Weekly Newsletter - 08.08.2024

The Power of Meta for E-commerce Success and Discover the Rising Star of Japanese Skincare!

Author

Skincare Unboxed
August 08, 2024 • Estimated Reading Time: 7 minutes

How to win with Meta 

Meta continues to be a powerhouse for e-commerce brands, delivering unparalleled Return on Ad Spend (ROAS). Meta reported a 23% year-over-year increase in ad revenue, driven by e-commerce brands using its advanced tools to achieve growth. 

According to Meta’s Alphonso Calatrava, here’s how top-performing brands are mastering Meta.

1.Cultivate a measurement-driven mindset 

From the outset, prioritize a culture where measurement is integral to decision-making. As Jamie Bolton, VP Growth at Fospha notes, “Create a culture where measurement is a key element to decision making – this will really aid performance long term." 

2. Leverage Meta’s full funnel 

Fospha's report reveals that successful larger brands, particularly those in the mature stage, are adopting a comprehensive full-funnel strategy.  

While mature brands allocate 17% of their spend to upper funnel activities, they maintain a balanced approach across the entire funnel. The data indicates that as brands grow, they increasingly diversify their channel mix and funnel strategy.  

Mature brands reduce the proportion of conversion activity, investing more in awareness, consideration, and Advantage+ campaigns: 

  • Conversion: Driving immediate sales or actions (lower funnel). 

  • Awareness: Increasing brand visibility among potential customers (upper funnel). 

  • Consideration: Engaging potential customers to learn more and consider purchasing (mid-funnel). 

  • Advantage+: AI-driven campaigns optimizing budget across the funnel. 

This balanced approach brings their total investment in long-term resilience to 31%, enhancing both engagement and conversion rates.  

This full-funnel approach proves crucial for sustained growth, with brands seeing enhanced engagement and conversion rates over time. 

3. Utilize Advantage+

Since early this year, there has been a notable increase in spending on Advantage+ campaigns, with many advertisers reporting a shift in strategy to capitalize on Meta’s AI-driven capabilities. 

Brands that integrate Advantage+ see better results compared to manual campaigns. According to Fospha’s data, digitally mature brands allocate 17% of their budget to Advantage+, yielding the highest returns across all groups. 

The viral success of K-beauty in the U.S. has paved the way for Japanese skin care brands, which are now gaining attention for their simplified, hydration-centered routines. Unlike the elaborate 10-step regimens of Korean beauty, Japanese beauty emphasizes a four-step routine with traditional methods and simpler ingredients. Brands like Shiseido, known for minimalist packaging and traditional formulas, are seeing renewed interest, with ventures like the Shik Collective experiencing significant sales growth.

Japanese skincare offers a refreshing alternative for consumers overwhelmed by numerous products, focusing on nurturing the skin with antioxidants from green tea and fermented ingredients. While K-beauty continues to dominate, especially on social media, Japanese beauty's minimalist approach is gaining traction. The challenge for Japanese brands will be to balance their traditional methods with the American market's preference for trendy, celebrity-endorsed products.

MaGéAu Naturel on LinkedIn:

Because who doesn’t love a good skin infection, right? 🦠🙄 The recent triathlon scandal at the Paris 2024 Olympic Games, where several athletes suffered serious skin infections due to contaminated water, has highlighted the importance of post-exercise skincare.

www.linkedin.com/posts/mageau-naturel_hospitality-wellness-wellbeing-activity-7224812178258747394-QPiv/?utm_source=share&utm_medium=member_desktop

Aveeno

Aveeno addresses the gap in self-care routines for children aged 3-7 with its new Aveeno Kids line. The products, designed to meet young children's unique skincare needs, include an oat extract-based face and body wash, detangling spray, and tear-free bubble bath. The initiative aims to simplify self-care for parents and children.

L'Oréal has acquired a 10% stake in Galderma Group AG from Sunshine SwissCo AG. The companies plan a strategic R&D partnership to leverage Galderma's dermatological solutions and L'Oréal's skin biology expertise. L'Oréal will not seek board representation, and the transaction will be funded with available cash and credit lines.

Agency, Curology's anti-aging skincare brand, partners with Amazon to offer dermatologist-designed products without a subscription. This expansion aims to make effective skincare more accessible, featuring items like SPF 50 sunscreen and hydrating serums. Customers can now enjoy the convenience of Amazon Prime Shipping for faster access to these products.

L'Oréal's Q2 results showed a 5.3% sales growth to $11.75 billion, missing estimates. The dermatological beauty unit grew 10.8%, below expectations. North Asia sales declined, while Europe performed better. Despite economic challenges, L'Oréal focuses on innovation and quality over discounts, with plans to expand affordable and premium product lines.

The US men's skincare market is evolving, driven by societal changes and increased acceptance of advanced skincare routines. Predicted to grow at a 3% CAGR from 2023 to 2028, skincare is gaining traction despite being overshadowed by traditional grooming categories like shaving and hair care. In 2023, 20% of US male consumers prioritized skincare, reflecting a steady rise since 2020. Digital platforms and social media influencers significantly impact men's skincare habits. In 2023, 11.7% of US male respondents were influenced by social media endorsements, up from 4.2% in 2019. Brands like CeraVe leverage celebrity partnerships and influencer collaborations to enhance brand recognition and educate consumers on advanced skincare solutions. However, potential regulatory challenges and minimalist skincare trends could affect market growth.