Here's How to Win More Ad Money From Luxury Brands


Luxury spenders can be a fickle bunch. Let’s face it. Few shoppers who can afford these products truly need what they’re buying. It’s your clients’ job to transform consumer want into a sale. The good news is consumers are ready to splurge on luxury items this year. Here’s what your clients need to know about advertising luxury products.

In 2018, marketers of luxury brands intend to increase ad spending by 2.4%. Next year, the budget increase will be 2.8%. Analysts say these increases are lower than what marketers will allocate to other products.

Brands have also been slow to shift ad spending to digital formats for their luxury products. Last year, about 30% of luxury product ad spending was digital. These figures are based on a global study by Zenith. This year, digital advertising for the luxury category will amount to 33% of the total.

Some luxury product marketers are expected to use more print than digital advertising this year. In particular, sellers of high luxury items like jewelry and fashion will continue their focus on print magazines. Up to 55% of the ad budget for these products will go to print advertising. Only about 13% of luxury ad spending on fashion and accessories goes to digital. Analysts believe that marketers use ‘prestigious media’ which may deliver lower reach but higher yields.

Digital formats are commanding a larger percentage of the ad spend for other luxury products though. Automotive marketers are expected to spend 39% of their ad budgets on digital this year. Similarly, marketers that promote luxury hospitality may spend as much as 50% of ad funds on formats like online search, video or paid social media. The category includes food and beverage, accommodations, and travel and tourism.

Marketers shell out over $5.2 billion a year to hawk their luxury goods in the U.S. They may be more open to digital ad formats if they can be assured that their ads will appear with quality content. You can open a conversation with these clients by sharing data found in AudienceSCAN’s Luxury Buyers’ profile with a subscription to AdMall from SalesFuel.

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.