BEAUTY U.S.

Transcription

BEAUTY U.S.
BEAUTY U.S.
RESEARCH BRIEFING | DECEMBER 8 , 2015
BENCHMARKING DIGITAL PERFORMANCE
L2 Delivers Data-driven Insights to Brands Seeking Greater Return on
their Digital Investments
RESEARCH
BENCHMARKING
EDUCATION
2
UPCOMING RESEARCH
Digital IQ Index®:
BEAUTY: CHINA
Digital IQ Index®:
BEAUTY
Intelligence Report
DEATH OF PURE PLAY
Intelligence Report
SOCIAL PLATFORMS
Intelligence Report
IN THE COMPANY OF GENIUS
3
UPCOMING EVENTS
BREAKFAST
BREAKFAST
LUNCH
YEAR IN REVIEW
DEATHINOF
PUREPLAY
YEAR
REVIEW
FOCUS 2016
New York
New York
York
New
Paris
December 10th
January 12th
December
10th
January 14th
4
COMMERCE IQ®
Product Availability
Regions
Merchandising and Content
Media and Promotion
Select Retailers:
User Reviews
Search Optimization
Bundling and Enterprise Scale
Pantry
*Pricing and Discounting
*Subscribe & Save
*Amazon specific categories
5
CATEGORY IQ®
Search Visibility
Longitudinal tracking of organic, paid,
and PLA visibility on Google.com
Search Rank
Keyword overlap analysis and relative
search rank versus competitive set
Pricing & Assortment
Comparison of product listing, pricing,
and brand-level assortment analysis
On-Site Visibility
Retailer site search results for
category keywords
Category Merchandising
Deep dive into investments, including
content and co-op opportunities
Product Merchandising
SKU-level analysis including product
listing structure, ratings and reviews,
and content
6
STRATEGY MODULES
Modules Blend Sector Insight, Performance Benchmarks,
and Identification of Brand-Specific Opportunities
Omnichannel
Retail
The Digital
Organization
Social Content
& Strategy
Video
Localization
Data & Targeting
7
BEAUTY 2015
INTRODUCTION
E-COMMERCE IS GROWING…
Beauty E-Commerce as a Percentage of Total Sales by Region
2009
2014
8.6%
6.5%
5.1%
4.8%
3.1%
4.5%
3.2%
4.1%
2.8%
1.5%
0.7%
Asia-Pacific North America
Source: Euromonitor
Western
Europe
Australasia
Eastern
Europe
1.0%
0.3%
0.6%
Latin America Middle East &
Africa
9
SKINCARE MAINTAINS THE LEAD
Share of U.S. Makeup, Skincare, and Fragrance Prestige Beauty Sales
January–June 2015
Total Market
Online
45%
43%
39%
36%
21%
17%
Makeup
Source: NPD
Skincare
Fragrance
10
ONLINE INFLUENCE EVEN GREATER
Digital Research vs. Digital Purchases, by Country
Percentage of Respondents Who Have Purchased Makeup Products in Past 12 Months
October 2014, n=1,000 per Country
Research
Buying
83%
69%
64%
60%
41%
-28%
54%
37%
-23%
62%
49%
51%
48%
35%
-19%
52%
29%
-15%
-32%
-14%
-23%
Source: Google and TNS, "Consumer Barometer," Oct 2014
11
CONSUMERS SHOP WITH RETAILERS
Favorite Online Destinations for Beauty & Personal Care Products
Percentage of Respondents That Identified Site as Their Favorite Online Destination
May 2014 ◼ 2014 Web Sales Growth
Retailers
+17.1%
73%
+21.6%
42%
+30.0%
35%
32%
28%
27%
Source: Survey data from A.T. Kearney, May 2014. Web sales data from Internet Retailer.
25%
25%
24%
23%
12
THE NEW PATH TO PURCHASE
Beauty: Rank of Amazon & Sephora in Outbound Traffic from Brand.com
September 2015, n=95 Brand Sites
Top 5
Top 3
45%
25%
15%
5%
Source: L2, Inc. analysis, based on data from SimilarWeb.com.
13
WINNER TAKES ALL?
U.S. E-commerce Sales, Billions
2013-2014, n=Top 50 E-commerce Retailers
2013
OVERALL
2014
15.4%
from 2013
TOP 50
$264.28
15.6%
from 2013
Top 50
73.59%
$304.91
Top 50
73.75%
Source: Internet Retailer, U.S. Commerce Department.
14
WINNER TAKES ALL?
U.S. E-commerce Sales, Billions
2013-2014, n=Top 10 E-commerce Retailers
2013
OVERALL
2014
15.4%
from 2013
TOP 10
$264.28
16.7%
from 2013
Top 10
49.29%
$304.91
Top 10
49.83%
Source: Internet Retailer, U.S. Commerce Department.
15
WINNER TAKES ALL?
U.S. E-commerce Sales, Billions
2013-2014, n=Top 4 E-commerce Retailers
2013
TOP 4
2014
15.8%
from 2013
Amazon
26.07%
Amazon
25.68%
$264.28
Apple
6.92%
Staples
3.80%
Walmart
3.94%
$304.91
Apple
6.76%
Walmart
3.98%
Staples
3.68%
Source: Internet Retailer, U.S. Commerce Department.
16
WINNER TAKES ALL
Estée Lauder Total, E-commerce Sales vs. Department Stores
Billions, 2014
 Total E-commerce Sales  All Sales
$10.97
$5.4
$0.6
$2.5
$1.1
Source: Internet Retailer.
17
SCALE: VLOGGERS VS. BRANDS
YouTube: Average Organic Vs. Total Brand Channel Views
Beauty & Hair Care Brands
April 2015, n=80 Beauty & Hair Care YouTube Channels
Beauty & Hair Care Brands
Top Vloggers
Source: L2 Intelligence Report: Video, 2015.
18
THE RISE OF INSTAGRAM
Beauty: Share of Total Interactions, By Platform
n=216 URLs (72 Facebook, 72 Instagram, 72 Twitter)
October 2014–October 2015
Twitter
0.7%
Facebook
9.0%
Platform
Interactions
Likes +
Comments
Likes +
Comments +
Shares
Instagram
90.3%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
Favorites +
Retweets
19
…AND THE GROWTH OF WINNERS
Beauty: Share of Total Instagram Interactions vs. Posts
Beauty-Specific Instagram Pages
October 2015
SHARE OF POSTS
(n=3,320 Posts)
Butter
London
4%
Tarte
5%
Kat Von D
5%
e.l.f.
Benefit
Cosmetic Cosmetic
s
s
3%
3%
Anastasia
Beverly
Hills
8%
Other
73%
Source: L2, Inc. Digital IQ
SHARE OF INTERACTIONS
(n=52,722,360 Interactions)
Other
31%
Index®:
Beauty, 2015.
Too Faced
Cosmetics
6%
MAC
Cosmetics
7%
NYX
7%
Anastasia
Beverly Hills
34%
Benefit
Cosmetics
7%
Tarte
8%
20
BEAUTY 2015
METHODOLOGY
METHODOLOGY
SITE &
E-COMMERCE
40%
DIGITAL
MARKETING
25%
SOCIAL
MEDIA
MOBILE &
TABLET
15%
20%
22
METHODOLOGY
DIMENSION:
SITE &
E-COMMERCE
TECHNOLOGY, SEARCH, & NAVIGATION: Analytics, Load
Time, Guided Selling Sophistication & Integration, Videos,
Product Search, Category-Relevant Sorts & Filters
CUSTOMER SERVICE & STORE LOCATOR: FAQs,
Contact Information, Live Chat Availability,
Store Locator Sophistication
PRODUCT PAGE: Product Merchandising, User Reviews,
Content Integration
E-COMMERCE & ACCOUNT SOPHISTICATION:
Ease of Checkout/Third-Party Handoff, Sample During
Checkout, Loyalty Programs, Account Customization
40%
OPTIMIZATION ON E-TAILERS (where applicable):
Amazon, Walmart, Target, Sephora, Ulta, Nordstrom, Macy’s,
Amazon Grey Market
* Methodology for highlighted components has been added/changed since last year
23
METHODOLOGY
DIMENSION:
DIGITAL
MARKETING
SEARCH: Traffic, Web Authority, Brand SEO & SEM on
Google, Category Search
ADVERTISING: Display, Video Pre-Roll, Retargeting,
and Cross-Platform Initiatives
EMAIL MARKETING: Ease of Sign-up, Frequency,
Segmentation/Customization, Trigger Emails,
Smartphone Optimization
25%
EARNED MEDIA: Mentions, Sentiment, and Brand Activity
on Industry-specific Outlets (+Makeup Alley, Total Beauty,
Basenotes.net)
* Methodology for highlighted components has been added/changed since last year
24
METHODOLOGY
DIMENSION:
SOCIAL
MEDIA
FACEBOOK: Reach, Annual Growth, Programming,
Relative & Absolute Engagement, Support of Native
Video Format
YOUTUBE: Reach Search Visibility, Channel Experience,
Video Views, Virality of Content
TWITTER: Reach, Annual Growth, Frequency, Relative &
Absolute Engagement
15%
INSTAGRAM: Followers, Growth, Engagement, Instagram
Video, Relative & Absolute Engagement, Brand Mentions
EMERGING SOCIAL MEDIA: Pinterest, Snapchat, Meerkat
* Methodology for highlighted components has been added/changed since last year
25
METHODOLOGY
DIMENSION:
MOBILE
SMARTPHONE EXPERIENCE: Compatibility &
Functionality, Cart Consistency Across Devices, Store
Locator & Geolocation
TABLET EXPERIENCE: Responsiveness, UI/UX
Optimization for Touch Input, Cart & Maps Performance,
Tablet Advertising
MOBILE SEARCH: “Above-the-Fold” Visibility via
Organic or Paid Results on Chrome App; Site Identified
as Mobile-Friendly, Click-to-Call or Local Directions
20%
MOBILE INNOVATION: iOS & Android Apps, Mobile
Web Advertising
* Methodology for highlighted components has been added/changed since last year
26
CATEGORIZING RESULTS
Brands are Parsed into Five Categories Based on Digital IQ Index® Score
GENIUS
140+
GIFTED
110–139
CHALLENGED
70-89
FEEBLE
<70
AVERAGE
90–109
27
BEAUTY 2015
RANKING
L2 DIGITAL IQ INDEX®:
RANK
BRAND
102
FEEBLE
CHALLENGED
Digital IQ
70
Pierre Fabre
102
70
Puig
104
51
Shiseido Co.
104
51
Shiseido Co.
106
50
Coty Inc.
29
L2 DIGITAL IQ INDEX®:
RANK
BRAND
90
CHALLENGED
Digital IQ
RANK
83
96
Trish McEvoy
91
98
LVMH
99
LVMH (Kendo Holdings Inc)
73
The Estée Lauder Companies
77
99
Unilever
73
Coty Inc.
76
L'Oréal Group
74
The Estée Lauder Companies
80
95
75
Procter & Gamble
80
94
75
96
Revlon
92
Digital IQ
The Estée Lauder Companies
82
92
BRAND
101
71
Cosmetic Developments Ltd.
30
L2 DIGITAL IQ INDEX®:
RANK
BRAND
78
AVERAGE
Digital IQ
RANK
93
83
Anastasia Beverly Hills
79
86
Coty Inc.
87
Hourglass Cosmetics
84
LVMH (Kendo Holdings Inc)
90
87
Beiersdorf AG
84
Procter & Gamble
88
Amway Corporation
85
Sisley CFEB
91
83
86
Butter London
92
82
Digital IQ
88
85
LVMH (Kendo Holdings Inc)
81
BRAND
Inter Parfums
92
79
CHALLENGED
87
84
Elizabeth Arden
31
L2 DIGITAL IQ INDEX®:
RANK
BRAND
66
AVERAGE
Digital IQ
RANK
99
72
Christian Louboutin
66
73
LVMH (Kendo Holdings Inc)
75
Elizabeth Arden
94
Puig
98
75
The Estée Lauder Companies
94
Unilever
97
N.V. Perricone M.D., LLC
95
Clarins
98
71
95
Beiersdorf AG
99
69
96
73
Unilever
69
Digital IQ
Lippmann Enterprises, LLC
99
66
BRAND
75
94
Markwins International Corp.
32
L2 DIGITAL IQ INDEX®:
RANK
BRAND
54
AVERAGE
Digital IQ
RANK
104
57
Procter & Gamble
54
104
57
103
63
L'Oréal Group
103
102
64
Mary Kay Incorporated
101
Burberry Group
103
L'Oréal Group
Strivectin Operating
Company, Inc
Johnson & Johnson
103
57
103
Stila Styles, LLC
L'Oréal Group
57
103
57
The Estée Lauder Companies
57
Digital IQ
Procter & Gamble
104
54
BRAND
64
101
Coty Inc.
33
L2 DIGITAL IQ INDEX®:
RANK
BRAND
40
AVERAGE
Digital IQ
RANK
112
48
Murad Inc.
43
50
Coty Inc.
50
Procter & Gamble
106
L'Oréal Group
109
52
L'Oréal Group
105
The Estée Lauder Companies
109
Limited Brands
106
Dermalogica
109
44
107
Unilever
109
44
Digital IQ
107
48
LVMH (Kendo Holdings Inc)
44
BRAND
LVMH
110
44
GIFTED
52
105
L'Oréal Group
34
L2 DIGITAL IQ INDEX®:
RANK
BRAND
29
GIFTED
Digital IQ
RANK
118
36
Revlon
31
38
The Estée Lauder Companies
38
LVMH
113
L'Oréal Group
116
40
Shiseido Co.
112
Clarins
115
JA Cosmetics Corp
113
Charlotte Tilbury Beauty Inc.
116
35
114
Guthy-Renker
116
32
114
36
L'Oréal Group
32
Digital IQ
L'Oréal Group
117
32
BRAND
40
112
Gurwitch Products
35
L2 DIGITAL IQ INDEX®:
RANK
BRAND
18
GIFTED
Digital IQ
RANK
129
22
Johnson & Johnson
19
26
L'Oréal Group
27
Too Faced Cosmetics LLC
120
Coty Inc.
123
28
Chanel
119
Tarte, Inc.
123
LVMH
122
The Estée Lauder Companies
124
22
123
Shiseido Co.
124
22
123
22
L'Oréal Group
19
Digital IQ
Unilever
124
19
BRAND
29
118
L'OCCITANE en Provence
36
L2 DIGITAL IQ INDEX®:
RANK
BRAND
6
GIFTED
Digital IQ
RANK
138
12
The Estée Lauder Companies
6
14
L'Oréal Group
15
The Estée Lauder Companies
131
The Estée Lauder Companies
134
16
Procter & Gamble
130
Avon Products
134
Procter & Gamble
132
Shiseido Co.
135
10
133
Coty Inc.
137
10
133
12
The Estée Lauder Companies
9
Digital IQ
The Estée Lauder Companies
138
8
BRAND
16
130
Coty Inc.
37
L2 DIGITAL IQ INDEX®:
5
1
IN THE COMPANY OF GENIUS
142
LVMH
3
2
1 Strong omnichannel efforts with Brow Bar boutiques offering beauty services
2 Experimenting with cross platform initiatives and pushing its presence on Snapchat
3 Product pages are packed with functionality including UGC content and Q&As
38
L2 DIGITAL IQ INDEX®:
3
IN THE COMPANY OF GENIUS
144
L'Oréal Group
1
2
1 Strongest desktop site in the Index excels at content & commerce integration
2 Trigger emails based on video view on desktop site leverages vlogger collaboration
across channels
39
L2 DIGITAL IQ INDEX®:
3
L'Oréal Group
IN THE COMPANY OF GENIUS
144
1
2
1 Effective use of Guided Selling on site integrated across rich content including videos and
2
shoppable looks; Strong diagnostic tools and UGC lead to product purchase
Personalization capabilities: offers tailored content and suggestions based on products
previously owned
40
L2 DIGITAL IQ INDEX®:
2
1
L'Oréal Group
2
IN THE COMPANY OF GENIUS
145
3
3
1 Superior search visibility on relevant e-tailers and effective product merchandising on Amazon
2 Rich filters on site narrow down video content for user by zone, occasion, and skill level
3 Effective use of shoppable UGC content on site
41
L2 DIGITAL IQ INDEX®:
1
1
IN THE COMPANY OF GENIUS
149
L'Oréal Group
2
3
1 Top mobile experience in the Index with optimized dropdowns and checkout
2 Strong performance across Social Media platforms, repurposed as shoppable UGC on site
3 Video tutorials guide customers seamlessly to product purchase on site
42
BEAUTY 2015
KEY FINDINGS
ENTERPRISE VALUE
Beauty: Digital IQ Score by Parent Company
Portfolios with Three or More Brands
November 2015
Brands Slated to Merge with Coty
GENIUS
GIFTED
119
110
AVERAGE
106
103
103
101
95
CHALLENGED
FEEBLE
L'Oréal Group Estée Lauder
n=17
n=13
YoY Digital IQ %
Change
-2%
-6%
Procter &
Gamble
n=7
LVMH
n=10
Unilever
n=7
Coty
n=8
Shiseido
n=5
+8%
+3%
+1%
+10%
+1%
44
ENTERPRISE VALUE
Beauty: Digital IQ Score by Parent Company
Portfolios with Three or More Brands
November 2015
Brands Slated to Merge with Coty
Average Digital IQ Excluding Licensed Brands
GENIUS
GIFTED
124
119
124
112
103
AVERAGE
103
106
CHALLENGED
FEEBLE
L'Oréal Group Estée Lauder
n=17
n=13
Procter &
Gamble
n=7
LVMH
n=10
Unilever
n=7
Coty
n=8
Shiseido
n=5
45
BIGGEST MOVERS
Biggest Winners & Losers
2014–2015, Digital IQ Percentile Rank
53%
25%
24%
Challenged  Gifted
Challenged  Average
Gifted  Gifted
24%
Challenged  Average
22%
Challenged  Average
-40%
-36%
-22%
-19%
-16%
Gifted  Average
Gifted  Average
Gifted  Average
Gifted  Gifted
Gifted  Gifted
Average  Average
46
ORIGINS
Mobile-First Redesign with Personalized Search
47
BOBBI BROWN
Relaunch Emphasizes Live Chat Consultation
48
E-COMMERCE LAUNCHES
Make Up For Ever, Kat von D, Wet ‘n’ Wild Launch DTC E-Com
49
SOPHISTICATION STILL INCREASING
Beauty: Year Over Year Changes in Site Feature Adoption
n=90 U.S. Sites Present in Both Indices
2014
2015
80% 81%
60%
64%
23%
28%
26% 28%
17% 19%
17%
8%
Store
Locator
User
Reviews
Auto
Replenishment
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
Live Chat
Loyalty
Program
UGC Board
8%
13%
UGC on PDP
50
FOCUS ON UGC
L’Oréal accounts for 47% of the brand sites that adopted UGC boards YoY
51
GUIDED SELLING FEATURES
Beauty: Percentage of Sites That Employ Guided Selling Feature
October 2015, n=111 Brand Sites
STAND-ALONE TOOLS
NON PDP CONTENT
PRODUCT PAGE
46%
36%
35%
23%
16%
6%
Diagnostic
Quiz
Advanced
Filter
Virtual
Makeover
6%
How-to Videos How-to Texts
UGC on
Products
Product Page Displayed On
Skintones
Overall, 60% of Index sites still rely on standalone tools to guide consumer selection.
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
52
OPPORTUNITIES FOR INTEGRATION
WHERE DO TOOLS SIT?
(n=67 Sites with Standalone Tools)
Relevant
Product
Dropdown
GOOD
39%
Product Page
25%
BAD
Gallery Page
15%
42% of sites with standalone tools do not
integrate them in purchase path
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
53
THE NEW PRODUCT PAGE
Merchandising
BAREMINERALS PRODUCT PAGE
Product
Page Feature
Index
(n=112 Sites)
Product Videos
49%
Color Selection
Modifies Primary Image
20%
Award Badges
20%
Guided Selling
Displays Product On
Different Skintones
6%
How-to Content
30%
UGC Integration
16%
Blog Content
Interaction
5%
54
LIVE CHAT AS GUIDED SELLING
Beauty: Percentage of Sites with Live Chat Call-to-Action & Integration
n=25 Sites with Live Chat
October 2015
CALL TO ACTION
INTEGRATION ON SITE
72%
56%
32%
20%
16%
4%
"Live Chat"/"Chat
"Chat With a
with us"
Beauty Advisor"
"Guided Chat"
Live Chat Popup
After Lingering
Integrated on
Product Page
Integrated in
Persistent Nav
Overall, 22% of Index sites provide live chat
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
55
AMAZON RAMPING UP BEAUTY
Number of Amazon Luxury Beauty Brands
October 2013–October 2015
153
57
24
October 2013 (Launch)
October 2014
October 2015
56
THE THIRD PARTY PROBLEM
Beauty: Average No. of SKUs per Brand Sold by Third Party vs. Amazon
October 2015
Avg No. Third-Party SKUs
Avg No. Amazon SKUs
103
33
94
30
93
32
3,469
2,679
2,588
68
2,170
2,104
67
1,681
1,164
934
5
354
Elizabeth Shiseido Coty (n=8)
Arden (n=2 (n=5)
Brands)
Estée
Lauder
(n=13)
L'Oréal
(n=17)
LVMH
(n=5)
Unilever
(n=7)
Procter &
Gamble
(n=7)
Kendo
(n=5)
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
57
PRICING: MISS DIOR
Amazon and Third-Party Seller Pricing Compared to MSRP
MSRP: $122.00
Source: Camelcamelcamel.com.
58
PRICING: BURBERRY BRIT RHYTHM
Amazon and Third-Party Seller Pricing Compared to MSRP
MSRP: $90.00
Source: Camelcamelcamel.com.
59
SEPHORA’S CONTENT ECOSYSTEM
Beauty: Top 10 Brands in Brand Mentions on Sephora
Based on Filtered Content Returned in Brand Search
October 2015
Number of Mentions
Urban Decay
2,295
Kat Von D
2
3
4
2,043
NARS Cosmetics
1,730
Smashbox Cosmetics
1,577
Too Faced
1,564
Benefit Cosmetics
1,459
BECCA Cosmetics
1,228
Tarte Cosmetics
1,179
YSL Beauty
1
1,019
1. Brand-supplied videos
2. UGC curated from Sephora’s Beauty Board
3. Sephora-supplied editorial
Laura Mercier
692
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
4. UGC, including reviews and BeautyTalk mentions
60
RETAILERS WIN IN BRAND SEARCH
Beauty: Ownership of First Page Search Real Estate
Brand Search Term, (e.g., “Mary Kay”)
October 2015
ORGANIC
N=878 search results
Across 106 brand searches
Brand
Social/Micro
site
19%
Other
14%
PAID
N=404 search results
Across 106 brand searches
Brand Site
21%
Retailer
76%
Retailer
45%
Parent
Company
1%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
Brand Site
22%
Other
2%
61
AND IN CATEGORY SEARCH
Beauty: Average Site Position vs. Frequency of Appearance
Top 30 Organic Search Results for Non-Branded Search Terms
October 2015
Average Search Rank
0
Amazon
Brand.com
Target
Walmart
Macy's
Nordstrom
Sephora
Ulta
Number of Appearances Across Category Terms
100
150
200
250
50
1.0
Macy’s (Fragrance)
6.0
High Relevance, High Frequency
Sephora (CC)
Ulta (CC)
e.l.f. Cosmetics (CC)
Essie (Nail)
11.0
Amazon (Nail)
NYX (CC)
MAC Cosmetics (CC)
Amazon (Skincare)
Amazon (CC)
16.0
21.0
26.0
Low Relevance, High Frequency
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
62
ORGANIC SEARCH: MAKEUP
Beauty: Top 10 Sites on First Page of Organic Search Results
N=2,390 First-Page Results for Non-Branded Color Cosmetics Terms
October 2015 ◼︎ Retailer ◼︎ Brand Site ◼︎ Editorial ◼︎Social Media
TOP 10 DOMAINS OVERALL
sephora.com
6.1%
ulta.com
4.9%
amazon.com
pinterest.com
4.4%
3.7%
TOP 10 BRAND DOMAINS
eyeslipsface.com*
3.0%
nyxcosmetics.com
1.9%
maccosmetics.com
1.5%
maybelline.com
0.7%
eyeslipsface.com
3.0%
makeupforever.com
0.7%
totalbeauty.com
2.9%
covergirl.com
0.6%
elle.com
2.8%
urbandecay.com
0.6%
toofaced.com
0.6%
lancome-usa.com
0.4%
allure.com
2.4%
nyxcosmetics.com
1.9%
realsimple.com
1.7%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
bobbibrowncosmet… 0.4%
*Pre-site relaunch to elfcosmetics.com.
63
BRANDS COLLECT DATA…
Percent of Beauty Brands Adopting Account Customization Fields
With Average Number of Available Options per Data Field
April 2015, n=25 brands
Percent of Brands Adopting
Average Number of Options
100%
12
90%
10
80%
10
9
70%
8
8
8
60%
6
50%
40%
5
32%
30%
6
5
4
28%
20%
20%
20%
16%
10%
2
4%
4%
0%
0
Skin
Concerns
Skin Type
Source: L2, Personalization 2015, June 2015.
Skin Tone
Eye Color
Hair Color
Hair
Concerns
Hair Type
64
THE TARGETING OPPORTUNITY
Data Fields
# of Options
Possible Personas
Skin Type, Skin Concerns, Target Areas, Skin
Condition, Age, Skin Care Goals, Time and Effort
29
12,096
Skin Tone, Skin Undertone, Skin Shade,
Skin Type, Skin Concerns, Foundation Benefits,
Foundation Formula
32
1,580,554
Eye Color, Beauty Style, Lash Look, Eyeliner
24
825
Hair Texture, Hair Thickness, Hair Condition, Hair
Concerns, Chemical Treatments, Salon Visits
21
8,748
Hair Goals, Natural Color, Natural Shade, Grey Level,
Color Treatment, Current Color, Current Shade,
Current Tone, Chemical Treatment, Desired
Permanency, Desired Tone
42
151,795,445,760
Total Possible Personas: 20,944,492,105,217,700,000,000,000,000 (“2.1 octillion”)
65
L’OREAL KNOWS HOW TO USE DATA
Product Recommendations
Personalized Email
Targeted Content
66
INSTAGRAM ENGAGEMENT TRIPLES
Beauty: Instagram Post Frequency & Engagement, by Quarter
Q3 2014–Q3 2015, n=56 Beauty-Specific Accounts with Complete Data
Total Likes
Total Comments
Avg Posts Per Week
6.2M
4.9M
4.1M
2.3M
Total Interactions
2.5M
5.5
5.3
Q3 2014
Q4 2014
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
6.3
6.5
6.9
Q1 2015
Q2 2015
Q3 2015
67
INSTAGRAM FAVORS COLOR
Beauty: Community Size, Post Frequency & Engagement
September 1st, 2015 – October 28th 2015, n=77 Beauty-Specific Accounts
Color Cosmetics
Fragrance
Multi-Category
Nails
Community Size
Skincare
Total Interactions
40,000,000
ANASTASIA BEVERLY
HILLS
30,000,000
20,000,000
NYX COSMETICS
10,000,000
BENEFIT
TARTE
MAC
URBAN DECAY
KAT VON D BEAUTY
0
-5
5
-10,000,000
15
25
35
45
55
65
75
Posts per Week
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
68
ANASTASIA UGC ON TOP
Beauty: Top 10 Instagram Posts by Cumulative Interactions
September 1, 2015 – October 28, 2015
@anastasiabebeverlyhills
186,139
Interactions
@anastasiabebeverlyhills
152,085
Interactions
@anastasiabebeverlyhills
@anastasiabebeverlyhills
@anastasiabebeverlyhills
126,015
Interactions
124,644
Interactions
123,720
Interactions
@anastasiabebeverlyhills
@anastasiabebeverlyhills
@anastasiabebeverlyhills
@maccosmetics
@maccosmetics
122,005
Interactions
117,603
Interactions
116,223
Interactions
114,920
Interactions
114,363
Interactions
69
FACEBOOK TRENDING DOWN
Beauty: Engagement by Quarter
Q3 2014–Q3 2015, n=66 Facebook Pages with Complete Data
Likes
Comments
7.5M
Total Interactions
Shares
7.7M
Posts per Week
8.1M
7.5M
6.1M
5.1
5.0
4.8
4.7
4.1
Q3 2014
Q4 2014
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
Q1 2015
Q2 2015
Q3 2015
70
VIDEO YOUTUBE VS. FACEBOOK
Beauty: Brand Share of Views, by Platform
46 Brands, Excluding Fashion and Inactive Accounts
October 2015
SHARE OF PAID VIEWS
SHARE OF VIEWS
(n=22,705,651 Views)
(n=26,698,685 Views)
Other
19%
Revlon
31%
Other
48%
Olay
41%
Benefit
Cosmeti
cs
18%
YSL
Beauty
8%
Olay
13%
Revlon
22%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
71
BRAND REAL ESTATE IS UP…
Beauty: Average First-Page Results for Branded Search on YouTube
October 2014 vs. October 2015
OCTOBER 2014
OCTOBER 2015
(n=94 Brand Terms)
(n=106 Brand Terms)
Brand
Real
Estate
8%
Other
25%
Brand
Real
Estate
13%
Vlogger
Real
Estate
67%
Other
22%
Vlogger
Real
Estate
65%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
72
EARNED MEDIA
Beauty: Top 10 Brands by Number of Mentions on Vlogger Videos
Percentage of Total Brand Mentions in Top 10 Beauty Uploads Among Most Popular Vloggers*
n=1,975 Brand Mentions
For Videos Uploaded January – September 2015
MAC
9.6%
NYX
3.7%
NARS
3.2%
Maybelline
3.1%
Too Faced
3.0%
Benefit
2.7%
Urban Decay
2.7%
L'Oréal Paris
2.5%
Real Techniques
2.2%
Revlon
2.1%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015, based on top 25 vloggers reported by Pixability.
73
CAN’T BUY ME LOVE
Beauty: View Count Growth Over Time, Vlogger vs. Brand Video
Most-Viewed Beauty Video Among Those Uploaded in October 2014 - 2015
Video View Count
Chanel
Dove
dope2111
60,000,000
dope2111
0% Paid Views
50,000,000
40,000,000
30,000,000
Dove
90% Paid Views
20,000,000
10,000,000
Chanel
43% Paid Views
0
Days After Upload
Source: Strike/Social.
74
BENEFIT’S VIDEO STRATEGY
Beauty: Share of Benefit Cosmetics’ YouTube Uploads vs. Paid Views
For Videos Uploaded October 2014 – October 2015
SHARE OF UPLOADS
(n=42 Videos)
Tips &
Tricks
31%
Product
Feature
31%
Other
5%
NonVlogger
Tutorial
14%
Vlogger
Tutorial
19%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
SHARE OF PAID VIEWS
(n=1,363,684 Views)
Product
Feature
11%
Other
12%
Non-Vlogger
Tutorial
36%
Tips &
Tricks
26%
Vlogger
Tutorial
15%
Source: Strike/Social.
75
BENEFIT’S VIDEO STRATEGY
Beauty: Share of Benefit’s Facebook Uploads vs. Views, by Type
For Videos Uploaded October 2014 – October 2015
SHARE OF UPLOADS
SHARE OF VIEWS
(n=41 Videos)
(n=30,662,353 Views)
Vlogger
Tutorial
59%
Other
44%
Product
Feature
37%
Non-Vlogger
Tutorial
2%
Tips & Tricks
7%
Vlogger
Tutorial
10%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
Product
Feature
30%
Non-Vlogger
Tutorial
0.14%
Other
9%
Tips & Tricks
2%
Source: Strike/Social.
76
COVERGIRL’S VIDEO STRATEGY
Beauty: Share of CoverGirl’s YouTube Uploads vs. Paid Views
October 2014 – October 2015, Video Upload Date Range
SHARE OF UPLOADS
SHARE OF PAID VIEWS
(n=86 Videos)
Vlogger
Tutorial
38%
(n=37,725,976 Views)
Celebrity/Influe
ncer
64%
Celebrity/Infl
uencer
34%
Product
Feature
10%
Other
1%
Behind the Non-Vlogger
Scenes
Tutorial
4%
6%
Tips/Tricks
7%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
Tips & Tricks
1%
Vlogger
Tutorial
2%
Product
Feature
28%
Other
5%
Source: Strike/Social.
77
COVERGIRL’S VIDEO STRATEGY
Beauty: Share of CoverGirl’s Facebook Uploads vs. Views
October 2014 – October 2015, Video Upload Date Range
SHARE OF UPLOADS
(n=16 Videos)
SHARE OF VIEWS
(n=9,479,186 Views)
Vlogger
Tutorial
8%
Vlogger
Tutorial
25%
Celebrity/Infl
uencer
38%
Product
Feature
31%
Product
Feature
21%
Other
3%
Celebrity/I
nfluencer
68%
Other
6%
Source: L2, Inc. Digital IQ Index®: Beauty, 2015.
78
NEW FRONTIERS
Estée Lauder, Tarte, Kat Von D Experiment with Emerging Platforms
79
CONSUMERS SEARCH ON PHONES
Beauty: Share of Category Search Volume, by Device
November 2014 – October 2015
MAKEUP
Tablet
9%
PC
31%
SKINCARE
Tablet
7%
Mobile
60%
PC
50%
FRAGRANCE
Tablet
8%
Mobile
43%
PC
37%
Mobile
55%
In makeup and fragrance categories, >50% of category searches are
conducted on mobile devices
Source: Google AdWords Keyword Planner Tool.
80
TARGETING MOBILE CONSUMER
Estée Lauder’s mobile site features a simple, intuitive tool designed with
mobile in mind
81
OVERVIEW
CONCLUSIONS
2016 AREAS OF FOCUS
Have you increasingly facilitated a best in class guided selling experience
on your website?
–
–
–
Product detail pages
Customer service
Content & Commerce integration
Does your brand’s presence on third party online
distribution enhance equity and maximize incremental
growth?
–
–
Best in class content, visibility on preferred
partners
Active management of diversion in third party
marketplaces (i.e. Amazon)
Are you getting the digital marketing basics right?
–
–
–
Optimize for SEO
Use every touch point as a data capture
opportunity
Shift ad spend from direct to programmatic and
network buys
83
2016 AREAS OF FOCUS
Are you exploiting the evolving growth on social media?
–
–
–
Facebook = paid targeted reach at scale
Instagram = authenticity + engagement
Video Assets = critical
Are you approaching asset development mobile first?
–
–
Mobile optimized site, search & email
Smaller screen as omnichannel connective tissue
DIGITAL IQ = SHAREHOLDER VALUE
84

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