By now it should be no secret that when consumers start
thinking about buying personal luxuries (and virtually everything else), their
shopping journeys tend to include two phases: the research phase and the
purchasing phase. It is important to be in the eyes of consumers as they travel
both aspects of this journey. Luxury shopping journeys commonly begin online,
often with search engine inquiries either on a specific brand or with a more
specific search that focuses on one particular item the brand manufactures.
From there, consumers search where they can buy these items.
Big brands with bigger budgets are not shying away from
Google AdWords. In fact, five of the top luxury brands in today’s retail world
spend a cumulative $22 million on paid keyword campaigns in the US market last
year, according to data compiled by AdGooRoo. The traditional paid search
across all of their brands, not including mobile search or Product Listing Ads
(PLAs) breaks down by brand as follows:
Chanel: $2,306,000
Kering (such as Gucci, Saint Laurent, Stella McCartney,
Brioni, and more): $1,650,000
LVMH (such as Louis Vuitton, Celine, Givenchy, Marc Jacobs,
and more), : $9,286,000
Prada: $34,000
Richemont (such as Jaeger-LeCoultre, Piaget, NET-A-PORTER,
and more): $8,330,000
Luxury shopping budgets were spread out by apparel, beauty
& cosmetics, shoes, handbags, and watches. According to the study, paid
search is a very valuable asset for these brands when it comes to reaching
consumers. It states that, “in fact, it [paid search] is considered by many
brands to be one of the most effective mediums for influencing consumers while they
are making crucial buying decisions.”