Luxury Brands Playing Into Online Video’s Appeal
When you think about an advertisement for a luxury brand, what typically comes to mind? For me, I think of a slick, glossy print ad with minimal copy, stunning photography of a model or product shot in vibrant colors or minimalistic black and white, and a lavish item my wife usually tells me I should buy her for her birthday. What typically doesn’t spring to mind is a digital ad campaign. However, thanks to consumers increasingly browsing and buying online as well as the innovation offered by devices like the iPad, the way we think about luxury marketing is changing.
Digital advertising for luxury brands is expected to skyrocket, with luxury brands planning to spend more on video, mobile, social media and rich media. In fact, 64 percent of luxury brand marketers anticipate double-digit growth, according to a new study conducted by Martini Media. Luxury brands, closely associated with the high-touch print campaigns I mentioned above, are catching up to mass marketers in digital ad spending.
Forty-three percent of marketing agencies surveyed in the Martini Media report said that their luxury clients are moving into digital advertising more rapidly than their mass-market brands, and another third of agencies believe luxury brands are moving into digital at the same pace as other brands.
One of the biggest areas of growth for luxury brands will be online video. Approximately 69 percent of luxury marketers are expected to produce video content for the web. Not only do luxury marketers intend to spend more on online videos, they plan to do so instead of TV marketing. That's an incredible shift in strategy from brands that were notoriously grounded in traditional advertising. So, what’s leading the monumental shift?
Well, for starters, approximately 85 percent of marketers believe that online video is more effective than TV for driving online sales. Furthermore, 44 percent believe that online ads are more effective than TV for driving traffic to brick-and-mortar locations. Another 35 percent of marketers believe that online video is more effective in building brand favorability, and 18 percent believe online video is more effective than TV in building awareness.
Related story: How to Thrive in Social Media Marketing