Lab Weekly - 02/25/2022
Three must-know trends reshaping the future of the beauty industry; Plus, news analysis and cool stats roundup
Hey there! Welcome back to another edition of Lab Weekly. This week, we are proud to present the companion article of our latest Category Disruption Report, which focuses on the future of beauty! The beauty industry is a booming $511 billion industry, encompassing verticals such as cosmetics, skincare, grooming, haircare, and wellness. Read on for an analysis of the key trends shaping the future of the industry!
Three Emerging Trends Redefining Beauty
After the pandemic prompted people to reprioritize their health, reimagine their routines, and reconnect with themselves, it’s no surprise that these new consumer behaviors are spilling over into the beauty category as well. Chelsea Freitas, our VP of Strategy & Innovation, pinpoints three key emerging trends — from new consumer behaviors to the impact of virtual beauty — that are reshaping the future of the beauty industry.
In case you missed it…
Outlook 2022: Embracing Entropy
“Over the next three to five years, the most reliable prediction will be disorder, with multiple possibilities happening at once,” writes Adam Simon, UM Worldwide's US Head of Innovation, in our 2022 Outlook trend report. Read now to learn the four key trends in consumer tech and culture that all brands and marketers will need to reckon over the next 3 to 5 years.
Brand Takeaways from the 2022 Super Bowl Ads
“Vibe shift” or not, the Super Bowl ads on Sunday once again served as both cultural weathervanes and expensive accelerants of developing trends in the market today. Here’s what brand marketers can learn from the top trends reflected in the big game spots, especially in regards to buzzy categories like cryptocurrency, online sports betting, and the metaverse.
How Brands Can Find the Right Entry Points to the Metaverse
From in-game experiences to connected communities, brands should carefully weigh the pros and cons of each emerging option as they prepare to enter the metaverse.
Instacart Rolls Out Shoppable Brand Pages For CPGs [AdAge]
Instacart is launching new ad solutions for CPG brands to sell directly to shoppers. Available in the Instacart Ads self-service portal, the new ad products from the leading grocery delivery platform include brand pages in addition to a suite of display ad options, all designed to drive consumers to a shoppable destination page. With the new display ads, brands can target consumers based on keywords or shopping behaviors. These solutions make it possible for users to explore a brand’s curated portfolios from their grocery retailers of choice.
Of nearly 42,000 grocery customers in 20 states polled for a recent study by Incisiv and Mercatus, 43% shopped online in 2020, up 80% from 24% in 2018. Even more importantly, even with relaxed restrictions and store reopenings, online grocery adoption rose 14% to 49% of respondents in 2021. As more grocery shoppers continue to shop online, it makes sense for CPG brands to go where customers discover new products and engage them throughout their online shopping journey.
Like Walmart, Kroger and Albertsons, Instacart also manages its own retail media network, giving brands access to a lot of data on shopping habits. For CPG brands, who are often at the mercy of physical shelf space, or have no way to spy on what else is in a shopper's physical basket, this type of data can be quite valuable for better understanding their customers.
Related: Shake Shack hooks up with DoorDash for chicken sandwich-themed dating site [Marketing Dive]; NYC bill would ban grocery apps from promising 15-minute deliveries [Engadget]; Grubhub expanding delivery service with 7-Eleven [AdAge]
Tumblr Lets Users Pay for Ad-Free Browsing Experience [AdWeek]
Remember Tumblr? Despite widespread proclamations of the mid-2010s twee style that originated by the teens on Tumblr making a comeback lately, the now-Automattic-owned social network has yet to see a renaissance itself. Nevertheless, that has not deterred the platform from making a cash grab at its remaining loyal users by offering a paid subscription that promises to remove all sponsored ads in exchange for $4.99 per month or $39.99 per year.
Nowadays, given that ad buyers are not exactly throwing money at Tumblr for eyeballs, one can’t really fault the company for wanting to explore an additional revenue stream. In-app subscriptions continue to grow in size. According to the latest data from Sensor Tower, smartphone users spent $18.3 billion globally in the top 100 non-game subscription apps in 2021, up 41% YoY. iOS users tend to spend more on apps than Android users: App Store generated $13.5 billion, and Google Play $4.8 billion.
Related: TikTok inks content pact with NHL & NHLPA [AdWeek]; Netflix tests its TikTok-like comedy feed on TVs [Engadget]
OpenSea Faces $1 Million Lawsuit Over Stolen Bored Ape NFTs [CoinGeek]
In 2021, users sent roughly $44.2 billion worth of cryptocurrency to Ethereum-based smart contracts associated with NFT marketplaces and collections, according to a 2021 report from Chainalysis. OpenSea, also known as the eBay of NFTs, is facing a host of user complaints amid rapid growth. The latest development? Being sued by a user for $1 million, who claims the platform knew about a flaw in its platform that allowed hackers to buy unlisted NFTs at a fraction of the market price.
OpenSea has experienced several issues with security in the past two months. In late January, it reimbursed $1.8 million to users who, through a loophole, had their NFTs purchased at much lower valuations and then resold. We have cautioned our agencies against egging brands into trying NFTs, just for the sake of doing NFTs, especially against the growing tide of cultural backlash. This lawsuit is undoubtedly adding fuel to the fire, as it underscores the platform failures of one of the largest crypto marketplaces.
Related: Wrangler enters Wild West of NFTs with Leon Bridges [Forbes]; Meet the crypto “Bonnie and Clyde” [Yahoo Finance]
An average of 10.7 million people watched the 2022 Beijing Winter Olympic Games on NBC in primetime, the network announced on Monday. That number ticked up to 11.4 million when including NBC's streaming and digital platforms. Why it matters: It's the smallest primetime audience for any Winter Olympic Games on record. In total, ratings for the Beijing Games were down 36% from the 2018 Winter Olympic Games in Pyeongchang.
Acast’s podcast ad sales increased 40% YoY in Q4, setting a record for the company in quarterly net sales growth. The company said that figure is “particularly impressive” given that Acast saw “unusually strong growth” during Q4 2020 as the ad market recovered from the initial effects of the pandemic.
By 2025, 25% of all new vehicles sold in the U.S. will be fully electric or plug-in hybrids, according to the latest forecast from Boston Consulting Group. Including those already on the roads, there will be about 10 million plug-in cars in the U.S.
If you find our insights valuable and would like to have a deeper conversation on technology and media innovations, or need to sound smarter in a client meeting or a pitch, please feel free to reach out to our Group Director Josh Mallalieu!
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