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Luxury ad spend falls 1.4% in Asia as web set to overtake print and TV as biggest medium

Dior adSpend on luxury goods advertising in Asia shrank by 1.4% last year even as spend on posh goods rose by 1.9% globally, according to data from media agency Zenith.

However, luxury advertising – which is growing more slowly than the advertising market as a whole – is expected to rise by 3.0% worldwide in 2016 driven by recovery in Asia and Eastern Europe after a “tough” 2015, the media agency predicts based on data from 18 key markets.

Asia – which has been weighed down by the economic slowdown in China, the world’s second largest luxury market after the US – is expected to return to 2.9% growth this year.

Luxury ad spend on digital is set to eclipse TV and print next year, Zenith reckons.

While digital media adspend by luxury advertisers will grow by US$837m between 2015 and 2017, television, radio and cinema will increase by a total of US$26m between them but outdoor will shrink by US$10m and print by U$150m.

By 2017, print will account for 28.6% of total luxury adspend, down from 31.9% in 2015.

TV’s market‐share will also drop over that period, from 32.7% in 2015 to 30.7% in 2017.

Digital’s market‐share will increase from 26.3% in 2015 to 32.1% in 2017, when it will overtake TV and print.

However print remains the dominant medium for some luxury categories, particularly fashion and accessories advertisers who spent 83% of their budgets in print in 2015, mostly in glossy magazines, and watches and jewellery brands, who spent 60% of their media budgets on print in that year.

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