Post by account_disabled on Dec 28, 2023 4:15:39 GMT
The restrictions imposed as a result of COVID-19 have hindered the economic evolution of various sectors, including cosmetics and perfumes. According to a report recently published by Zenith (Business Intelligence – Beauty and Personal Luxury), the drop in demand for this type of products will limit the sector's advertising investment to 1.7% this year. Although the investment curve is estimated to grow, it will do so at a much slower pace than the rest of the key markets (2.6% compared to 4.5% for the market as a whole). In 2020, advertising investment in the beauty and personal luxury sector decreased in parallel with the general decline caused by the pandemic . Compared to other sectors, this has not suffered as much due to the increase in hair and skin care, which offset the decrease in the purchase of cosmetics and perfume. According to Zenith's predictions, the recovery will be slow, as consumers remain reluctant to return to the habits they had before the pandemic .
Given this situation, it is most likely that most brands will redistribute advertising investment to channels with less performance, but without increasing their budgets. Better environments and e-commerce will help Phone Number List digital offset the declining reach of magazines and television “ Beauty and personal luxury brands invest a larger budget in magazines and television than the average brand,” they point out from Zenith. This is due to the high emotional-communicative potential of high definition images. However, these channels are in decline due to the reduction of their audiences, the consequent rise in their prices and the rise of online variants. This sector is lagging behind when it comes to the adoption of digital advertising . In 2020, investment was 34.1%, well below the 53.1% of the market as a whole.
This delay is explained by the absence of “premium digital environments” that match the positioning of exclusivity and quality that the brands transmit, as well as the difficulty of the sector in adapting to e-commerce due to the very nature of its products (consumers feel the need to test them). However, little by little the new channels are becoming more capable of creating premium environments, especially thanks to new technologies and formats such as video-on-demand or social media platforms such as Instagram and TikTok. In total, Zenith estimates that the beauty sector category increased its digital advertising investment by 2.8% in 2020 , despite the pandemic. This figure doubles the growth rate of digital advertising in all categories (1.4%). The future average growth forecast is 5.9% annually between 2019 and 2022.
Given this situation, it is most likely that most brands will redistribute advertising investment to channels with less performance, but without increasing their budgets. Better environments and e-commerce will help Phone Number List digital offset the declining reach of magazines and television “ Beauty and personal luxury brands invest a larger budget in magazines and television than the average brand,” they point out from Zenith. This is due to the high emotional-communicative potential of high definition images. However, these channels are in decline due to the reduction of their audiences, the consequent rise in their prices and the rise of online variants. This sector is lagging behind when it comes to the adoption of digital advertising . In 2020, investment was 34.1%, well below the 53.1% of the market as a whole.
This delay is explained by the absence of “premium digital environments” that match the positioning of exclusivity and quality that the brands transmit, as well as the difficulty of the sector in adapting to e-commerce due to the very nature of its products (consumers feel the need to test them). However, little by little the new channels are becoming more capable of creating premium environments, especially thanks to new technologies and formats such as video-on-demand or social media platforms such as Instagram and TikTok. In total, Zenith estimates that the beauty sector category increased its digital advertising investment by 2.8% in 2020 , despite the pandemic. This figure doubles the growth rate of digital advertising in all categories (1.4%). The future average growth forecast is 5.9% annually between 2019 and 2022.