Beauty & skin care brands increase experiential marketing budgets amid industry shifts
A recent study conducted by experiential marketing firm Gradient Experience highlights a current evolution in the beauty and skin care industry, with 84% of companies reporting an increase in their experiential marketing budgets over the last three years. This growth underscores the evolving marketing strategies within the sector, as brands strive to engage consumers through immersive, memorable experiences rather than traditional advertising.
Gradient Experience's Oudin attributed this shift to changes in media consumption, particularly the ways in which younger audiences consume content. “The media landscape has transformed, especially in reaching younger audiences,” she said.
“They’re glued to their social feeds, [but] what catches their eye? Experiences shared by influencers and engaging content like unboxings and makeup tutorials. That’s the new advertisement.” The ability to create shareable moments that resonate emotionally with consumers has become a critical component of modern marketing strategies for beauty brands.
Increased budgets and strategic focus on experiential marketing
The study reveals that beauty and skin care companies are dedicating a significant portion of their marketing budgets to experiential initiatives. According to Gradient, two-thirds of surveyed companies allocate between 10-30% of their marketing budget to experiences and events, and a quarter allocate even more than 30%.
“The experiential era allows beauty brands to connect with their consumers on a deeper level—creating stronger brand affinity and engagement,” Oudin explained. This shift toward experiential marketing reflects the industry's focus on building deeper emotional connections with consumers.
The relevance of this shift is clear for cosmetics and personal care product manufacturers and suppliers. As traditional marketing avenues like TV and print ads decline, brands must create impactful experiences that allow consumers to actively engage with their products in new ways. “The desire for these human connections over product consumption is here to stay—brands must shift to experiential to keep up with this demand," she illustrated.
ROI and measurability: Key challenges
One of the key findings from the Gradient study is the challenge beauty brands face in measuring the return on investment (ROI) for experiential marketing. While 85% of beauty brands report being satisfied with their ability to measure ROI, this figure lags behind other industries like tech and fashion, where satisfaction levels exceed 90%.
As Oudin explained, “beauty’s experiential managers rely less on metrics than their tech counterparts, and as experiential marketing evolves, the demand for tracking is increasing.”
This challenge is compounded by budget size and allocation issues, with 64% of beauty companies identifying budget limitations as a significant hurdle. Proving ROI remains a key concern, alongside scalability and adapting to current trends.
However, she stressed the importance of agencies that prioritize measurable outcomes, noting that Gradient has invested significantly in tracking tools to ensure their campaigns are evaluated holistically. “Experiences prompt more UGC (user-generated content) because audiences want to live the story of the product—not just buy it,” she added.
Integration of influencer marketing and content creation
The study also highlighted the strong integration between experiential marketing and influencer partnerships in the beauty sector. Beauty brands are increasingly relying on influencer content creation to drive their experiential campaigns, with 62% of companies focusing on these digital channels.
Oudin emphasized that creating authentic, engaging content in collaboration with influencers is essential for the success of experiential events. “Creating authentic content is far more effective than polished ads that clutter social feeds,” she said.
One example of this strategy in action is Maybelline’s Summer Carnival of Beauty, an event produced by Gradient to promote Maybelline’s Lifter Liner, Sunkisser Liquid Blush, and Firework Mascara. The event featured playful, product-themed carnival games, including a ring toss, skee ball, and a high striker, creating an interactive, festive atmosphere.
The Summer Carnival of Beauty drew over 3,000 attendees, led to a 30% increase in share of voice and the distribution of 19,000 samples. This case study illustrates the power of experiential marketing to boost consumer engagement and elevate brand love.
The future of experiential marketing in beauty
Looking ahead, Oudin predicted that experiential marketing will only become more central to the beauty industry’s overall marketing strategies. While only 21% of companies currently integrate experiential marketing at the start of their campaigns, a striking 61% believe it should be included earlier.
Further, she noted, “The sooner experiential marketing can be integrated into a beauty brand’s strategy, the bigger the payoff across its channels.”
For manufacturers and suppliers, this shift offers a critical opportunity to engage more meaningfully with consumers by creating experiences that are integrated into the broader marketing mix from the outset. With continued advancements in digital technology and the rise of influencer-driven content, experiential marketing is set to remain a powerful tool in the beauty industry’s marketing arsenal.
