Advertising 5 Min Read
The Right Targeting Strategy Lets Cosmetic & Beauty Marketers Put Their Best Face Forward
Audience Segments That Will Work Beautifully With Your Campaigns
If you’re a cosmetics and beauty marketer, you know there’s no shortage of beauty products to choose from in 2019. The cosmetic market is projected to hit $805.51 billion by 2023, and according to Stefano Curti, global president of Markwins Beauty Brands, half the growth in beauty is online. This makes targeting the right audience online to drive sales, research, and in-store traffic more important than ever.
Today, we know audience segments such as beauty service subscribers, hair care shoppers, and natural beauty lovers all have specific, personal interests when searching for the products that will work for their needs. Over the last few years, these consumer profiles have fragmented even further, and a personalized approach to beauty has become the norm.
Expand Your Options By Combining 1st & 3rd Party Data
SteelHouse has partnered with Oracle and the Oracle Data Cloud to allow beauty brands access to an endless number of targeting options. It’s always a best practice to make use of your first party data and create lookalike audiences — after all, you know who is converting on your site and you should be searching out similar customers. But with access to Oracle targeting data, there is plenty of opportunity out there for any marketer looking to expand their customer base.
With all these possibilities at your fingertips, we’ve helped you get started by recommending some segments that we’ve seen perform.
Approach: Beauty Service Subscribers
- Segment Name: Women’s Subscription Box Shoppers
- Why You Should Use this: This audience is looking for consistency and convenience in their beauty purchases. Consumers are more 65% more likely to buy from an online retailer that knows their purchase history, so this segment allows for the greater personalization that this audience in particular is searching for.
Approach: Food Fanatics
- Segment Name: Diet & Weight Loss, Organic Food Eaters
- Why You Should Use this: One of the biggest trends these past few years has been the emergence of food as preventative medicine. Take advantage of the audience searching for this benefit by advertising ingredients such as superfoods and oils. For example, spending on products with avocado oil has increased 31% since 2016, and across consumer goods.
Approach: Skincare Aficionados
- Segment Name: Dermatology
- Why You Should Use this: This audience is the largest segment in the beauty industry, with skincare making up 37% of yearly revenue industry-wide. But the skincare category is one of the most complex and diverse in cosmetics, so it can be important to know your audience well. Luckily, like the rest of the beauty industry, these shoppers are more accessible than ever online. Around 63% have greater trust in brands they can find on Instagram, and 52% say they are more likely to be interested in a beauty product if they see ads for it on Facebook.
Approach: Cruelty-Free Buyers
- Segment Name: Vegetarians
- Why You Should Use this: Many beauty product users are abandoning their usual brands in favor of cruelty-free alternatives. If you offer a product that would appeal to this growing segment, make sure to target them specifically with eco-friendly messages and natural ingredient call-outs in order to effectively capture this growing audience.
Approach: Hair Care Shoppers
- Segment Name: Hair & Beauty
- Why You Should Use this: After skincare, this segment spends the second most in the industry – around 22% of the total revenue. One of the reasons for this is the growing male-centric beauty industry, so don’t leave this audience out of your marketing plans or you will miss out on a growing audience.
Approach: Natural Beauty Lovers
- Segment Name: Organic Beauty & Skincare Products
- Why You Should Use this: Like with cruelty-free buyers, this audience is becoming more conscious of the ingredients and processes that went into their beauty products. And this audience can be a large one – 53% of consumers say the absence of undesirable ingredients is more important than the inclusion of beneficial ones. Make sure to target them by including information about your products’ ingredients in your copy. Otherwise you may be missing out on a segment that generated $1.3 billion in annual sales during 2017.
Approach: Makeup Experts
- Segment Name: Active Makeup Researchers
- Why You Should Use this: This audience is extremely valuable, considering 10% of beauty customers generate 80% of the revenue within the beauty and cosmetics industry. This audience is willing to spend a little more on their purchases, but will do plenty of research to make sure they are spending effectively.
Effective Targeting is the Key to Winning
The growth of the beauty and cosmetic industry continues to defy gravity. As new technologies and trends continue to expand this industry, it’s more important than ever to continue to evolve your targeting strategy. Be smart about who you go after, and look for opportunities your competition may not be considering. If you make a healthy habit of doing that, your campaigns should be in good shape.