Luxury Brands Hike Investments in Digital Advertising
Digital advertising is becoming more and more attractive to luxury brands, with a great number of businesses planning to boost investments in this type of media in 2012, a new study shows.
The Luxury Brand Advertising 2012 Outlook report, carried out by Martini Media in collaboration with research expert Michele Madansky and Digiday, reveals that although the share of mass marketers investing in digital media for their advertising purposes is currently higher than that of luxury brands, a vast majority of them have stated they would spend more this year. The survey was conducted among 345 luxury brand marketers, including Aston Martin, Godiva, Jaguar, Virgin Airlines, as well as media agencies that represent the brands.
According to the findings of the study, 85% of brand marketers and media agencies consider that choosing digital advertising will provide for higher online sales than TV marketing. About 43% of the participants claim they are migrating to digital advertising faster than traditional marketers, while a third said they are moving at the same speed as mass marketers. Three quarters of the respondents were positive that investments in digital media will grow.
British luxury fashion house Burberry was ranked among the most effective digital marketers, joining brands such as BMW, Chanel, Tiffany, Cartier and Porsche.
Commenting on the report, Madansky said that the aim of the survey was to outline luxury brands’ marketing strategies to attract affluent customers on the web. Luxury brands now realise that more and more affluent consumers are going digital and that drawing their attention through conventional media channels has become much tougher, he said.