MediAvataar's News Desk
Expenditure on luxury advertising will rise by 2.9% in 2017, recovering from a 0.5% contraction in 2016, according to the new edition of Zenith’s Luxury Advertising Expenditure Forecasts, published recently.
The market will strengthen further in 2018, growing by 3.9%. The recovery will be led by luxury advertisers in the US, China and Japan, which together account for 80% of the growth in luxury adspend to 2018.
This is the third annual edition of the Luxury Advertising Expenditure Forecasts, which examines expenditure on luxury advertising in 23 key luxury markets.* As with Zenith’s long-established Advertising Expenditure Forecasts, it provides historic expenditure figures and forecasts by medium. However, this report focuses specifically on luxury advertising, together with the sub-categories of luxury automotive, fragrances & beauty, fashion & accessories, and watches & jewellery.
Consumer spending on personal luxury goods was stagnant in 2016, according to Bain & Company’s Luxury Goods Worldwide Market Study, Fall-Winter 2016. This was the first year without growth since 2009, as spending by tourists declined: the number of tourists fell after terrorist attacks in Europe, and spending per tourist also fell, particularly among Chinese tourists. This led to the 0.5% drop in luxury adspend in 2016.
As the luxury ad market recovers in 2017 and 2018, the fastest growing regions will be Eastern Europe (which will grow at an average of 10% a year), Latin America (5% a year), and North America and Asia Pacific (4% a year each). 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 advertising as a whole. Across our top 23 markets, luxury advertising grew by 0.7% each year between 2013 and 2016, compared to 4.8% annual growth for the whole ad market. Even though we expect luxury advertising growth to accelerate to 3.4% a year between 2016 and 2018, it will continue to lag behind the market as a whole, which will grow 4.4% a year across all categories.
‘Broad luxury’ is driving growth
Luxury goods advertising can be divided into two categories: high luxury (watches & jewellery and fashion & accessories) and broad luxury (luxury automobiles and cosmetics & perfumes). High luxury brands are among the most iconic in the industry, but broad luxury accounted for 74% of luxury adspend in 2016, and grew 0.7% that year, while high luxury adspend shrank 3.9%. We expect broad luxury to drive most of the growth in luxury adspend to 2018: we forecast it to grow by 3.7% in 2017 and 4.6% in 2018, while high luxury adspend will grow by 0.8% in 2017 and 1.6% in 2018.
The internet will overtake print to become the main luxury advertising medium in 2018
Print is currently the principal medium for luxury advertising, accounting for 32.7% of adspend in 2016, compared to 31.3% for television and 25.8% for internet advertising. However, almost all new luxury advertising goes to internet advertising – we forecast it to account for 87% of adspend growth between 2016 and 2018. By 2018 we forecast the internet to be the biggest advertising medium for luxury, accounting for 30.6% of adspend, compared to 29.9% for television and 29.7% for print. Print will nevertheless remain much more important to luxury than for the ad market as whole: 13.8% of adspend across all categories will go to print in 2018, down from 16.7% in 2016.
The ascent of internet advertising can be largely attributed to broad luxury advertisers; high luxury is overwhelmingly print-based, and will remain so for the foreseeable future. 73% of all high luxury adspend went to print in 2016, and we expect 70% to go to print in 2018.
“Luxury advertisers are having to respond to consumers’ changing expectations,” said Vittorio Bonori, Zenith’s Global Brand President. “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.”
*The 23 markets are Australia, Brazil, China, Colombia, France, Germany, Hong Kong, Italy, Japan, Malaysia, Mexico, Netherlands, Peru, Russia, Singapore, South Africa, South Korea, Spain, Switzerland, Taiwan, the United Arab Emirates, the United Kingdom and the United States of America.
● PM Modi’s Twitter followers increased manifold and crossed the 30 million mark, growing seven times since 2014
● Twitter Seva leveraged by more than 10 government partners for public service, recorded more than 1.2 million Tweets since inception
Twitter is the best place to know what’s happening around the world and to talk about it. There were over 1.1 million conversations on Twitter between 25th - 28th May, discussing the 3rd anniversary of Modi government. From politicians, athletes, entertainers to Indians from all walks of life, people flocked to Twitter to wish the PM and his Government on their successful three years with hashtags such as #3yearsofmodigovt and #modi3years. Prime Minister Modi reciprocated with his own message on the platform too.
The conversations peaked at 9.28pm on May 26th with more than 690 Tweets per minute. (Click on the interactive chart below to see how the conversation unfolded on Twitter.)
For the Government of India, Twitter has emerged as a critical platform for citizen engagement over the past three years. One of the world’s most Twitter-savvy leaders, PM Modi’s @narendramodi account currently has over 30.2 million followers, which is 7 times more since 2014. India’s technocrat Prime Minister with 25 of his Cabinet ministers and 29 Ministers of State actively leverage the platform to engage with citizens, update them on government policies, and connect with them through live conversations. For example, the platform recorded maximum conversations regarding the Union Budget with 7.2 lakh Tweets with the hashtag #Budget2017 between January 30 and February 2, 2017. PM Modi’s Tweet-powered campaigns such as #MannKiBaat, #SwachhBharat, #SelfieWithDaughter, #MyCleanIndia, and #TransformingIndia, are further examples of how he has used Twitter to reach and connect with Indian and global audiences.
One significant public engagement initiative from the government is through Twitter Seva. As an India-first innovation, Twitter Seva is currently being used for citizen engagement across 10 large government ministries and public service departments in the country, including: the Ministry of Commerce (@DIPPGOI), the Ministry of External Affairs (@MEAIndia), the Department of Telecommunications (@Dot_India), Department of Posts, MTNL, BSNL under the Ministry of Communication, Department of Administrative Reforms and Public Grievances, Ministry of Home Affairs, the UP Police (@Uppolice) as well as the Bengaluru Police (@BlrCityPolice). The Twitter Seva system has tracked more than 1,220,000 Tweets since it began and each Tweet stacks up as a metric of the Government’s intent to deliver effective and transparent service.
Mahima Kaul (@misskaul), Head of Public Policy, Twitter India said, “Twitter is the best place for people to see what’s happening around the world and the Indian government’s holistic use of the platform is a great example for citizen engagement. PM Modi’s Tweet about his three years of governing excellence sums it nicely -- “कड़े फैसले, बड़े फैसले।”. It’s been phenomenal to see PM Modi and his senior cabinet members leverage Twitter to engage with the public in India. We look forward to collaborating with more ministries to engage with citizens, gather public feedback and provide real-time response across India.”
93.5 Red FM’s very famed and popular show Kaanphaad has a new RJ on board, RJ Karam has replaced RJ Abhilash for this show. RJ Karam had started his journey working as producer for one of RED FM’s prime time shows and because of his sheer talent and oratory skills he was elevated as an RJ.
A Science graduate, writer, magician, mimicry artist, mentalist, now an RJ, Karam has done it all while also previously working at a radio station as a producer. Fresh in the world of RJs, this quirky guy already knew the tricks and magic for wooing his audiences; whether on-air or on ground or online. An entertainer by nature, though RJ Karam represents Mumbai’s young and trendy population his USP is that he never ceases to amaze folks from any age group and background. He knows everything about what’s happening in the world of Indian TV and shares it with his listeners. His actions are totally based on the internet trends. This Punny Sardarji is proud of his PJs and certainly his jokes can make you laugh until your stomach hurts. In his ‘Kaanphaad’ show his talks will give you an earful of word-gasm which you’d want to hear repetitively.
Kaanphaad is a show which is quite different from others and is away from normalcy. It is clutter breaking and does full justice to its name. The show caters to everyone who seeks raw and unexplored fun in life and is a mixed bag of elements that includes prank calls, produced sparklers and other shock elements, making it a one of a kind show. Keeping in mind the TV watching audience that generates maximum listenership during this time band, Kaanphaad explores the quirky side of women by generating interesting content around their likes and dislikes with properties like Shendi, Fake interviews etc.
Tamil Nadu is a state where a unique and distinctive culture has flourished for millennia. The Tamil people are blessed with self-belief, dynamism, and a honest sense of pride and belonging. Tamil Nadu also has a special place for Sports in its social and cultural life. Recognising this, Star Sports – India’s leading sports broadcaster – has launched Star Sports Tamil, the country’s first dedicated Tamil sports channel.
A first-of-its-kind regional sports channel, Star Sports Tamil will bring fans across Tamil Nadu closer to their favorite sports and heroes. The channel has a rich calendar of sports – starting with the ICC Champions Trophy 2017, moving into Tamil Nadu Premier League (TNPL 2.0), VIVO Pro Kabaddi Season 5 and Hero ISL. The channel would provide curated Tamil content localized to Tamil Super Stars – R. Ashwin, M S Dhoni, TNPL Stars, and Stars from Chennaiyin FC.
A 360-degree marketing campaign, #MachiAreYouReady (Buddy, are you ready), has commenced along with the launch of the channel. A tribute to the multi-sport culture of the state, the campaign underlines Tamil pride and is rich with nuances such as the presence of the soil of Tamil Nadu in the TVC. The campaign will be supplemented by comprehensive, high-impact promotions on radio, TV, print, digital, and OOH.
Mahendra Singh Dhoni - Tamil Nadu’s favourite cricketer and Indian sports icon, a Star Sports ambassador, is featuring prominently in the campaign. Thala Dhoni embodies the pride, valour and sportsmanship of the Tamil culture.
A Star India spokesperson said, “Tamil Nadu is a unique market with high affinity to language content and very distinctive viewing habits. Star India’s strong presence in the state has helped us understand the pulse of the Tamil sports fans. Star Sports Tamil is an extension of our belief to give people more relevant regional sports content and celebrate the ‘Tamizh’ culture. This is another resolute step in our constant endeavour to bring fans closer to sports.”
The channel will feature content exclusively packaged with a line-up of eminent Tamilian hosts and commentators from the sports fraternity such as K Srikkanth, L. Sivaramakrishnan, S. Badrinath, S Sriram, S Ramesh, H Badani. Star Sports Tamil will be available on leading DTH/cable operators across Tamil Nadu as well as rest of India. The channel has gone live as of May 28th, 2017.
Five tips to rock your communications using multi-touchpoint campaigns
It has never been tougher for brands to touch and move people. We all experience it. Globalisation has resulted in multiplying brands.
With digitisation, more content is developed for more channels. New channels open every day – outdoors, in our pockets, even on our fridges - through smartphones, connected screens and the Internet of Things. People are bombarded with thousands of branded messages every day, and pay less and less attention. They skip, fast forward, and multitask more and more.
To succeed, brand communications must reinvent itself to even get a chance to earn people’s attention. They need to rock. Literally.
How can you make your brand rock? Here are five lessons Ipsos has learned from investigating successful – and not so successful – brand communications.
Give your brand a rock band
From Genesis to Twenty One Pilots or Muse, the best and most legendary rock bands result from great musicians playing together, amplifying their individual talents. Likewise, in order to increase the chances of engaging people with the campaign, winning brand communications rely on inspiring content, played across several touchpoints.
Indeed, when we compare the results of pre-testing a single touchpoint with testing an entire multitouchpoint campaign, on average we see an uplift of 14% for Attention, 31% for Consideration, and 38% in Brand Desire. These results are echoed in the 2016 ARF Rethink conference, which reported and ownership from the general audience. This is the power of a campaign that truly rocks.
Create a hit for your brand!
The Police had Every Breath You Take, Coldplay has Vivala Vida. Likewise, great communication campaigns need a strong score to move their audiences. In the communications world, this is the ‘Big Idea’. A strong big idea will help your
brand find an insight, that is a tension that strikes the right chord with people. Identifying how the brand uniquely
alleviates that tension becomes the melody which is the answer the brand proposes to people’s aspirations.
Big Ideas are not new to marketers. What matters now to make campaigns successful is that the Big Idea must
be infused in each piece of communication across each touchpoint in such a way that it builds on its overall objectives.
In other words, make sure that every touchpoint sings along and plays the right score. Why? Because the multiple coordinated cues together deliver, like the components of a hit record, an amplified whole that has a greater chance of
capturing and keeping people’s attention and build, rather than wear out, over time.
Great rock bands jam
What truly builds rock bands’ fame are their live concerts, when all musicians are on stage and jamming. You can
witness the alchemy between the voice of Bono, Edge on the guitar, with Adam Clayton playing bass and Larry Mullen
on the drums: this is what U2 is best known for.
Like bands, campaigns work best when they jam. They need to foster synergies, through the themes, executional assets, key visuals, logos, cues they use, so people can instantly make connections as they navigate and encounter campaign assets.
Campaigns jam when the story from the first piece of content is amplified with the experience of a second piece of content, thereby gaining meaning and multiplying engagement. Resonant, repeated, harmonious messages are easier to pay attention to, to encode and retrieve from memory, rather scattered, disparate pieces.
Harvey Nichols’ 2013 Christmas campaign was a campaign that jammed. On its own, on shelf, the limited edition product
line, with its puzzling cheap gifts like elastic bands and paper clips, would certainly gain attention.
Idols are contagious
Rock music has its stars and geniuses – Jimi Hendrix, David Bowie, Prince – who reinvented music and how to play it thereby taking it to a new level. As much as an idol can take music a leap forward, so too can nurturing great creative.
Ipsos has identified that 75% of a campaign’s impact comes from the creative, not the media choices.It is therefore essential to put special care and talent in the execution.What makes both rock stars and breakthrough creative so important is that they offer a memorable experience – a sold out concert, a truly moving moment – so that people are willing their friends to experience for themselves, and they share and retransmit. People thus become your touchpoints, amplifiers multiplying further the power of your campaign.
The brand is the voice
Let’s not forget one last ingredient. Most rock bands forge their identity around an emblematic lead singer (who usually
steals the spotlight). You cannot dissociate Guns & Roses from Axl Rose, or Hayley Williams from Paramore.
With great campaigns, the brand is the lead singer. It is essential that the brand is pivotal to the story and seamlessly integrated to serve two purposes:
• as a key point of connection between different pieces of content to become strongly associated with important
(and ideally distinctive) cues and assets…
• … but also as the focal point of the story, so that people can act upon and towards the brand.
Great campaigns are not only remembered for the idea or story they tell, but also by the brand they serve. Can one dissociate Think Different from Apple? Taste the Rainbow from Skittles? Or someone acting and looking displaced
when hungry from Snickers?
So don’t forget to find out if your campaign truly rocks: check that you have a rock band, with a guaranteed hit, ensure the touchpoints jam together, you nurture a creative idol that will make your content contagious and shared by people, and don’t forget to give the brand the lead vocals role