“They’re [beauty products] almost viewed as essential items, more and more like groceries,” said Jennifer Thompson, Head of Marketing for beauty tools brand Japonesque.

It’s called the lipstick effect (or lipstick indicator), a term coined by Leonard Lauder, the chair of Estée Lauder, in the early 2000s to describe the idea that people will still spend on small indulgences, including beauty products, during periods of economic uncertainty. 

It’s far from a science, but there’s something to the concept. Estee Lauder saw double-digit profits during the recession in 2007, while Ulta Beauty recently highlighted significant growth in its Q4 earnings.

Despite consumers’ willingness to spend, and the profitable outlook for much of the beauty industry, some advertisers are pulling back, including those promoting hair care (down by 16% to $208mm), oral hygiene (down by 20% to $129mm) and bath & shower products (down by 39% YoY to $71mm). 

Overall, beauty advertisers decreased spending through April by 9% YoY to $1.7b. In Q1, spending fell by 6% YoY to $1.2b, with the most significant decline in March.

These reductions would have been more significant had it not been for increases from advertisers promoting skincare (up by 10% to $554mm), cosmetics (up by 1% to $242mm), and deodorant (up by 20% to $107mm), who collectively boosted their budgets by 8% YoY to $908mm.

So, what gives? Why are only some beauty advertisers spending? Are others getting cold feet, or is something larger in play?  

Time will tell, but this could be the start of a new era for beauty advertisers—an era that embraces younger generations with open arms.  

TikTok, Influencers, and All Things Generation Z

Find your audiences and meet them where they are. 

It’s essential to understand where your target customers spend time to create a seamless shopping journey across channels.

Those are two pieces of advice given by Diana Haussling, Vice President and General Manager of Consumer Experience and Growth at Colgate-Palmolive, in a recent article about how Colgate-Palmolive is navigating the blend of physical and digital retail.

Haussling’s advice underlines the greater trend we’re seeing as beauty advertisers trek down new avenues as the industry—and consumers—evolve. 

One of those avenues leads to TikTok, which has completely won over Generation Z. 

Olay, which decreased spending overall by 16% through April, teamed up with TikTok star, Kat Stickler, to launch the Galentine Hotline on February 13, allowing consumers to send a text to receive relationship and skincare advice. While overall spend was down thanks to a 39% reduction in TV overall, digital spending was up nearly 115% YoY.

At the same time, Dr. Squatch shined on TikTok with a unique combination of “trending sounds, cheeky memes, and comedic skits created by the brand and its consumers.” TikTok and influencers are so ingrained in Dr. Squatch’s ad strategy that a handful of employees recently branched out to start their own agency, Gassed. 

“We launched Gassed to combat the creative fatigue that brands often suffer. Gassed counters this problem by understanding how to convert for sales on TikTok, tailoring creative so it’s performance-based to reach clients’ KPIs whilst also managing the paid side of the media campaigns,” said co-founder Dean Rojas Rojas.

So far, The Sasquatch Soap Company invested 49% of its Dr. Squatch ad investment towards Facebook and Instagram ads. Around 16% of the TV and digital ad spend was dedicated to Meta ads that were 31 to 45 seconds in length.

For advertisers at Colgate-Palmolive, the investment in TikTok kicked off in January after their toothpaste went viral because consumers were curious how the toothpaste’s stripes came out of the tube perfectly every time. 

The shift to TikTok comes as beauty advertisers move away from Meta, Twitter, and other established players amid rising costs, ad loads, and privacy concerns. 

But TikTok isn’t the only way beauty advertisers are diversifying their media mixes. 

e.l.f. Cosmetics is leaning into entertainment with “Vanity Table Talk,” a social-first show combining elements from late-night talk shows and TikTok to “inspire viewers to celebrate their own unique beauty.”

Ekta Chopra, e.l.f.’s Chief Digital Officer, said, “We have our feet on the ground, but we also have our head in the stars.” We are where Gen Z is, and we don’t just show up, we show up bold.” 

Expect other beauty advertisers to follow the trend. Axe certainly is. 

In March, Axe (Unilever) advertisers teamed up with award-winning rapper Lil Baby to launch a new campaign aimed at the heart and wallets of Gen Z, which included a 30-second national spot promoting the company’s premium fragrance line. Axe advertisers also pushed deeper into eSports and other entertainment-based marketing tactics that keep them in front of Generation Z.  

A Time of Change for Beauty Advertisers

Don’t let the overall decline in beauty advertising mislead you—the industry is doing just fine. 

Consider this: Advertisers at Function, Inc. (Function of Beauty product lines) decreased spending by over 90% through April despite launching a hair styling line at Target in January and the appointment of a new Chief Marketing Officer—20-year L’Oréal vet Marianna Trofimova—last year. All spend this year is digital, with 61% dedicated to paid social videos and April being the peak spending month. 

Beauty advertisers are changing their ways and embracing all things Generation Z, and as they do, their investment in traditional tactics is waning. Through April, advertisers decreased their investment in TV and print by 11% (down to $686mm) and 44% (down to $127mm) YoY, respectively. At the same time, digital ad spending increased by 1% YoY to $856mm+, with video and native driving the increase (both were up by 11% and 84% YoY).

But that doesn’t mean advertisers will completely abandon the in-store displays and demos. According to Diana Haussling, “The lines between physical and digital experiences are becoming blurred, and businesses need to resource and cater to both adequately”—and that’ll impact advertising strategies in a big way. 

For more insights, sign up for MediaRadar’s blog here.

What if we told you lipstick sales were the best way to gauge the economy’s health? 

It’s called the lipstick effect, a term coined by Leonard Lauder, the chair of Estée Lauder, that describes the idea that consumers will spend on small indulgences during recessions and economic downturns. 

For this reason, companies that sell these “small indulgences,” like beauty brands, often thrive when consumers are tightening their belts.

Warren Becker, CEO at Cosmetic Solutions, said, “When times are tough, and consumers are forced to tighten their belts, affordable luxuries like beauty are generally not the first areas to cut, if at all.” 

Here’s proof: As the U.S. economy declined in Q1, lipstick sales jumped by 48%.

That said, these brands may not be as immune as we once thought—Estée Lauder’s fiscal 2021 Q3 results reported makeup sales fell by 10%.

What do these mixed signals mean for beauty advertisers? Overall, not much. 

Through October 2022, beauty advertising—everything from acne skincare to women’s razors—increased by 13% to $4.6b. Except for January and September—which were down by just 1% YoY—ad spending increased every month.  

Will spending continue into 2023? We looked at our data to find out.  

Top Beauty Advertising Categories in 2022

Through October, the top beauty advertisers came from anti-aging skincare, cosmetics, deodorant, haircare, and skincare, collectively spending $1.8b or 39% of the category total.

Skincare

As the skincare market grows—it’s projected to reach $145b by 2028—advertisers promoting skincare will continue to spend big. 

Overall, spending on skincare products, which accounted for 13% of beauty advertising, increased by 14% YoY, despite a decrease in Q1 by 9% YoY. 

After this single-digital dip to start the year, which could simply be a post-holiday reset, skincare advertisers increased their budgets in Q2 by 39% YoY.

Q3 was a bit of a rollercoaster though. In July, spending increased by 5% YoY before falling by 68% in August and then rising again in September.

While October experienced another decrease in spending—this time by just 3% YoY—it was up by 38% MoM from September as advertisers geared up for the holiday season.

Cosmetics

Advertising for cosmetics products, which accounted for 8% of the beauty ad spend, rose by 100% YoY to $376mm. 

The most significant increase came in Q1 when spending rose by 198% YoY. The surge continued in Q2—this time by 134% YoY. 

Then, spending slowed in Q3 by 16% YoY due to August’s 41% YoY decline. 

Outside of Q2, cosmetic advertising strategies were the inverse of their skincare counterparts, illustrating that the market forces impact some pockets of the beauty industry differently. 

Given the economic outlook for 2023 and likely tempered spending from some beauty advertisers, this shows that some advertisers will be willing to spend. 

Haircare

Hair advertising, which represented 7% of beauty advertising through October, increased by 17% to $315mm. 

Although advertisers opened their wallets for much of 2022, spending declined in Q3 by 44%, thanks largely to a 73% decrease in August. 

That said, spending rebounded in October by 27% YoY and 8% MoM.

Anti-aging skincare

Advertising for anti-aging skincare products increased by 14% YoY to $79mm despite decreases in Q1 and Q3 by 12% and 29%, respectively. 

In October, advertisers increased their budgets by 26% YoY and 18% MoM.

The overall increase in spending comes as the anti-aging skincare market grows. Between now and 2029, the market is expected to grow at a CAGR of 8%, significantly faster than some other categories, including deodorant.

Deodorant

Despite the deodorant market growing at a 5.3% CAGR, advertising was down by 5% YoY, making it the only top-spending category to spend less in 2022.

The most significant decrease came in Q3 when budgets fell by 50% YoY. The decline continued into Q4, with the investment falling in October by 35% YoY and 2% MoM from September.

Top Beauty Advertisers in 2022

The top beauty advertisers in 2022 are likely the ones you expect. 

The six beauty advertisers who spent the most through October came from industry powerhouses, including Estee Lauder, L’Oreal, LVMH, Joh. A. Benckiser Holding Company, P&G, and Unilever. 

Combined, these advertisers spent more than $1.7b or 36% of the investment from the beauty industry.

Estee Lauder

Advertisers for Estee Lauder increased spending by 25% YoY—primarily on digital ad formats— thanks to triple-digital spikes in Q1 and Q2 by 320% and 565% YoY, respectively. 

Spending tightened in Q3 but was still up by 26% YoY.

Everything indicates that business is going well for the beauty giant, including news that it agreed to buy the Tom Ford brand for $2.8b.

That said, the company recently reported a quarterly decline in makeup sales. 

It’ll be interesting to see how advertisers respond in the wake of weakening demand. Still, given its strategy so far in 2022, it seems likely that, at minimum, spending will remain steady—the industry is too competitive for advertisers to take their collective foot off the gas. 

While we wait and see, we know that TikTok will play an increasing role in its strategy, which makes sense given its historical digital-heavy approach. 

Lubna Mohsin, social media and content manager for Estée Lauder, recently said, “Last year, Estée Lauder’s presence on TikTok was staggered, whereas this year, we’re mandating its use because recruitment is our top objective on social media.”

The strategic shift comes after declining reach on Instagram, which could indicate where beauty advertising is headed in 2023.  

L’Oreal

Advertisers for L’Oreal read from a similar script as their contemporaries at Estee Lauder, increasing spending by 15% YoY, thanks to an increase in Q2 by more than 400% YoY. 

While the company is synonymous with cosmetics, which received 30% of its budget, it wasn’t its biggest investment. Through October, L’Oreal spent 44% of its investment on skincare.

Meanwhile, haircare ad spend accounted for 15%.

Again, similar to Estee Lauder, L’Oréal recently reported slowing growth. 

Despite that, the company’s CEO is “bullish on beauty“—and its advertisers are showing equal excitement about connected T.V. (CTV) advertising. 

In fact, they doubled spending on YouTube CTV as the industry moves away from linear T.V. and some digital channels.

But the excitement has yet to extend to Twitter, with the company suspending advertising on the platform following Elon Musk’s acquisition. 

LVMH

Advertisers for LVMH Moët Hennessy Louis Vuitton (LVMH) increased spending by nearly 230% YoY, making it by far the brand with the biggest increased investment.

Much of this increase came thanks to a Q2 where spending jumped 3x YoY on the heels of double-digit growth in Q1. 

The spending spree continued in Q4, with budgets increasing by 237% YoY and 21% MoM, with the majority devoted to cosmetics & toiletries (57%) and fragrance (34%) of its investment. 

Some of these ad dollars undoubtedly went to planning the headline-grabbing campaign featuring Cristiano Ronaldo and Lionel Messi. 

Joh. A. Benckiser GmbH (JAB Holding Company)

Advertisers from Joh. A. Benckiser GmbH—think Coty—increased spending by 71% YoY, thanks to a Q2 that saw a 3x spike from last year.

For Joh. A. Benckiser GmbH and Coty, spending comes on the heels of “solid financial progress.” 

Advertisers continued to spend in Q4, with budgets increasing by 45% YoY and 19% MoM in October. Most of the company’s ad dollars went to promoting cosmetics (58%), fragrances (23%), and skin care (9%). 

Procter & Gamble

There are two sides to Proctor & Gamble’s ad strategy in 2022. 

On the one hand, spending increased by 26% YoY, thanks to consistent spending and a 400% increase in Q3 to promote skin care (40%), oral hygiene (15%), and hair removal/shaving (11%) products. 

On the other side is budget cuts—or at least an intensified focus on efficiency in the wake of a looming recession.

Unified ID 2.0 will help the industry giant drive that efficiency as they prepare for a world without third-party cookies. A further push into digital is also likely as advertisers prioritize measurable ad formats and ROI. Through October, just over 80% of P&G’s investment went to digital-only formats, which is relatively low compared to its competitors.

Unilever

Beauty advertisers have used 2022—and the lipstick effect—as a reason to spend. Unilever doesn’t fall into that camp, with spending flat through October. 

While Q1 and Q2 saw increases of 109% and 318% YoY, spending tightened in Q3, increasing by just 15% YoY. The tightening continued in October, with spending dipping by 18% YoY and 5% MoM. 

While Unilever’s relatively plateaued spending is surprising considering the substantial increases of some competitors, the shift could be telling as it gears up for a “serious retail media boom.”

The shift could indicate that Unilever is moving away from ads as a growth engine and will instead rely on retail media to drive its bottom line. This isn’t surprising given the state of retail media and the goldmine of consumer data on which all beauty brands sit. 

The Lipstick Effect Is Real

We’ve seen this story before. 

Warren Becker, CEO at Cosmetic Solutions, said, “We saw a similar situation in 2008, and while growth slowed, the overall market did not decline.”

While the growth will likely remain steady throughout 2023, the industry’s makeup is changing, and ad strategies will follow. 

For instance, celebrity beauty brands, which have exploded in popularity during the rise of social media and influencers, are on the decline, accounting for just 7% of sales in the U.S. 

At the same time, U.S. prestige beauty sales reached $6b in Q3, while expensive haircare products are expected to explode in popularity as people forgo salons for the foreseeable future.

Environmentally friendly products also continue to gain steam—64% of consumers say sustainability is very important when purchasing a beauty product. 

For more insights, sign up for MediaRadar’s blog here.

But the pandemic made going digital-first necessary. 

With the help of in-app assistance features and increased social presence, beauty brands were able to drive online sales. Brands also began to invest significantly more in programmatic advertising to increase their eCommerce activity. 

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

Beauty Tech and Digital Marketing Drives eCommerce Sales

It’s one thing for shoppers to buy a trusted shampoo or skin cleanser online, but it’s a completely different experience for them to buy a new eyeshadow, foundation, or lipstick. 

For this reason, beauty brands needed to build trust with new clients in creative ways. For L’Oreal India, this meant building brand awareness by using content rich social ads and AR tools to drive their eCommerce efforts.

“Everything that we do is with a digital-first mindset. The intent here is really to bring the best of beauty tech,” said Anil Chilla, chief digital officer of L’Oréal India. “We had been seeing the rise of e-commerce even before the pandemic, and the pandemic only accelerated the whole phenomenon.”

According to Chilla, about 20% of customers bought beauty products online for the first time during the pandemic.

Similarly, DTC anti-aging skincare brand Bluelene was set to enter brick and mortar stores in 2020, but had to rearrange their plans. Instead, the brand doubled down on digital advertising and new online channels. 

“This approach has been successful to grow our direct-to-consumer business 100% during a difficult time,” said CEO Jasmin El Kordi.

Across the board, beauty brands increased their digital marketing investments. Social media, customer loyalty and referral programs, email marketing, and apps became particularly important for brands to build awareness and trust. 

Here at MediaRadar, we also saw a surge in programmatic spending from beauty brands.

MediaRadar Insights

Since the beginning of the pandemic, more beauty advertisers have invested in programmatic. 

In the first quarter of 2021, 2.1k beauty advertisers spent $13.9mm in digital programmatic ad space. This is a 56% increase in the number of advertisers YoY and a 34% increase in ad spend YoY. 

In the same time period last year, 1.4k advertisers spent $10.4mm.

There is significant fragmentation in the beauty category—38% of brands don’t even fit into a common category.

But of the non-miscellaneous products, the top spending subcategories of beauty are:

• Skincare: Nue Co. and Stacked Skincare spent the most in this category.
• Haircare: Pantene Pro-V and Folliboost spent the most.
• Beauty subscription boxes: Harry’s USA and Ipsy are the top spenders here.

Together, these three subcategories spent over $4mm in Q1 2021, and account for 29% of ad spend of the entire beauty category.

As people begin to feel safe again, physical stores will be important for beauty shopping again. But digital technology will likely continue to enhance the experience. 

For now, ad dollars continue to be invested in digital channels significantly more than they were pre-pandemic and don’t show any sign of dropping.

For more updates like this, stay tuned. Subscribe to our blog for more insights.

However, makeup and self-care products are traditionally resilient during times of crises, as many people see these types of items as affordable luxuries. And who didn’t need some extra self-love this past year?

Vogue dove into the most-searched for beauty trends that were born out of COVID-19. These ranged from an increased attention to skin-care to divided camps on makeup approaches. 

While we aren’t beauty gurus, we do have advertising data to back up which brands you should consider partnering with this upcoming year.

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

1. Secret

Women’s deodorant brand, Secret, owned by P&G, launched a strong campaign last year championing women’s strength: “All strength, no sweat.” The campaign featured a diverse and powerful line-up of celebrities and social media influencers crossing industries and settings. From fitness leaders, coaches, and mothers, Secret continued its history of being a brand for strong women. 

Its 2020 advertisers included:

• Television: NBC, ABC, CBS, Fox, Bravo
• Print: People, Us Weekly, InStyle, Shape, Cosmopolitan
• Digital: Huffington Post, CNN, Sam’s Club, AOL, Adult Swim

Secret anticipates RFPs in February and peak spending for print and digital is Q2, Q3 for TV.

2. Finishing Touch, Flawless Collection

With salons closed, people sought ways to remove facial hair without a wax. This ‘dry shave’ product is marketed to remove hair from cheeks, lips, and chins. It is supposed to make the face smoother and makeup application flawless.

2020 advertisers included:

• Television: HGTV, Bravo, Hallmark, Univision, Nick@Nite
• Print: Star, OK! Weekly, InTouch Weekly, National Enquirer, Soap Opera Digest

Interested in contacting this brand? MediaRadar has more than 40 contacts at Church & Dwight, the distributor of the Finishing Touch Flawless Collection, complete with insider tips on which agencies and teams handle their various campaigns.

3. Luminess Silk 

Makeup brand Luminess Silk offers foundation products—which is a product still in demand with the amount of video calls taking place.

2020 advertisers included:

• Television: WE Network, Travel Channel, ION Television, TLC, HGTV
• Digital: Wondery (Podcast), Yahoo!, Kongregate, People, WebMD

Peak spending for television was Q3, especially in June.

4. Garnier Green Labs Collection

The push for sustainability only grows stronger year after year, impacting how products are produced and marketed. This new skincare line is made in a plant that is powered by 59% renewable energy. Launched in Q4 2020, it has only invested in television so far.

2020 advertisers were made up of:

• Television: ABC, MTV, CBS, Telemundo, NBC

5. Colgate Optic White Toothpaste 

While on Zoom, you’re constantly seeing your face and may notice the color of your teeth. That’s why we’re including Colgate’s Optic White Toothpaste. It’s one of the biggest advertisers in its category. 

Its 2020 advertisers were:

• Television: WE Network, Travel Channel, ION Television, TLC, HGTV
• Digital: Wondery (Podcast), Yahoo!, Kongregate, People, WebMD

Here’s the spending break down:

Broadcast advertising was its biggest advertising channel, making up 53% of spending. Cable made up 28% of spending, while magazines made up 18%. Other channels made up only a small percentage of this product’s advertising profile. 

6. FabFitFun

FabFitFun is a subscription service that sends boxes filled with fitness, beauty, and self-care products each season. 

2020 advertisers included:

• Television: Bravo, E!, VH-1, HGTV, Travel Channel
• Digital Advertisers: YouTube, Girls Gotta Eat (Podcast), Wondery (Podcast), Audioboom (Podcast), CNN

For those interested, this brand has an upcoming RFP in April.

7. Pantene Pro-V 

The “Miracle Rescue” Collection is marketed as a way to treat and redeem damaged hair. This product might come in handy for many people continuing to experiment with purples and blues, or those who might have to go back to the office once vaccinated.

Its 2020 advertisers were:

• Television: NBC, ABC, CBS, Bravo, Fox
• Digital Advertisers: iHeartRadio (Podcast), Target, YouTube, MTV, Sam’s Club
• Print: People, Better Homes & Gardens, InStyle, Good Housekeeping, Cosmopolitan

8.  Hims, Inc. 

Hims is an “all things men’s wellness” telemedicine company that offers products and services for primary care, hair, sex, skin, mental health, and skin care. Men can have their prescriptions and other products delivered to their doorstep. 

The fast-growing unicorn that also owns Hers (the women’s equivalent) was a winner in 2020. In October, it announced it will merge with a SPAC and go public. The combined company is valued at $1.6 billion. 

2020 advertisers included:

• Television: ESPN, History, TruTV, FOX Sports 1, CBS
• Digital Advertisers: YHM Studios, ESPN, Armchair Expert, All Things Comedy, Loud Speakers Network 

It also spent a bulk of its ad dollars on podcasts.

9. Shea Moisture 

Shea Moisture is a personal care company that produces shampoos, conditioners, and body washes. It was founded by Nyema Tubman and Richelieu Dennis, who were part of the Liberian Diaspora to the U.S. Its customer base and audience is primarily black women. The company focuses on investing in communities and scholarships.

Its 2020 advertisers include:

• Television: NBC, ABC, CBS, Bravo, Fox
• Digital Advertisers: IMDB, Allure, Target, Allure, Youtube

10. Quip 

People can improve their oral health with smart toothbrushes and dental products. Quip is the brand to watch in this category. 

Its 2020 advertisers include:

• Television: TNT, CNN, Hallmark, History, AMC
• Digital Advertisers: Crooked Media, Casefile Presents, Maximum Fun, Wondery, All Things Comedy

Its two biggest channels for advertising were cable and podcasts.

For more updates like this, stay tuned. Subscribe to our blog for more updates on coronavirus and its mark on the economy. 

With social distancing, working from home (WFH) and mask requirements, people are prioritizing different cosmetics than they would’ve in past recessions. Direct-to-consumer (DTC) brands are doing particularly well, as online shopping for makeup is becoming more common.

Continue reading to learn how the industry is transforming and how DTC cosmetic brands are changing up their advertising.

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

Cosmetics sales are changing due to COVID-19

Prior to the pandemic, most makeup and cosmetics were bought in-store.

Roughly 85% of beauty-product purchases prior to the COVID-19 crisis were bought in person. Even when you narrow in on shopping patterns of millennials and Gen Zers, the majority (60%) bought their makeup in stores. 

Between store closures and the inability to try on makeup in-store, consumers aren’t buying products like they used to. Purchases shifted online. While overall makeup sales quickly dropped off in March, online sales increased 10% month-over-month.. 

Online sales weren’t enough to offset in-store purchases, but certain categories experienced significant spikes. Several cosmetic products are booming: at-home spa tools, purple hair products that help preserve hair color, serums, and blue-light blocking skincare products.

Blue-light blocking skincare products are one of the most pandemic-driven products to take off. People are paying attention to their skin when they see themselves on Zoom day after day and are aware of how much time they spend behind screens.

DTC Brands Doing Exceptionally Well

Because more people are shopping from home during the pandemic, DTC beauty brands are enjoying a healthy spike in sales. Even at the height of the pandemic in April, DTC wellness and skincare brand Tula experienced a 400% YoY increase in sales. 

“I think what we’re seeing is that consumers are staying at home and they’re investing in health and wellness even more,” said Tula CEO Savannah Sachs in a CNBC interview. “We’re seeing really, really great demand across the country.”

People couldn’t go shopping in stores or take care of themselves by going to the salon—so they bought products for self-care at home from digitally native brands.

“In [a matter of] a day, we had to hire an additional 20 people on the customer service team because our volume increased so dramatically,” said Public Goods founder and CEO Morgan Hirsh.  Now that we’re six months into the pandemic, brands are questioning whether this trend will continue as physical stores reopen.

Some, like Sachs, believe that the pandemic will continue to influence consumer behavior long after we return to normal. Others like Vegan skin-care brand BioClarity’s CEO Tracy Julien believes that the trend will slow and partnering with retailers will be an important way for DTC brands to grow. 

MediaRadar Insights

Methodology

We analyzed Direct to Consumer (DTC) Beauty ad spend during the month of August. We used data from TV, digital, and print ad spending (though ad spend is primarily in digital and TV).

Findings

DTC Beauty Brands

In August, DTC beauty brands were up 79% YoY—spending $16.8mm. This is significant considering the entire ad spend in the beauty category was down 24%.

When we analyzed how spending from DTC beauty brands was distributed throughout the different formats, we found:

• Television and digital: Spending was double that of August 2019
• Print: Spending was down 59% YoY
• Podcasting: Spend was just over $1 million in August

The top ten DTC Beauty advertisers were: 

• Manscaped
• ProActiv
• Hims
• Hair Club
• FabFitfun
• Billie
• Function of Beauty
• Curology
• Harry’s Shave
• Native Deodorants

These top ten spending DTC beauty advertisers came from three categories:

• Skincare
• Shaving supplies
• Haircare brands

It’s important to note that, of the top ten spending DTC beauty advertisers, only two were cosmetic subscription boxes. Overall, the cosmetic category is down YoY— but DTC cosmetic brands are up 33%. 

Without the restrictions of traditional marketing strategies within traditional brick and mortar stores, DTC beauty brands are targeting more specific audiences with more diverse messaging. 

These are the primary changes in the DTC beauty category we’ve noticed over the past months—primarily in August. We’ll continue sharing any major changes or new trends as they develop. 

For more updates like this, stay tuned. Subscribe to our blog for more updates on coronavirus and its mark on the economy.

While other consumer products suffer during times of recession, beauty products tend to be quite resilient. You can call it the ‘Lipstick Index’ or a passion for self-care — people love to treat themselves. COVID-19 hasn’t stopped that. 

Of course, many things have changed in this industry. Foot traffic purchases are down, while eCommerce shopping is up. Luxury lines are offering uncommon promotions, while other lines are shifting to cleaners and hand sanitizers. And just like toilet paper, hoarding beauty products is a real thing. 

Here, we break down what that means for the ad numbers.

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

The Durability of the Global Beauty Industry

According to researchers at McKinsey, the global beauty industry — made up of skin care, color cosmetics, hair care, fragrances and personal care — generates $500 billion in annual sales. 

Historically, the industry has been resilient during times of economic downturn. In the 2008 recession, the industry experienced a small dip in revenue but rebounded fully by 2010. 

During the 2001 recession, there was an uptick for some products, notably lipstick. The ‘Lipstick Index,’ coined by Leonard Lauder, theorizes that consumers forgo expensive luxury items and instead by small, more affordable products that bring them joy. 

Consumers are loyal to their beauty products. 

In China, the beauty industry has already made a great rebound from its first quarter. 

Skincare in particular is doing well among consumers. Brands such as Tula are seeing sales spike dramatically. Tula reported a 400% increase in April sales YoY. Skincare panic buying has become a trend and is discussed in online enthusiast groups, like SkincareAddicts on Reddit.

“I was extra worried about this, so I stocked up. Some people got toilet paper, I got hyaluronic acid,” wrote one commenter. 

Do-it-Yourself products are also up. With no barber or salon to turn to, people are learning how to cut their own hair. Sales of hair clippers and trimmers in the US were up 241% in March compared to January.

People also continue to buy more soap and body wash products. Sales in this category have gone up 7.5% in the US, and the rise of luxury hand soaps in the UK have gone up 102%. As people wash their hands more, they want something that will not leave their hands feeling dry. 

As we will see below, advertising in this category has shot up significantly.  

MediaRadar Insights

With these new grooming trends, we took a look at the advertising numbers. 

The average weekly skincare ad spend is up 15% since COVID began (the week of March 9th through the week of April 27th, compared to 8 weeks prior). 

Top spenders include:

• Dove (+87%)
• Neutragena (+53%)
• Cetaphil (+18%)
• Anti-Aging skincare is doing particularly well. YTD ad spend is up 48% YoY.

When we took a look at the shaving and razors category, we found that the average weekly ad spend is up nearly 3x (with the same time frame as above). 

Top advertisers include:

• Finishing Touch Flawless
• Gillette Razors
• MicroTouch
• Gillette Venus
• Bell + Howell TacShaver 

Diving into bath and shower products (i.e. hand soap, body wash, sanitizer), our data shows that the average weekly ad spend is up 2.5X since COVID-19 began to take its toll. 

When we look at the individual products, we see who is spending the most:

• Sanitizer is up 170x
• Soap (+205%)
• Bodywash (+149%) 

Sanitizer is up the most by a long shot, as people try to stay safe and healthy. COVID-19 has impacted our grooming habits, just like it has touched everything else.  We will continue to monitor how advertisers engage with their customers during this time.

For more updates like this, stay tuned. Subscribe to our blog for more updates on coronavirus and its mark on the economy.