An ad category that had a down year in 2016 is expected to bounce back in 2017. MediaPost reports that a 2.9% rise is forecast for spending on luxury category products.
The report cites estimates released this week by Publicis’ Zenith unit, which notes that the luxury category experienced contraction of 0.5% in 2016.
“The expansion — which is being driven by luxury category spending in the U.S., China and Japan — is projected to expand even further in 2018, which Zenith forecasts will rise 3.9%. Together, Zenith estimates those three nations will represent 80% of all luxury category spending by 2018,” MediaPost reports.
The Zenith report examines sub-categories including luxury automotive, fragrances & beauty, fashion & accessories, and watches & jewelry.
Jonathan Barnard, head of forecasting for Zenith, projects that the Internet will “overtake print to become the main luxury advertising medium in 2018.”
In the report Barnard notes: “Even though we expect luxury advertising growth to accelerate to 3.4% a year between 2016 and 2018, it will continue to lag behind the market as a whole, which will grow 4.4% a year across all categories.”