Study: Substantial beauty industry disparities on YouTube as independent creators dominate
BOSTON – Beauty industry consumers are turning to YouTube in record numbers, and are often bypassing major brands for product recommendations, instructional guidance and social engagement. Yet, according to a recent study, only a handful of beauty brands are effectively incorporating YouTube into their web and commerce initiatives.
Pixability, which is a big data software company that helps brands increase the YouTube impact on their target audiences, has unveiled the findings of its new study on the digital marketplace, “Beauty on YouTube: How YouTube is Radically Transforming the Beauty Industry and What That Means for Brands.” According to the findings, major brands have only garnered 3% of the 14.9 billion beauty-related video views on YouTube.
“The data in this study highlights the tipping point for share-of-voice for the beauty business. More importantly, these YouTube dynamics will have a profound effect on how beauty brands and their agencies market and advertise,” said Rob Ciampa, CMO of Pixability. “Brands that mistakenly treat YouTube as a quasi-television station should not be surprised by dismal ROI. Those that embrace YouTube as a critical digital marketing and communication medium, however, will see outstanding results. Pixability’s analysis of the beauty industry on YouTube backs that up.”
Identifying and analyzing how 168 major beauty brands and 45,000 YouTube beauty-focused personalities manage, produce and socialize more than 877,000 hair care, skin care, makeup and nail videos, the report highlights striking differences between those manufacturing products and those manufacturing videos about products. Just a handful of beauty brands are effectively incorporating YouTube into their web and commerce initiatives, while only a few are successfully working with YouTube’s independent beauty personalities, according to the company.
“Understanding the important role of video in the beauty industry is a given, so we had the foresight to fully integrate YouTube into our marketing several years back and it paid off,” said Cory Pulice, VP of e-commerce for e.l.f. Cosmetics. “Creating informative and instructional videos for our premium cosmetic and makeup products is only part of the equation. Genuinely engaging with our passionate YouTube community is the other part, and that helps drive our business.”
Some of the report’s key findings include:
- Teenagers challenge brands and agencies. Multi-billion dollar beauty corporations with massive ad budgets and high-end creative agencies are getting beat on YouTube by teenage girls producing content in their bedrooms. YouTube vloggers, haul girls and other beauty content creators control 97% of conversations around beauty topics and related brands on YouTube.
- YouTube emerges as a lifestyle utility. People watch non-brand YouTube tutorials in the morning and in the evening on the East Coast and West Coast as they prepare for work and then a night out. Non-branded beauty tutorial content shows significant YouTube search spikes at specific times of day typically associated with applying makeup and doing hair. Comparatively, beauty brand video searches and views on YouTube remain flat regardless of time of day.
- A television mentality doesn’t work on YouTube. Brands and their agencies continue to suffer from a “television” mentality on YouTube, as they deliver content that’s out of step with the digital audience and miss opportunities for engagement, awareness and commercialization. Repurposed television commercials published to YouTube generally underperform both on views and with audience engagement. YouTube’s top 25 beauty vloggers receive 2,600% more comments on their made-for-YouTube content on average than beauty brand channels’ content.
GMDC releases Amazon whitepaper
COLORADO SPRINGS, Colo. — The Global Market Development Center on Monday released a new whitepaper, “Amazon in Focus: Overview,” which summarizes an analysis of Amazon’s business model, presented by Keith Anderson, VP and senior analyst at RetailNet Group, in a GMDC* Connect Videocast.
Anderson’s GMDC*Connect Videocast, “Amazon in Focus,” demonstrates how Amazon, predicted to break into the top 5 retailers by 2016, is relying on the company’s growth model as well as current and future strategies to continue developing and enhancing their presence in the retail industry. GMDC’s whitepaper takes key information and insights from the Videocast and channels it through written copy, including charts and statistics highlighted in Anderson’s presentation.
“The ‘Amazon in Focus’ videocast on GMDC Connect, hosted by Retail Net Group, is a great educational resource with key insights about Amazon’s growth story and the success that they have had as a platform,” said Meg Levene, division VP Northeast at Advantage Sales and Marketing. “The information it provides about selling products on Amazon and other top retailers is invaluable and can be used to enhance selling techniques. As all businesses are affected by Amazon in some way, I highly recommend watching the videocast and reading the whitepaper.”
“Amazon’s exponential growth continues to disrupt the retail landscape. It’s important for retailers and manufacturers alike to have a foundational understanding of Amazon’s unique economics and approach to marketing, merchandising and supply chain,” Anderson said. “RNG is proud to have partnered with GMDC to equip its membership with insight and guidance to navigate the changing environment.”
While the full version of this whitepaper is available only to GMDC members, the first page, as a preview to RNG’s presentation, can be found here. The GMDC* Connect Videocast, “Amazon in Focus,” is for all viewers.
Unilever, FIT’s CFMM program to explore ‘the changing face of the beauty consumer’
NEW YORK — Unilever U.S. has teamed up with the Fashion Institute of Technology’s Cosmetics and Fragrance Marketing and Management master’s degree program to explore “the changing face of the beauty consumer.”
Through this partnership, Unilever will be the sponsor of the 2014 CFMM capstone research project and presentation. The college’s Master of Professional Studies in Cosmetics and Fragrance Marketing and Management program, now in its 14th year, was developed in collaboration with the beauty industry as a leadership development program for mid-career executives.
"Evolution of the beauty landscape" will be the focus this year as the FIT students explore "the changing face of the beauty consumer." Under this theme, they will research three challenges that shape the way beauty companies operate, from economics to gender to ethnicity.
- Accessible Beauty will look at the current generation of consumers and what "value" means to them, specifically analyzing how beauty companies are facing pressure to offer value in ways like never before. One aspect of this research will uncover how prestige products will become more accessible to more consumers.
- The New Beauty Consumer will study the new patterns emerging in the U.S., which include the blending of cultural influences, the LGBT market and non-traditional households, and shifting notions of lifestyle marketing and segmentation. The research will explore how the multi-ethnic consumer and the globalization of cultural influences are impacting beauty, identifying how to serve these consumers through products and advanced brand story-telling.
- Men’s Beauty and Grooming research will explore the growing opportunities for men’s products, both in the U.S. and internationally, including analysis and identification of needs and desires, packaging, go-to-market strategies, usage differences, education, new channels of distribution, execution at point of sale, and digital implications. This section will demonstrate how companies can make the category more accessible to male consumers.
"The beauty industry is evolving rapidly. We are rushing to adapt to demographic, socio-economic, and global changes that promise to transform our business and dictate what consumers want from us. We at Unilever are proud to collaborate with FIT and its world-class students to acquire their expert view on how we build the beauty business of the future to meet the needs and wants of our changing consumer," stated David Rubin, brand building VP for United States hair care at Unilever North America.
"The new beauty consumer will pose challenges to the way today’s top beauty companies operate – from innovation to execution," Stephan Kanlian, FIT professor and chairperson of the CFMM master’s program, said. "This year’s capstone research with Unilever U.S. will help industry leaders understand how to approach current and future beauty consumers with innovations in new products and enhanced engagement."