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The major media to promote cosmetics in the Russian market is still TV. This channel spends 74% of the whole advertising budget for promotion of beauty industry actors. However, digital placement is gathering pace, and advertising budgets for this channel in January-September 2018 have grown almost twice, compared to the same period in 2017. The share of online ads of cosmetics in the Russian advertising market reached 12% in 2018.
The share of the beauty market in January-September 2018 in Russia equaled to 5% in terms of advertising investments, according to the UM agency, based on the data obtained from Mediascope. Advertising investments in the segment were reduced by 16%, compared to the same period in 2017.
The absolute majority of advertising budgets in total account for the very beauty goods producers (92%) and mass market products (73%). Joint advertising with chain stores for the sake of mutual support constitutes 4%.
61% of all advertising volumes of the beauty market are accumulated in 3 main segments:
Source: UM estimate based on Mediascope data, Russia, Jan-Sep 2018
Except for professional cosmetics, transnational companies lead in all beauty markets. Among chain stores, L’etoile remains a leader, but its share dropped in January-September 2018. The authority of Magnit Cosmetic chain has grown. The common share of two leaders is 61%. There are also newcomers in Top 10 such as Wildberries, Lenta, Auchan, and Gold Apple.
The key medium in the cosmetics and perfumery market is TV (74% of all advertising budgets). Placement leaders on national TV are L'Oreal and Unilever—they tie for the 1st and 2nd places with the share of 24-25% each in the total volume.
Source: UM estimate based on Mediascope data, Russia, Jan-Sep 2017-2018
However, in the last year the digital has shown brisk growth (12%/+5 pp.), including banner ads and native video. As UM estimates volumes of advertising video placement in the Internet, based upon data from Gemius AdReal, the first positions are taken by L'Oreal and Unilever (27% and 19% respectively).
Source: UM estimate based on AdReal data, Russia, Jan-Sep 2017-2018
Why did we decide to focus on the review of online tools? Large beauty brands can afford ads placement in all channels, including offline, but those who are only entering the market with the budget limited should go digital. According to the latest numbers, in Russia 81% citizens use the Internet, with 65% of them doing it daily. At that, among Russians aged 18-24 years old this figure is 97%.
Digital promotion in Russia will let cosmetic brands have a wide coverage for relatively little money.
Let us briefly highlight key online promotion tools in the beauty industry.
The audience in Russia is very active and likes different contests, competitions, and present giveaways. So, here we suggest to focus on various activates and be active in order to successfully penetrate the market and fulfil clients’ needs and expectations.
Before the purchase, people are used to get some reviews about the product and brand.
That is why we recommend the following tools:
One of the key segments in which RMAA Group experts work is beauty and personal care industry clients. Our experts help foreign manufacturers promote beauty products in Russia and CIS countries. The work in this field is divided into 3 stages.
RMAA Group experts will select optimal promotion channels for your brand, depending on the goals of the advertising campaign and within the limits of the planned budget. Be it a first entry into the Russian market or capturing of new target audience segments, we will do a market and competitor analysis, find out new opportunities to grow the reach of the beauty brand and sales, develop and implement a marketing strategy to win hearts of Russian buyers.
Ready to partner with the specialists in Russian marketing and advertising?
About the Author
Digital marketing manager, editor-in-chief of the RMAA Group Blog