8 in 10 marketers at major luxury brands report having spent more on digital marketing in 2012 than in 2011, find ShopIgniter and Luxury Interactive [download page] in a January study. That trend ought to continue into this year, as 85% plan to spend more on digital marketing this year over last. Budgets were up in 2012 across key digital channels, with 77% investing more in social media and 48% spending more on mobile marketing.
Social media, tapped for an increase in spend by 72% of luxury marketers, stil doesn’t eat up much of the digital media budget, though. In fact, three-quarters of the respondents said that they dedicate between 0 and 20% of their digital marketing spend to social. Just 1 in 10 are heavily invested, allocating more than 40% of the digital pie to social.
Overall, while luxury brands appear bullish on digital marketing, it still occupies a minority share of most respondents’ budgets, at least for the time being. 7 in 10 said that they reserve 0-40% of their overall media spend for digital, while only 14% reserve more than 60%.
An August 2012 study from Digiday and Martini Media found agency respondents estimating that 31% of luxury marketers’ budgets are spent on digital. 43% of survey respondents reported that their luxury clients are moving into digital advertising more rapidly than are mass market brands.
About the Data: The survey was distributed before the October, 2012 Luxury Interactive conference and also onsite at the conference in New York City. More than 130 marketing executives from luxury brands completed the survey, which asked questions about what digital areas they were spending on, which aspects of social media were working for them, what their spend plans for 2013 were, and more.