BK Beauty is no longer running Facebook ads. The reason? The platform no longer is profitable for acquiring new customers, says Paul Jauregui, head of operations for the cosmetics retailer.
Apple requiring apps to explicitly have consumers opt-in to tracking had a pronounced effect on BK Beauty’s Facebook campaigns, he says. Fortunately, Facebook ads were only a small piece of BK Beauty’s marketing spend. Even without them, Jauregui projects BK Beauty’s revenue will hit $3-$4 million this year, at least double 2020’s sales of $1.3 million.
Instead, BK Beauty will rely on more effective ways to acquire new customers: influencers and channels such as YouTube. BK Beauty spends some of its marketing dollars on TikTok and Instagram, but BK Beauty’s most profitable marketing channel is YouTube, by far, Jauregui says.
BK Beauty isn’t using YouTube simply as a high-volume channel to rake in thousands of new customers. “It’s mainly the depth of relationship with the YouTubers. When they talk about [our brand], it’s just true authenticity,” Jauregui says.
In fact, Lisa Jauregui, Paul Jauregui’s wife and co-founder of the brand, was a successful influencer in the beauty products niche before she and her husband launched BK Beauty. “We’re in the unique position in that we sit on both sides of the fence,” says Paul Jauregui.
Each day, approximately a dozen new influencer-hosted YouTube videos display BK Beauty’s core products, its brushes, or related products such as eye shadow. BK Beauty influencers in its affiliate program receive a 15% commission on each product sold via a link from the video.
“Right now, 30% of our sales is our affiliate program,” he says.
BK Beauty, like many other retailers, has to constantly tweak its marketing mix to ensure it is as profitable as possible. In a rapidly shifting online world, with consumer preferences always evolving, retailers need to stay on their toes to achieve the most profitable marketing portfolio. That means frequently analyzing each channel’s performance and exploring new channels when necessary.
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