New study uncovers impact of video advertising on millennials’ perfume purchasing decisions

Millennials discover new fragrances in-store, but research online before making a purchase. Video advertising is also the main digital format that influences their decision-making – more than TV. That’s according to a new study by Teads, the inventor of outstream video and the No. 1 video advertising marketplace in the world, and Global Web Index.

“The Millennial Fragrance Shopper” report analyses the shopping behaviour of over 1,500 millennials in Europe and the US to reveal the main factors that influence their fragrance purchases in the digital age.

The research shows that while millennials value the in-store experience – they test fragrances there first – they then go online to find out more information before finally purchasing in a store or online.

Sampling is a key part of the purchase process – almost 30% of millennials try a fragrance before purchasing it – either in-store or at home. It’s also clear that millennials know the value of their data – 38% are willing to share their personal information with a brand to receive perfume samples at their home address. While many millennials aren’t currently sampling perfume, the opportunity for brands to capture address data and to have a relevant dialogue with millennials in this way is huge.

While scent is the key influence in millennials’ decisions (41%), the packaging and design is also important (35%). Despite the vast spend by brands on celebrity endorsements, just 4% of millennials say this influences their decision to purchase a fragrance.

The study also reveals the key role video advertising plays in the fragrance purchase journey. Thirty-six percent of millennials are more likely to look for a perfume brand after watching video ads online and 34% claim that exposure to video ads increases the connection with their favourite brands.

Video ads also drive consumers to action: after watching a video ad, 18% use search engines, 17% visit a store/retailer and 16% go to a brand’s website. Video ads are also more effective on news sites than within social media feeds – 25% remember seeing a video ad on an online magazine, compared to just 18% on social media sites.

“The way millennials research and buy fragrances is changing rapidly, and brands need to adapt. It’s not all about big budget celebrity endorsements – the scent and packaging of a brand still has massive value. Understanding how millennials behave in different situations when and where they buy a perfume – such as buying for themselves, as a gift or rebuying a scent – is key in order to have the right communication strategy in place,” said Caroline Hugonenc, VP of research at Teads

“There’s no doubt video ads also play a key role in the customer journey and incorporating interactive elements, such as data capture forms, or giving the ability to buy within the format can make these ads even more powerful. By layering this data with their existing customer data, brands have a real opportunity to deliver personalised and interactive ads that have a real impact,” said Justin Taylor, UK MD at Teads.