Are Luxury Brands In The UAE Maximizing The OOH Opportunity?

Traditionally, the luxury sector has shied away from the digital transformation in the advertising landscape. The very nature of luxury brand advertising is such that it demands deep personalization, exclusivity and truly delightful customer experiences. Digital ecosystems inherent challenges such as brand safety and transparency can put a spanner in the works for everything that luxury brands have always stood for. To add to this, even as luxury e-commerce gains higher market share in the Middle East, 93% of high net worth individuals the key audience segment for luxury prefer in-store shopping. And yet, according to a study by BCG, 60% of luxury sales today are digitally influenced one way or another.

What this complexity means for the UAE luxury advertiser

All of this means that luxury advertisers need to look at avenues that help them reach the right audience at the right time and OOH plays a significant role here. Why OOH? Because the very nature of OOH is such that it takes into account people and places insights in the site selection process. This is critical for luxury in order to maintain exclusivity and brand safety as well as to reach the right audience in the locations where they are most likely to be influenced by ad exposure.
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However, what luxury brands absolutely cant ignore is despite its audience segments preferring in-store experiences, they are still connected consumers. Combining physical and digital data points just makes more business sense for luxury advertisers looking to maximise their OOH investments.

Real world intelligence to the rescue

Factori is enabling advertisers across the Middle East to take full control of physical and digital data points for a more holistic omnichannel approach to advertising and marketing. In the DOOH ecosystem, real world intelligence is helping luxury brands up their DOOH game by

• Truly understanding their target audience based on persona and affluence
• Sharpening OOH site selection by profiling affluent consumer hotpots
• Measuring their OOH investments better

In fact, we activated this holistic approach to DOOH for a renowned luxury brand that was looking to break through the advertising clutter during the Dubai Shopping Festival.
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As a result of this holistic and hyper-targeted approach, the brand saw a high conversion index of 24%. The Visit Lift was over 700% and Cost Per Visit was as low as $1.23. Overall, DSF was a grand success for the brand and it has now decided to incorporate real world intelligence across all its campaigns and channels.

2020 the year luxury advertising will come of age

Competition in the luxury sector in UAE increases with increasing spending power and more and more luxury brands invested in capturing consumers mindshare. Moving away from the traditionally exclusive and four-walled approach to marketing, luxury brands that dip their toes in all that DOOH powered by real world intelligence has to offer will be the ones that truly stand out.

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