A report from RadiumOne and Worldwide Business Research Digital claims 2015 could be a year of major spending from luxury retailers looking to gain ROI from digital marketing.
The survey, which was conducted at the 2014 Luxury Interactive conference in New York, found that 92% of luxury retail respondents increased their digital marketing investment in 2014.
According to the data, brand awareness is top of the list of properties, followed by driving trackable conversions which 60% of survey participants named as a key objective.
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Those looking to reach high-end audiences are investing in integrating display advertising with mobile, web, video, and social advertising in real time.
RadiumOne believes that based on these results, 2015 is likely to see productive digital marketing translate into increased spend, with budgets set aside for primary goals such as engaging with customers and tracking e-commerce conversions.
Luxury retailers have long prided themselves on second-to-none in-store customer service which greatly contributes to the overall shopper experience. In the digital age, these brands must look at ways to transfer their service into the digital world, without damaging core brand identity.
“We’ve reached a new era in digital marketing where communicating with consumers in-store is just as important, if not more, than reaching them online,” says Eric Bader, CMO of RadiumOne.
“Consumers are hungry to engage with retailers and in order to increase brand awareness and customer retention in 2015, marketers must deploy sophisticated technologies that enhance the consumer experience at a range of locations between home, office and retail.”
Despite enthusiasm for the digital world, there is still work to be done. Just 58% of luxury retailers were satisfied with their mobile initiatives in 2014 despite three out of four luxury shoppers owning a smartphone.
According to the report, a considerable number of brands (64%) are looking to build a roadmap to integrate store and mobile. Additional priorities include progress in real-time targeting (52%), real-time optimisation (44%), banners (33%), and video (26%).