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How is advertising changing in the beauty industry?
COMPREHENSIVE MARKETING STRATEGY
After two years of decline in advertising funds, the beauty industry is back on its feet. All thanks to e-commerce and advertising activities in digital. According to forecasts from the B eautyAdvertisingExpenditureForecasts report – until 2021. Internet advertising will account for half of all advertising expenditure in the beauty industry. Where does this trend come from? And how can companies from the beauty sector use it?
Advertising in the beauty ban is growing in strength
More and more cosmetic brands are transferring the funds allocated so far to advertising on television or in the press to advertising in digital. The Internet was ahead of TV advertising in 2018. Currently, it is the largest global advertising medium in the beauty industry. This trend will no doubt continue. Display advertising and film materials are becoming the main distribution channels. At the same time, the importance of advertising messages in magazines and on television is declining, although, in Singapore, the color press continues to play an important role. How does it look in numbers? It is forecasted that by 2021:
- Internet advertising will account for 50% of all advertising expenditure in the beauty sector
- The share of magazines in advertising spending will drop to 8%
- TV share will drop to 35% *
The Internet and the increase in advertising spending
There is no doubt that the rise in advertising spending is due to the popularity of social media, especially Instagram. Consumers look for information and opinions about cosmetics there. It is profitable for brands that focus on promotion in new media. The campaigns conducted on Instagram have contributed to the success of many D2C companies, i.e., those dealing with direct sales. The success encourages them to open up to new promotion channels on the Internet and cooperate with e-retailers. Hence, among other things, new trends in the cosmetics industry arise.
The importance of e-commerce is growing, but consumers still prefer to buy cosmetics directly, i.e., primarily in drugstores. This is where social media comes to helping producers again. Product tutorials and tests on Instagram or YouTube and influencer recommendations, in a way, replace customers with direct contact with the product. The AR technology, which is increasingly used in marketing, also offers new possibilities.
What cosmetics are consumers looking for?
Dynamic changes in advertising spending go hand in hand with changes in consumer preferences. D2C brands, companies selling organic cosmetics, and retailers’ own brands are doing the best in the beauty market. The latest Facebook IQ report confirms that 2020 will be marked by ecological cosmetics and Korean care products (the so-called K-Beauty). Increasing ecological awareness determines purchasing decisions, which also affects the brand policy. Not only cosmetic compositions are heading towards eco and bio – packaging is also changing. Having biodegradable, environmentally friendly packaging becomes a big advantage in the eyes of a potential customer.
The following years will be a period of intense changes in the cosmetics market. Beauty brands have to face a choice: stay with traditional promotion channels or open up to the possibilities of online advertising? Changes in the industry show that advertising on the Internet and social media show the greatest advertising potential. It’s worth taking advantage of.
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