Beauty Industry Trends
VAMP recently put on a Lunch and Learn for COTY and HYLAND to discuss some of the recent trends in the beauty industry, including the rise of Influencer marketing in this space. The beauty industry is blooming and booming with the help of social media. An incredible 57% of beauty and fashion companies now use influencers as part of their marketing strategies, while an additional 21% are also planning to add this strategy to their campaigns in 2017. (Source)
Since 2002, revenue of the cosmetic industry has had its ups and downs, but as of 2016, is at an all time high, with an annual revenue of 62.46 billion dollars. (Source)
Key Beauty Industry Findings
85% of women trust an influencer’s beauty product review over any other source People are 75% more likely to buy a beauty product after watching an online video 79% look to online videos to see how to use a product Only 3% of beauty videos are brand led , presenting a great opportunity for Influencer content 51% of marketers say that video content produces the best ROI 86% of the most-viewed beauty videos on YouTube were made by influencers, compared to 14% by beauty brands, themselves 70% of teenage YouTube subscribers trust influencer opinions over traditional celebrities On average, businesses generate $6.50 for every $1 invested in influencer marketing
The key to maximising the ROI of any Influencer campaign is leveraging the content in as many places as possible. Brands are now utilising Influencer generated content in a number of ways to get the most out of their marketing spend.
- Influencer Generated Content: An Influencer campaign where Influencers generate content to post on their social channels includes the benefits of relevant reach, high engagement and a variety of unique pieces of content featuring your product.
- Brand Owned Media: Either off the back of an Influencer campaign or from a Content-Only campaign, investing marketing spend into leveraging Influencer content in brand social channels, website or eDM, etc. generates great results. Previously where brands have utilised VAMP Influencer produced content in their eDM they have seen an increase of 390% in their benchmark click-through rate.
- Paid Media: sponsored posts, digital ad units, traditional (OOH, print, in-store). Influencer created content has a proven track record of performing better in social media sponsored posts than brand produced content, possibly because they are the native content creators in the space. As a prime example, for one of VAMP’s Nude by Nature campaigns, we invested some additional spend into sponsored posts of Influencer content on Instagram. Usually a brand sponsored post achieves an average engagement rate of <1% but our VAMP Content achieved a 271% higher engagement rate than what we usually see for brand sponsored content.
You can read all about how Influencer Marketing is evolving here.
There are a number of different ways that we commonly see a beauty product being featured in Influencer marketing. We find that the best approach to Influencer marketing is to allow the Influencers to decide how they would most like to feature a beauty product. As the Influencers know what their followers will most likely engage with, and also maintain a consistent aesthetic on their feeds, this approach achieves the highest engagement. It also allows the brand to be compliant with the AANA guidelines in terms of not being too prescriptive over the content and giving Influencers creative control. If a brand would particularly like a certain content style, however, for example 10 people featuring an “inspiring a mood” style shot and 10 flatlays, this can be decided in the App briefing and talent selection process.
Product Reviews, Beauty How-to’s, Video Tutorials and Product in-use shots
Providing reviews and educating customers gives them confidence to trial new products.
Inspiring a mood
Inspire an emotion by sharing an energy, experience or attitude to suit the brand messaging
Product placement in styled still life and flat-lay photography creates product recognition and also provides the opportunity to position your product in a lifestyle context.
Create aspirational content that features the make-up in a finished look to invite customers to find out how they can achieve a similar look
During VAMP’s history we have worked on over 20 beauty campaigns with brands that include M.A.C, Estée Lauder, Sally Hansen, Rimmel, etc. Our average engagement across all of these beauty campaigns has been 3%+ and the total reach has been over 7 million . We currently have a range of high quality beauty talent to choose from, across Australia, Hong Kong, Singapore and UAE.