Advertising of Beauty Products in the Russian Market
TV is the primary advertising medium for promoting cosmetics in the Russian market, accounting for 74% of the total advertising budget for the beauty industry. Nevertheless, digital advertising is gaining momentum, with advertising budgets for this channel nearly doubling in January-September 2018 compared to the same period in 2017. The share of online cosmetic ads in the Russian advertising market reached 12% in 2018.
The market for advertising cosmetics in Russia
According to data obtained from Mediascope by the UM agency, the share of advertising investments in the Russian beauty market during January-September 2018 was 5%. However, advertising investments in this segment decreased by 16% compared to the same period in 2017.
The majority of advertising budgets belong to beauty goods producers (92%) and mass market products (73%). Collaborative advertising with chain stores for mutual support accounts for 4%.
The three main segments of the beauty market accumulate 61% of all advertising volumes:
- perfumery (21%),
- facial care (20%),
- hair care (20%).
With the exception of professional cosmetics, multinational companies dominate all segments of the beauty market. L’etoile still leads among chain stores, but its share decreased in the first nine months of 2018, while Magnit Cosmetic’s influence has grown. The combined share of these two leaders is 61%. Additionally, there are new entrants to the top 10, including Wildberries, Lenta, Auchan, and Gold Apple.
Primary Channels for Advertising Cosmetics in the Russian Market
TV remains the primary medium for promoting cosmetics and perfumes, accounting for 74% of all advertising budgets. L’Oreal and Unilever are the leading placement advertisers on national TV, sharing the top spot with a 24-25% share each of the total volume.
In the past year, digital advertising for cosmetics has shown significant growth, with a 12% increase and a 5 percentage point rise in market share. This includes banner ads and native video. According to UM’s estimates of internet video advertising, using data from Gemius AdReal, L’Oreal and Unilever are in the top positions with 27% and 19% respectively.
Strategies for Promoting Beauty Products Online
Why did we choose to emphasize online tools for promoting beauty products? While large beauty brands can afford to advertise in all channels, including offline, those entering the market with limited budgets should focus on digital promotion. In Russia, 81% of citizens use the internet, with 65% of them doing so daily. Among Russians aged 18-24, this figure is as high as 97%.
By using digital promotion strategies, cosmetic brands can reach a wide audience in Russia with relatively little investment.
We will provide a brief overview of the essential online promotion tools for the beauty industry.
Considering the highly engaged audience in Russia that enjoys participating in contests, competitions, and receiving free presents, we recommend focusing on a diverse range of activities and maintaining a proactive approach to effectively enter the market and meet clients’ expectations and needs.
It is customary for people to read reviews about a product and brand before making a purchase.
Consequently, we suggest utilizing the following tools:
- Collaboration with bloggers,
- Reviews on Cosmetista website,
- Social Media Marketing,
- Targeting and programmatic buying.
Social Media Marketing
- Instagram provides consumers with valuable information on the latest beauty trends, proper application techniques for favorite products, and creative new beauty looks. As a result, I personally aspire to become a beauty blogger on this social platform.
- VKontakte, on the other hand, is particularly useful for engaging with consumers in a friendly and expert manner. Beauty brands can offer advice on creating a desired image, suggest products for a complete cosmetic bag, and share information about ongoing promotions and contests. VKontakte beauty brand communities often act as caring technical support, always ready to help and provide advice to their customers.
- OK (Odnoklassniki), similar to Facebook, is primarily used by beauty brands to promote their products and encourage online purchases. However, OK posts feature a clearer call-to-action or, alternatively, a more detailed description with reasons why a particular beauty product is essential for consumers.
To obtain results in the Russian beauty market, implement these three steps
Quarter Billion Agency Group specializes in providing marketing solutions to clients in the beauty and personal care industry. Our experts assist foreign manufacturers in promoting their beauty products in Russia and CIS countries. The process of marketing in this industry is typically divided into three distinct stages.
Research
- A thorough market analysis is conducted as part of the first stage, which involves assessing competitive sales and marketing activities,
- The second stage is focused on creating a profile of the target audience,
- The process culminates in crafting a marketing strategy that integrates the insights derived from the market study and target audience profile.
Promotion
- The creation and execution of a content strategy is involved in this stage,
- Placing ads online and offline is part of the marketing strategy.
Analytics
- Evaluating the effectiveness of advertising channels is a crucial aspect of the marketing assessment,
- Optimizing the allocation of budget across channels to attain optimal outcomes is part of the process,
- Regular reporting during the campaign execution is provided as part of the service.
Interested in promoting a beauty brand in the Russian market?
Our team of Quarter Billion Agency Group experts can assist in selecting the most effective promotion channels for your beauty brand based on campaign goals and budget constraints. Whether you’re breaking into the Russian market or expanding your target audience, we conduct market and competitor analyses to identify growth opportunities and devise a marketing strategy to win over Russian consumers and boost sales.