Luxury Market Embracing Mobile

Not surprisingly luxury advertisers have embraced mobile and are flocking to mobile applications, mobile web sites and mobile advertising.  According to a recent study conducted by Martini Media and iMedia UK where they surveyed UK marketing professionals about how they are allocating their marketing budgets for the demographic containing wealthy consumers mobile is rapidly becoming the medium of choice right now.

In fact, mobile advertising has grown an amazing 148% year-over-year in Great Britain recently and and UK marketing professionals have been moving steadily towards a mobile-first strategy. This is even more so the case in the luxury market as we see that luxury marketers  are now investing heavily in mobile along with big increases in video and rich media formats. Mobile applications and mobile optimized web sites are a perfect fit for sophisticated consumers with high end smartphones.

At this point almost half of all marketing budgets (48 percent) are slated be spent on digital media in 2013, with a huge majority (95 percent) of respondents claiming they increased their digital marketing budgets in 2013 by an average of 22% over the past year. Not surprisingly we see standard display marketing tactics have fallen out of favor and spend there will decrease. Brands that identify as targeting high-income consumers plan on spending more than 2X as much on video and nearly twice as much on rich media and mobile compared to with mass-market brands. Which makes perfect sense as  luxury brands can really benefit from these mediums being used to showcase their products.

When it comes to choosing the medium for digital campaigns, the ability to single out a target audience was ranked as the key factor for the choice.   Digital’s ability to target clearly offers advantages that luxury brands are willing to pay for to reach the right audience.