Luxury ad spend in US, China and Japan to drive recovery | M&M Global

Luxury ad spend in US, China and Japan to drive recovery

Expenditure on luxury advertising is set to rise by 2.9% in 2017, recovering from a 0.5% drop in 2016, with further strengthening predicted in 2018 led by the US, China and Japan.


According to the new edition of Zenith’s Luxury Advertising Expenditure Forecasts which examines expenditure on luxury advertising in 23 key markets, the market will strengthen further in 2018, growing by 3.9% with the US, China and Japan together accounting for 80% of the growth in luxury ad spend.

Consumer spending on personal luxury goods was stagnant in 2016, the first year without growth since 2009, as spending by tourists declined after terrorist attacks in Europe, leading to the 0.5% drop in luxury ad spend.

As the luxury ad market recovers, the fastest growing regions will be Eastern Europe, Latin America and North America and Asia Pacific, while the Middle East and North Africa, suffering from political instability and low oil prices, will continue to shrink at an average rate of 6% a year.

Luxury advertising is growing less rapidly than the industry as a whole, at 0.7% each year between 2013 and 2016 compared to 4.8% annual growth for the whole ad market. And though luxury advertising growth is expected to accelerate to 3.4% a year between 2016 and 2018, it will continue to lag behind the 4.4% yearly increase across all categories.

While print is currently the principal medium for luxury advertising, accounting for 32.7% of spend in 2016, almost all new luxury advertising goes on digital – internet advertising will account for 87% of growth between 2016 and 2018.

“Luxury advertisers are having to respond to consumers’ changing expectations,” said Zenith global brand president Vittorio Bonori. “Consumers are now looking for luxury experiences that are personal and relevant to them, and targeted brand communication is central to creating this extra brand value.”

Anna Dobbie


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