News Summary
Unilever, under new CEO Fernando Fernandez, is transforming its marketing strategy with a focus on social media and influencer marketing. Following significant leadership changes, the company plans to cut jobs while increasing its brand and marketing investments. The strategy includes allocating 50% of its media budget to social channels and engaging 20 times more influencers, targeting growth in key markets like India and Brazil. This shift may reshape the influencer marketing landscape and impact how brands engage with consumers.
Unilever’s Major Shift in Marketing Strategy Under New Leadership
In a surprising twist, Unilever is shifting gears under the new leadership of CEO Fernando Fernandez. This change comes on the heels of the resignation of former CEO Hein Schumacher, who left the position after just under two years in February 2025. With nearly four decades of experience at Unilever, Fernandez is ready to steer the company in an exciting new direction.
Big Changes Ahead
Unilever is not just making management changes; it’s also entering a period of significant transformation. Recently, the company announced plans to cut approximately 7,500 jobs in an effort to save about €800 million. Yet, amid these cuts, Unilever isn’t cutting back on its commitment to marketing. In fact, their brand and marketing investment (BMI) has seen an increase from 13% to 15.5% in the last year, indicating a bold stance in a challenging market.
Social-First Approach
During a recent interview with Warren Ackerman from Barclays, Fernandez revealed a striking shift in Unilever’s advertising strategy: a move towards a social-first advertising model. The company plans to allocate a whopping 50% of its media budget to social channels, significantly up from the current 30%. This is not just a slight tweak; it’s a monumental shift that reflects the growing influence of social media in consumer behavior.
The Dramatic Rise of Influencer Marketing
In parallel with the increase in social media spending, Unilever is looking to massively boost its influencer marketing strategy. The company aims to work with 20 times more influencers than before! This means focusing on key markets like India and Latin America, where they plan to engage influencers across all 19,000 zip codes in India and 5,764 municipalities in Brazil. It’s an ambitious plan that shows how serious Unilever is about embracing the influencer marketing phenomenon.
Implications for the Industry
Marketing analysts are watching closely, as Unilever’s bold move could impact the entire social media landscape. Currently, the average budget allocation for influencer marketing is around 6%, according to data from Gartner’s CMO Spend Survey. If other major brands follow Unilever’s lead, we could witness a surge in spending and heightened competition within the influencer marketing space.
Interestingly, the industry has evolved quite a bit since Unilever previously seemed skeptical about influencer marketing, particularly regarding issues like fraudulent practices. Now, with advanced platforms and tools at their disposal, brands can handle influencer campaigns more effectively, ensuring genuine and authentic engagements with audiences.
Challenges Ahead
However, this significant increase in social spending does come with challenges. Keeping track of attribution—figuring out how influencer marketing translates into sales—can be tricky. There’s also concern that if audiences become overwhelmed by commercial content on social media, it could lead to social fatigue.
A case in point is Alaska Airlines, which has partnered with influencer Jordan Howlett to focus on long-term engagement rather than one-off campaigns. It’s a smart move in a landscape that’s maturing and requires brands to redefine success metrics and seamlessly integrate creators into their marketing mix.
A Look to the Future
The future is exhilarating but uncertain. Projections indicate that by 2025, U.S. marketers are expected to spend around $10 billion on social media-sponsored content. This creates opportunities for brands, but they must ensure that their targeting and audience alignment are spot on to prevent backlash and maintain engagement.
As Unilever embraces this new chapter, its strategic, machine-like approach to content creation reveals a commitment to adapting to consumers who are increasingly wary of traditional corporate messaging. It’s a fascinating development to watch, and we’re eager to see how this all unfolds in the coming months!
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Additional Resources
- The Drum
- Wikipedia: Influencer Marketing
- Fortune
- Google Search: Unilever influencer marketing
- PR Week
- Google Scholar: Unilever marketing strategy
- Financial Times
- Encyclopedia Britannica: Marketing Strategy
- Forbes
