Shoppers are bypassing major brands for product recommendations, instructional guidance, and social engagement from thousands of beauty personalities and vloggers who create YouTube beauty content focused on makeup, skincare, hair care, and nails.
Apparently, Michelle Phan isn't the only YouTube beauty guru who is radically transforming the beauty industry. She's just one of the best known YouTube vloggers (video bloggers), "haul girls", and other beauty content creators who are crushing big brands in the beauty industry.
According to Google research, 50 percent of all beauty shoppers watch a beauty video on YouTube while they are shopping for beauty products. But according to a new study by YouTube marketing company Pixability, these shoppers are bypassing major brands for product recommendations, instructional guidance, and social engagement from thousands of YouTube beauty personalities and vloggers who create YouTube beauty content focused on makeup, skincare, hair care, and nails.
Earlier today, Pixability released "Beauty on YouTube: How YouTube is Radically Transforming the Beauty Industry and What That Means for Brands," a comprehensive study on one of the most active and leading-edge industries in the digital video marketplace. For all their creative and advertising investments, major brands have only garnered only 3 percent of the 14.9 billion beauty-related video views on YouTube, according to the study.
Pixability identified and analyzed how 168 major beauty brands and 45,000 YouTube beauty-focused personalities manage, produce, and socialize more than 877,000 hair care, skin care, makeup, and nail videos. And their report highlights striking differences between those manufacturing products and those manufacturing videos about products. Just a handful of beauty brands are effectively incorporating YouTube into their web and commerce initiatives, while only a few are successfully working with YouTube's independent beauty personalities.
"Understanding the important role of video in the beauty industry is a given, so we had the foresight to fully integrate YouTube into our marketing several years back and it paid off," Cory Pulice, VP Ecommerce for e.l.f. Cosmetics, said in a press release. "Creating informative and instructional videos for our premium cosmetic and makeup products is only part of the equation. Genuinely engaging with our passionate YouTube community is the other part, and that helps drive our business."
Pixability's beauty study uses more data than any other previously conducted analysis on the digital video marketplace for the beauty industry, and delivers both critical market insights and important prescriptive measures for brands and beauty content producers. Some of the report's key findings include:
"The data in this study highlights the tipping point for share-of-voice for the beauty business," said Rob Ciampa, CMO of Pixability. "More importantly, these YouTube dynamics will have a profound effect on how beauty brands and their agencies market and advertise." "Brands that mistakenly treat YouTube as a quasi-television station should not be surprised by dismal ROI," he added. "Those that embrace YouTube as a critical digital marketing and communication medium, however, will see outstanding results. Pixability's analysis of the beauty industry on YouTube backs that up."
Pixability will present additional details of the study at WWD Digital Forum: Beauty Edition on Feb. 11 in New York City. The company will also host a free live webinar on both the study and the beauty industry on YouTube on February 26. Registration details can be found on Pixability's website.
Although Pixability's beauty study uses more data than any other previously conducted analysis on the digital video marketplace for the beauty industry, its findings shouldn't come as a total surprise for long-time Search Engine Watch readers. Back in August 2010, ClickZ's sister publication, SEW, featured an interview with Jordan Blum of Beautychoice.com. He discussed Beautychoice.com's outreach to the top YouTube channels in the beauty tips category. Beautychoice.com gives products to professional makeup artists like Michelle Phan, who then link back to beautychoice.com.
According to Blum, the results were spectacular. What he called "product placement on steroids" had generated "millions of dollars" in product sales for Beautychoice.com.
In case you think this is too good to be true, consider this: Michelle Phan's "Lady GaGa Poker Face Tutorial" has more than 34 million views and the Michelle Phan channel on YouTube has almost 862 million views and over 5.7 million subscribers, according to VidStatsX.
This article was originally published on Search Engine Watch.
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Greg Jarboe is president of SEO-PR, which provides search engine optimization, public relations, video marketing, and social media marketing services. He's the author of "YouTube and Video Marketing: An Hour a Day," a faculty member at Rutgers University and Market Motive, as well as a frequent speaker at SES conferences.
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