Estée Lauder, the beauty company, believes that powerful innovation can lead to greater media efficiencies by stimulating higher levels of earned coverage that work alongside its paid-for advertising.
Why it matters
Innovation is a vital source of “new news” that can support advertising which captures the interest of consumers. At the same time, it can secure editorial interest from media outlets, providing an uplift on key metrics like reach.
Fabrizio Freda, Estée Lauder’s chief executive, suggested that its innovation efforts are often “strongly supported” by paid media.
“Our advertising in total is increasing in fiscal year 2022 in absolute level … Some part of it is guiding innovation and the innovation results,” he said on an investor earnings call.
At the same time, he said, products like its MACStack mascara – allowing users to “stack” layers for differentiated volume and length – benefit from organic media interest.
“A lot of our innovation is attracting earned media value in a fantastic way,” said Freda. “So, it’s not only paid media, but it’s also earned media that is attached to high-quality innovation.”
This outcome, he reported, means that “high-quality innovation is also efficient from the spending standpoint, [and] from a media standpoint,” as well as supporting higher prices.