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Programmatic DOOH: How luxury brands can engage key audiences on a global scale
November 7, 2023
How programmatic DOOH has the power to elevate luxury brand strategy with dazzling displays that capture and engage key audiences on a global scale.
In the realm of luxury, where exclusivity is central to brand strategy, marketing must focus on precision. Luxury brands span a spectrum of industries, from high-end fashion and jewelry to luxury automobiles and extravagant travel experiences.
Like for all marketers in today's world, the challenge lies in optimizing marketing budgets to achieve maximum efficiency and return on investment (ROI). This is where programmatic digital out-of-home (DOOH) steps onto the stage as a data-driven, measurable approach that empowers luxury brands to engage ultra specific audiences in diverse environments, all without compromising on scale.
Global luxury goods is a giant market, currently valued at a staggering $349.1bn, and expected to reach $419bn by 2027. While Asia Pacific leads the world in luxury spending, it is closely followed by Europe, the Americas, Africa, and Australia. The truth is - luxury is everywhere so how can brands fine tune their targeting strategies to target with precision?
Precise and pervasive
It's true that in the world of luxury, audiences are as diverse as the experiences they seek. From affluent families seeking unique vacations to high-income professionals, fast car fanatics and the jet-setters of the world, the landscape includes multiple demographics. Using Custom audience and measurement tools as well as leveling up creative strategy via dynamic creative optimization (DCO), programmatic DOOH gives buyers the option to go a level deeper for greater levels of audience engagement.
We’ve all heard the age-old adage, “be where your customers are,” so we drilled down to assess some of the key audiences buying up luxury goods. Statista reports that global tourists contribute to almost 47% of the luxury goods economy, but a separate source revealed that Gen Z and Millennial shoppers collectively account for a staggering 85% of global luxury sales growth. Whether its reaching consumers in the right time and at the right place, such as travelers in the first-class lounge at London Heathrow Airport (LHR), patients in private hospital wings, shoppers in high-end malls, the larger-than-life, unmissable nature of out of home (OOH) coupled with advanced precision and scale afforded by programmatic technology makes this channel an essential part of a marketers toolkit.
Seamless and captivating
It’s true that in the ever-evolving realm of luxury, the omnichannel approach is an important consideration. Seamlessly engaging with discerning customers through various channels and methods is the key to maintaining relevance, ensuring brand awareness and recall. But it's not just a cross-channel approach marketers might be considering - for powerhouse luxury brands, achieving reach in multiple countries is crucial for staying top of mind and driving competitive advantage.
Limited edition launches, new lines and exclusive collaborations have been promoted at world’s most iconic OOH locations such as Times Square, Piccadilly Circus, iconic locations in Tokyo, Hong Kong, Singapore and Dubai. One brand synonymous with luxury is Italian fashion-house, Gucci, who pioneered a programmatic DOOH campaign using the Hivestack DSP. Gucci's digital presence spanned three continents and five of the world's most fashionable cities. The very essence of luxury was brought to life on DOOH screens all over the world, marking the next chapter in the evolution of luxury brand promotion.
In an age of content saturation and ad fatigue, the DOOH channel is a unique example of what is possible through contextual relevance. It also commands attention that cannot be easily dismissed or switched off. Unlike digital ads that can be skipped or muted, OOH offers an invaluable opportunity to connect with audiences beyond the confines of their homes. This is ever important for luxury audiences. By harnessing data-driven strategies, programmatic DOOH ensures premium engagement, transcending geographical boundaries to captivate audiences worldwide.
Want to know more about the role that programmatic DOOH can play in your next campaign and understand the key features and strategies available? Let’s connect.