Rather than using traditional methods such as TV or print advertising, which can be expensive, many companies are turning to social media to market products and interact with consumers.
And this tool appears to be perfect for companies looking to minimise risks whilst introducing its product to market.
Earlier this year cosmetics brand Swedish Skin launched its products using social media for 100 percent of its marketing.
With the view that social media ‘may well put an end’ to ‘expensive TV and print advertising campaigns’ Swedish Skin eliminated the middlemen, third party distribution companies, television advertising and ‘unnecessary’ business expenses.
Since the launch, the brand has continued to focus its marketing strategy solely online, and has heralded a ‘new era of more affordable skin care through social media marketing.’
Swedish Skin CEO William Byrd told CosmeticsDesign.com USA that Swedish Skin’s marketing strategy involves “paying YouTube ‘skincare gurus’ to talk about my products” so that “their viewers see the products and visit the Swedish Skin website”.
The skin care company highlighted the affordability of social media marketing and online sales by successfully reaching customers on Facebook, YouTube and Twitter.
Its product reviews have been posted in video format on YouTube and are said to have been viewed over 115,420 times.
One such review by ‘Gregory Gorgeous’, posted about 1 month ago, is claimed to have boosted sales by 2000% in the week it was published. Byrd expects this effect to continue as ‘those reviewers become more popular over time’.
The cosmetics industry has seen a growing emphasis on the advantages of this type of marketing which was one of the topics explored at this year’s Sustainable Cosmetics Summit in New York.
A paper entitled ‘The Potential of Social Media’ was presented by John Marshall Roberts, communications strategist and CEO of Worldview Learning who told CosmeticsDesign.com USA that social media “can dramatically improve ROI (Return on investment) for marketing dollars if done correctly,” asthey “allow brands to generate a global following of loyal customers with relatively low investment.”