FIPP and UPM’s latest white paper, titled “Luxury in media: How prestigious brands prepare for 2020“, pays attention to the €1.2 trillion-a-year (US $1.5 trillion) luxury industry, which is “all about physical experience, high-quality and impact” and how printed products deliver on marketing respected products and services.
The white paper is the fourth in a series produced by FIPP this year in collaboration with UPM Communication Papers – one of the six business areas of UPM the Biofore Company. The first three dealt with sustainability in publishing, the future of media and innovation in publishing.
Changing the definition of what luxury is
The paper finds that the global luxury market is rapidly evolving due to global megatrends such as digitalisation, demographic and social change. The emergence of a new, younger luxury consumer, with different desires and habits, is also changing the definition of what luxury is. To leverage the relationship with a new tech-savvy, young generation, luxury brands are starting to incorporate personalisation into their long-term marketing strategies.
Despite the assumption that personalisation would usher in a much stronger focus on digital communication with consumers, print remains a vital tool. The paper references the 17th edition of Bain & Company’s Luxury Study. The study finds that a younger, more ethical and digitally minded luxury consumer is not necessarily looking for substantial changes in the channels brands employ to engage with them.
In fact, according to the report the majority of Americans still trust the mainstream media, its advertising and marketing. “Consumers trust newspapers and magazines more than any other advertising channel at the point in time that matters most to marketers — when they are making a purchase decision.”
Print continues to play a pivotal role in advertising strategies
The report found that print advertising were the top advertising channel, according to the Bain & Company survey, with four in five Americans (82 per cent) saying they trusted newspapers and magazine ads. The five most trusted channels were all traditional, while the bottom eight channels were all digital. Search engine ads led the pack for digital advertising, garnering the trust of 61 per cent of consumers, and pop-up ads fared the worst.
The white paper concludes that while the debate continues across the media industry as to whether print will be replaced by digital or whether digital will continue to take a slice of print’s revenues – the actual state of play is that print continues to play a pivotal role in advertising strategies in a world where print and digital live side by side.
Luxury advertisers are taking note of this reality and continue to advertise in high quality publications with good paper stock. Even when customers prefer to shop online, advertising in high quality magazine titles helps to raise the visual impact of brands, the white paper states.