Luxury Branding Going OUTFRONT
How Luxury Advertising and Out of Home Work Together
Posted: May 6th 2016 By:
Jodi Senese, CMO
This week I had the opportunity to participate in the panel “Five Women Driving Luxury Brands” sponsored by The Luxury Marketing Council. Four very well-versed women with deep roots in differing areas of the luxury space, and me, an OOH marketer.
Yes! An OOH company invited to participate in a panel about driving luxury brands!
It initially gave me some pause, and then I dug in. Indeed we are driving luxury brands, and when I looked into the “who”, the list was long and impressive. Hermes, Barneys New York, Burberry, Chanel, Tesla, Ferragamo, Mercedes, Brooks Brothers, David Yurman…the list goes on in every sector of “luxury.”
But when I looked into the “why”, a very interesting narrative began to surface.
The DNA of the luxury marketplace has changed firstly in the size of the market (by threefold in the last 20 years), and in the makeup of the audience – they are younger and 45% of luxury shoppers are indeed millennials. Accessibility has evolved the landscape due to licensing, e-commerce sites (such as Gilt), fractional jet ownership, etc. The term “masstige” has entered the marketing lexicon and refers to the ability of the masses to own a bit of luxury. Perhaps one cannot afford a closet full of designer clothing, but a single pair of designer sunglasses or a tote are not out of reach. Interestingly, we read this week that Norwegian Cruise Line has created an “uber” class within their ships to cater to their elite passengers. Cruises, which at one time defined the leisure class, have apparently become so widely accessible that there was a need to create this new level of status.
A broader audience and an aspirational segment of new luxury consumers means that these bespoke brands are in need of new channels for reaching their customers. In the OOH space we are seeing some interesting trends. One is the need for “prime” outlets, and the basis for which we created our
PRIME sub-brand. Inclusive of locations in trendy areas such as the meatpacking district of New York, the Sunset Strip in Los Angeles, or the Design District in Miami, upscale marketers are showcasing their brands in these inherently exciting environments. We have seen more luxury branding in our displays in upscale shopping districts in Houston, Dallas, LA and elsewhere. Interesting engagements, such as the branded shuttle wraps in the New York subway system, just served as a backdrop to Brooks Brothers introduction of their new classic shirt.
Another driver connecting OOH to luxury is the international shopper. The emergence of the upmarket travelers from China, Africa, India, South America and other areas means an extended consumer base for luxury retail in the US. International travelers are naturally media-habit agnostic when they come into US cities, but they are all consumers of
OOH displays, especially well-placed displays in prime locations in top markets. The brand image focus of luxury advertising speaks an international language.
The marketing for luxury brands include exotic location shots, glamorous models, and top-tier photographers; OOH provides an outlet to extend and share (including socially) this imagery with the right audiences at the right time in the right places. In the face of digital convergence of all media (ours included!) there remains a real tangible value proposition in owning the right physical location and the attention of consumers for significantly longer than a fleeting moment.
Bain and Company, 2014