Study: Luxury Brands Plan to Spend More on Digital

Inplace #2

Martini Media, the digital media and content platform for engaging the audience with the most money and influence online, announced the results yesterday of a new study that reveals what luxury brand marketers consider to be the most important factors when investing in online advertising.

Developed in partnership with veteran research expert Michele Madansky and Digiday, the Luxury Brand Advertising 2012 Outlook study polled over 345 luxury brand marketers, including Aston Martin, Baume and Mercier, Five Star Alliance, Godiva, Jaguar, Virgin Airlines, each of the media agencies that represent the brands and many more.

According to Madansky, “Luxury brands already know that affluent consumers are spending more time on digital and have become more difficult to reach through traditional media. This study’s intent was to gain a better understanding of what opportunities and issues are top of mind when luxury brands consider marketing to affluent consumers online.”

The study concentrated on four main focal points:

  • How luxury brand marketers are allocating dollars across digital platforms.
  • The most important factors in selecting digital media.
  • How the marketers measure success.
  • Which luxury advertisers survey respondents feel are doing a good job online.

“Overall, while the majority of those surveyed indicated that investment in digital is indeed growing, luxury brand marketers want much better ways to reach affluent consumers on the go,” said Martini Media CEO, Skip Brand. “Those audiences have more dollars than time and expect an engagement experience that standard banner units do not deliver. And while they are willing to pay for it, if they cannot measure the return across their investments, it is an issue.”

Specifically, the study found that:

  • Luxury brands plan to spend more on digital. Half believe that growth will be greater than 10 percent.
  • Rich media, social, mobile and video are biggest digital growth areas.
  • Digital media is perceived as effective at driving favorability and both online and in-store purchases. Digital is seen as a better mechanism for driving online sales. Half think that digital is more effective at driving retail sales as well. 80 percent believe that digital is as effective or more effective at driving brand favorability. 60 percent believe it is as effective at building brand awareness.
  • Those surveyed perceive that the following brands do the best job at digital marketing:  BMW, Burberry, Chanel, Lexus, Mercedes, Tiffany, Cartier, Porsche, Audi, Tag Heuer, Rolex, Ralph Lauren, Gucci, Coach, Apple, Inspirato, Agent Provocateur, American Express, Caesars, Capital One, GE, Gilt Groupe, Harry Winston, Hilton, IWC, JetBlue, Johnnie Walker, Kate Spade, La Prarie, Louis Vuitton, Marc Jacobs, Mini, Omega, Oscar de la Renta, Samsung, Starwood and VW.

David L. Smith, CEO and founder of Mediasmith stated, “We are always happy to see research like this that is on the mark. It helps validate the trends we’ve been preaching to our clients relative to the rapid growth of Web video. The data points regarding the differences between agencies and advertisers in perception of media change is important for our client communications and education. It is encouraging to see that luxury advertisers are rapidly growing in their confidence in digital’s ability to meet their overall communications goals. As we continue to leverage digital in strategic media plans, we are thrilled that luxury brands see the value in investing in these emerging channels.”

“The strong reception of this research underscores the intent,” stated Skip Brand. “Ideally, the findings will be used by all luxury brands to enhance their digital marketing initiatives, and Martini Media is pleased to support this effort.”

To download “Engaging the Affluent Online: How Luxury Brands are Leveraging Digital Marketing to Connect with Customers,” or to learn more takeaways from the survey, click here.

To view the full-size infographic, click here.