Digital marketing in the beauty and cosmetics industry. Presented at In-Cosmetics, Milan March 2011.

2. The Digital World of Beauty
Sean Singleton, Group Managing Partner, Skive
at in-cosmetics, Milan, March 29th, 2011

3. 1. Beauty and the digital marketplace
2. Audience trends for the future of beauty
3. Online platforms, technology and innovation
Structure of presentation

4. 1. Beauty and the digital
marketplace

5. Changes in consumer behaviour

6. Consumers of
offline media
Traditional media like
magazines are
passively consumed
Why are we having this
discussion?

7. Consumers of Consumers of
offline media online media
Traditional media like “Browsing the web”
magazines are
passively consumed The first iteration of the
web was consumed in a
similar way
Online display advertising
is dominant channel
Why are we having this
discussion?

8. Consumers of Consumers of Participants in
offline media online media media
Traditional media “Browsing the web” Today, consumers spend
like magazines a vast amount of
are The first iteration of the time online
passively web was consumed in a
consumed similar way And online is a space
where people are
Online display advertising participants, not just
is dominant channel consumers
Why are we having this
discussion?

9. Tools and sites that allow
people to share ideas, A constant hubbub of
experiences, and virtually conversations
any type of content
Social media is the ultimate
example of this participation
trend

10. What does this all mean for
brands?

11. Loss of control

12. • Brands are already topics of conversation online
• No way of stopping this, whether the sentiments are
good, bad, or indifferent
• Beauty, in particular, is a category that generates a
lot of interest, and consequently a lot of noise within
social media

13. ... but incredible
new opportunities

15. • A brand can monitor social media to learn what
customers feel about it and its products
• Brands can get involved with existing
conversations or start conversations of their own
with consumers
•Ultimately, a successful brand can encourage
and enable customers to act as its advocates

16. S o u r c e : S e n t i me n t
Me t r i c s

17. They can listen to what consumers are saying
about their brands and measure the level of
interest and buzz around their marketing activity –
to see if the level of sentiment is positive or
negative
Source: Sentiment Metrics

18. 3%
4%
5% Internet
24%
Television
9% Press Display
Direct Mail
10% Press Classified
Outdoor
Directories
26% Radio
18%
Cinema
Source: IAB, 2010
Brands are nearly spending as
much online as they are on TV

19. 10%
-7.8%
-15.6% -14.5%
-16.1%
-22.0% -20.4%
-25.0%
-37.3%
Year on year growth for 2010
Press Directories Outdoor Press TV Radio Direct Mail Cinema Internet
Classified Display
...and spend is still rising,
even in a recession Source: IAB 2010

20. But spend is only part of the
picture...

21. The key to digital success is innovation
and weaving together a wide variety of
channels, including social media

23. Beauty industry products are
innovative, creative and consumer
driven

24. The beauty industry holds
innovation, creativity and consumer
behaviour on the highest pedestal when
it comes to product development. It is an
industry which is constantly evolving to
meet the ever evolving needs of the
female consumer.

25. But when it come to the web, the
beauty industry has traditionally
been a slow adopter

26. Lauren Luke believes many beauty brands are
still coming through the “reactionary stage” and
haven‟t fully adjusted to what‟s happening to the
beauty industry online. “Most of the big
companies are still using traditional methods or
using their financial weight to buy into what‟s
happening online rather than innovating”
Source: New Media Age

28. 2. Audience trends

30. A digital revolution?

31. This is due to the massive growth in the
internet audience, the readership decline of
newspapers and magazines, broadband allows
the delivery of much richer experiences and
the rise of the beauty blogger

33. Bloggers vs. Editors

34. • Blogs give tips – comments, photos, videos – of
how to put on your make up but
• Bloggers generally don‟t endorse things they don‟t
actually like
• Bloggers are passionate and know their honesty
gives them credibility (92% trust peer
recommendations as opposed to 14% who trust
adverts)

35. Beauty is no longer elitist

36. In the past people have felt distant and excluded from
the shiny, perfect, polished luxury world
but sharing personal styles empowers a wider audience
to be involved.
The bloggers have filled unmet need of the audience –
to allow them to show their creativity and also to give
good advice.

38. However some bloggers, like Lauren
Luke, are becoming beauty brands
themselves

40. At the same time a make up company has finally
capitalised on the world‟s disdain for overly-
photoshopped adverts and made a point of
difference that they don‟t need to retouch theirs

42. Here is another example of how digital is
making beauty less elitist It is a site called
make up alley and is the “money
supermarket” of make up

43. Brands are trying to emulate
success of bloggers by being
helpful
by offering tools, tips, hints, service through
insights from professionals

44. Engagement Pyramid
Curating
Producing
Commenting
Sharing
Watching

45. Engagement Pyramid
The engagement pyramid shows the different types of activity
The large majority of people at the bottom of the pyramid will
just want to watch and learn
Others will want to share advice and tips others will want to
comment

46. Engagement Pyramid
Curating
Creative
Producing
Commenting
Sharing Guidance
Watching

47. Engagement Pyramid
At the top of the pyramid a smaller but influential number of
people will want to produce content and curate
Those at the bottom of the people want guidance and support
and those at the top will want the chance to show their
creativity.

48. Creative
Personalisation, customisation & co-creation

49. Being able to personalise your product
makes you feel part of the process and helps
in engage with the brand and some women
so brands can let them mash-up, change
create their ideal of beauty using your
products. For example...

50. Taaz allows users to upload a photo or
use a celebrity photo for virtual
makeovers

51. Illamasqua ran a nail varnish colour
competition which had over 6000 entries

52. Guidance
Another role that brands can play to ensure that they
digitially engage with consumers is that of expert or
guide....

54. Some bloggers are fulfilling this role with
massive success. Miss chievous has
created this smokey eyes video and it
has had nearly 4.3 million views - many
brands would kill for that exposure

56. One brand that is trying to play this role
is nice‟n easy which has its own
branded video channel on YouTube

58. Here we have a good example of utility –
Cosmo gives has given its readers tips
on how to have a great Facebook profile
picture

59. Another great example of guidance is max factor
twitter party. Max factor sponsored British Mum
Bloggers Twitter party. It allowed consumers to
share tips and ask max factor experts questions on
how to get ready quickly.

61. Clairol‟s site allows users to upload a
picture and virtually try our different hair
colours – an excellent example of
interactivity and personalisation

63. L‟Oreal Are trialling interactive kiosks In some
Boots stores in the UK and Walmat in the US.
Customers snap a digital self-portait, using the
systems touchscreen interface to select different
colours or get recommendations for shades or
products that match their skin tone or eye colour

64. 3. Online
platforms, technology and
innovation

65. Social Media

66. Clearly social media is a key channel for
reaching influencers
It can be used at early stage of product
development to get instant feedback
It allows people to share their views and
styles, and allows beauty and fashion to
inclusive

67. The lines are blurring

68. However the lines are blurring between regular websites
and social networks as user-experience focused websites
makes shopping, learning, creating and viewing more
sociable
Also cosmetics are a regular or impulse purchase so
social commerce should be a massive opportunity for the
market
Integration across platforms can create a more involved
and interesting experience for brand fans.
more interaction with fans will deliver greater loyalty and
consideration which leads to higher propensity for
switching

70. The masters of this are MAC – their digital
campaigns span its
website, YouTube, Facebook, Foursquare and
Twitter.

72. Online behaviour mirrors offline behaviour
For example, women shop together and
influence each others purchases beauty brands
acknowledge this offline –
MAC have side-by-side make-up chairs at their
cosmetic counters for a friend
So why not enable this behaviour more easily
online as Levis have with their Friend Store?

73. L‟Oreal have announced a new program that will enable
more than 4,000 salons carrying it‟s professional line of
products to begin marketing systematically on Facebook
Salons will now be able to set up a separate tab with a
number of customizable modules that allow them to
display their respective logos, business hours, a menu of
services, inspirational and how-to videos (many of which
will be supplied by L‟Oreal) as well advertise – although
not sell – products, among other things.

74. Social Commerce

75. Mark Zuckerberg, believes that social
commerce will be the next big digital trend.
Many believe that Facebook Credits could
become the first global currency to buy both
physical and virtual items.
As previously mentioned, cosmetics are either
a regular or impulse purchases so very
appropriate for social commerce

76. Both max factor and mark allow consumers to make
purchases through their Facebook pages

77. as are fashion retailers like Asos

78. Technology
A few examples

80. this is a cool mobile app by Modiface and Makeup
Live which claims to be the first augmented reality
virtual make up tool

81. When French connection launched its
„YouTique‟ video shop, where you can buy items
from the videos on YouTube, it was seen by the
industry as an interesting innovation from a
brand, yet few have followed so far.

82. Mobile

83. It is predicted in a few years the vast majority
of web browsing will be carried on mobile
phones
25% of women in the uk accesses mobile
wireless in the last 3 months
Therefore its important brands ensure that they
optimise their sites for mobile devices
Here are couple of examples of good mobile
campaigns:

85. Stila have a created a mobile app that allows users
to try on make up looks, purchase, share their looks
with friends and enter a contest to win loads of Stila
make up

87. Allure magazine gave away $725,000 worth of
beauty products via Microsoft TAG
This is the single largest deployment of Microsoft
TAG in a magazine to date
Mobile tagging allows marketers to link real-world
objects to deeper experiences on mobile phones
This is a fast, easy and convenient way for
readers to participate in beauty promotion

88. And finally...
Online meets Offline

89. This trend of online meeting offline is going to
get bigger and bigger
Digital will be used in store to enhance the
shopping experience
For example Shisheido have used augmented
reality to create a virtual mirror in their
Japanese stores for customers to see make-up
results on their own faces

90. Summary

91. In summary, I think that over the last 18 months there has
been a tipping point within the beauty and luxury worlds and
digital marketing is at the top of everybody‟s agenda
However it is important to recognise the different user
activity and develop your digital content accordingly
Fundamentally, beauty consumers do not want to be sold to
they want brands to help them express their creativity and
their want advice & guidance on how to improve their look.

92. I think those beauty brands that crack social media first will
be able to exploit the opportunities of within social
commerce
and finally,
The beauty world is incredibly creative and innovative in
terms of product development, however they need to use
these abilities in develop even more powerful connections
with the beauty consumer

93. Grazie
hello@skive.co.uk
@helloskive
Research and design by Lloyd Williams