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BEAUTY STUDY 2018 The Digital Beauty Counter How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video

Copyright 2018. Pixability, Inc. All rights reserved. 2

SECTION 01 INTRODUCTION Brushing Up On Beauty Across YouTube, Facebook, and Instagram

Through digital video domains like YouTube, Facebook, In this report, you’ll discover Pixability’s fifth annual and Instagram, consumers have established passionate analysis of the beauty space across YouTube, Facebook, communities and connections around beauty: sharing stories, and Instagram — unpacking viewing behavior and video favorite techniques, and inspiration. Gone are the days of strategies to help beauty marketers understand how they consumers heading to the mall beauty counter to discover can make an impact on consumers through video. and compare products and make brand decisions — today, Armed with these insights, beauty marketers can better consumers are finding and engaging with beauty brands develop and execute paid, owned, and earned media through digital video. strategies, and maximize the impact of their video spend. The explosion of content, audiences, and ad dollars on YouTube, Facebook, and Instagram has turned digital video into the digital beauty counter — and marketers must develop a video strategy that turns heads if they’re going to win audiences across these major video domains.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 3 TL;DR On the way out? Here’s what you need to know

Overall, there’s a clear need for marketers to invest in digital- first strategies, develop video tailored to each video domain’s specific strengths, and carefully consider their contextual targeting strategy to maximize impact. Here’s a taste of what Pixability found:

−− On YouTube, influencers drive 32X higher engagement rates than beauty brands — but marketers can borrow strategies from influencer playbooks to seize attention. −− Beauty brands are growing their audiences on Instagram 58% more rapidly than on Facebook. −− Even influencers must pay to play — 100% of top YouTube influencers count some amount of paid viewership within their audiences. −− This year, travel and beauty is increasingly overlapping on YouTube, with this crossover space set to surpass 1B views.

© 2018 Pixability, Inc. All rights reserved. 4

SECTION 01 INTRODUCTION

Video Playbook Here’s How Marketers Can Build Winning Video Strategies

YouTube: Marketers can take advantage of YouTube’s Instagram: Marketers have leapt head first into massive built-in viewership by developing a long- Instagram, acquiring and activating audiences form video strategy, leveraging influencers and publishing by frequently publishing compelling photo, video, and frequently to continue building and activating their audience, GIF content. Marketers can maximize the impact of their deepening brand commitment. Instagram strategy by publishing short-form (less than 30 seconds) tutorial content, and linking to longer videos on Facebook: By investing in a robust video strategy YouTube and Facebook, as well as getting creative with on Facebook, marketers can stay top-of-mind Instagram profile pages. among their target consumers. Successful Facebook video strategies utilize short-form (less than 30 seconds) content and innovative features like pop-outs to engage consumers around product launches and giveaways, as well as leveraging long-form video for branding and building brand loyalty.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. Beauty on YouTube 6

SECTION 02 BEAUTY ON YOUTUBE YouTube Remains A Beauty Powerhouse

With over 349B total views, YouTube still reigns supreme in the beauty video space — and this trend is showing no signs slowing. YouTube saw a 60% year-over-year growth in views, and is expected to gain 169B views through the end of 2018. While the vast volume of content in the beauty space can make it difficult for marketers to make an organic impact, an aggressive paid media strategy can help drive impact in the beauty space — particularly when combined with a sophisticated organic content strategy.

Beauty Viewership On YouTube Shows No Sign Of Slowing

Annual Video Views on YouTube 169B

160B

104B 120B

80B 59B

37B 40B 25B 16B 11B 5B 7B 129M 872M 2B 3B

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Projected) Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 7

SECTION 02 BEAUTY ON YOUTUBE

On YouTube, beauty viewership peaks in Q3, Beauty Viewing Peaks In Q3 On YouTube with spikes around summer and back-to-school. 10.5B 10.50B 10.2B Marketers can command audience attention on 10.1B the domain by maintaining a steady publishing 10.00B cadence, and publishing well in advance of holidays 9.5B and tentpole events to get ahead of the competition 9.50B and take advantage of long-tail viewership. 9.00B Q1 Q2 Q3 Q4 Source: Pixability, August 2018

Beauty Viewing Peaks Around Holidays, Reaches Zenith In Q3 On YouTube

Average Views Per Year Average Number of Videos Published

3.9B 250K 3.7B 210K 3.5B 3.3B 170K

3.1B 130K 2.9B 90K 2.7B 2.5B 50K

JAN. FEB. MAR. APR. MAY JUN. JUL. AUG. SEP. OCT. NOV. DEC. Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 8

SECTION 02 BEAUTY ON YOUTUBE How Consumers Are Viewing Beauty & Content

Skincare and content leads other beauty and marketers shouldn’t silo their strategy — by developing personal care sub-spaces in year-over-year view growth, video strategies that span multiple sub-spaces, they can but all sub-spaces are rapidly gaining audiences. However, maximize their impact.

Marketers Can Maximize Impact By Developing A Video Strategy That Addresses Multiple Sub-Spaces

Total Video Views in Personal Care Space Total Video Views in Beauty Space YoY Growth %

90% 400B 80% 350B 77% 70% 70% 300B 62% 64% 64% 57% 61% 61% 60% 250B 52% 49% 50% 200B 40% 150B 30% 100B 20% 50B 10%

Beauty & Personal Beauty Cosmetics Personal Care Hair Skincare Fragrance Deodorant Body Care Nails Care Space

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 9

SECTION 02 BEAUTY ON YOUTUBE

Spotlight: Overall Cosmetics Space Unwrapping The 209B Views | 70% YoY Growth Cosmetics Sub-Space Lips Contouring 13.6B Views 3.6B Views Across the cosmetics sub-space, lips content 68% YoY Growth 56% YoY Growth saw the largest year-over-year growth rate in 2018 as viewers flocked to YouTube for Eyelashes Eyebrows and lip art content. Again, beauty 3.1B Views 2.4B Views marketers should experiment with developing 46% YoY Growth 60% YoY Growth crossover video content that bends and blends sub-spaces and categories to attract Blush an engaged viewership. 768M Views 30% YoY Growth

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 10

SECTION 02 BEAUTY ON YOUTUBE Marketer’s Strategies Should Reflect What Viewers Are Watching

Beauty mavens have cultivated rich communities across digital video domains, and have developed many new and innovative content types. Beauty marketers can maximize their impact by learning to speak the language of digital video, and developing a made-for-digital video strategy that includes engaging content types like tips/hacks and DIY videos.

Marketers Should Adopt Creator-Developed Content Types To Drive Engagement

Average Views Engagement Rate

4.5% 10M 9M 4.17% 3.99% 4.0% 9M 3.76% 3.5% 8M 6M 3.31% 3.04% 7M 6M 3.0% 2.75% 6M 6M 5M 5M 5M 2.5% 5M 5M 5M 2.12% 1.84% 4M 2.0% 4M 1.63% 1.5% 3M 1.0% 2M

1M 0.18% 0.5%

...Does My Challenge Tips/Hacks Campaign Film Interview/ Tutorial Favorites/ Routine/ DIY Parody/ Makeup Vlog Review/Test GRWM Comedy

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 11

SECTION 02 BEAUTY ON YOUTUBE

Get Ready With Me: Learn The Language of Beauty Across Digital Video Domains

…Does My Makeup Vlog Beauty Tips/Hacks Creators or their acquaintances Popular digital video format wherein Tips, tricks, and hacks to educate apply makeup on one another creator speaks directly to audience viewers on various beauty (includes creator interviews) techniques and products Behind-the-Scenes Pulls back the curtain on production of Look Inspiration Tutorial another video, typically a campaign film Inspiration for several Detailed walkthroughs to educate different looks or styles viewers how to achieve a specific Campaign Films beauty look High-production brand video made to Parody/Comedy drive brand or product awareness Entertaining beauty content, including Favorites/Reviews popular expectation vs. reality format In-depth videos reviewing one or Challenge more beauty products (includes Showcases creators taking part in Get Ready With Me haul videos) digital conversation through make-up Creator walks through beauty routine, related challenges often while addressing audience

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 12

SECTION 02 BEAUTY ON YOUTUBE Paid Media Drives While Tutorial Content Attracted The Largest Viewership In 2017, 2018 Saw Campaign Film Content Take The Lead, Driven By Paid Media Campaign Film Tutorial Campaign Film Look Inspiration Tips/Hacks Content Viewership Parody/Comedy Routine/GRWM DIY Interview/Vlog ...Does...Makeup Behind-the-Scenes Favorites/Review Challenge Last year’s analysis showed that tutorial content attracts the largest share of 2% 1% 2% 1% 3% 1% 4% views across top beauty videos — but 3% 5% this year, brand-owned campaign films 5% 34% 6% 34% overtook the digital-first format, driven 5% mostly by paid media investment. While 6% tutorial content saw its share of views 6% 2017 2018 decline, vlogs attracted a 3X larger share of the beauty viewership over last 9% 12% year’s analysis.

15% 15% 17% 14%

Source: Pixability, July 2017 Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 13

SECTION 02 BEAUTY ON YOUTUBE

Long-Form Content Drives Engagement In Beauty

Beauty mavens are turning to YouTube for long-form content, with 36% of top beauty content clocking in at 10+ minutes, and 24% coming in between 5-10 minutes in length. While innovative brands are breaking the mold, traditional brand content was simply adapted from 15- or 30-second TV spots — but marketers must keep up with changing viewing habits, and develop long-form content to best connect with their audiences. Marketers can learn from top brands like CoverGirl, , and Dior — all three are developing sophisticated, made-for-digital content strategies.

Long-form Content Drives Engagement In The Beauty Space

Average Views Engagement Rate

4.0% 6M 3.58% 7M 6M 6M 6M 3.5% 5M 6M 5M 2.72% 3.0% 5M 2.5% 4M 2.0% 3M 1.37% 1.5% 2M 1.0% 1M 1M 0.5% 0.14% 0.00% 0.01% 0.02%

1-15 Sec 16-30 Sec 31-60 Sec 1-2 Min 2-5 Min 5-10 Min Over 10 Min

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 14

SECTION 02 BEAUTY ON YOUTUBE Average Views by Category And Video Length Across Sub-Categories, Cosmetics Skincare Hair Care Long-Form Content Drives 10M 8M

Engagement 6M

4M While top cosmetics, skincare, and hair care 2M videos attract a similar number of views across creative lengths, the difference in engagement 1-15 Sec 16-30 Sec 31-60 Sec 1-2 Min 2-5 Min 5-10 Min Over 10 Min rate is striking. Each sub-category sees a steep rise in engagement rates as creative increases Engagement Rate by Category And Video Length in length — indicating that no matter their sub- Cosmetics Skincare Hair Care category, beauty marketers should produce 4.0% long-form content. 3.0%

2.0%

1.0%

1-15 Sec 16-30 Sec 31-60 Sec 1-2 Min 2-5 Min 5-10 Min Over 10 Min

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 15

SECTION 02 BEAUTY ON YOUTUBE Average Views by Category And Video Length

Influencers Cultivate Influencers Drive 32X Higher Influencers Dominate Top Average Engagement Rates Beauty YouTube Content Passionate Audiences Than Beauty Brands On YouTube Influencer Total Views

On YouTube Influencer Engagement Rate Publisher Total Views Publisher Engagement Rate Across the board, engagement rates are Brand Total Views Brand Engagement Rate increasing on YouTube as viewers become more 1% 60% accustomed to interacting with video content. 3.3% Beauty influencers are constantly honing their 39% content strategies and cultivating passionate, 2.4% engaged audiences — not just on YouTube, but across Facebook, Instagram, and other video destinations as well — leading them to own the majority of total views across top beauty content on the domain. Influencers also drive 32X higher 0.1% engagement rates than beauty brands, and a Influencers Publishers Brands 41% higher engagement rate than publishers Source: Pixability, August 2018 Source: Pixability, August 2018 such as Refinery29 and GlamourMag.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 16

SECTION 02 BEAUTY ON YOUTUBE

Act Like An Influencer To Engage Audiences

How can marketers tap into the success that beauty influencers have found? By mirroring influencer strategies — marketers should invest in paid and organic strategies that resemble influencer tactics, including publishing frequently, and producing made-for-digital content like tutorials, …does my makeup, and tips/hacks. Viewers are turning to YouTube for these content types, and marketers can better connect with their audience by understanding what they want to watch.

However, even beauty influencers aren’t exempt from pay-to- play. By strategically investing in paid media, marketers can cut through the noise across YouTube and other digital video domains — driving audience engagement and subscribership, and building brand loyalty.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 17

SECTION 02 BEAUTY ON YOUTUBE

Even Influencer-Driven Beauty Brands Must Pay To Play

While influencer-driven beauty brands have built large, engaged audiences, these brands still invest in paid media to drive viewership. Beauty marketers should take this to heart, and develop aggressive paid media strategies to get ahead of their competition.

Influencer-Driven Beauty Brands Still Invest In Paid Media

Relevant Views of Community-Driven Brands Relevant Views of Traditional Beauty Brands All-time Paid Views Percentage (%)

90% 450M 79% 79% 80% 400M 75% 71% 70% 350M 66% 66% 60% 56% 58% 300M 53% 52% 51% 51% 50% 45% 250M 43% 40% 200M 37% 30% 150M 20% 100M 10% 50M

Zoella Luxy Michelle Kathleen- Christian COVER- Laura SK-II Dove Paco Marlena Tanya eos Hair Phan Lights Dior GIRL Lee Japan US Rabanne Stell Burr Products

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 18

SECTION 02 BEAUTY ON YOUTUBE

Tracking Beauty Brand Investment In YouTube Paid Media

While all brands pay to play, the most successful beauty brands are adopting an aggressive media strategy to complement their made-for-digital content. By investing in the right mix of targeting, and assigning the right creative to the right locations and personas, marketers can maximize the impact of their paid media strategy on YouTube.

Beauty Brands Are Investing Heavily In YouTube Paid Media

Paid Views Organic Views

800M 231M

600M

466M 171M 400M 105M 124M 262M 50M 58M 73M 43M 35M 44M 63M 210M 208M 202M 200M 180M 36M 47M 161M 38M 153M 20M 42M 39M 132M 118M 18M 13M 21M 95M 87M 86M 76M 75M 64M 54M 45M 41M 40M

Christian CHANEL COVERGIRL YSL SK-II Paco Garnier Dove eos Maybelline Dior L’Oréal Ralph TOM MAC Lancome Dior Beauty Japan Rabanne Products Makeup Paris USA Lauren FORD Cosmetics USA Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 19

SECTION 02 BEAUTY ON YOUTUBE

Marketers Are Increasingly Adopting The Majority Of Beauty Brand YouTube Videos Are Still Short-Form Digital-First Strategies 30-60 Sec 3-5 Min Over 10 Min While many beauty marketers still predominantly publish short-form videos, 15-30 Sec 5-10 Min 0-15 Sec innovative marketers are increasingly publishing the content that viewers are 1-3 Min 2% searching for on YouTube: made-for-digital, long-form videos. Long-form 4% content now encompasses 8.9% of beauty brand videos, over its all-time 9% 29% low of 3.8% in 2013. Beauty Brands Are Increasingly Incorporating 10% Long-Form Content Into Strategies

10%

8%

6% 22%

4%

2% 24%

2011 2012 2013 2014 2015 2016 2017 2018 Source: Pixability, August 2018 Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 20

SECTION 02 BEAUTY ON YOUTUBE

Beauty Influencers Top Rising Beauty Influencers Total YoY Subscriber Growth Influencer Turning Heads Subscribers Growth Rate Driver

Filipino makeup influencer; On YouTube Michele Dy 1.2M 250% celebrity-inspired tutorial, event makeup Beauty influencers are expanding the scope of the content they’re creating, K-beauty; detailed makeup Risabae 1.8M 83% weaving in travel, entertainment, and/ tutorials or lifestyle videos. They’re also getting creative with the beauty content they MamaMiaMakeup 4.5M 73% Back-to-school related content publish, seizing upon new trends or creating trends of their own. In recent Crossover content on men’s Alpha m. 4M 70% years, beauty influencers have parlayed grooming, fashion and fitness their large audiences into successful brands, including Manny Mua, Kathleen Trend of diverse beauty; Manny Mua 5.3M 65% collaboration with other beauty Lights, and Laura Lee. influencers

Celebrity-endorsed brand; 853K 62% cross-domain marketing

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 21

SECTION 02 BEAUTY ON YOUTUBE

Unpacking The Influencer Top Travel X Beauty Influencers Playbook: Travel X Beauty EMAN Rclbeauty101 FionaFrills Vlogs Content 850K Subscribers 13M Subscribers 295K Subscribers

Many top beauty influencers are developing content that spans both the beauty and travel There’s A Significant Overlap Between The spaces, resulting in the rapid growth of this sub- Travel And Beauty Spaces On YouTube category. Influencers are sharing beauty tips for Views of Travel and Beauty Content a globe-trotting lifestyle, setting the combined 160M travel and beauty space on track to generate over 1 billion views in 2018. Marketers can take 120M advantage of this crossover space and develop videos that help their consumers look and feel 80M good while on the move. 40M

JAN. JUL. JAN. JUL. JAN. JUL. JAN. JUL. JAN. 2014 2014 2015 2015 2016 2016 2017 2017 2018 Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 22

SECTION 02 BEAUTY ON YOUTUBE

Unpacking The Influencer Marketers Can Leverage Fast-Rising Influencers To Drive Impact Partner YouTube Facebook Instagram Influencer Playbook: Brand X Brand Subscribers Page Likes Followers

Influencer Collabs Shayla Mitchell Maybelline 572K 5.6K 2.7M

While influencer collaborations are nothing new, Pixability found that brands are Chloe Morello Ciaté London 2.5M 1.7M 1M increasingly turning to influencers to make a splash among their passionate audiences.

While top influencers can command a Jaclyn Hill Morphe 5.1M 439K 5.4M premium, brand marketers can turn instead to fast-rising influencers to maximize ROI, particularly for long-tail views. grav3yardgirl Tarte 8.8M 967K 2.7M

Anastasia Nicole Guerriero 2.9M 639K 2M Beverly Hills

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 23

SECTION 02 BEAUTY ON YOUTUBE

YouTube Playbook

Here’s how beauty marketers can level up their YouTube strategy:

01 Invest in long-form video content. YouTube still reigns

supreme in the beauty 02 Publish made-for-digital content that engages viewers, video space — and this such as tips/hacks, DIY, and vlog content. trend is showing no of signs slowing.

03 Strategically deploy paid media dollars to reach and retain audiences.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. Beauty on Facebook 25

SECTION 03 BEAUTY ON FACEBOOK

Facebook shouldn’t be left out entirely — a holistic Breaking Down Beauty Brand approach to video helps marketers maximize their impact. Facebook Strategies L’Oréal Paris attracts the largest following on Facebook, but Dior is dominating the publishing game. Nearly half of top Facebook empowers beauty marketers to reach audiences beauty brands have published more than 100+ videos on at scale, and stop consumers from scrolling through Facebook, while 6 of the brands have published less than compelling content and giveaways. While many beauty ten videos in the past year. brands are focusing primarily on YouTube and Instagram,

L’Oréal Paris Leads In Facebook Page Likes, While Dior Dominates Video Publishing Page Likes Published Videos

1,000 40M 920 900 800 30M 700 600 20M 456 500 401 376 389 400 300 10M 148 131 200 103 92 86 85 116 37 72 63 28 100 1 14 11 2

LOréal Dove CHANEL Eisenberg MAC Sephora Dior Garnier Natura Clinique Tresemme Head & Lancome Ponds Clear Revlon The Body Vichy Olay Paris Paris Cosmetics Shoulders Haircare Shop

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 26

SECTION 03 BEAUTY ON FACEBOOK

Marketers must develop a holistic strategy across digital inspiration. Beauty brands should invest in a healthy mix of video domains to reach and engage consumers throughout long- and short-form content on Facebook, stopping thumbs the buyer’s journey — after all, their audience doesn’t with product and launch-related short-form videos, and consume content in a silo, but is leaping from domain committing to branding through long-form content. to domain as they seek out reviews, entertainment, and

41% Of Top Brand Videos Last Less Than 15 Seconds

Videos Published Percentage of Videos Under 15 Seconds in Length

100% 100% 100% 300 89% 79% 80% 250 71% 65% 200 58% 56% 59% 60% 150 40% 28% 30% 29% 100 23% 17% 20% 11% 20% 50 8% 0% 0% 0%

Dior CHANEL Revlon Olay The Body Sephora Lancome MAC Clinique Nivea LOréal Eisenberg Vichy Garnier Dove Head & Tresemme Ponds Natura Clear Shop Cosmetics Paris Paris Shoulders Haircare

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 27

SECTION 03 BEAUTY ON FACEBOOK

Spotlight:

Revlon has invested in making its Facebook strategy stand out, publishing two new videos each week on average, and strategically deploying paid support. The brand develops content with consumer in mind, investing in a Facebook-specific strategy by publishing short-form videos (58% of its 102 videos last less than 15 seconds) and frequently implementing emoji and hashtags in its video titles. The brand also publishes longer tutorial videos for fans looking for educational content.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 28

SECTION 03 BEAUTY ON FACEBOOK

Spotlight:

EcoTools has carved out a place in the top beauty brands on both Facebook and Instagram by investing in organic and paid video strategies. On Facebook, the brand sticks to an aggressive publishing schedule, and balances a healthy mix of short- and long-form content — nearly 40% of its Facebook videos last 30 seconds or less in length. The brand utilizes short-form creative to stop thumbs, build product awareness, and announce giveaways, and leverages long-form video content to unbox products and provide short tutorials.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 29

SECTION 03 BEAUTY ON FACEBOOK

This year, the number of top beauty brands that utilized video playlists nearly doubled, with 65% of the top 20 brands including playlists in their video strategy. Playlists are an effective way to encourage longer viewing sessions, helping educate consumers on different products or product lines, driving them down the funnel.

Brands Are Increasingly Utilizing Facebook Playlists

YoY Follower Growth (%)

8 7 7 6

5 4 4

3 2 2 1 1 1 1 1 1 1

LOréal Dove Nivea CHANEL Eisenberg MAC Sephora Dior Garnier Natura Clinique Tresemme Head & Lancome Ponds Clear Revlon The Body Vichy Olay Paris Paris Cosmetics Shoulders Haircare Shop

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 30

SECTION 03 BEAUTY ON FACEBOOK

Facebook Playbook

Here’s how beauty marketers can level up their Facebook strategy:

01 Publish a mix of long- and short-form content, with roughly half of your videos clocking in at 30 seconds or less.

Take the time to implement innovative video features Nearly half of top beauty 02 like pop-outs (in text or clickable format) to highlight products brands have published mentioned — otherwise, if a consumer doesn’t catch the product more than 100+ videos name, it’s a wasted engagement opportunity. Also, list products in the video description. on Facebook.

Create videos that highlight product ingredients, especially 03 for brands that tout the organic, cruelty free, and other healthy impacts of their brand. Brands can also partner with charities and create a video of the impact / relationship, and traditional brands can create content around their legacy and history.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 31

Beauty on Instagram

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 32

SECTION 04 BEAUTY ON INSTAGRAM

Marketers are diving headfirst into Instagram, as the posts on its page, aside from Chanel and Tom Ford. Several domain is a natural fit for showcasing beauty products and brands have adopted a rigorous publishing schedule, makeup techniques. Anastasia Beverly Hills leads beauty posting high-quality, engaging photo and video content two brands in Instagram posts, but most brands are publishing or more times per day. frequently — in fact, every other brand has at least 2.3K

Anastasia Beverly Hills Leads Beauty Brands In Instagram Posts

Followers Posts 14K 35M 12.8K 12K 30M 10K 25M 7.8K 8K 20M 7.2K 6.4K 5.7K 6K 6K 6K 5K 5.4K 15M 4.7K 4K 4.3K 4.3K 4K 4K 10M 3K 3.2K 3.5K 2.3K 1.7K 2K 5M 1.2K

CHANEL Christian MAC Anastasia Kylie Sephora NYX Too Urban Tarte Ralph Benefit Tom Maybelline ColourPop LOréal YSL Smashbox JeffreeStar Dior Cosmetics Beverly Hills Cosmetics Faced Decay Cosmetics Lauren Cosmetics Ford Cosmetics Paris Beauty Cosmetics Cosmetics Cosmetics

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 33

SECTION 04 BEAUTY ON INSTAGRAM

Beauty brands are attracting audiences on Instagram more Top Beauty Brands On Instagram rapidly than on Facebook. By investing in a cross-domain Brand Instagram Followers strategy, brands can understand where their audience CHANEL 29M is most likely to connect with them — then, brands can Christian Dior 20M optimize to best engage their audience. MAC Cosmetics 19M

Anastasia Beverly Hills 17M Top Beauty Brands Are Gaining Followers Faster On Instagram Kylie Cosmetics 17M Sephora 15M 20% NYX 13M

Too Faced 11M 15% 10M

Tarte Cosmetics 8M 10%

5%

Facebook Instagram

Source: Pixability, August 2018

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 34

SECTION 04 BEAUTY ON INSTAGRAM

Spotlight:

ColourPop has found a large following on Instagram by publishing compelling, thumb- stopping posts and videos — and publishing consistently to keep its audience coming back for more. The brand also carefully positions products in posts and videos to promote brand and product recall.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 35

SECTION 04 BEAUTY ON INSTAGRAM

Instagram Playbook

Here’s how beauty marketers can level up their Instagram strategy:

01 Publish short-form (15-30 seconds) tutorial content and looping GIFs. Marketers are diving headfirst into Instagram, as the domain is a 02 Implement Instagram Stories consistently. natural fit for showcasing beauty products.

03 Get creative with the layout of Instagram profile pages.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 36

SECTION 05 CONCLUSIONS

Revisiting Last Year’s Predictions

01 02

Male Makeup Virtual / Augmented Reality

Similarly, Pixability forecasted that makeup for males Last year, Pixability predicted that advances in will see growth across the beauty space on YouTube. technology will drive consumer bvehavior — and this Following a three-year growth rate of 70% from 2013- year, we found that VR beauty videos have surpassed 2016, last year saw male makeup’s viewership grow 300M views on YouTube and generated 77% more by 117%, with the sub-space set to eclipse 10B views views in 2017 over the previous year. on YouTube by the end of 2018 — and Chanel recently launched a male makeup line.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 37

SECTION 05 CONCLUSIONS

Looking Ahead

01 02

Clean Beauty Cannabis in Beauty

Pixability anticipates that with the rise of anti-pollution While there was a slowdown in cannabis-related skincare, clean skincare, and clean makeup, clean beauty beauty content on YouTube after 2014, 2017 saw an as a whole will continue to gain momentum as consumers uptick in viewership in this sub-space — currently seek out brands and products that align with their demand clocking 200M all-time views, this sub-space is set to for sustainable, safe, and healthy beauty products. receive an additional 100M views by the end of 2019.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 38

SECTION 05 CONCLUSIONS

Conclusion

As digital video environments like YouTube, Facebook, and Instagram continue to evolve, beauty marketers must invest in sophisticated video strategies to make an impact among their core audiences. By understanding what their viewers are watching, and how other brands are approaching video, marketers can put their best foot forward in the beauty and personal care space, reaching and engaging consumers across YouTube, Facebook, and Instagram.

Want more insights?

To learn more, and to find out how your video strategy stacks up across YouTube, Facebook, and Instagram, contact us to set up a meeting. [email protected] CONTACT US 1.888.PIX.VIDEO

© 2018 Pixability, Inc. All rights reserved. 39

SECTION 06 METHODOLOGY

Methodology −− Pixability’s software is fully cross-platform, and can analyze the difference between native videos on YouTube, Pixability is a member of the exclusive YouTube Measurement Facebook, and Instagram. Program (YTMP). This certification program ensures that −− Video data is combined with sharing information on other companies using the YouTube API Services are providing platforms such as Facebook, using the relevant public consistently verified YouTube measurement data. APIs that these platforms provide. −− Videos are analyzed based on a number of features, Pixability is one of the first six technology companies to be including metadata processing (title, description, tags), granted the seal of approval to participate in the program, a comment analysis, and tracking of time series using result of a certification process performed by Google. As a historical data collected over the last two years. member, Pixability’s proprietary video metrics derived from −− Topic spaces are defined by lists of keywords that can YouTube’s data are confirmed to carry the highest quality be combined in multiple layers (e.g. base keywords methodology, accuracy in calculations, and clarity in metric describing a topic combined in Boolean OR plus an definitions. overlay of required keywords, such as a brand name). All insights are based on data from Pixability’s Video −− Data sets are further analyzed by YouTube-certified DiscoverAbility insights platform. analysts. −− The platform harvests data about YouTube videos from the YouTube data API, search API, and other relevant sources.

How Beauty Marketers Can Connect With Consumers Through YouTube, Facebook, And Instagram Video © 2018 Pixability, Inc. All rights reserved. 40

SECTION 06 METHODOLOGY

Predicted View Percentage Facebook

The Predicted View Percentage is calculated using a Pixability utilizes Facebook Audience Insights and public proprietary method Pixability developed over several API data on Facebook Pages to analyze trends among years. It is based on a machine learning algorithm the top beauty brands. (Random Forest regression) that takes into account a set of 23 data signals about every single video on each Instagram observed channel. These signals include factors like Pixability utilizes public API data on Instagram Pages to engagement levels, sharing behavior, view development analyze trends among the top beauty brands. over time, video metadata and other video properties (such as length) that we have identified in our as being highly predictive of paid vs. organic viewing. The machine learning model calculates the predicted number of paid views on each individual video and then aggregates it on a channel level to get to the overall percentage of paid views for a channel.

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