Ad spending/ Nielsen

Editorial staff

Latest Nielsen data shows ad spend by luxury goods sector jumped +214% in Thailand during H1 2024, showing the biggest growth in key Asian markets.

Also, the latest data from Nielsen Ad Intel shows advertising spend in the luxury goods sector across key Asian markets grew 12% from H2 2023 to H1 2024.

Those key markets, consisting of Hong Kong, Indonesia, Malaysia, Philippines, South Korea, Singapore, and Thailand saw total ad investment in the sector jump from $1.26 billion in H2 2023 to more than $1.4 billion in H1 2024.

Thailand led the growth with an increase of 214% in the sector, followed by South Korea on 24%, and Indonesia with 6%.

Across all key markets combined, the top five luxury brands by ad spend in H1 2024 were Chanel, Christian Dior, Cartier, Rolex and Gucci.
These brands dominated the luxury advertising landscape in Thailand, but in terms of media distribution, Out of home led the way, comprising 82% and 18% to other media. Additionally, the latest Nielsen Consumer & Media View (CMV) data reveals that 91% of Bangkok residents engaged with or noticed OOH media, making it a vital channel for reaching urban consumers.

The leading luxury brands by ad spend for H1 2024 in Thailand were Chanel, followed by Christian Dior, Swarovski, BVLGARI and Coach respectively.

While the top ad spending in Hong Kong were Chanel, Cartier, Christian Dior, Rolex, Swarovski .

Rolex, Audemars Piguet, La Mer, Chanel and Coach are for Indonesia while Rolex, Cartier, Chanel, Gucci and Fendi for Malaysia and Rolex, Hermes, Jo Malone, Polo Ralph Lauren and Gucci in Philippines.

The leading luxury brands by ad spend in Singapore are Rolex, Chanel, Christian Dior, Gucci and Hermes while in South Korea, there are Chanel, Christian Dior, Gucci, BVLGARI and Prada

These findings are supported by Nielsen Media Analytics data, which highlights a significant increase in demand for luxury brands across Asia.

Nielsen Media Analytics research also identified a strong correlation between luxury brand consumers and Out-of-Home advertising, with the vast majority of luxury consumers citing Out-of-Home as “The most trustworthy channel for advertising” and “The most attention-grabbing.”

Arnaud Frade, president commercial, Asia, said: “The impressive growth in luxury advertising spend across key Asian markets underscores the region’s increasing appetite for high-end brands. Our data not only reflects the strategic investments these brands are making in out of home media, but also highlights the unique role that trust and consumer recommendations play in shaping purchasing decisions. In a context of slowing sales in key markets, as consumers become more cautious about their discretionary spending, ensuring that media investments are robust and effective is therefore absolutely critical and is also fast becoming a major competitive advantage for the Maisons investing is better insights.”

Runchita Srivoravilai, Nielsen Thailand director, added: “In a competitive market like luxury goods, where brand perception is everything, knowing where and how to invest in advertising is critical. Our data empowers brands to make informed decisions, ensuring their marketing strategies not only reach their target audience but also stay ahead of the competition. In an ever-changing media landscape, staying ahead requires not just creativity, but precise, data-driven insights, and that’s what Ad Intel and CMV do best.”

While product quality remains the most crucial factor in choosing a luxury product in Asia, recommendations from family and friends also play a vital role, particularly among Gen Z and Gen Y consumers.