Study: CTV ads deliver for beauty brands
November 22, 2024
LG Ad Solutions, a specialist in CTV and cross-screen advertising, has unveiled findings from its Beauty & The Screen research, spotlighting the transformative role Connected TV (CTV) plays in the beauty and grooming industries in the US.
The study found that 53 per cent of beauty shoppers say TV ads influence their decisions to buy beauty products. CTV ads are helping beauty brands guide shoppers through the purchase funnel, with 68 per cent of female beauty shoppers saying they pay attention to TV ads for beauty products, 64 per cent able to recall seeing beauty TV ads in the past month, and 59 per cent actually trying a new beauty brand after seeing a TV ad.
LG Ad Solutions says that leading beauty brands have recognised the power of CTV as a premium environment that drives results across marketing efforts. For major players like L’Oreal, this means activating insights-based strategies that prioritise personalisation and performance.
“We’ve found CTV to be a great strategy as it delivers premium awareness but enables a data-led approach where we can then retarget audiences to convert further down the funnel,” commented Nobles Crawford, Assistant Vice President and Head of Innovative Strategy at L’Oreal. “In certain limited-time offers and sales periods, including interactive capabilities in our CTV ads has been beneficial in expediting the purchase funnel.”
“There’s something really powerful about TV – it’s where brands can build those deep, memorable connections with consumers through the full impact of sight, sound, and motion on the biggest screen in the home,” said Ed Wale, VP of International at LG Ad Solutions. “For beauty brands, new environments like the CTV Home Screen and interactive ads are a game-changer, giving brands the opportunity to have a standout presence across the entire CTV ecosystem while making every stage of the journey count.”
The study, which polled over 1,200 beauty and grooming product buyers in the US, revealed that 53 per cent of beauty shoppers wish beauty ads on TV made it easier to buy a product directly – with 78 per cent stating they would likely purchase after scanning a QR code on a TV ad for a product. Additionally, over half of respondents said that discounts and free samples would make them more likely to scan a QR-enabled TV ad, followed by more information (32 per cent), a save-for-later option (29 per cent), and an add-to-cart feature (21 per cent).
As beauty consumers’ buying habits evolve, the study highlighted several key insights:
-
Most Beauty Shoppers Buy Products At Least Monthly: 68 per cent of beauty shoppers purchase skincare monthly, 70 per cent buy haircare products, 61 per cent buy makeup, and 54 per cent buy fragrance products.
-
High-Spending Beauty & Grooming Shoppers Prefer a Personalised Online Experience: High-spending beauty shoppers are 152 per cent more likely to have product subscriptions, 60 per cent more likely to buy endorsed products, and 36 per cent more likely to shop for beauty online. Beauty and grooming shoppers who spend $250+ per month represent 16 per cent of all beauty and grooming shoppers.
-
Beauty & Grooming Shoppers Buy at a Mix of Stores and Sites: When deciding where to shop, women prefer in-store, while men prefer online. Fifty-two percent of female shoppers prefer shopping in-store, whereas 54 per cent of male shoppers prefer online shopping. Once beauty shoppers decide how to buy, nearly all continue with the same method.
-
Top Factors Influencing Beauty & Grooming Purchases: Price remains the top factor, with 66 per cent of female respondents citing it as the main influence on purchasing decisions. Other key factors include ingredients (50 per cent), brand reputation (49 per cent), and reviews and ratings (47 per cent).
“The real-time data availability of CTV enables a substantial opportunity to target custom audiences in a way that traditional TV has never been able to,” added Crawford. “Bringing the real-time optimisation benefits of digital advertising to the big screen has made premium awareness media more addressable and effective for our brands.”