“Not all videos are created equal” suggests a new study from Martini Media which found that luxury auto brands are moving their videos off the air and onto the Internet. The agency’s latest research shows that this year almost twice as many auto brands are utilizing digital video than in 2011 and roughly two in three are shifting their TV ad budgets to online video efforts. Furthermore, 95% of auto marketers believe that high impact rich media is just as powerful as TV and 8 in 10 are willing to pay higher CPMs in order to reach luxury consumers.
The investment in digital video comes as no surprise as shoppers are becoming increasingly connected via smartphone and tablet devices. In particular, research has shown that affluent males — a key target demographic for luxury automakers — are online daily (91% connect via PC, 77% via smartphone, and 50% via tablet) and can spend upwards of $30,000 annually on e-commerce purchases. Affluent males are also searching for automotive information online and of the five favorite luxury brands among the demographic, three are automakers: BMW, Lexus, and Mercedes-Benz.
Despite the soft economy, luxury auto sales are on the rise and marketers want to position their brands where consumers are spending their time. And according to Martini Media, they’re expecting the new strategies to pay off — 40% of luxury auto marketers say they’re anticipating double digit growth from their online investments.