Thread: What Watch Brands Will Spend the Most on Advertising in 2012?

If watch advertising is a barometer of the health of a market — and it is — then the U.S. watch market is bouncing back after the catastrophe of 2009. Spending on watch advertising in the United States jumped 16 percent in 2011 to $365.8 million, indicating that the watch market here is improving.

The figure is an estimate by Kantar Media, which monitors brand advertising for a range of products across all advertising channels, including the Internet. The increase is in line with the 18 percent jump in Swiss watch exports to the U.S. last year. (Swiss watch brands make up the vast majority of watch advertisers. Of the top 25 watch advertisers last year, 21 were Swiss watch brands.)

While the total is still short of the record $387.6 spent in 2007, it is a big jump from the anemic $250.3 million spent in 2009. Last year, 54 brands spent more than $1 million on advertising, up from 48 the previous year. What’s more, to make the Top 25 list, a brand needed to spend at least $3.4 million last year; in 2010, $2.5 million made the cut.

Several brands upped their advertising expenditure dramatically in 2011. Chanel nearly doubled its total to $17.7 million and moved into 7th place on the list. Cartier moved from #6 to #4 with an increase of more than $5 million. Three brands came from ad oblivion to make the list: Louis Vuitton, from $660,000 in 2010 to $7.25 million in 2011; Baume & Mercier, barely a blip in 2010 at $63,000, spent $4.27 million last year; and Technomarine went from $778,000 in 2010 to $3.65 million.


Chanel nearly doubled its watch advertising expenditures in 2011.




At $47 million, Rolex was still, by far, the biggest spender.

Rolex led the list of big spenders, as always. The Swiss watch sales king added $3.5 million to its 2010 outlay for a total of $47 million. That’ $20 million more than Breitling, the traditional #2 brand, at $26.5 million. Notice that Bulova, which has raced up the chart since its acquisition by Japan’s Citizen Group in 2008, challenged Breitling for the #2 spot. In 2007, Bulova ranked #11 ($9.25 million).

Other items of note in the 2011 data:

*Bell & Ross increased its ad spend by 66 percent to $7.77 million to move into the top 10 ranking for the first time.

*Patek Philippe jumped from #17 to #12 last year with an 80 percent increase to $7.03 million. For an haute de gamme brand that produces just 50,000 watches a year to be knocking on the door of the top 10 is remarkable. Only one other haute de gamme brand ranks among the top 25 – Ulysse Nardin at #24.

*Timex, which ranked #11 in 2009, fell off the list in 2010 but reappeared in 2011 by doubling its total to $4.15 million.

*Only two of the traditional big spenders cut their budgets in 2011. Omega spent $5 million less than in 2010 and fell from #7 to #9. TAG Heuer spent just under $3 million less, but remained among the top 5 at $19.8 million.

*As mentioned, four brands on the 2011 Top 25 list were not there in 2010 (Louis Vuitton, Baume & Mercier, Timex and Technomarine. The four brands from 2010 not on the 2011 list are Rado (#12 in 2010), Ebel (#14), Hublot (#15) and Chopard (#22).


Bell & Ross moved into the top 10 for the first time in 2011.



Omega, which spent $5 million less last year, dropped from #7 to #9.



TOP WATCH ADVERTISERS

U.S. market, 2011



RANK BRAND AMOUNT

1. Rolex 46.96
2. Breitling 26.52
3. Bulova 26.42
4. Cartier 21.16
5. TAG Heuer 19.82
6. Citizen 18.48
7. Chanel 17.72
8. Movado 12.64
9. Omega 9.80
10. Bell & Ross 7.77
11. Louis Vuitton 7.25
12. Patek Philippe 7.03
13. Montblanc 6.47
14. Seiko 6.35
15. Raymond Weil 5.39
–. Dior 5.38
17. Longines 4.46
18. Ball Watch 4.33
19. Baume & Mercier 4.27
20. Timex 4.15
21. Victorinox 3.87
22. Technomarine 3.65
23. Tissot 3.62
24. Ulysse Nardin 3.55
25. Casio 3.43
26. Corum 3.19
27. Luminox 3.10
28. Rado 2.88
29. Tiffany 2.71
30. Panerai 2.43
31. Ralph Lauren 2.36
32. Zenith 2.25
33. David Yurman 2.14
34. Fendi 2.13
35. Roger Dubuis 2.05
36. Armitron 1.95
37. Oris 1.88
–. Graff 1.87
–. Anne Klein 1.87
40. Frédérique Constant 1.76
–. Audemars Piguet 1.75
42. Coach 1.73
43. DeWitt 1.71
44. Hublot 1.68
–. Parmigiani 1.68
46. Richard Mille 1.58
47. MTM 1.49
48. IWC Schaffhausen 1.41
49. Emporio Armani 1.25
50. Glashütte Original 1.14
51. ESQ 1.05
52. Girard-Perregaux 1.04
53. Chopard 1.02
–. Fossil 1.02

Never would have thought Rolex spent the most. I'm assuming that includes the money spent on their sponsored tournaments/competitions etc etc ?

Great post. Rolex is the obvious #1, Bulova at #3 stands out - maybe a significant % of their 26M is spent outside of the US? Impressive that Panerai can for the most part rely on word of mouth. Have wondered why Seiko does not spend more $$$, especially to market their "better than Rolex" Grand Seiko line.

It would be interesting to see the units sold and the ad $ spent per unit.

Thanks for the info!

Originally Posted by subdave

Great post. Rolex is the obvious #1, Bulova at #3 stands out - maybe a significant % of their 26M is spent outside of the US? Impressive that Panerai can for the most part rely on word of mouth. Have wondered why Seiko does not spend more $$$, especially to market their "better than Rolex" Grand Seiko line.

Panerai CAN'T spend the kinda $ that the big boys spend. Think about the volume they produce/sell at their price point...

Originally Posted by Tpup

It would be interesting to see the units sold and the ad $ spent per unit.

Thanks for the info!

Exactly!! Rolex can afford it cause everyone and their brother buys a Sub at over 8k on a daily basis. Massive supply/demand makes them able to afford their advertising budget.

That was far different results then I had expected. I was expecting there to be closer #'s between top tier companies but obviously Rolex is quite a bit higher then others.

I know this is a month old but I was told by a dealer at the Hublot store in Vegas that Rolex sells 1.5million watches a year so no wonder they are the highest.

Originally Posted by vipergts1997

I know this is a month old but I was told by a dealer at the Hublot store in Vegas that Rolex sells 1.5million watches a year so no wonder they are the highest.

Not only that but the price point. Lets just say Hublot has a lot more fluff in their overpriced watches. I would love to get my hands on the actual cost break down of a Big Bang.

Originally Posted by blairtolar

...everyone and their brother buys a Sub...

I got a chuckle out of this because my brother and I both bought Subs within the past 12 months!

Originally Posted by subdave

Great post. Rolex is the obvious #1, Bulova at #3 stands out - maybe a significant % of their 26M is spent outside of the US? Impressive that Panerai can for the most part rely on word of mouth. Have wondered why Seiko does not spend more $$$, especially to market their "better than Rolex" Grand Seiko line.

Seiko not pushing their top end lines in N. America has always been a mystery to me as well. I have long felt they would rather keep most of their best product at home. Meaning for the Japanese market.