February 25, 2024

The latest data report from Launchmetrics shines the spotlight on Instagram’s significance within the fashion, lifestyle, and beauty (FLB) sectors, and reveals the most powerful brands on the platform. 

Instagram reigns supreme in Fashion, Lifestyle, and Beauty Industries. – Launchmetrics

This study, conducted collaboratively by Launchmetrics, an AI-powered Brand Performance Cloud provider, and Lyst, the world’s largest fashion shopping platform, delves into the challenges of engaging modern consumers across various channels, deciphering competitive intricacies, and underscoring Instagram’s influence. 

Instagram reigns supreme

In a rapidly evolving social media landscape, marked by the meteoric rise of platforms like TikTok and the transformation of X (formerly Twitter), one constant remains: Instagram reigns as the top platform for brand amplification.

The report reveals that despite the disruptions caused by TikTok, Instagram maintained its supremacy, boasting the highest Media Impact Value (MIV) in the first half of 2023. The data analysis considered over 3,500 fashion, lifestyle, and beauty brands and unveiled that these entities collectively generated $16.9 billion in MIV through Instagram alone. This translates to a substantial 57.7% share of all opportunities for social brand building, dwarfing its competitors. 

Behind Instagram, Facebook emerged as the second highest-achieving platform, accumulating $3.5 billion, while YouTube and RED closely vied for the third position with a total MIV of $2 billion.

“Instagram will only continue to grow its influence on brand strategy. We’ve gone from being a channel that brands started to incorporate into their strategy as “extra-credit,” to brands having full teams in-house around the content and experiences you can create on our platform, to Instagram-native brands forming and being able to establish themselves as successful businesses only because of our platform,” said Eva Chen, vice president of Fashion Partnerships, at Meta. 

We believe this trajectory will continue, as long as we are able to continue adapting to emerging trends and building new features based on the way the next generation wants to connect online.”

Fashion takes the lead

The report also shines a light on the sector-specific influence of Instagram. The Fashion segment emerged as the frontrunner, collectively amassing $8.7 billion in MIV during the first half of the year, doubling the results of the second-placed beauty sector. 

Average MIV values reveal that both fashion and sportswear stood out, reporting an average value of over $8,000 per placement. The engagement rates for fashion content were 30% higher than beauty, highlighting ample high-value opportunities in these segments, albeit within an intensely competitive landscape.

The luxury segment within fashion also stood out, making up 48% of fashion’s MIV share, with strong demand for luxury fashion content. Sportswear, also fueled by the luxury segment, topped the charts for average MIV per placement at $8,700 per post.

In contrast, the beauty sector reported the lowest average MIV per placement. The prediction is that mixed media content, including podcasts, will dominate content creation, offering new avenues for brand mentions and potentially elevating the average value of beauty placements.

By segment, in the fashion category, Dior, Chanel and Zara make up the top 3 most powerful brands on Instagram followed by Prada and Gucci.

Influencers and owned media collide

The report emphasizes the role of influencers in shaping content within the FLB sectors on Instagram but notes the emergence of Owned content, developed directly by brands, as a significant competitor. Brands are investing more in their own content, with owned media achieving 40% higher MIV in beauty and 16% more in fashion, compared to 2022. 

Influencers remain a strong voice across all segments on Instagram, amassing a total of $6 billion in MIV during the first half of the year. Owned media is just 4% behind Influencers in the bid for a larger share of MIV.

The report sheds light on regional disparities in MIV accumulation. In almost every sector, the United States emerged as the top driver of MIV share, with the exception of the luxury sector, where EMEA (Europe, the Middle East, and Africa) took the lead. This regional trend reflects the historical roots and continued growth of the luxury market. In fact, luxury’s market value is projected to exceed $560 billion by the end of 2023.

The report also highlights the influence of certain brands that garnered significant media coverage. Notably, Air Jordan, in conjunction with Nike, showcased the power of strategic sports sponsorships and ambassadorships in driving MIV long after the initial partnership.

Copyright © 2023 FashionNetwork.com All rights reserved.

link