Luxury adspend on the up – but not for print publications
Expenditure on luxury advertising is set to increase this year and next, but print is set to lose out at the expense of the internet.
Total luxury adspend is expected to grow by three per cent in 2016 to $10.9bn (£8.3bn) across 18 key markets focused on by Zenith’s Luxury Advertising Expenditure Forecasts.
Read more: The Daily Mail business is having a "pretty torrid time" of things
The UK is predicted to grow at a slower rate – by 1.5 per cent to $621m in 2016 and then to $628m in 2017 – but will overtake France to become the fourth largest market this year.
In the UK, expenditure is expected to grow across TV, radio, digital and outdoor sectors and remain flat in cinema. But print advertising spend is set to fall from $133m in 2015 to $128m this year and then $122m next. This fall will be led by newspapers – as opposed to magazines – which are expected to see their share of the market shrink from 21.7 per cent in 2015 to 19.5 per cent next year.
Read more: ITV says Brexit has sparked "uncertainty" in the UK advertising market
Across all 18 countries, digital luxury adspend is expected to be the biggest grower, gaining an extra $837m by 2017, and print the biggest faller, down $150m.
But Zenith said: “Despite its decline in market-share, print remains particularly important to luxury advertisers, specifically those in the fashion and accessories and watches and jewellery sub-categories.”