With the current economic environment, everyone should be taking a hard look at their business, and making sure that they’re on a path to success. Part of that path will certainly be through the heavy storm that has been rocking not only the financial world but increasingly, the global economy as a whole. However, there’s a reason why we, and our investors and advisers, are excited about Martini.
The Martini Media Network attracts consumers un-phased by the current economic ennui. These affluent hobbyists are passionate about their pursuits and will continue dedicate resources to them. To the avid sailor the market downturn may be reason for concern, but a dedicated passion and escape for the weekend still resides out on the waves. They are iron-clad consumers of goods and services, and maintain their spending habits with less regard to adjustments in the markets than your average consumer. And for those who do tend to spend a few days less on their pursuit, they find their outlet increasingly through the most entertaining & efficient channel available – the internet. Premier brands will increasingly utilize the superior demographic targeting and trackability of online advertising; this will accelerate both print advertising’s decline and online marketing’s rise. Our consumers will buoy premier brand spending during any economic slowdown.
Online advertisements on Martini sites provide superior trackability and demographic-targeting. Premier brands can speak directly to highly-engaged, high net-worth consumers.
We’ve collected a number of recent articles that present a cogent viewpoint around our enthusiasm for Martini. Click “Read More” below share our view.
“’In times of economic strain, marketers and agencies are under more pressure to prove their results,’ he said. On the Web, advertisers know how many people clicked on their ads and how many people ignored them. That’s tougher to prove in, say, something like radio. Who knows how many people listen to those awful men’s hair transplant ads, and how many just turn down the volume or change the channel?….
‘It’s not that advertisers are pulling back on spending — it’s more of a shift toward the Web and away from traditional spending,’ said Brad Agens, senior vice president of advertising sales at Los Angeles online media rep firm Gorilla Nation. His company, which sells ads on sites such as Barbie.com and Marvel.com, has seen an uptick in dollars spent in online video of late…”
L.A. Times : Technology : “Internet advertising : It keeps growing and growing” – June 17, 2008
“Talk to a digital agency CEO about the coming economic woes and you’ll hear the same mantra: Traditional advertising will suffer much more in a downturn, mostly because of the comparatively lower cost and higher measurability of interactive, and the fact consumers continue to migrate from traditional channels to digital outlets.”
AdWeek – October 20, 2008
“Though consumers are slowing their spending, when the global economy stabilizes, luxury online retailers may be the first to benefit. That’s because, though late to jump on the e-commerce bandwagon, luxury goods companies cater to the growing number of ultra-affluent shoppers who prefer to buy their Dolce & Gabbana dresses, Louis Vuitton handbags and Hermès ties online.”
Lauren Sherman at Forbes.com – October 8, 2008
“The chairman of LVMH, Bernard Arnault, said this month that he expected global spending on luxury goods to double in the next five years to nearly $440 billion. Much of that growth will come from China, Russia and other emerging markets and will be directed to classic European brands.”
International Herald Tribune – March 7, 2008
“Luxury skin-care products defy the economy:
In fact, it may be the very reason the upscale skin-care market has yet to feel the ravages of the recession. The overall skin-care category is up 2% for the first half of the year over the same period in 2007, according to research firm NPD Group. But get this: Sales of super-premium products — priced at more than $150 — have climbed 21%.”
LA Times – October 19, 2008
“The Affluent Will Travel, Spend on Luxuries:
Between March 4 and March 7, Russ Prince and I surveyed a random sample of 338 Middle-Class Millionaires throughout the nation and here’s a summary of what we found.
More than 77% of those surveyed believe that recession is imminent and more than 93% do not believe the government will provide an adequate bail out.
Despite the downturn, the Middle Class Millionaire won’t be putting a permanent hold on luxury spending. In fact:
* Nearly 48% of those surveyed says they will take a vacation, one that exceeds $10,000, in 2008;
* While more than 38% will curtail their spending until the economy improves, the rest will continue to shell out for things like home renovations, luxury cars, and second homes;
* A full 66% say they will increase their luxury spending when the economy recovers.”
Russ Alan Prince and Lewis Schiff, Co-authors, “The Middle-Class Millionaire”, Mr. Prince, Founder & President, Prince & Associates, a leading market research and consulting firm, and founder of Private Wealth Magazine – May 10, 2008
“In a Newly Competitive Luxury Market, Marketers Need Consumer Insights:
2008 will be a testing time for many luxury brands. Luxury companies will be facing a new, more competitive market, one unlike any they have confronted in the past. The conventional wisdom has always been that the affluent market is unaffected by the economic ups and downs that impact the average consumer. But today the affluent market is far more diverse and stratified than it historically ever has been.
That means luxury marketers need to understand the segments within their target market and develop marketing strategies that clearly differentiate the priorities and passions of these different segments.”
Unity Marketing’s Luxury Consumption Index and Predictions for the Luxury Market in 2008
