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L'Oreal boosts digital's share of marketing spend from 50% to 70%

Campaign 16 Jun 2020 08:39

L’Oréal has increased the share of its marketing spend going towards digital channels from 50% to 70% since the start of the coronavirus pandemic, chief digital officer Lubomira Rochet told the Financial Times.

The shift of focus reflects an accelerating trend in the company’s sales, with ecommerce accounting for 20% of the total in the first quarter of 2020, up from 16% in 2019 and almost double where it was in 2018. With L’Oréal’s overall sales down 4.8% in the first quarter, and Barclays forecasting a 9.2% drop across the year, ecommerce is an increasingly important driver. 

Writing in the latest issue of Campaign, Rochet admitted that L’Oréal – like many other major advertisers – had cut its media spend during the pandemic, but said the positive impact of the advertising it has done was clear. "We were able to see first hand the responsiveness of consumers to every piece of advertising we displayed on TV or online," she said. 

Rochet added that the increased focus on digital channels did not mean the business was abandoning other models of communication. 

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