The majority of luxury brands are increasing their spend on digital advertising in 2012, as they believe that the channel is more effective in fuelling online sales than TV advertising, according to a new survey from upmarket-oriented digital media and content platform Martini Media.
Almost 350 luxury brand marketers and agencies took part in the poll, which also found that 44% of those interviewed think that digital advertising can positively influence high street sales as well.
Upmarket brands seem to be very adaptive, as almost half of the respondents report that their luxury brand clients are embracing digital advertising faster than their mass market peers. However, at present, mass market brands put aside 37% of their total budgets for the channel, compared to 31% of the budgets of luxury brands.
Despite these figures, three quarters of marketers predict that spending on digital advertising is bound to increase further among upmarket businesses, with almost half of them predicting a rise of more than 10%, while one in six expects budgets to increase by at least 20%.
Researcher Michele Madansky comments that upmarket brands are aware of the fact that well-off consumers are increasingly focusing on e-commerce and could be hard to reach over other, more traditional channels. The study shows that luxury brands are responding adequately to this change by allocating more resources to digital advertising in a bid to connect with affluent clients, Internet Retailing website reports.
Source: M2 Bespoke News