When it comes to luxury marketing, we inhabit a brave new world.
Five years ago, the luxury industry was reluctant to be social. However, in recent years, big luxury brands have been shifting their ad spend to digital channels and we are now seeing print trends like the ‘September Issue’ emerge across social video.
That’s according to new insights were revealed this week in the joint study, New Video Code of Conduct in Luxury Marketing, between OMD EMEA and Tubular Labs.
Specifically, we’re told that the study uncovers social video insights across select sectors of the luxury industry.
“The exclusive and crafted nature of luxury brands meeting the open accessibility of online video was always going to be a challenge,” said Blake Cuthbert, Chief Digital Officer at OMD EMEA. “The most successful luxury brands have embraced the opportunity by allowing their followers to be truly immersed in their unique stories, building authenticity and equity in this redefined category.”
As for the study’s key takeaways:
Adverts and premium content currently deliver the lowest return in engagement compared to the volume uploaded. Mystery is no longer enough, consumers are craving more access into the world of luxury. It is the ‘real’ content – fashion shows, montages and behind the brand access – that is driving 74 per cent of all luxury video engagements. In response creative directors are taking the lead, opening up their world and sharing what’s happening behind the scenes in real-time.
“The rapid adoption of influencer strategies for categories from FMCG to luxury automobiles has also left consumers more skeptical of the true relationship between brands and influencers,” the report summary reads. “As a result, only 16 luxury lifestyle influencers made The Sermo Digital Influencer Index cut. The balance brands need to strike is between humanizing their influencers and still driving views and engagement with topical content, such as unboxing which accounted for 72 per cent of the luxury watch topics viewed in 2017.”
Nevertheless, how different audiences engage with luxury video content is unique. Looking specifically at the luxury watch category, as expected 73 per cent of YouTube engagement is driven by those under the age of 34. Perhaps surprising, luxury watch videos are also generating 18 per cent of their engagements from those over 55 years old, which is 14 times the YouTube average over the last 365 days.
“With the growth of online video, brands are increasingly leveraging video to create and distribute content online,” said Denis Crushell, VP of EMEA, Tubular Labs. “Results of the luxury industry and social video study confirm this with luxury brands accumulating over 500 million cross-platform views in Q4 2016 alone. It’s commendable when leading organizations like OMD recognize the importance of this transformation and take action to provide their clients with powerful actionable insights.”
Overall, there’s much more to review. To access a summary of the fascinating study, click here (PDF).