Luxury Brands See Online Ad Advantages

A new survey of marketers and ad agency personnel finds that almost half feel that their luxury clients are quickly moving into online advertising - particularly in the use of mobile and social media, online video and rich media.  The report, from Martini Media, suggests that

the sight, sound and motion of online media is beginning to wean luxury advertisers away from the presumption that only glossy print magazines or television can adequately portray their goods in the right light.

  More than two-thirds expect that their luxury clients' expenditures on video and mobile will grow this year, and almost half indicate that spending on social media and rich media will increase.  Almost all respondents indicated that luxury clients will have at least some use of online video advertising (35% felt their clients would be experimenting with online ads, 43% anticipate that "some" luxury ad dollars will shift to online video ads from TV advertising, and 14% thought the amount shifted would be "material."
  Perhaps more important for the long run is that digital media advertising was seen as more effective than traditional media ads in terms of driving brand favorability and in-store purchases.  Specifically, 85% of the ad and marketing reps felt that online video advertising was more effective that TV ads in terms of driving online sales; 44% felt online video was more effective than TV in driving traffic to Brick &Morter stores (while 26% felt TV was more effective); and 35% felt online video was more effective (vs. 26% who felt TV was more effective) in building brand favorability.  The only area where the reps felt TV was more effective was in terms of building awareness (41%s felt TV more effective vs. 18% who felt online video ads were more effective.).

From an agency perspective, luxury client demands include paying more attention to the editorial environment where their ads appear. The sensibilities of the target consumer require that advertisers “make sure digital is more highly focused and less intrusive.” The business of agencies with luxury clients is all about “finding the outlets that truly target the audience.”

For luxury brands, context and targeting are the most important factors in selecting where to place their advertising and marketing dollars.  Moreover, 80% of the surveyed reps felt that it's worth paying higher CPMs for media that can effectively target luxury consumers.  That's good news for online advertising generally, and sites and channels that target high-end audiences in particular.

Sources  -  Luxury Marketers Moving To Digital Advertising,  Research Brief blog
Engaging the Affluent Online, Martini Media report