According to a scientist on TikTok, using an immersion blender in addition to a stand mixer removes the air in the buttercream and, more importantly, improves homogenization.
Using an immersion blender will also slightly alter the texture by reducing the volume by 16%. This will result in a denser frosting and will give it a glossier consistency.
This trick works better on French, Italian, and Swiss meringue buttercream than American buttercream, because those three come together by emulsifying a liquid and a fat.
In contrast, American buttercream is made primarily of powdered sugar and butter, and the consistency of the frosting isn't dependent on the liquids emulsifying with the butterfat.
The immersion blender hack will remove the air in the frosting, which will slightly intensify the colors, but the results won’t be quite as vibrant with American buttercream.