio Freda said the vast majority of their advertising is in digital Ads and that influencer marketing was the primary investment of those advertising campaigns.
“Over time we have invested much more in digital social media influencers since they have been proven to boost sales and be highly productive”
Freda said that the investments they’ve made into influencer marketing have truly paid off for Estée Lauder because it’s been part of a strategic move towards putting more marketing dollars for effective growth, Estée said they are working with mega influencers from Kendall Jenner and Karlie Kloss to micro influencers on both Youtube and Instagram.
“They’re highly productive because we are doing a very good job in advertising, quality on asset, in targeting but frankly they’re very productive because we have learned much better how to focus our investment where there is growth,” he added.
Estée Lauder owns around 30 skincare, makeup and hair brands, including Clinique, Smashbox and La Mer.
Globally marketers are spending $8.5 billion on influencer marketing, according to Mediakix. In 2017 Estée Lauder spent over $675 million on influencer marketing solely in the USA. Given the company’s commitment to influencers this number will have dramatically increased over the last 3 years.
Estée Lauder reported positive results this quarter, with net sales at $14.86 billion which is a 9% increase from last year’s net sales.