OlaView: Luxury Brands Prove the Importance of All Channels
As we near the halfway mark of the year [insert joke about how we can’t believe how fast time is going by…but actually, we can’t believe it], brands are thinking about how they can activate and accelerate growth in the second half of 2016 and (gulp) beyond. In this week’s OlaView, we share insights on how brands can engage the all-powerful millennial consumers, why “authenticity” can be really hard to achieve, and what the luxury industry says about the overall direction in marketing tech and strategy.
OlaView: June 3rd, 2016
Advertising spend by luxury brands is expected to rise 3 percent this year to $10.9 billion, up from 1.9 percent in 2015, according to media agency Zenith’s Advertising Expenditure Forecasts, released Tuesday. Among the interesting trends uncovered in the forecast was the increase in share of overall budgets being dedicated to digital channels, with 97 percent of the overall growth in the next two years attributed to digital. With that said, print interestingly still reigns supreme for high luxury advertisers, as this segment spends a whopping 60 percent of their ad budgets on this channel.
Monitoring the luxury market is one way to identify true adoption of various technologies and techniques. Why? Because luxury brands are understandably very protective of their audiences and messaging. These brands aren’t late-stage adopters, but they take a very calculated approach to incorporating new methods into their marketing efforts. So to see such an increase in digital over the past couple of years, and the projections moving forward, it validates what many of us already know: digital is here to stay. But it also shows that other channels are not going away either. Modern consumers are shifting their behavior and consuming more media on digital channels, but they’re consuming more media on traditional channels as well. For all brands, regardless of industry, finding a healthy balance, and choosing authentic content that can thread throughout each channel to tell a connected narrative, will be critical to success.
Bill Connolly, Director of Content Marketing, Olapic
“Millennial” is a buzzword marketers can’t escape, but for good reason. This oft-misunderstood demographic is coming of age and amassing an enormous amount of spending power leaving brands scrambling to engage them effectively. In this article, NewsCred reflects on research it conducted on the Millennial mindset. In essence, the study concluded that the majority of millennials “feel a direct correlation between content marketing and brand loyalty.” The key, it seems, is to serve up the right content to the right audiences…but how can brands do that properly? According to the research, there are 10 tactics brands need to implement to succeed with millennials; most notably, the need to tailor content to cultural interests, the need to create content that helps solve a problem, and the need to be authentic.
Ariel Hendrick, Marketing Analyst, Olapic
A lot has been said recently on the topic of authenticity in marketing and social media. It’s clear that consumers expect realistic marketing experiences in ways that previously didn’t exist, but where does the swing toward “authenticity” stop? Speaking from the standpoint of an individual, this author ponders whether authenticity extends to her own bad moods and negative feelings.
Posing these same questions to brands, is there ever a time it’s okay to not be authentic? It’s easy to be genuine when the conversations around you are positive! But when the tides turn against your brand, is it okay to be authentic only up to the point where it’s desirable for your brand?
Justin Berger, Director, Demand Gen & Marketing Ops, Olapic
Check back in a couple of weeks for the next OlaView, and have a wonderful weekend!
Image Source: Unsplash.com / By: Ermin Celikovic