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Influencers have a significant impact on sales but not on the long term

Published Time:Friday on Dec 17 2021 10:52:13 Source:未知 Read:

Videos that influencers broadcast on social media do boost online sales. A recent study has found increased sales of certain products on Amazon after going viral on TikTok.

Nine out of ten products analysed in select Amazon subcategories showed a relationship between TikTok viral exposure and a rise by more than 85.3%, on average, of their Amazon revenue, from one month to the next, found a recent study, conducted by Ines Durand, eCommerce Specialist at Similarweb.

But while this beneficial effect is visible, it’s not necessarily sustainable. According to the study findings, sales of these products return to normal two months after their TikTok success.

The numbers do the talking

Many products have become viral hits on TikTok, from CeraVe SA Cleanser to The Ordinary’s AHA 30% + BHA 2% Peeling Solution and Revlon’s One Step hair-drying styling brush. Such products have brought increased revenue to brands. Analyzing revenue from these products, which are widely reviewed on TikTok, between September 2020 and August 2021, the study showed an average growth of 112% for Revlon, 61% for The Ordinary and 37% for CeraVe.

L’Oreal Paris, for its part, managed to achieve more than 400% growth on average with its Infallible Fresh Wear Powder foundation, released in December 2020. According to Similarweb analytics, the original video was viewed by seven million users in February 2021, launching a chain reaction of videos. Dates that coincide with revenue growth of over 1,238% between January and February 2021. While revenue for the foundation reached $20,300 last January, it jumped to $272,200 the following month, far exceeding the +2.6% month-on-month category growth rate for the period.

More generally, the #Beauty hashtag has almost 71 billion views on TikTok. The hashtag #TikTokMadeMeBuyIt, bringing together products promoted by users, has more than seven billion views. The #BestAmazonFinds hashtag has been used more than 45.7 million times.

Targeted marketing thanks to viral videos

Furthermore, Similarweb’s study highlights TikTok’s significant power of influence compared to Instagram. TikTok achieves a better engagement rate, four times higher than Meta’s social network, at 17.5% compared to just 4.2%. Brands have every interest in developing their presence on TikTok. With a particularly high engagement rate, and a growth in the number of active users on the social network, TikTok is a hive of marketing opportunity for brands.

That’s something that the shaving cream brand EOS has clearly understood. After a video of the user Carly Joy went viral on TikTok, the brand chose to surf on this free publicity. After around 10 million views, the brand launched a limited-edition version of the product presented by Carly Joy, using her own technique. The study reports month-on-month revenue growth of over 171% for EOS shaving cream in March 2021, from $54,100 to $146,800. The expected growth in this product category was, however, estimated at +30%.

It is clearly a reality and not a myth that TikTok influencers have the power to boost product sales. Some are already capitalizing on their popularity by adding links to mentioned products in their biography — a way to earn commission on sales.

Conversely, it is likely that a bad buzz, like the one recently experienced by the Chanel Advent calendar, can also have disastrous consequences.