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Luxury Brands Boosting Online Marketing Spend


More than three-quarters (77%) of luxury advertisers are expected to increase their investments in online marketing in 2012, according to the 2012 Luxury Brand Study by Martini Media.

The new study is based on a poll of 400 agency marketers who serve luxury brands. Among the marketers surveyed, roughly one-half (48%) expect their luxury clients to boost digital spending some 10% or more, and 18% anticipate growth of 20% or more.

Though luxury marketers have been lagging behind their mass marketing counter parts in terms of digital spending, they are gaining momentum in 2012.

Some 43% of agency marketers say their luxury clients are moving into digital advertising more quickly than mass market brands, and another 34% say they are moving into digital at the same pace.

Below, additional findings from the report titled "Engaging The Affluent Online: How Luxury Brands Are Leveraging Digital Marketing To Connect With Customers," by Martini Media.

Top Online Channels

Video (69%), mobile (68%), and social media (48%) are the hottest growth areas, whereas search (29%) and standard display advertising (18%) lag behind:

Benefits of Digital Marketing

Digital media is perceived as effective at driving favorability, and both online and in-store purchases, often more so than TV:

  • 85% say digital is more effective than TV to drive traffic to online stores.
  • 44% say digital is more effective than TV in driving traffic to brick and mortar stores.
  • 35% say digital is more effective than TV at driving brand favorability.

Other key findings among surveyed agency marketers:

  • 36% ranked context as most vital component for digital campaigns.
  • 71% agree high-impact ad units are as effective as print or TV ads.
  • 83% agree that it's worth paying premium CPMs to reach luxury consumers, given the importance of targeting.

About the data: Findings are based on a poll conducted among Digiday readers and event attendees, as well as Martini Media prospects and clients. Close to 400 digital marketing professionals participated in the survey in July and August of 2012. Among them, 73% had luxury brand or client experience, 68% were VP level or above, and 58% were media planners or buyers.

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  • by Wed Sep 5, 2012 via web

    Nice article. Two questions

    you say 36% rank context most vital for display campaigns. What do you mean by context? Not sure I'm following you.

    You say 83% agree its worth paying premium CPMs to reach luxury customers. What are CPMs? I haven't heard this term before.

    Thanks for an interesting article! --Brenda

  • by Besart Mon Sep 24, 2012 via iphone

    Nice article. Thank you.

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