L’Oréal is becoming fashionably digital with the help of Demand Media, which is home to women’s lifestyle sites like TypeF.com and eHow.  Demand Media wants to attract customers from online sites, and L’Oréal will have special rights to promote its products on all of the Demand Media sites.  This is the beginning of what may be a beautiful relationship for the two companies.

All of the content selected for the Demand Media sites will be curated by the most popular searches online, and the advertising will play off what is selected (similar to Facebook’s behavioral ad targeting).

For example, if a woman searches on Google with the question “How do I apply green eye shadow to fair skin and hazel eyes?” she will be directed to one of Demand’s sites that has a relevant article, a collection of videos from leading makeup artists on how to apply the makeup and an ad from L’Oréal about its green eye shadow.

L’Oréal plans on sticking to its 2011 digital budget, which is as large as its budgets for 2009 and 2010 combined.  The company has recently named Julie Thompson the first digital director for luxury brands, joining existing counterparts in charge of the firm’s parallel consumer and haircare divisions.  They believe electing her for this position will help their UK brand become more digital and popular.

This is all a huge step forward for L’Oréal because in years past, their goal was to use magazines, newspapers, and commercials as their only advertisement mediums.