Beauty ads glowing in online formats
Television is still the predominant advertising medium for cosmetics and personal care products in the U.S. Given that consumers increasingly prefer the e-commerce route when buying beauty products, digital is growing its presence in the media budgets. In 2021, the cosmetics and personal care sector spent over 1.2 billion dollars on static display advertising, a value over two times higher than in 2019. On the other hand, traditional media, such as radio, newspapers, and magazines, saw beauty ad expenditure shrink in the same period.Additionally, beauty brands have recognized the power of social media. In 2022, roughly three out of 10 shoppers in the U.S. discovered new brands and products via social media ads. As such, beauty brands have become more active on channels like Instagram, Facebook, and TikTok in an effort to increase their exposure, build a stronger online presence, and drive sales. With seven out of 10 U.S. GenZers mentioning being swayed by influencers to buy beauty products, it is no surprise that the strategy grabs more and more ad dollars.
How do beauty and cosmetics players fare in the advertising arena?
L'Oréal Paris led the U.S. personal care market by advertising spending in 2021, having invested 200 million dollars. Its parent L'Oréal, owner of other popular beauty brands such as Maybelline, Kiehl’s, and NYX, has been spending over two billion U.S. dollars in advertising every year since 2017. Meanwhile, Ulta Beauty, the leading beauty destination among U.S. Gen Z consumers, invested nearly 375 million dollars in advertising in 2022.
