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Are luxury brands more alluring for banner ads? According to ad platform provider Sizmek, they are: luxury brands get much better click through rates (CTR) for rich media and polite banners when compared to benchmark figures.
The study, entitled Luxury Benchmarks 2014, found that for rich media luxury brands had a CTR of 0.36%, compared to 0.22% benchmark, while for polite banners – banners which replace the main image with a featherweight replica during page loading to avoid frustrating slow load – it’s even higher, with 0.37% CTR compared to 0.13% benchmark.
Interaction rate with polite banners is also massively up – 2.55% for luxury compared to 1.32% for benchmark. For rich media, luxury brands slightly outperformed benchmark (3.01% compared to 2.93%).
With expandable banners, however, the benchmark figures were up on luxury brand figures in interaction rate, dwell rate and CTRs, yet an interesting anomaly in the study was how HTML5 expandable performed much better than the average (8.06% interaction rate, 0.81% CTR).
Sizmek found five key trends to better advertising in the luxury landscape:
- The target is defined: Traditionally the more affluent and aspirational, the most likely to use luxury brands, would have regular haunts – business and finance publications, exclusive events and so forth. On digital, the field has levelled itself out a little – but they’re definitely there. “They’re mobile, cosmopolitan, and money isn’t a concern”, the report notes.
- Brand is king: When it comes to keeping up the momentum of their brand images, luxury brands will ram it down peoples’ throats to ensure that’s the case
- Anything goes: Otherwise known as ‘the customer is always right’. Luxury brands – arguably because of their status already – are happy to experiment with form and feature to get consumers’ attention
- It has to look effortless: This is self-explanatory, but it’s interesting to note that this has a dual meaning, for the brand and the user. “There is a fine line between a coveted accessory and over-eager aspirant,” the report notes.
- The end game is the same: It’s still all about sales – just because the margins are a bit higher in luxury brands doesn’t mean they shouldn’t benefit from sending qualified users to the checkout lane
Luxury brands have an interesting conundrum to face in the coming months, especially with the prevalence of wearable technology. A recent report from Mindshare Worldwide argued that wearables have the potential to “transform” the luxury goods market.
But what do you think of these findings? You can find the full report here.