SUBSCRIBE: Free email newsletter

Marketing

Toggle

Article

Digital is set to be the single largest medium for luxury advertising

Driven by recovery in Asia and Eastern Europe, expenditure on luxury advertising will rise by 3.0% in 2016, up from 1.9% in 2015.

According to Zenith’s new Luxury Advertising Expenditure Forecasts, luxury advertisers will spend a total of US$10.9bn across the top 18 markets in 2016, up from US$10.6bn in 2015.

Between 2015 and 2017, luxury advertising is estimated to grow by US$705m. 82% of this growth will come from the USA (US$347m) and China (US$228m). The USA and China are the largest and second-largest luxury ad markets respectively. Germany is third, followed by France and the UK.

Zenith forecasts Asia to return to 2.9% growth in 2016, while the decline in Eastern Europe slows to 2.8%. North America will stay strong, with 3.9% growth, but Western Europe will slip back to 1.7%.

Digital advertising is by far the biggest contributor to the growth in luxury advertising, growing consistently at double-digit rates. By 2017, print will account for 28.6% of total luxury adspend, down from 31.9% in 2015. TV’s market-share will also decline over the same period, from 32.7% in 2015 to 30.7% in 2017. Digital’s market share will increase from 26.3% in 2015 to 32.1% in 2017, when it will overtake TV and print to become the single largest medium for luxury advertising.

Despite its decline in market-share, print remains particularly important to luxury advertisers, specifically those in the fashion & accessories and watches & jewellery sub-categories. Print titles – especially glossy magazines – provide high-quality, immersive yet relaxed reading experiences, a particularly suitable environment for luxury advertisers wishing to showcase their brand values.

Read More News

Trending

Leave a Reply

You must be logged in to post a comment.