Social Media for Luxury Brands: Our Agency’s 6-Point Strategy [+ Case Studies and Best Practices]

Ioana Cozma
April 17, 2024
February 20, 2024

Social media has created a new landscape for luxury products.

Social media users come from different backgrounds and age groups, and they’re all hungry for high-quality, expensive products.

We’ll discuss how to leverage these changes by analyzing:

  • How our agency uses social media for luxury brands to decrease CACs and skyrocket ROAS
  • Specific examples across the luxury market
  • The importance of digital presence in maintaining exclusivity while being accessible

Let’s begin.

TL;DR:

  • Social media and luxury brands: Leveraging social media can significantly decrease Customer Acquisition Costs (CAC) and increase Return on Ad Spend (ROAS) for luxury brands.
  • Understanding your audience: Essential to tailor marketing strategies; a notable shift towards younger consumers (Gen Z and Millennials) with high earnings but not yet rich, valuing inclusivity and style over exclusivity based on wealth.
  • Digital presence: Key for maintaining brand exclusivity while ensuring accessibility; platforms like Instagram, Pinterest, TikTok, and YouTube are vital for engaging with target demographics.
  • Content strategy: Prioritize quality over quantity, focusing on high-value, authentic, and engaging content that reflects luxury and exclusivity. User-generated content, educational materials, and behind-the-scenes looks are effective.
  • Execution tactics: Include personalization, engagement, exclusive offers, and leveraging technology for enhanced customer interaction and service.
  • Amplification strategies: Combine targeted advertising with influencer collaborations to extend reach and engagement, emphasizing storytelling and brand heritage.
  • Best practices: Emphasize authentic storytelling, a personal touch in interactions, consistent brand messaging, a balance of exclusivity with inclusivity, and ethical considerations to maintain brand integrity.

1. Understanding Your Audience

Luxury brand marketing has been changing in recent decades because the world in which luxury brands exist has changed.

That’s why understanding your target audience is essential.

Insider tip: It’s the first step we take at inBeat Agency, even before goal setting. And it helped us create awesome campaigns for different luxury companies (but more on that below).

The rise of social media platforms has changed the landscape in terms of:

  • Demographics: You now have younger luxury consumers from around the globe and across income levels.
  • Values: The luxury market has different values and expectations, moving from exclusion based on financial standards to inclusion based on a shared sense of style.

1.1. Target Audience Demographics

Insider tip: At inBeat, we noticed Gen Z’s and Millennials’ growing influence in the luxury goods market. These people are especially from the HENRY category (High Earners, Not Rich Yet).

That’s important because luxury marketing strategies have traditionally been tailored towards an older demographic.

Overlooking the potential of younger, affluent consumers is a massive mistake.

1.2. Target Audience Values

Don’t just look at demographics; focus on values.

This younger demographic is not just spending but looking for luxury social experiences that resonate with their values and lifestyle.

They seek aspirational content that aligns with their desire for an exclusive lifestyle but with a twist reflecting their identity and ethical standards.

Remember: Social media channels become a critical touchpoint, offering a platform for luxury brands to engage with these younger audiences through social media content that is authentic, engaging, and in line with their aspirational yet value-driven mindset.

Look at the video below:

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