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85% of Luxury Brand Marketers Will Increase Digital Marketing Spend in 2013

January 9, 2013 - Portland, OR

According to a new survey of more than 100 marketers at major global luxury brands, marketers plan to increase digital media spend significantly in 2013. The survey, which was put together and distributed by Luxury Interactive and ShopIgniter, shows that 85% of luxury brand marketers will increase their digital spend and 72% will increase their social media marketing spend. With more affluent consumers flocking to social media, smartphones, and tablets, luxury marketers are committing more funds to digital marketing than ever before.

The increases represent growth over 2011, with 80% of respondents reporting that 2012 digital marketing spend exceeded 2011, and 77% reporting more budget was spent on social media marketing in 2012 than in 2011.

"Luxury marketers are really leading the way for marketers across categories -- from consumer goods to big box retail -- and luxury brands are responding to these booming consumer trends with a significant shift in focus toward digital media," said Kelly Hushin, author of the study and Digital Content Manager for Worldwide Business Research, parent company of the Luxury Interactive conference. "With affluent customers more likely to own smartphones and tablets and shop online across each, marketers are looking for more and more ways to effectively reach new and existing customers interested in luxury brands."

Luxury Interactive is an annual conference held in New York and produced by global research and conference company, Worldwide Business Research, also based in New York. The Luxury Interactive team worked with ShopIgniter, the company behind social product promotion and commerce for many leading brands, to craft the questionnaire, which covered topics like social media spend, product promotion, mobile commerce and customer retention. The goal of the survey was to establish an industry benchmark for digital marketers at luxury companies.

Results of the ShopIgniter/Luxury Interactive survey have been in line with many similar industry studies, which have revealed that luxury brands are increasing digital spend. The study showed that 63% of luxury marketers predict that in 2015, digital marketing will be the most important form of marketing for their brands -- more important than traditional print, TV, or loyalty programs. Yet, today the leading business driver among luxury brand marketers for digital investments like social media is still new customer acquisition.

"While acquiring new customers in social media is logical given the demographics it draws, luxury brands need to develop strategies built on extending their brand promise, inviting fans in and providing the exclusivity they expect," said Marko Muellner, VP Marketing at ShopIgniter. "Our experience shows that roughly half of a brand's social fans are not in the house file, which means there is ample opportunity to not only introduce the brand to a new customer, but also find opportunities to drive product discovery, generate new customer insight and move prospects closer to a purchase decision."
The survey also unveiled the following insights about social and mobile marketing priorities among luxury marketers:

  • 76% of respondents say if they could manage only one social media account, it would be Facebook.
  • 95% say they actively engage customers on Facebook, compared to 85% on Twitter and 60% on Pinterest.
  • While three-quarters of respondents allocate less than 20% of their digital budget to social, 50% report that the leading budget line-item is people-oriented, including expenditures for in-house and agency resources. People and agencies were also reported as the leading mobile budget line-item.
  • Posting product imagery (81%), using video to engage fans and followers (75%) and seeding new product launches (60%) were cited as the most relied upon marketing tactics in social media.
  • 63% of luxury marketers, though fairly satisfied with results so far, are working to improve their social marketing.
  • And, 46% of luxury marketers, though fairly satisfied with results so far, are working to improve their mobile marketing results.

The 2013 State of Luxury Digital Marketing survey was distributed to top marketing executives at luxury brands like Chopard, Louis Vuitton, Barneys New York, Mercedes Benz, Cartier and Mandarin Oriental Hotels, among others at the 2012 Luxury Interactive conference, held Oct. 15 to 17, 2012 at Bridgewaters in lower Manhattan. The conference will also take place in October this year; specific dates and venue to be announced.

About Luxury Interactive
For the seventh year, Luxury Interactive will bring together luxury brand marketing and ecommerce executives, innovators and thought leaders, who will offer insights and solutions for the most pressing issues facing the industry. The event will take place October 11-12, 2013.

About Worldwide Business Research
WBR is the world's biggest large-scale conference company and part of the PLS group, one of the world's leading providers of strategic business intelligence with 16 offices worldwide. Our conference divisions consistently out-perform their industry sector competitors on the quality of the events we produce and the relationships we nurture with both attendees and sponsors.

About ShopIgniter
ShopIgniter enables digital marketing leaders to reach and convert their social + mobile customers. Innovative brands and retailers use ShopIgniter's platform to deliver, manage, and measure highly effective interactive campaigns in social streams that drive product discovery, exploration, amplification and conversion across networks and devices. Founded in 2009, ShopIgniter is proud to be headquartered in Portland, OR.

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Contact for ShopIgniter:
Kim Blomgren
Email Contact

Contact for Luxury Interactive:
Kelly Hushin
Email Contact


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