One of the last bastions of the paper press is luxury brands and companies. In a world in which everything begins to revolve around the network and in which the internet is becoming an increasingly powerful player, luxury industry companies are kept in the habits that have defined their advertising strategy And marketing for decades.
To check it, you just have to go to a kiosk, take a fashion magazine and lifestyles (especially one of the highest quality) and pass pages. The first of the publication will be aimed directly at advertising. In concrete numbers, such as the September edition of Vogue’s American edition, advertising pages can be around hundreds.
Why does this happen? The truth is that the amounts of paper investment are very high, the bulk of the advertising investment made by these brands and by far. According to the latest estimates of advertising spending, 73% of all the money that luxury brands and companies allocate to advertising ends up in the hands of the paper press.
And, although the so-called affordable luxury companies allocate more money to the internet, this seems the dominant trend. Perhaps the key to understanding this is that these brands continue to sell a lot with their advertising, marketing and communication strategy as they have, despite demographic changes and despite the economic crisis of recent years. Or maybe the key is simply something else.
Internet is seen with other eyes
Perhaps these companies adapt to changes take longer than companies in other more ‘popular’ niche markets. In fact, there is more to think about how you have faced e-commerce. Companies of the luxury world were among the last to join the world of e-commerce, being also especially reticent. In the luxury industry, there was a certain sense that selling on the internet would allow too much popularisation of what they were doing.
However, they eventually entered the network and ended up selling on it. Right now, many of them are also dominating in some social networks. Instagram, for example, is the paradise of luxury fashion brands. And, possibly, this is but a first step to a much greater change. Brands and luxury companies could be viewing the world in a much more internet friendly and much less paper-centric way. And that will have a direct impact on advertising: the paper press could be about to lose its last great bastion of loyal advertisers.
The theory is based on numbers, as recalled in Business Insider from an analysis of The Wall Street Journal. In recent times, big luxury brands, such as Gucci or Louis Vuitton, are moving more and more advertising dollars from paper to the internet. The figures are still lower than paper, but the interesting thing is to see the fluctuation of them. Between 2013 and 2016, luxury brands spent just over $ 1 billion in online advertising around the world. This represents a growth of 63%, while at the same time paper investment fell 8%.
And this is what they spend on advertising: in that number does not enter what they get in an organic way, an element that is increasingly powerful in its approach to the network. The luxury world companies are betting on social networks and having enough success. Some estimates suggest that in the last month analysed (March 2017) the 10 largest luxury brands have saved about 33 million with social networks. That is, what they achieved there would amount to $ 33 million of advertising exposure.