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OGILVY—JANUARY 2019 Insta- branding

The impact of Instagram on the orthodoxies of traditional branding

By Antonis Kocheilas 1 Are the most popular brands different than before?

Is that causing us to question the traditional rules of branding?

4 7 What we know …

The goal: We sell, or else.

Define your positioning: The most important decision is how to position your product.

Know your consumer: The consumer is not a moron. It is your wife.

Brand image: Every advertisement must contribute to the complex symbol which is the brand image.

The product is hero: Torture the product until it confesses all its virtues.

Tone of voice: Most manufacturers want to be all things to all people, and they end up with a brand which has no personality.

Layout: An ugly layout suggests an ugly product. There are few products which do not benefit from being given a first-class ticket.

8 9 “Insta-branding” refers less to how these brands become popular and more to why they became popular — their nature is determined by social forces that govern how people make decisions.

10 11 A BETTER MOUSE- TRAP, OR SIMPLY BETTER BAIT?

Today’s most talked-about brands are redefining the traditional rules of marketing and advertising. In a world previously dominated by giants like P&G and Unilever, smaller brands are now being born and raised online, and they are taking on the big guys. With tools like Instagram at hand, brands are now able to connect directly with their consumers, leveling the playing field for all.

12 13 BRANDS AND 80% 71% 75% +

INSTAGRAM: BY of Instagram users of brands have of Instagram users THE NUMBERS* voluntarily connect accounts on are more likely to with a brand on Instagram take action when Instagram they follow a brand

72% 150m+ 1/3

of Instagram people per of direct messages users have made month have a start through a purchase after conversation with Instagram stories seeing an item a business through featured on the direct message platform

10x F 54x P 84x T

the number of the number of the number of people engage people engage people engage with brands on with brands on with brands on Instagram than on Instagram than on Instagram than on *References: Adweek, Brandwatch, Instagram. Facebook Pinterest Twitter

14 15 CONTENTS

Case Studies 19-71

Glossier 19-23

Kylie 25-29

Lush 31-35 goop 37-41

Fashion Nova 43-47

GoPro 49-53

Outdoor Voices 55-59

61-65 SoulCycle

67-71 Tasty

73-83 Takeaways

Case Studies CASE Glossier STUDIES

18 19 Case Studies Glossier “What we’re seeing through social media is the democratization of Glossier is the brand that all the other beauty and skincare brands are watching. That was always founder the beauty industry. The and CEO Emily Weiss's plan. Weiss converted her blog, Into the Gloss, into a brand, Glossier, in 2014. customer is becoming the Glossier didn’t have a marketing team until a year into its existence. It was Instagram—and the brand’s marketer. She’s electing engaged followers—that made it such a success. which brands win by posting Weiss was able to turn her readers into followers and followers into Glossier brand evangelists. The two main what she’s using on social things that set Glossier apart are its brand identity and its control of the digital community. This has led to the media – whether she has 200 rapid growth of its products. The Glossier team insist that this is mostly organic. Customers sharing with followers, 2,000 or 2 million. other customers is a key part of the business . The brand expertly took advantage of this, using Instagram Your opinion as a woman in as a primary communication tool with customers and as a platform for product launches. beauty has never been more valuable.”

—Emily Weiss, Glossier CEO and Founder

20 21 Case Studies Case Studies Glossier Glossier vs. FROM Estée Lauder ASPIRATIONAL BEAUTY TO PURSUIT OF BEST SELF

01—Glossier’s positioning 03—Glossier has a “two-way Similarities Differences statement is “Skin First. conversation” with the user • Both brands are selling their • Glossier is catering to Makeup Second. Smile community. Glossier invited idea of beauty. millennial buyers. Anti- Always.” about 100 of its top customers • Both brands carry skincare wrinkle creams are out, to be part of a group Slack and makeup products. highlighters and contouring channel. They exchange over 02—Glossier founder and products are in. 1,100 messages every week. • Both brands have influential CEO Emily Weiss blogged businesswoman founders. • Glossier sells a small line of before she went to work at products that are released Vogue, where she was a fashion 04—The US flagship, a slowly and sell out quickly. assistant. Within a year, ad penthouse in New York, • Glossier campaigns include sales generated by her website generates more sales per photos that look like ones allowed her to quit her day job. square foot than the average your friends would take Apple store. (usually shot with an iPhone). • Glossier’s campaign images feature genuine fans of all shapes, sizes, races and ages.

22 23 Case Studies Kylie

24 25 Case Studies Kylie “Let’s be real: Despite the democratic nature of social media, it’s unlikely for a designer to go from total obscurity to Instagram success overnight. A common Growing up on a reality TV show, and as part of one of the most widely recognized families in the world, thread for many of the was already positioned to have eyes on her every move. Leveraging her massive following on social media, Kylie had a well-defined target market 'Instagram brand' founders before she even started her line. Her loyal audience is a part of her continued success. She I spoke with was that they regularly posts content on her social channels, sharing which shades of she is wearing and which new already had strong personal products she is releasing, generating demand without traditional advertising. followings, and/or friends with large followings.”

—Dhani Mau, Fashionista Editor

26 27 Case Studies Case Studies Kylie Kylie vs. FROM DRUGSTORE Covergirl BEAUTY FOR THE EVERYDAY GIRL TO CELEBRITY STATUS AND SOLD OUT IN SECONDS

01—Kylie started her company 03—Kylie started and grew Similarities Differences after tabloids outed her for the company through her • Both leverage celebrities • While Covergirl and other getting lip injections. She took preexisting social media as the famous faces of their cosmetics lines feature advantage of the PR to release presence. She could drive sales brands. campaigns with celebrity her lip liners and glosses, or release a product simply by • Both are somewhat spokespeople, Kylie is the claiming that they were what posting an Instagram story, aspirational and position main face of the brand and made her lips look bigger. which averaged 10 million their products as a way for the founder. views. women to look better. • Kylie leverages her Instagram 02—Kylie recognized the following as the main source younger demographic that 04—With success from Kylie of attention. followed her compared to Cosmetics, along with other • Kylie has a more streamlined her older sisters like Kim. She partnerships, Kylie is set to product line. leveraged her massive social be the youngest self-made • The scarcity and aspirational following to identify exactly billionaire by age 21. nature of who her target audience was. make it a more premium brand.

28 29 Case Studies

30 31 Case Studies Lush “We don’t advertise above or below the line. We don’t spend money on TV campaigns, on celebrity endorsements. We don’t promote Since its inception, Lush has prided itself on ethical principles, organic ingredients and charitable social media posts. So everything we endeavors. This has allowed the company to build do is organic. Every Facebook post is a loyal following and not rely on traditional media advertising. Lush’s internal growth strategy starts organic. We have no budget to push by creating brand advocates with its in-store staff. behind it. People like to take pictures The staff is extremely knowledgeable and strongly encourages trial with sampling. However, Lush of [our products] in their shower. doesn’t just rely on foot traffic to grow its strategically- We get lots of nude butts … shared. located stores. It engages heavily outside the store. A big reason behind its success is a focus on People love it. Bums make impact. It building relationships with its audience. By talking creates an opportunity for creativity. to customers on Twitter, Instagram and Facebook, Lush maintains a continual cycle of conversation and And it means that we invest in things engagement. that are more important, like our ingredients and our supply chain and where we source things from. And our people.”

—Natasha Ritz, Brand Communications Manager at Lush

32 33 Case Studies Case Studies Lush Lush vs. FROM DERMATOLOGIST APPROVED TO NATURE PROVIDED

01—YouTube has become 03—Lush practices what it Similarities Differences one of Lush’s most effective preaches, giving 100% of • Both brands have the goal of • Lush is based on all-natural marketing channels. There the proceeds from various improving skin. ingredients. are over a thousand unboxing products to multiple • Both try to appeal to the • Neutrogena's claim is videos of Lush products on organizations. everyday woman. "dermatologist approved." YouTube. • Both highlight specific • Lush is dependent on Mother 04—Lush’s staff is highly- product benefits in their Nature. 02— Lush relies on user- trained and informed. Lush messaging. • Neutrogena is accessible generated content. Hashtags staff receive competitive pay everywhere. such as the popular #lushtime and a generous employee encourage customers to share discount, which encourages • Lush highlights that their their own personal Lush trials and helps them become products are handmade to experiences. product experts. uphold their mission and values.

34 35 Case Studies goop

36 37 Case Studies goop “G.P. didn’t want to go broad. She wanted you to have what she had: the $795 G. Label trench coat and the Gwyneth Paltrow has created an empire of green juice–loving, chakra-balancing, designer-donning $1,505 Betony Vernon followers through her lifestyle brand, goop. The pinnacle of aspirational brands, goop grew organically S&M chain set. Why (no pun intended) from a newsletter started in Paltrow’s kitchen to a publishing house, advertising mass-market a lifestyle hub, summit organizer and much more. While the brand has received backlash for its massive price tags and wild products not grounded in science, that lives in definitional its followers are incredibly loyal. It seems that the stranger goop gets, the more people get behind it. opposition to the mass market?”

—Taffy Brodesser-Akner, New York Times Contributor

38 39 Case Studies Case Studies goop goop vs. FROM A Martha Stewart TRADITIONAL LIFESTYLE BRAND TO BUZZWORTHY WELLNESS EMPIRE

01—goop has grown from a 03—goop is known for its Similarities Differences newsletter to an advertising outlandish products (vampire • Both expanded to be • goop is less attainable, hub, publishing house, summit, repellent and bee-sting omnichannel. whereas Martha Stewart has clothing brand and more. therapy, to name a few), which • Both are lifestyle brands that her products in stores like draw more attention to the are aspirational in nature. Kmart. brand. 02—Gwyneth Paltrow • Both give advice and • goop recommends more- leveraged her audience to sell recommendations for outlandish products, her rarefied lifestyle: “She 04—Gwyneth Paltrow became women. garnering more buzz and wanted you to have what she a martyr as the company attention. had." started to receive backlash. People defended her, and thus goop’s popularity grew. The weirder it got, the more people loved it.

40 41 Case Studies Fashion Nova

42 43 Case Studies Fashion Nova “All the knowledge I gained from having brick-and-mortar stores, I utilized for the website. Being able to listen firsthand to my customers Fashion Nova is a popular e-retailer known for clothes that are sexy, affordable and (most importantly) worn gave me information on what women by celebrities. Though he opened his first store at the wanted, what was missing, and Panorama Mall in 2006, CEO Richard Saghian says it wasn’t until Instagram exploded a few years later what was needed. I realized early that the brand’s reach began to grow exponentially. on that getting into the minds of my Fashion Nova was able to leverage their Instagram page without the aid of traditional advertising, customers is what helped me grow. runway shows, traditional campaigns or SEO tactics. I don’t think I would’ve been able to The brand built a strong following by having both mega- and micro-influencers post and praise their do it without all my retail experience hero product ($35 denim jeans). Fashion Nova has from the brick-and-mortar days to been incredibly successful at tapping into millennial neurosis: the obsession with seeing and being seen. the e-comm days.”

- Richard Saghian, Fashion Nova CEO

44 45 Case Studies Case Studies Fashion Nova Fashion Nova vs. FROM MALL bebe BRAND TO INSTAGR AM BRAND

01—Fashion Nova currently 03—Fashion Nova was the Similarities Differences works with a network of over fourth most Googled fashion • Both brands target the same • bebe relies on traditional 3,000 influencers. One of brand in 2017, right in line demographic. advertising. their most notable influencers with brands like Gucci, Louis • Both brands have a fast • bebe relies on mall traffic. is reality star turned rapper Vuitton, Supreme and Chanel. fashion concept. Cardi B. • Fashion Nova has a very • Both brands make clothes rapid production speed. 04—Fashion Nova's marketing that are not meant for • Fashion Nova leverages 02—Fashion Nova's owner strategy is largely tied to multiple wearings. Instagram culture to reports that the brand grew Instagram. The brand posts on replicate celebrity outfits. 600% in 2017. The brand Instagram every 30 minutes. expanded into the menswear and plus-size categories.

46 47 Case Studies GoPro

48 49 Case Studies GoPro “GoPro, specializing in tough professional video cameras and software, shares customer content to show just how you GoPro has mastered the game of content marketing. They leveraged their audience’s concentrated presence can put these cameras on YouTube, Instagram and other social media sites to share original content that made people aspire to the GoPro lifestyle. GoPros are used to capture to good use—from photogenic moments, which the brand capitalized on to promote the GoPro Movement, using hashtags like skydiving and mountain #GoProFamily. Through this strategy, they were able to create a sense of belonging for consumers, putting climbing to filming the the brand’s focus on the lifestyle instead of solely on the product. flight of huge birds and rescuing sea turtles.”

—Pius Boachie, Adweek Contributor

50 51 Case Studies Case Studies GoPro GoPro vs. FROM ART TO Camera brands ADVENTURE

01—GoPro has become a 03—GoPro targeted a clearly Similarities Differences lifestyle brand, as ownership defined audience: extreme • Camera brands share • GoPro was the first camera brings the promise of a more athletes and adrenaline seekers the promise of capturing brand to dramatically adventurous and photogenic —people who did not fit into the meaningful moments in your differentiate itself on the lifestyle. typical demographic of camera life. basis of adventure. consumers. • Both sell the technical • GoPro relies heavily on user- 02—With a heavy focus on capabilities of the product. generated content to spread user-generated content, GoPro 04—GoPro had a marketing brand awareness. was able to leverage their users budget of $41,000 in 2013, yet to become ambassadors for the doubled sales that same year. brand. Instead of traditional channels, they rely on their social media following.

52 53 Case Studies Outdoor Voices

54 55 Case Studies Outdoor Voices “The brand and their relaxed mission is expanding even further than influencers, and it’s because of their Outdoor Voices was started to provide people with comfortable clothes to sweat in. It took a more founder’s unique philosophy. laid-back approach to working out, creating a mass ‘That moment I woke up following of fans on social media who bought into the OV lifestyle. Born online, they are a digital-first brand, and said, wouldn’t it be which uses social media to amplify its community building efforts. Through all of its branding, OV places amazing to build the next an intense focus on customers, involving them in the product development process, as well as leveraging great activewear brand their influence over friends and family. that approached activity differently, with moderation, and ease, and delight rather than pressure to perform’ [Haney] says.”

—Shea Simmons, Contributor, Bustle

56 57 Case Studies Case Studies Outdoor Voices Outdoor Voices vs. FROM Lululemon INTIMIDATING ATHLETICS TO

01—OV was born online, 03—OV founder Tyler Haney ACCESSIBLE making it a digital native has publicly committed ACTIVEWEAR brand, but they seek to “drive herself to raising other women engagement offline and then up, especially in the male- amplify it through social and dominated business world. She digital channels.” They show even modeled in a campaign up where their consumers are for gGossier, showing that she Similarities Differences to make the relationship even was not cutthroat toward other • Both feature products • Outdoor Voices positions more direct. CEOs. designed to help boost itself as a more laid- athletic performance. back activewear brand, 02—“Every customer is an 04—OV has inserted its brand • Both grew without the use eliminating the pressure to influencer.” OV realized that into many aspects of the of traditional advertising. perform. many people wanted to be consumer’s lifestyle. Instead (Lululemon released their • OV brick-and-mortar stores active yet felt intimidated by of thinking of the product first campaign in 2017.) are focused less on driving the typical image of athletic only when using it, customers • Both capitalized on the rise sales and more on building a brands. They created a brand interact with it via social media of athleisure. community. in which people could see channels, making it more • Both brands have extended • Consumers share more user- themselves. intimately involved in their beyond digital to show up in generated content for OV. lives. real-life moments.

58 59 Case Studies SoulCycle

60 61 Case Studies SoulCycle “Since our launch, it’s all been about how do For more than a decade, SoulCycle has relied on the we build a community power of its passionate, loyal riders to drive brand awareness and expansion. The brand’s community atmosphere and inspirational messages give riders and how do we something to believe in. Part of SoulCycle’s appeal is their celebrity-like instructors. Instructors use their cultivate a community. social media accounts to update people on schedules and classes, to post behind the scenes from the studio, or just to share bits of their lives with them. This is And we want to part of SoulCycle’s larger marketing strategy, which has relied almost entirely on word of mouth. Yet, with make people feel that rising competition, the fitness chain has created its first branding campaign to highlight the SoulCycle name community digitally.” and ethos.

—Gabby Etrog Cohen, former VP, PR and Brand Strategy at SoulCycle

62 63 Case Studies Case Studies SoulCycle SoulCycle vs. FROM ONE- Gyms SIZE-FITS-ALL FITNESS TO BOUTIQUE COMMUNITY

01—SoulCycle offers “Soul- U” 03—SoulCycle boasts over Similarities Differences courses. This is an in-house 10,000 rides a day, 11 • Both are centered around • SoulCycle specializes in one university that offers staff million visitors to its website, fitness. area: cycling. over 100 modules to aid their aggressive expansion plans, • Both offer group fitness • SoulCycle has been able to learning and development. and an average profit of $4 classes. build a community without a Classes include how to teach million a year per studio. membership pay model. on the floor if you’re injured, • Both are accessible to anyone how to build your own media willing to sign up. • SoulCycle offers drop-in 04— SoulCycle launched its channels, and what’s new on classes for people wanting to first branding campaign in Snapchat. sample the environment. 2017. • SoulCycle requires additional equipment at an 02—“Soul Destinations” are additional charge. pop-up studios that feature the most-beloved instructors in the company in popular vacation cities.

64 65 Case Studies Tasty

66 67 Case Studies Tasty “Really what we’re seeing is how to make a business out of massive intellectual It’s nearly impossible to log on to Facebook without seeing a Tasty video shared on your newsfeed. The property that was built online food network has flipped the industry upside down with their 40-second, overhead-filmed cooking tutorials. Tasty has over 94 million likes on Facebook digital-first. It’s the same and over 2.2 billion views on YouTube. Tasty, which is owned by BuzzFeed, features short, fast-motion model as old-media videos that pull the viewer in. The quick tutorial videos regularly get tens of millions of views within 24 hours networks—you make a of posting. And that isn’t just because of the delicious food being cooked. The team at Tasty is obsessed about movie that people love, and learning from past successes and failures. Tasty uses BuzzFeed’s strategy of publishing content directly to then you build a theme social media outlets rather than posting links to stories on their website. Tasty is less concerned about driving park and extend that to traffic back to its website and more about engagement and shareability. products and everything else.”

- Ashley McCollum, Tasty General Manager

68 69 Case Studies Case Studies Tasty Tasty vs. FROM ELABORATE Chef-centered CHEF-INSPIRED shows MEALS TO USER- FRIENDLY MEALS

01—Known for their widely 03—The lesson from the launch Differences Similarities popular overhead food and fast growth of Proper • Cooking shows rely on • Both are centered around the videos—a format whose Tasty is that BuzzFeed plans celebrity chefs and their home chef origin no one seems to be to go deeper and deeper into personalities. • Both are educational and able to pinpoint—Tasty has specialized niches. • Tasty is focused on tutorial based reimagined the recipe format showcasing food above all as a visual, shareable and • Both focus on techniques and 04—The biggest advantage else interactive medium. share new recipes BuzzFeed has, for now, is that it • Tasty videos are very fast, can still make money on these so viewers can binge-watch 02—Tasty has expanded other platforms with its native them into strategic partnerships ads. and product launches like a branded line of cookware, induction cooktops and cookbooks.

70 71 TAKEAWAYS Takeaways

72 73 CHOICE Takeaways MAPPING*

INFORMED INFORMED

INDEPENDENT SOCIAL INDEPENDENT SOCIAL

UNINFORMED UNINFORMED

The horizontal axis represents the degree The vertical axis represents the to which a choice is shaped by independent degree to which a choice is based on decision making and to what extent that available information or 0n any kind choice is shaped by the choices of others or of intuition or appeal. their recommendations.

*ADAPTED FROM THE BOOK COPY, COPY, COPY BY MARK EARLS

74 75 SOCIAL 77 Influenced by experts by Influenced enthusiasm the behavior, It’s of and recommendations withexperts and others that social status influential choices. in shaping matter by peers Influenced those looks at The individual in a guidance them for around matters What way. less focused other of what is the impression be doing—orpeople seem to of. doing more Takeaways

INFORMED UNINFORMED 76 Considered choice Considered choosing are Individuals Rational. The qualities of the independently. is what from things being chosen most here. matters choice Salient many between Choices are the quality items, indistinguishable commoditized, of which is largely of each salience so the relative the choice. option is vital in shaping

INDEPENDENT ADAPTED FROM THE BOOK THE BOOK FROM ADAPTED COPY COPY, COPY, MARK EARLS BY

CHOICESTYLES FOURDIFFERENT THE DIFFERENCE Takeaways INFORMED

“Perma” brands “Insta” brands believe that consumers believe that any given make choices by decision or choice is shaped INDEPENDENT calculating the utility of primarily by social forces SOCIAL each option and are heavily and by key individuals influenced by the salience to whom the rest of the each brand has in the mind audience defers. of its target. UNINFORMED

ADAPTED FROM THE BOOK COPY, COPY, COPY BY MARK EARLS

78 79 The main difference Takeaways THE BEAUTY ALWAYS between Insta and LIES IN THE Perma branding MIDDLE can be traced to the assumption about how The distinction between Insta and Perma branding is, of course, artificial. It serves as a provocation to people make choices. help us think more deeply about the dynamic nature of branding in today’s marketplace. The examples in this presentation show how brands found innovative ways to exploit the social forces that govern consumer decision making. These brands managed to use earned influence to their advantage by generating meaningful “pulses” that made them relevant and distinctive in people’s minds.

80 81 What we learned …

The goal: We share (in order to sell) or else.

Define your positioning: The most important decision is which platform you are going to use.

Know your consumer: The consumer is not a moron. It is an influencer.

Brand image: Every post must contribute to the complex symbol which is the brand image.

The founder is hero: Clients can be projected as human symbols of their own products.

Tone of voice: It takes guts to stick to one style in the face of pressure to “come up with something new” every six minutes.

Layout: What really convinces your consumers to share or not to share is the content of your posts, not the form of your posts.

82 83 Contact Information: Questions? Reach out to: Chantal Page — [email protected] Elise Alverson — [email protected] Antonis Kocheilas — [email protected] ogilvy.com

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