The watch industry is showing strong signs of growth, evidenced by record levels of spending on advertising. Consumer confidence in both the new and second-hand watch markets is at a high level, and this growth is expected to continue.
Record Spending
A survey by Kantar Media revealed that in 2013 US watch brands spent approximately $493 million on advertising. This record figure is estimated to be an increase of 23 per cent compared to the previous year. Top of the spending charts is Rolex, with their 2013 spend up almost 18 per cent on the previous year at just under $62 million. Breitling have also dramatically increased their advertising outlay by an astonishing 48 per cent, spending almost $44 million in 2013. Cartier’s spending was ranked third last year, at $24.58 million, whilst Omega, TAG Heuer and Citizen all invested similar amounts of just over $20 million. These huge increases demonstrate watch manufacturers’ confidence that their products can find new global markets, triggering further growth.
New Marketing Strategies
The world of advertising has undergone a seismic shift in recent years. With a whole host of new platforms available, it is even easier for companies to engage with potential customers and strengthen the presence of their brand. Traditional print advertising is still one of the most popular options, with full-colour single- or double-page spreads in prestige magazines a great way to promote new products. However, the internet has opened a world of new advertising possibilities which allow watch manufacturers to extend their global reach to an audience of millions.
A website is absolutely essential — not only to allow customers to discover key information about the brand, but also to serve as a platform for new product launches. Social media sites are an excellent way to support this, allowing firms to post regular updates with a worldwide reach. Keeping content fresh is vital, as it not only keeps the audience interested, but also attracts additional web traffic. Having a vibrant and interactive online presence is crucial for firms in order to engage with potential customers. This two-way process is key to developing deeper audience links and fostering brand loyalty.
Using Celebrity Culture
Celebrity endorsements can be another advertising strategy that is particularly effective for watch manufacturers. This is not a new phenomenon, with Rolex being one of the first companies to embrace this trend. Actor and racing enthusiast Paul Newman’s association with the Rolex Daytona chronographs became so strong that the watch eventually came to be known as the Paul Newman Daytona. More recent celebrity endorsements include David Beckham and John Travolta for Breitling, George Clooney for Omega and Leonardo di Caprio as an ambassador for TAG Heuer. This type of campaign can reap great rewards for a firm as high-profile celebrities are photographed wearing a particular company’s products, transmitting the advertising message to audiences who might not otherwise be aware of the brand.
Growth in expenditure on advertising and new types of marketing campaign are both positive signs for the watch industry, demonstrating there is potential for markets to continue to expand.