Hi there,
I'm happy to give you some initial thoughts and guidance on your D2C luxury goods brand's advertising challenges in London. It's definately a common problem seeing a ROAS disparity between the US and London, so you're not alone there. You're right to be asking about it now, though, as ignoring it won't make it go away.
We'll need to look at your creative...
First things first, lets talk creative. I'd really question whether your ad creative is truly resonating with a London audience, or if it’s just a slightly tweaked US ad. It's easily done. Are the visuals and messaging hitting the right notes? You've got to ensure it's authentic and genuinely speaking to the sophisticated tastes of Londoners. I remember one luxury brand launch where we generated 10 million views with ads, but that was by ensuring the creative resonated with the target audience.
It's not just about slapping a picture of Big Ben on the ad, you know? Think about the models you're using, the locations you're shooting in, the language you're using. It needs to scream "London," not just whisper it.
I'd say you need to consider your targeting...
Next, let's talk targeting. Are you sure you're reaching the right people in London? This is more than just demographic data. Luxury isn't just about who has the most money, it's about their lifestyle, their values, and their aspirations. You need to be laser-focused on reaching people with the right taste.
Look at interest-based targeting. Which brands do your ideal customers follow? Which magazines do they read? What events do they attend? You've also got to consider location. Are you targeting specific postcodes known for their high-end shopping districts? Think Mayfair, Knightsbridge, Chelsea... And are you excluding areas where your target audience is less likely to be?
I'm not saying be snobby about it, but you've got to be targeted. We've seen luxury brands waste a lot of money by casting too wide a net. I'd also check your lookalike audiences; are they based on UK data? Using US data for lookalikes in London is a recipe for disaster.
You probably should refine your customer journey...
Then there's the customer journey. How easy is it for someone in London to buy from you? Are you offering fast, reliable shipping to London? Are your prices displayed in pounds? Are you taking into account any customs or import duties? Make sure your website is optimised for UK customers as well - are you using British English, for instance?
You've got to make the buying experience seamless and frictionless. If it's not, you'll lose potential customers. I know it sounds obvious, but its so easy to overlook.
You'll need to look at ad platform and ad formats...
I'd also suggest testing out different ad formats. I've seen some good results with video ads for luxury brands, but only if they're done well. Make sure the quality is top-notch and that the video is visually stunning. A good video can convey the essence of your brand and build desire. Image ads can also work if they're eye-catching and feature your products in the best possible light. You also have to ask are Facebook & Instagram even right? It could well be that a different platform will yield greater rewards.
Finally, think about running retargeting campaigns. Show ads to people who have visited your website or engaged with your social media posts. Remind them of what they were interested in and offer them an incentive to buy, such as a discount code or free shipping.
I've detailed my main recommendations for you below:
| Area | Recommendation |
|---|---|
| Creative | Localise your ad creative to truly resonate with a London audience. Consider visuals, language, and tone. |
| Targeting | Refine your targeting to reach the right people in London based on lifestyle, values, and location. |
| Customer Journey | Ensure a seamless and frictionless buying experience for UK customers, including shipping, pricing, and website optimisation. |
| Ad Formats | Test different ad formats to see what works best for your brand, such as video ads and image ads. |
| Retargeting | Run retargeting campaigns to remind potential customers of your products and offer incentives to buy. |
Scaling luxury brands in fiercely competitive markets can be tricky. If you're finding it tough to get traction, you might want to consider bringing in some expert help. We've got a team with experience in the London luxury market. We've helped brands increase their ROAS, improve their targeting, and create ads that truly resonate with their audience. We'd be more than happy to chat with you and see how we can help. We offer a free consultation, so there's no obligation.
Regards,
Team @ Lukas Holschuh
