Luxury brands and retailers can expect another dynamic year this holiday season as they look to pique interest and drive sales. A new study by American Express Publishing and Harrison Group revealed that purchases made by the top ten percent are predicted to rise eight percent to $20.7 billion. Online and mobile are also expected to play important roles with 23% of affluent consumers planning to do more online shopping this year and 45% intending to shop with their tablets.
With more affluent consumers flocking to social, smartphones, and tablets, luxury marketers are allocating bigger budgets to Facebook this holiday season. 76% of them say that if they could only manage one social media account they would choose Facebook. As luxury marketers increase their investment in online and mobile, we wanted to show how they are leveraging Facebook to reach their holiday marketing goals.
The Facebook Marketing Opportunity
With over 1.15 billion users worldwide, it’s no wonder that luxury marketers are turning to Facebook in force. With Facebook, you can find and acquire fans and purchasing customers, efficiently promote unique, timely and personalized offers and drive increased traffic to your online and offline store. A well-executed Facebook holiday marketing strategy focuses on targeting, creative and optimization allowing luxury marketers to engage their audience and generate tangible results.
Facebook’s News Feed offers a big, beautiful canvas for luxury marketers to showcase their products during the holidays. Stunning, highly polished images will captivate your audience and inspire people to click. It’s essential to make sure your products dominate the footprint of your ads. Busy lifetime images with a lot of background noise are too easy to skip past. Close-ups of brightly colored products on white or neutral backgrounds are ideal. A study comparing results of ads with product images versus lifestyle images showed that product images increased clickthrough rates (CTRs) by 37%.
Luxury marketers should avoid recycling fall imagery and instead use holiday themes and products for their creative, content and landing pages. It’s important for people to have a consistent experience with your brand. With endless creative options, it’s essential to have enough creative to keep things fresh.
Copy should be aimed at evoking aspirational desire and give an insurance of being owned by only select people. Effective calls-to-action commonly feature popular designers such as “Shop Dolce & Gabanna”.
Facebook offers an infinite number of targeting combinations allowing luxury retailers to zero in on the right people. Many luxury retailers leverage a combination of Custom Audiences, Lookalikes, Interest Targeting, Partner Categories and Demographics to meet their customer acquisition and retargeting goals.
Custom Audiences enables retailers to match their CRM data (email addresses users IDS) with Facebook user profiles. For the holidays, you should consider creating a Custom Audiences for each product category such as shoes, handbag, apparel, accessories and designer. You can also target last year’s top purchasers and build Lookalikes off these segments to expand your reach.
Partner categories leverage third party data and works with the other Facebook targeting options so that you can more precisely refine your campaigns to reach the right people. For example, for the holidays you might want to run an ad targeting Partner Categories (buyers of corporate women’s attire, purchasers of luxury automobiles, frequent travelers, high home market values) layered with keywords (preppy brands, contemporary designers, luxury retailers).
Location data can also be coupled with audience segmentation data, enabling luxury marketers to reach users based on demographics (age, gender, educational level) or transaction histories. Location based ads featuring unique products, special offers and events can make a big difference when it comes to driving people into the store — think about where the affluent reside.
The targeting options selected can mean the difference between campaign success or failure – so it’s essential that you discover the right targeting combinations to find the right audiences. Once you find the key attributes of your high value target audiences, make sure you find more of them with Lookalikes.
Luxury advertisers are not only interested in branding, but in obtaining ROI. They want people to click to their website or go to a store to try their products. By optimizing their Facebook campaigns for predictive lifetime value they have the opportunity to identify their most valuable customers by acquiring customers based on their contribution rather than treating all customers the same.
Luxury marketers are increasingly embracing Facebook as a way to communicate, attract more fans and drive incremental sales. Those who master creative, targeting and optimization will be the ones that find success this holiday season. Luxury marketers should also ensure that they have a seamless experience across all devices and allow users to make purchases without too many steps in between.