Online ads better than TV at promoting luxury goods

The report also discovered that 70% of people who purchased premium
luxury goods did so after seeing advertising in a magazine, while 62%
did so after watching a TV ad.

The research further found that consumers will carry out research into
luxury goods online, regardless of whether they then go on to make that
purchase over the internet.

The research consisted of an online questionnaire sent to 1,007
respondents, which enquired about consumers' attitudes towards luxury
goods and services, purchasing habits and attitudes toward such
advertising. All respondents had a salary exceeding £40,000 a year
and were in the socio-economic group A or B.

When asked how they sought information on luxury products, 75% said they
go to the internet first, while 72% said they referred to the internet
before making a luxury or premium purchase.

Sorcha Proctor, research manager at the IAB, said the research confirmed
that luxury brands must consider online as a key part of their marketing
strategies.

She added: "Until now, despite a great fascination with this group,
there' been limited research and information into the attitudes and
online habits of luxury consumers."

However, Simon Davis, managing director at Walker Media, which handles
the accounts for luxury brands Mandarin Oriental and Barclays Wealth,
remained sceptical about the effect of online ads on luxury goods sales.
"Luxury brands advertise in an extremely controlled and consistent way
and tend to be religious about that," he said.

"Any attempt to extrapolate years and layers of advertising effect from
a new wave of display online advertising would be difficult and I would
be surprised if you could show cause and effect there."

LUXURY GOODS AND ONLINE

- Premium luxury consumers spend more hours a week online (25.4 hours)
than watching television (13.2 hours)

- Respondents made the majority of their luxury purchases online rather
than in shops or by direct mail

- There are about 5.9 million regular luxury consumers in the UK, of
which 17% are "premium" consumers

- The internet and word of mouth are the most important factors when
researching luxury goods purchases.