Maximize ROI with targeted DOOH that connects with luxury retail shoppers in relevant, high-quality environments to influence online and at-retail sales.
The growth on the horizon for the global luxury goods market is positive. After a few tough years marked by decreased demand for luxury investments due in large part to job loss, decreased wages, canceled trips and a drastic shift to work-from-home as a result of COVID, the industry is poised for a rebound and solid growth projection. Experts anticipate the global luxury goods market to grow from $284 billion in 2023 to $392.4 billion by 2030, at a CAGR of 4.7%. Clothing is expected to be the highest growth segment driven by changing fashions and lifestyles post-pandemic including return to the office, significant uptick in both business and vacation travel and less uncertainty in the job market.
With spend-ready shoppers poised to invest in luxury goods, now is the time for luxury retail marketers to explore media partners that will most effectively and efficiently target luxury shoppers and drive sales. This article will explore top trends in the industry and why Captivate is uniquely suited to deliver the right audience at the right time in the right place in a high-quality environment that reflects your brand standards and maximizes impact of your campaign. Let’s take a closer look at each of these critical pieces of the puzzle.
The Future of Luxury Shopping Is About More Than High Income
Assuming that most luxury shoppers are older, affluent consumers is just not true anymore – well at least not the majority. Yes, affluent professionals will always be a core, high-value audience for luxury brands. But in just a few short years, it is estimated that 70% of luxury sales will be made by Gen-Z and Millennials by 2025. There is one key factor that these audiences have in common – they’re employed. This means they have disposable income and immense purchasing power, and brands can easily reach them with targeted advertising on Captivate digital media network in offices and luxury residential properties across North America. According to MRI-Simmons, Captivate effectively delivers Millennials (144 Index) and our viewers are nearly twice as likely to earn an individual income of $250K+. Captivate viewers believe that designer, luxury products are superior and most importantly, they actively spend in key retail categories:
|Captivate Viewers – Completely Agree|
|Most everything I wear is of the highest quality||217 Index|
|Brand name is the best indication of quality||214 Index|
|Top designers make quality clothes||188 Index|
|I purchase the most expensive model with all the luxury appointments/options||169 Index|
|Prefer to drive a luxury automobile||143 Index|
Their spending power over the past year is strong as evidenced by the data below. And doesn’t appear to show signs of slowing down; Captivate viewers are 64% more likely to buy a 2nd home/vacation home in the next 12 months.
|Captivate Viewers – Spend Past 12 Months|
|Stayed in luxury hotel (For business)||259 Index|
|$250+ on Perfume||202 Index|
|$1000+ on Watches||201 Index|
|$1000+ on Fine Jewelry||178 Index|
|$600+ on Clothing||142 Index|
The Right Audience – Proprietary Research Indicates Strong Intent To Spend
Captivate | OFFICE PULSE research offers marketers timely analysis, category insights and campaign effectiveness measurement from our proprietary panel of over 6,000 professionals across North America who work and live in Captivate buildings. Our research is trusted by leading brands to measure campaign performance and data from our topical surveys has been widely published, solidifying Captivate | OFFICE PULSE as the leading authority on the pulse of modern professionals.
53% Plan To Spend $2K+ on Luxury Purchases in Next 6 Months*Captivate Viewers $100K+ HHI; Source: MRI-Simmons Fall 2022 Doublebase
A June 2023 luxury retail survey provides valuable insight into purchase intent, top spending categories, when they plan to spend and retailer preferences. According to the data for U.S. and Canada, more than half of high-income professionals plan to spend $2K+ on luxury purchases in the next 6 months.
What luxury items will you consider purchasing in the next 6 months? (U.S.)
- 43% 5-Star Vacation
- 40% High End Bottle of Alcohol
- 27% Luxury Fashion
- 27% Auto ($50K+)
- 20% Handbag, Luggage, Bag ($500+)
- 17% Non-Diamond Jewelry
These are all short-term purchases. Meaning now is the time for luxury marketers to advertise and to stay top of mind to influence which brand these spend-ready consumers choose. Even more striking is that nearly half purchase luxury goods for themselves. Connecting with them on Captivate delivers your brand message to them in captive environments that capture their attention in close proximity to purchase both online and in-store.
The Right Time & Place – An Environment with Proven Success Driving In Store & Online Purchases
Finding the right media partner to effectively deliver luxury retail shoppers at scale is a challenge. To partner with one who can do so while delivering ads during the workday when a sizable amount of shopping is researched and purchased in a location that can dually influence both online and drive-to-retail is extraordinary. Let us walk you through the benefits of advertising at the right time and place on Captivate.
According to Captivate | OFFICE PULSE research, the workday is a key time of influence for upscale consumers to buy luxury items and research upcoming purchases. 1 in 3 high income professionals purchase luxury goods during the workday and 35% research luxury items during that same time frame. The workday is therefore an important point of influence to stay top-of-mind and drive those buyers from consideration to execute their purchase. Even if they don’t activate the purchase during work hours, 56% say they purchase after work hours and a staggering 65% research purchases after work. Advertising on Captivate during the workday plants the seed to ensure your brand is in the consideration to drive after work purchases or be their top search later that evening.
29% of High Income Professionals Purchase Luxury Goods During The Workday
Captivate not only effectively delivers the workday audience but also reaches them at point of purchase – both online and in-store. Captivate buildings are in busy urban centers across the top DMAs and major metros in North America perfectly aligning with luxury retail locations. Advanced targeting solutions make buys even more efficient and relevant to viewers with geo-target campaign filters that feature the address of closes retail location or geo-fence advertising to venues within a certain mile proximity to retail. Let’s partner to find the right solution for your campaign.
Another industry trend that can’t be ignored is “the power of online shopping. Bain & Company forecasts that online sales will become the most effective channel for luxury goods by 2023.” They predict online will account for 30% of the global market. With luxury brands recognizing the promise of online sales, social media influencers and building compelling digital experiences, their brand campaigns must also include media that can drive shoppers online with immediacy and convert to sales. Ads on Captivate reach spend-ready consumers as they are heading to their desks in office towers, WeWork co-working spaces and laptops at home in luxury residential properties across North America. Additionally, QR codes on Captivate have proven effective in driving to web where brand experiences take over and close the sale.
For many luxury brands, office media and the workday daypart is an untapped opportunity to expand reach of target consumers at a time and place that can influence sales. Captivate is a powerful complement to influencer marketing and digital investments that can drive customers down funnel and covert to purchase. The proximity to both brick-and-mortar stores and their office desktops delivers a two-fold reason to invest in office and luxury residential advertising on Captivate.
Premium, Brand Safe Environments That Reflect Brand Prestige
The importance of advertising within trusted, brand-safe environments in premium locations is important for most brands but absolutely necessary for luxury brands. When evaluating digital out-of-home (DOOH) options, the factors that determine the quality of an environment boil down to two main elements – location and on-screen experience.
Location, location, location! Yes, the location of the screen must be high-traffic and highly visible. But it must also be a premium, high-quality environment that aligns with the quality of the product you are advertising. Captivate office media network is present in nearly 1,900 of the most premium, Class A commercial properties across North America. From iconic city skyline landmarks like the Empire State Building and Willis Tower to the latest in modern, sustainable design like the Spiral in NYC and CIBC Square in Toronto. Advertising on Captivate | OFFICE delivers your ad to upscale professionals in elite, beautiful commercial real estate properties. Over the past 3+ years, we have focused on aggressive growth of the Captivate | RESIDENTIAL network in the U.S. which now includes 5,400 luxury residential properties. Similarly, your ads will reach upscale consumers at home in high-end, top-tier luxury multifamily residences.
The onscreen experience is also a critical component to ensure that your brand is not featured alongside unsavory or questionable content. Audiences naturally correlate the advertising and the content – it is the basis of the push toward contextual relevance. Brands need to make sure their ads are featured alongside reputable, professional content they can trust. Captivate is a 25+ year industry veteran that has built its reputation on publishing the highest quality content that keeps audiences engaged and property managers pleased. Our professional editors work with 150+ world class content providers to curate custom programming mixes for both the office and residential networks. Brands can rest assured their ads will run adjacent to professionally written, edited content. Speaking of our content experience, let’s explore the contextually relevant content alignment opportunities Captivate offers.
Top Brands Trust Captivate To Deliver Luxury Retail
Contextual Relevance Elevates Campaign Impact and Improves Results
Opportunities to elevate campaign relevance range from turnkey to completely custom. Several luxury and retail brands, including Cole Haan, GAP, Remmy Martin, and Holt Renfrew, have sponsored content on Captivate, spanning across fashion, lifestyle, award shows, and gift guides.
Some of the most impactful campaigns came to life as a result of partnership between brands and Captivate. We bring together a team of editors, marketing, and account reps to understand your campaign objectives, target audience insights and collaborate on ideas to bring it to life on our networks in the most meaningful, impactful way. This approach may encompass a fusion of capabilities, ranging from custom content creation to data integrations and advanced targeting solutions.
The main goal of any retail campaign is to drive sales. To achieve this, several brands, including Neiman Marcus and White House/Black Market, have partnered with Captivate to integrate retail location data into their creative that drives viewers to the closest store. Other successful data integrations have included countdowns to build anticipation and maintain top-of-mind awareness – Brooks Brothers ran a countdown to Cyber Monday, while Nordstrom Rack ran a countdown to the grand opening of a new location. Both underscore Captivate’s ability to successfully drive sales both in-store and online.
Explore Custom Content That Reflects Industry Trends To Connect With Customers
The most successful campaigns are about more than impression delivery and reach/frequency goals. They go deeper to deliver a more comprehensive experience that increases the contextual relevance of the campaign and creates a meaningful connection between brand and customer. Captivate is a partner that will listen and collaborate to bring ideas to life in unique and impactful ways. We are also curious and creative. Our team comes to each brainstorm prepared with original ideas and thoughtful understanding of brands’ challenges and industry trends. Below are a few thought starters of custom collaborations we believe reflect trends and will speak to today’s luxury retail customer. Are you the right partner to bring this to life on screen?
LUXURY EXPERIENCES: “’Experiential luxury’ is one of the fastest-growing segments of the industry.” This was once a priority for younger Millennials but in recent years, perhaps due to the pandemic or influence of social media, has expanded to a wider span of luxury retail consumers. Let’s brainstorm ideas to align your brand with experiential luxury content.
SOCIAL CONSCIOUSNESS: Gen-Z and Millennial shoppers are seeking more than a closet full of impressive logos, they chose to “purchase luxury brands who inspire creativity, lead sustainable ideologies and promote inclusivity from their very core.” Brands who fulfill this vision in an authentic and meaningful way will earn their loyalty. Captivate consistently features coverage of relevant categories including environment, DEI and more. Our editors can take this a step further to customize a sponsored content series centered around your brand’s mission and values to drive awareness and preference among luxury consumers.
Campaign Measurement Solutions Confirm Captivate DOOH Improves ROI
Driving measurable results for clients is our #1 priority. Captivate’s research team has 15+ years of experience and conducted over 450+ custom campaign effectiveness studies. Partnering with clients, we work to understand goals and build surveys that will validate that advertising on Captivate contributed to improved campaign performance. Below we present two recent retail campaigns to showcase the impact Captivate can achieve:
Goal: Drive traffic to stores within 5-mile radius of Captivate buildings that over-index for target audience
- +112% LIFT in Consideration Among Women
- +45% LIFT in Brand Perception Among Women
- +77% LIFT in Store Visits
- Nearly HALF had favorable opinion
- 1 in 3 Likely to Consider
- 1 in 4 Visited ColeHaan.com
- 1 in 5 Went to Cole Haan Retail Store
- 18% Recommended Cole Haan to friend, family or coworker
Advanced targeting capabilities enable brands to target specific buildings in the Captivate footprint that effectively reach their target audience and ensure your plan is efficient. Captivate reaches nearly 21,000 displays in 7,300 buildings across North America delivering over 2.5 billion monthly impressions.
Out-of-home advertising across multiple channels is necessary to achieve campaign goals. Adding partners like Captivate that effectively target is critical to achieving an efficient plan that yields results. Through Captivate, targeted advertising seamlessly aligns with contextually relevant content, all within a brand-safe environment strategically positioned near online and in-store purchasing opportunities. With the growth of Gen-Z and Millennial luxury shoppers and holiday shopping around the corner, now is the time to partner with Captivate. Let’s discuss your brand goals and solutions to elevate your campaign performance. Captivate is here to help.
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