Online advertising is under-utilised in luxury brands’ marketing strategies and has a vital role to play in ensuring competitiveness in the current economic downturn.
The second stage in Microsoft Advertising’s Lovers of Luxury research demonstrates a strong appetite amongst luxury consumers for greater engagement with brands in the digital space. This demand stems from the nature of the relationship that consumers have with luxury brands: a relationship based on indulgence, exclusivity, status and quality. Online’s capacity for immersive brand experiences positions it extremely well to deliver in these areas.
The Microsoft Advertising study consisted of two stages: in-depth qualitative interviews in the UK, France, US and Japan, followed up by a quantitative study covering 11 European territories. It showed that luxury consumers are more likely to shop and discuss products online than the average European, with 50 per cent of luxury consumers identifying digital as a key inspirational channel. This finding puts online second only to traditional print advertising and the in-store experience in defining consumers’ views of luxury products.
The luxury brand engagement model developed by Microsoft Advertising builds on luxury marketing’s traditional strengths to take full advantage of online’s capacity for in-depth engagement; it identifies successful strategies for building dialogue with and about brands, strengthening a sense of exclusivity and appealing on both a rational and emotional level.
Targeting and context are key to success when marketing to luxury lovers, as is appealing to luxury purchase motivations that can vary by region and demographic. Advanced targeting technologies and understanding of global audiences have proven key elements in the development of successful luxury campaigns for brands like Rolex, Aston Martin, Chloe and Cartier.
Read Luxury Lovers Part I
