Instagram has helped to modernize the fashion industry. Brands are pulling advertising from print and legacy publications and are allocating more marketing budget to influencer marketing and Instagram.
Three years ago, a luxury brand Oscar de la Renta used Instagram primarily as an organic marketing tool spending only about 5% of its marketing budget on digital advertising. Today, it is allocating more than a third of its budget to Instagram. Gucci is spending 55% of its budget on digital, mostly native advertising and paid social. The launch of #DiorSaddle hashtag drove $21 million in earned media values and increased Google search by 300%.
Three years ago, a luxury brand Oscar de la Renta used Instagram primarily as an organic marketing tool spending only about 5% of its marketing budget on digital advertising. Today, it is allocating more than a third of its budget to Instagram. Gucci is spending 55% of its budget on digital, mostly native advertising and paid social. The launch of #DiorSaddle hashtag drove $21 million in earned media values and increased Google search by 300%.
Smaller Instagram native brands, like Cult Gaia and Doen, are generating more revenue than independent high-end fashion brands. The reason – highly engaged audience that leverage Instagram tools like Stories and Direct Message to learn, consider and purchase the product.
The launch of the in-App shopping features that will help Instagram users to transact via the app, will drive more fashion and advertising budgets to the platform. The seamless process and personalization of product and brand offerings are expected to disrupt the whole shopping behavior.
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