How to Build a Winning TikTok Beauty Strategy with Iced Media’s Leslie Hall

Introduction

With the launch of TikTok Shop in the last 12 months, consumers can now shop directly within the app through ads created by everyday users without ever needing to meet an influencer. In a crowded market of cult brands and trending ingredients, what is the mindset of a beauty consumer, and how can you maximize your investment to stay top of mind?

Welcome to Inside Retail, the podcast brought to you by Edited, the world’s leading AI-driven retail intelligence platform. In this podcast, we delve into the current retail landscape, uncovering the opportunities and challenges it faces. I’m your host, Grace Hill, and in this episode, I’m speaking to Leslie Hall. Leslie is the founder of Iced Media, a paid social agency that has transformed beauty brands from small businesses to shelf-clearing phenomena. For example, after laying out a strategy for Paula’s Choice, Iced Media helped achieve a 70% return on ad spend within a year, leading to a $ 2 billion sale to Unilever four years later.

Leslie shares her expertise on selling beauty in the paid ad space and reveals key insights on crafting a winning TikTok strategy, utilizing AI technology in advertising, and creating successful campaigns that maximize return on ad spend (ROAS).

The Journey of Iced Media

Leslie started Iced Media over 20 years ago when people were just beginning to have computers at home. The industry has since evolved dramatically—from the days of dial-up internet to Facebook’s impending 20th anniversary in 2024. Starting with the first-ever advertising campaigns on Facebook (now Meta), Twitter, and Pinterest, Iced Media now focuses primarily on paid social in the beauty and lifestyle categories. They are a Meta business partner, a TikTok-badged partner, and have recently launched a social commerce division to leverage TikTok Shop.

What is a TikTok Badged Agency?

TikTok Shop, available in markets like the US and the UK, allows users to shop directly through TikTok. As a TikTok-badged agency, Iced Media has undergone extensive training to become experts in this space, making them official TikTok partners knowledgeable across all tools and technologies available to brands.

Utilizing AI-Powered Technology

Iced Media leverages AI to select the right advertising and marketing tools. Platforms like Meta are rolling out AI-driven tools, and Iced Media has also invested in a Tech stack to aggregate data and see macro trends in beauty marketing metrics like CPM (cost per thousand impressions) and CAC (customer acquisition cost). These benchmarks allow them to understand their clients' performance in context and make informed decisions to drive the greatest return.

Tips for Maximizing Ad Spend

Leslie emphasizes the importance of being fluid with ad spend and creator-led content, which is outperforming brand-created content by more than two to one. Similarly, nano and micro-influencers demonstrate impressive impact compared to mega influencers, often at a fraction of the cost.

Mindset of Beauty Consumers Today

The beauty consumer journey is fragmented, involving various touchpoints like social media for discovery and stores for product trials. Consumers today focus more on products than brands, opting for the best item for specific needs rather than a full portfolio from a single brand.

Best Practices in Creator-Led Content

Effective content should be concise (7-15 seconds), feature the brand name and product within the first three seconds, and leverage trends like "sensationalism" (e.g., “this product changed my life!”). Diverse, relatable creators resonate with audiences, driving authenticity and trust.

Prospects and Retargeting Strategies

Advanced algorithms on platforms like Meta help optimize campaigns for both new customer acquisition and retention. Brands should differentiate their creative to target new versus existing customers effectively.

Success with TikTok Shop

TikTok Shop combines entertainment and sales channels, presenting incredible potential for brands that strategize effectively. Brands succeeding on TikTok Shop utilize various tools, including the affiliate center, free sampling programs, and promotional subsidies provided by TikTok.

Real-World Example

A client of Iced Media integrated TikTok Shop within their campaign strategy, including Mega creators and micro-influencers. Remarkably, micro-influencers outperformed Mega influencers five to one in paid media campaigns, underlining the importance of testing and adapting strategies.

Leslie foresees social commerce growing with platforms like TikTok and possibly a resurgence in Instagram Checkout. The focus should remain on seamless consumer experiences and leveraging data and technology to meet consumers where they are.

Leslie's parting advice underscores the importance of resilience and ambition for brands navigating new platforms, as early adoption comes with both frustrations and significant rewards.

Keywords

TikTok Shop
Paid Social Media
AI-driven Advertising
Beauty Consumer Behavior
Creator-Led Content
Nano and Micro-Influencers
Retargeting Strategies
Social Commerce

FAQs

Q: What is a TikTok badged agency? A: A TikTok badged agency has undergone extensive training to become official TikTok partners with expertise across all tools and technologies available for brands.

Q: How does Iced Media utilize AI in their advertising strategies? A: Iced Media uses AI to analyze data and identify macro trends in beauty marketing metrics like CPM and CAC, allowing them to make informed decisions to optimize campaigns.

Q: What content trends are effective on TikTok? A: Sensationalism, short videos (7-15 seconds), featuring the brand name and product early, and using trending sounds and text-to-speech are highly effective.

Q: Are smaller influencers more effective than Mega stars in marketing? A: Yes, nano and micro-influencers can be as effective or even outperform Mega influencers, often at a lower cost.

Q: What future trends should retailers focus on? A: Retailers should focus on making checkout processes seamless across their social commerce channels and stay adaptable to new platform features and consumer behaviors.