Key Findings

Digital IQ is significantly related to year-over-year change in stock price, suggesting that digitally competent organizations are driving shareholder value.

Estée Lauder is an emerging digital powerhouse. The eight Estée Lauder brands in the Index registered an average Digital IQ of 122, 18 points higher than any other multi-brand organization.

Thirty-five percent of brands have mobile sites, almost triple the number from 2010. Beyond mobile sites, there has been limited additional investment in mobile over the past year.

Site sophistication has increased considerably over the last year, with 70 percent of brands having Facebook sharing capabilities and 69 percent incorporating user reviews versus just 10 percent and 41 percent, respectively a year ago. Both tactics register a correlation with site traffic growth.

Dior, Smashbox, Origins, Estée Lauder, and Shiseido were the biggest winners year on year, demonstrating the greatest increase in Digital IQ on the heels of significant e-commerce, social media, and mobile launches.

Amazon is playing an increasing role in beauty’s online ecosystem. While beauty brands are registering less traffic to and from their brand sites from Sephora.com, the traffic to and from Amazon has increased considerably.