The French luxury goods conglomerate LVMH Group, primarily known for its fashion house Louis Vuitton, spent around 9.5 billion euros in advertising and promotion costs worldwide in 2022. The value corresponded to around 12 percent of LMVH revenue that year. In 2022, the company’s investment in advertising reached an all-time high and more than doubled compared to 2020, when the pandemic strongly hit the luxury market.
Louis Vuitton: the world’s most valuable luxury brand
The LVMH Group operates globally and manages over 70 luxury brands. Its main fashion house Louis Vuitton sells high-end leather bags and shoes, watches, jewelry, and ready-to-wear fashion – all products with the eponymous LV initials – and ranks among the world’s 10 most valuable brands. Among high-end labels, Louis Vuitton owns, by far, the leading position as the most valuable luxury brand worldwide, at nearly 125 billion U.S. dollars in 2022. LVMH’s other labels, such as Dior and Tiffany & Co, also appear among the leading luxury brands by brand value.
When it comes to advertising, high-end labels are known for making high investments in print media, especially magazines. For instance, the LVMH Group was one of the leading magazine advertisers in the United States in 2021. By not reaching broad audiences, the medium may help luxury brands replicate their perception of exclusivity. However, staying away from online channels is an ineffective marketing strategy in a digitally driven world, and advertisers seem to be aware of that. In the third quarter of 2021, leading fashion luxury brands invested roughly 400 million dollars in social media marketing in the U.S.
LVMH Moët Hennessy Louis Vuitton (French: [mɔɛt‿ɛnɛsi lwi vɥitɔ̃]), commonly known as LVMH, is a French multinational holding and conglomerate specializing in luxury goods, headquartered in Paris.
Amazon was the leading retailer in the United States in terms of ad spend. The company spent over 13 billion dollars in ads in 2022. That year, other major retailers, such as Walmart and Macy's, had an ad spend of 3.4 billion and 1.3 billion dollars, respectively.
The global digital advertising market size was valued at USD 365.37 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.5% from 2023 to 2030.
Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars.
Its digital ad spend was projected to amount to 57.2 billion U.S. dollars. Consumer packaged goods (CPG) services ranked second, with a spend of 36.03 billion. Total digital ad expenditure in the U.S. in 2022 was expected to amount to 220.93 billion U.S. dollars.
In 2021, Procter & Gamble won the title of the largest advertiser worldwide, having invested 8.1 billion in promotional activities that year. Amazon was the second on that list with an ad spend of 4.8 billion, while Unilever closed the top three with a spending of 4.7 billion dollars.
LVMH competitors include CHANEL, Calvin Klein, Richemont, BCBG and Burberry. LVMH ranks 1st in CEO Score on Comparably vs its competitors. See below how LVMH compares to its competitors with CEO Rankings, Product & Services, NPS, Pricing, Customer Services, Overall Culture Score, eNPS, Gender and Diversity Scores.
Overall, LVMH is one of the largest and most successful luxury goods conglomerates in the world, with a strong brand portfolio, a commitment to sustainability, and a reputation for exceptional quality and craftsmanship.
WPP Plc is the largest employer in the advertising industry with over 100,000 employees. A recent report shows that The Procter & Gamble Company (NYSE: PG) was named the world's largest advertiser in 2021, having invested $8.1 billion in promotional activities that year. Amazon.com, Inc.
The global spending on advertising is around $674 billion every year. About $75 for every man, woman and child on the planet or the same as the GDP of Argentina. North America is the biggest spender on advertising ($212 billion) followed by Asia Pacific ($186 billion) and Western Europe ($100 billion).
In 2022 digital ads made up 64.7% and traditional media made up 35.3%; by 2027 this is projected to reach 74.1% and 25.9% for the same mediums, respectively. Of which, social media ad spend made up $0.46 billion of 2022's budget, projected to increase to $0.56 billion by 2027.
In 2022, Amazon was the largest advertiser in the United States, with advertising investments reaching around 13.5 billion U.S. dollars. Other prominent advertisers on this list included Comcast, Procter & Gamble, Walt Disney, and Alphabet (Google).
What are the big 4 of media agencies? The advertising world is dominated by the 'Big Four' agencies: WPP, Omnicom, Publicis Groupe and Interpublic Group of Companies.
A TV ad for femcare brand Bodyform was the most complained about ad of 2022, according to the Advertising Standards Authority, receiving 798 complaints, although the watchdog did not deem it in need of formal investigation.
According to eMarketer's estimates, the split of US digital advertising revenue is now led by Google (34%), Meta, (24%), and Amazon, which now rakes in 14% share. That still leaves 34% for the thousands of platforms, media sites, gaming apps, and mobile properties all jostling for ad spend.
Introduction: My name is Carlyn Walter, I am a lively, glamorous, healthy, clean, powerful, calm, combative person who loves writing and wants to share my knowledge and understanding with you.
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