Delving into the digital space, L’Oréal has made its largest digital investment to date with Demand Media, home to sites like typeF.com (the new Tyra Banks Web play) and eHow, reported Women’s Wear Daily. The company has secured exclusive rights to place ads on Demand’s sites and the strategy involves an innovative style of placement that involves search marketing and content matching.

Content will be curated based upon the most popular online searches, and the ad has been created to organically play against that. “For instance, 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,” read the WWD article.

This is a prime example of a major brand retailer truly taking advantage of and understanding the value of leveraging online content. If ever there was a case to be made for online content and its value, this L’Oreal deal is it. The company’s digital budget is as large this year as for 2009 and 2010 combined and they’re using their spend smartly.

As a parting Friday thought, I’d like to ask all you retailers: what innovative ways are you looking at for your digital marketing spend this year? Please, comment below!