Coty agreed to buy 43 beauty and fragrance brands from Procter & Gamble in July, which sent the stock slipping amidst investor fears that Coty wouldn’t be able to do the heavy lifting to promote and manage the new brands. But Coty seems to have a solid plan. It announced the purchase of content and marketing analytics agency Beamly this week. Beamly will continue to work on Coty brands but take on and continue relationships other clients as well.
Executive VP of category development at Coty, Camillo Pane says the deal will address the accelerating consumer shift in time spent from traditional media to real time digital and social media channels. Pane’s statement reflects the digital position of several beauty brands changing hands in the transaction; Wella, Cover Girl, and Clairol have made substantial investments in digital content. Gifted and No. 13 in L2’s U.S. Beauty Index Cover Girl supplemented its big traditional ad buys with a #GirlsCan YouTube campaign, which was supported by paid search on the platform. Cover Girl’s channel became one of the top 10 beauty brand channels on YouTube as a result, and the Becky G. story for the campaign was one of the top 10 most watched Beauty brand videos.
Clairol, ranked 5th and Gifted in L2’s Hair Care and Color study, invested in traditional television with two ads during the airing of the Miss America pageant. Yet it ruled with high search ranks, being one of the top ten branded destinations for non-brand category keywords. Wella heavily integrates visual content onto its digital assets as well, with style inspiration and lookbook filters on its homepage. Wella is also one of five brands to offer a new app in the time period between L2’s 2013 and 2014 research studies, suggesting plans to further leverage creative content.
Millennial consumers – who spent $461 million on beauty products in the year ending on June 2014 – are an important part of current and future cosmetic sales. Brands early to follow them to their preferred media outlets will be in a better position to gain a share of their purchases.
For our latest report on the digital performance of Hair Care, Color, and Beauty brands, download a copy of the Digital IQ Index: Hair Care and Color: