The luxury industry is to cut on magazine advertising, depriving the presence of advertisements from 30% to 80%. The Digital Luxury Group conducted the research, which was further divulged by Bloomberg.
Last year the corporate budget for offline advertising was 26%, now is about $2.9 billion.
Also some luxury players, including L’Oreal CEO Jean-Paul Agon, say that advertising does not make much sense with an ongoing pandemic. On the contrary, Agon specified that this strategy could generate frustration given the inability to buy these products. This reason could potentially explain the choice of luxury to cut magazine advertising.
Though there are still some big brands that continue with the old strategy; Chanel, Lancome and Yves Saint Laurent were among the few that appeared in the pages of ELLE France lately. However the difference remains, compared to a few months ago, especially if we consider that on March 6th some luxury giants, including Kering, Richemont and LVHM, occupied about 26 pages.
Meanwhile David Sadigh, CEO of the Digital Luxury Group, has expressed uncertainty about the future. Indeed he has declared: “Nobody knows if luxury brands will go back to investing in print ads as much as before the pandemic.” And then he added: “We’re already seeing more flows into digital as it reduces costs. That’s set to continue the more brands build up e-commerce and as they seek a more direct return and measurable results from media.”
Indeed, the strategy that now seems to be winning above all is e-commerce, on which many brands have begun to invest more solidly. Online shopping saved many brands from the huge losses they have suffered due to lockdowns in different parts of the world, and has continued to generate liquidity.
Cover image credits: Chanel