Luxury goes digital, needs to do more

New research from an organization called the Luxury Institute found that half the executives in a recent survey are spending at least 30% of their marketing budget on digital methods with an even larger percentage concerned it isn’t enough.



The New York-based group surveyed 120 executives in the luxury industry and found that roughly half of those surveyed have allocated at least 30% of their marketing budget to digital methods. Two-thirds of those surveyed said they are spending more this year than last year and 59% said that despite the increase it still isn’t enough.



The digital marketing goals of highest importance to luxury executives are acquiring new customers (51%), growing brand awareness (38%), and increasing sales (28%). In terms of directing visitors to their brands, social media sites are the most productive leads, with one in three executives saying that direct links through social media are the most important drivers of traffic outside of customers searching for a specific brand on a search engine.