Zenith-2018奢侈品广告支出预测报告（英文）-2018-56页-4mb

Luxury Advertising Expenditure Forecasts Summary (2018)

Core Content

Publicis Media, one of the four solution hubs of Publicis Groupe, provides luxury advertising expenditure forecasts for 23 global markets. The report introduces a new category: luxury hospitality, highlighting its growing significance in the luxury sector.

Key Markets

The following markets are covered in the report:

• North America: USA
• Western Europe: France, Germany, Italy, Netherlands, Spain, Switzerland, UK
• Eastern Europe: Russia
• APAC: Australia, Hong Kong, Japan, Singapore, South Korea, China, Malaysia, Taiwan
• Latin America: Brazil, Colombia, Mexico, Peru
• Middle East & North Africa: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, UAE

Main Findings

Global Luxury Ad Market Growth

• The luxury ad market showed unexpected growth in 2016, increasing by 1.1% compared to an estimated 0.5% decline.
• In 2017, the market grew by 0.7%, and is expected to grow by 2.4% in 2018 and 2.8% in 2019, reaching over US$12 billion in 2018.
• China and the USA alone account for 75% of the additional dollars spent on luxury advertising by 2019.

Digital Advertising Dominance

• Digital advertising is the sole driver of growth in the luxury advertising market, with an average annual growth rate of 11.7% from 2017 to 2019.
• Digital adspend will grow by US$886 million over this period, while print will shrink by 3.9% and television by 0.3%.
• By 2018, digital advertising is expected to overtake television as the largest advertising medium for digital brands.

Media Spend Distribution

• Digital will account for 35.4% of total luxury adspend by 2019, up from 29.9% in 2017.
• Print remains the largest medium in terms of spend, but is expected to decrease in share.
• TV is expected to maintain its position as the second-largest medium, though its share will decline slightly.

Sub-sector Analysis

• Luxury hospitality is the most digital-oriented sub-sector, with 46% of its adspend in 2017 and an expected 53% in 2019.
• Automobiles follows with 37% in 2017 and 41% in 2019.
• Watches & jewellery and fragrances & beauty are also increasingly digital, at 26% and 22% in 2017, respectively.
• Fashion & accessories is the least digital, at 12% in 2017 and 15% in 2019.

High vs Broad Luxury

• High luxury (fashion & accessories, watches & jewellery) accounts for 24% of total adspend in 2017 and is expected to remain at 23% by 2019.
• Broad luxury (automobiles, fragrances & beauty, hospitality) accounts for 76% of total adspend in 2017 and is expected to grow to 77% by 2019.
• High luxury remains heavily concentrated in magazines, which accounted for 57% of its adspend in 2017, while broad luxury is more diversified and shifting to digital.

Digital Media Breakdown

• Digital adspend is split into five categories: display, search, video, social, and all other digital.
• E-commerce advertising is growing rapidly, expected to reach more than 20% of global luxury digital expenditure by 2019.
• In China, e-commerce adspend is expected to reach US$335 million in 2019, representing 14% of total Chinese luxury adspend.

Key Trends

China

• China is the most digital market, with 53.3% of its adspend going to digital in 2017 and 68.0% in 2019.
• Luxury adspend in China is expected to increase by +5.5% in 2018, driven by fragrances & beauty and luxury automobiles.
• Chinese consumers are more connected to digital platforms, with a growing preference for e-commerce and social media.
• Brands like Armani and Lexus eliminated their TV and radio budgets in 2017, focusing on digital channels.
• Luxury brands are becoming more accessible to ordinary consumers, with entry-level products and increased e-commerce presence.

France

• The French luxury market recovered in 2017, with a 3% increase in sales expected for 2018.
• GDP growth of 2% in 2017 and improved political climate contributed to this recovery.
• Inbound tourism to Paris increased significantly after the 2017 presidential election.

Notes on Data Availability

• Digital data is not available for Japan and South Africa.
• Display, search, and video data are missing for several markets, including Australia, Brazil, Hong Kong, Malaysia, Mexico, Peru, Russia, Switzerland, and Taiwan.
• Social media data is available only for Colombia, Germany, Italy, Malaysia, Netherlands, South Korea, UK, and USA.
• All other digital data is available for China, Colombia, Italy, Malaysia, MENA, Netherlands, Spain, Switzerland, and UK.

Conclusion

The 2018 Luxury Advertising Expenditure Forecasts by Publicis Media highlight the growing importance of digital advertising in the luxury sector, driven by China's market expansion and increased consumer engagement. While traditional media like print and television still hold significant shares, they are gradually being replaced by digital platforms. The luxury hospitality segment is emerging as a key player, especially in terms of digital spend, indicating a shift towards experiential marketing in the sector.