Luxury brands are increasingly embracing intrinsic values in their advertising campaigns. This paper reports an exploratory study examining the adoption of value-laden advertising focusing on intrinsic values. Through a content analysis of ads from 9 top luxury fashion brands, the depiction of intrinsic values was examined. Research results are discussed and academic and managerial implications are presented.

Throughout recent years, many physical establishments were forced to close, and events were canceled due to the outbreak of Covid-19. Consequently, brands, especially luxury brands, saw their contact with consumers greatly diminished and revenues decreased significantly (D’Arpizio et al., 2021). On the contrary, the global gaming industry saw its demand, exposure, and revenues increase. In fact, this industry is expected to exceed $200 billion by the end of 2023 (Gilliland, 2020), and there were more than 2.6 billion players worldwide in 2020 (Palframan, 2021). Thus, in 2020, many luxury brands opted to significantly upsurge their investments in the world of online gaming. The adoption of game advertising also represents a way for the luxury industry to adapt to its current target, as 81% of Gen Z and 77% of Millennials are gamers (Jain, 2021). By 2025, both generations are expected to account for 50% of the market, making them important players in the sector. However, there is still little empirical research regarding consumers’ perceptions of game advertising in the context of luxury brands. Thus, this research aims to study the impact that brand credibility and the use of game advertising have on the perceived coolness of luxury brands and, subsequently, on their equity.

This study aims to address two important questions: will advertising on mobile short-form video apps jeopardize the value perception of luxury brands (RQ1), and if so, how will self-deprecating online reviews eliminate these negative effects (RQ2). An experimental design approach was employed to investigate the proposed research questions. Three experiments were conducted to test the hypotheses. SPSS was used for data analysis. The study 1 finds that compared with traditional media, advertising on mobile short-form video apps shortened the psychological distance between consumers and luxury, therefore has a more negative impact on consumers’ perception of luxury brands. The study 2 reveals that self-deprecating online reviews can eliminate the negative effects of advertising of luxury brands. On the basis of previous research, this paper proves the negative influence of social media on luxury brands in the scene of new social media-mobile short format video application. In addition, it also studies the moderating effect of online comments, especially self-deprecating comments, on consumers' perception of luxury brands. This study outlines theoretical contributions and practical implications for the luxury marketing management and made suggestions for future research in the field of luxury marketing in Social Media.