Luxury Brands are Spending Big Bucks on Paid Search

Why Boosting Your Paid Search Campaign Is Important

If you are a luxury brand that isn't using paid search marketing, you could be missing out. We fill you in on what other brands are doing to reach their customers.

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.”

While your company might not sell Chanel boots, there is still a market of consumers on the web that you need to be in front of to maximize business. If you have specific questions on what you can do to boost your paid search campaign, our team at Tandem is glad to help.