3.10.2023
In the beauty industry, it’s never too early to start thinking about the next Q4 holiday period. As NPD Group data reveals, around 50% of annual fragrance sales take place in November and December alone. With this in mind, careful planning is required to ensure all of your marketing activity is amplified – and that includes your co-op advertising with third-party retailers.
Co-op advertising is the digital equivalent to an in-store activation, reaching beauty lovers in a buying mindset as they browse for products on the digital shelf. High visibility on a retailer’s website correlates with an increase in sales, but securing the most lucrative placements can be tricky over key consumption periods, such as Q4.
Not only are negotiations competitive, but the best positions can also be costly, making it crucial to prioritise a high return on investment (ROI) from your ads. The best way to do this is by harnessing data from past Q4 periods, so you can better understand what worked and what didn’t, then refine your strategy accordingly.
Follow these steps to make more informed decisions when you plan your Q4 co-op ads…
Step 1: Map Your Share of Voice Against Category Growth
First, you need to identify which co-op ads drove the highest growth for your brand last year. Using an ad tracking tool, map your owned brand category share increases and decreases against etailer share of voice (SOV) for the past year. You should be able to see where SOV has impacted your share of the category, and what times certain etailers have driven a boost in growth for your brand. This helps you pinpoint what dates and what stores have been most successful for you over the Q4 period, so you can invest more strategically.
Step 2: Apply the Same Analysis to Your Category Competitors
Now you know what times and etailers have helped to improve your value market share in the past, you should apply that same analysis to the competitors in your category. This will enable you to see where they have invested and when, as well as the impact that had on their sales data. Through this research, you may spot opportunities to adjust your own co-op ad strategy; tactics that could inspire you to try new ad placements over the next Q4 period.
Step 3: Channel This Data Into Your Q4 Co-Op Ad Strategy
Now you have your owned brand data and that of your competitors, apply the learnings to your plans in order to drive higher growth across etailers. You can also use the data in Joint Business Plans with your chosen online stores. For example, when negotiating the correct price for specific ad slots, you can back up your offer with proof of a correlation between increasing SOV and boosted sales. This will help you, as a partnership, determine an accurate pricing.
If you don’t have a team of in-house analysts to help you translate the data into actionable insights, your data provider should offer professional services that support your strategy-making. To find out how mmi can advise you on making fact-based decisions with your sales and co-op ad data, reach out to us at hello@mmi-analytics.com.
Up next: Find out how to stop erosion of your beauty brand’s value market share with advice from our analysts.
