Luxury brands have been particularly unwilling to venture into digital advertising. Now, they are slowly coming around, thanks in part to a push in digital marketing in the hospitality and lifestyle category.
After a relatively slow start, luxury advertisers are now committing to the digital future, led by luxury hospitality brands.
Luxury brands face unique challenges online, such as the need to maintain exclusive brand values while communicating with potential customers at scale. By using personalized digital communications and high-quality e-commerce experiences, luxury brands can generate new sales while preserving their exclusive appeal.
Relatedly, a Bain and Company examination of luxury salesin the last quarter of 2017 found that luxury experiences and lifestyle categories were a rapidly growing area of interest, informing advertising strategy mostly fueled by millennial and Gen-Z shoppers, whom studies show tend to value experiences over material things.
A broader ‘millennial state of mind’ is permeating the luxury industry and changing the purchasing habits of all generations. This shift in mindset is pushing luxury brands to redefine what they deliver to customers and how they deliver it
Luxury brands have historically been skeptical of the value of the digital environment for conveying their brand values, with its limited ad formats, crowded pages and often poor-quality content. However, the environment has been improved by better ad formats and more high-quality content.