Luxury Marketing Outlook 2012

Luxury Daily
TM A Classic Guide
February 2012
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THE NEWS LEADER IN LUXURY MARKETING
www.LuxuryDaily.com

Luxury
Marketing
Outlook 2012

CONTENTS
PAGE PAGE
3 EDITOR’S NOTE 23 OUT-OF-HOME
Luxury marketing continues to evolve Out-of-home ads perfect medium for affluent
By Mickey Alam Khan mobile users
By Rachel Lamb

4 ADVERTISING 25 PRINT
Mobile, social media to be key advertising players Print marketing to become more exclusive
By Kayla Hutzler By Rachel Lamb

6 CAUSE/EVENT 27 RADIO
Careful consideration necessary for cause, event Pandora, Sirius to up the ante in 2012 radio
marketing marketing
By Kayla Hutzler By Kayla Hutzler

8 COMMERCE 29 TELEVISION
Ecommerce, mcommerce set to thrive Olympics, presidential elections to spike TV ads
By Kayla Hutzler in 2012
By Rachel Lamb

10 DIRECT MAIL
Direct mail stands out against cluttered Web world
By Kayla Hutzler

13 IN-STORE
Employee, consumer relationship key to in-store
experience
By Kayla Hutzler

15 INTERNET
Social media cannot stand alone in 2012
By Kayla Hutzler

17 LEGAL/PRIVACY
Domain names, trademarks to be main legal obstacles
By Kayla Hutzler

19 MOBILE
Location-based marketing, in-app commerce key
for 2012
By Rachel Lamb

21 MULTICHANNEL
Multichannel marketing will become second nature
in 2012
By Rachel Lamb
Moët & Chandon 2012

PAGE 2 Luxury Daily LUXURY MARKETING OUTLOOK 2012

EDITOR’S NOTE
Luxury marketing continues to evolve

O
ne consistent bright spot in the sea of rough news is the 2012 is quite optimistic on the future of luxury marketing for
outstanding performance of luxury marketers worldwide. branding and customer acquisition, retention and reactivation.
Expect that trend to continue, bar some act of God or
awful international incident. Reporters Rachel Lamb and Kayla Hutzler have spent consider-
able time assembling insight and analysis on what luxury mar-
Not a day goes by without some luxury brand or the other an- keters can expect in various marketing mediums this year.
nouncing new initiatives to better ingratiate themselves with
their customers. It is quite obvious that social media has caught the fancy of
luxury brands. So has the lure of mobile Web sites and applica-
Be it social media, mobile marketing, email or glossy print, tions. Both are driven by consumer demand.
luxury marketers will continue their steady pace toward build-
ing better relationships with consumers who thirst for and Print continues to hold its charm for high-end luxury brands
stand by products of high quality, limited distribution and great looking to showcase their products in a desirable setting next
perceived value in their eyes. to content that fits with the label’s values.

Hold the line Artful insight
What last year taught all luxury marketers is that a brand’s val- Please read Luxury Daily’s Luxury Marketing Outlook 2012 from
ues are not worth diluting even when the global economy is cover to cover. Rachel and Kayla are owed thanks for their hard
not where it should be. Holding the price line is critical, but so work. Kayla also patiently worked on the art direction to make
is not resorting to desperate marketing measures. this an easy read.

One trend that began last year and may have legs in 2012 is Our thanks also to the industry experts whose insights helped
the sale of independent luxury labels to luxury conglomerates. put this Classic Guide together. We hope you enjoy the read and
are inspired to push the marketing envelope even further this
Such consolidation is reshaping the notion of luxury, particu- year as luxury brands continue to hold their own in good times
larly in the high-end market where exclusivity and nonpareil and bad.
quality were the key charms. How to translate that into mass
sales without losing the luxury brand’s mystique in this day and
age of social and mobile media will be the challenge du jour.

As readers will notice, Luxury Daily’s Luxury Marketing Outlook Mickey Alam Khan

401 Broadway, Suite 1408
New York, NY 10013
Mickey Alam Khan Rachel Lamb Tel: 212-334-0128
Editor in Chief Associate Reporter Fax: 212-334-6339
mickey@napean.com rachel@napean.com Email: news@napean.com
Web site: www.LuxuryDaily.com

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ADVERTISING
Mobile, social media to be key advertising players
By Kayla Hutzler

A
s mobile usage continues to grow and affluent con- Social flies
sumers look to make real connections with their Social media played a large role in luxury marketing in
preferred brands, mobile and social media will in- 2011, though a select few brands were leading the pack in
creasingly become the most important marketing plat- terms of innovation.
forms for luxury brands.
For example, Oscar de la Renta was one of the first and
While luxury brands warmed up to newer forms of adver- few to use Facebook commerce.
tising such as Web, social media and mobile in the previ-
ous year, they will need to continue these efforts in 2012 Meanwhile, Burberry led the race in entering the complex
to engage with consumers. As luxury marketers attempt to Chinese social media landscape.
be present on all platforms, they will have to strive harder
to maintain their high-end status. Luxury marketers are going to need to step it up and
maintain a more active presence on the key social media
“Social media, mobile Web and mobile apps are continuing platforms such as Facebook, Twitter, Google+ and Tumblr
to be growth platforms,” said Jeff Cohen, director at MDG if they wish to engage consumers in 2012.
Advertising, Boca Raton, FL.
Affluent and aspirational consumers alike are looking to
“Marketers are also converging and blurring the lines be- these outlets to find news and information about a brand.
tween them,” he said. “As a higher percentage of luxury
consumers adopt smartphones, more of their online activ- Indeed, Facebook commerce and exclusive sales are set to
ity will be both social and mobile.” increase brand awareness and affinity in 2012.

Oscar de la Renta Facebook commerce


Luxury marketers should also be looking to Tumblr and Additionally, mobile search will only continue to increase
branded blogs to extend special sneak-peeks and brand in importance as consumers readily turn to their smart-
content to loyal fans. phones to find retail locations, read reviews and compare
prices while in-store.
Marketers will need to to stake out and aim to dominate
emerging social media platforms such as Pinterest and After a mobile site is in place, brands should be developing
Google+ as well as mobile applications
Chinese networks. “Luxury marketers will continue to that engage consum-
ers on a platform that
Simply being the struggle with the balance between allows the brand to
first brands to adapt
to these new tech-
maximizing the reach of a luxury brand update the content
easily.
nologies will create versus losing the exclusivity and caché”
buzz for the brand For example, gaming
while giving market- apps will continue to
ers time to work out the kinks and determine the plat- entertain consumers, but should be updated frequently if
forms’ overall style. the brand expects ROI.

“Luxury brands will continue their digital 180 [in 2012] and Additionally, commerce-enabled apps are largely down-
embrace platforms they previously scoffed at, including loaded solely by brand loyalists and therefore should be
social media,” Mr. Cohen said. updated frequently as well as offer exclusive sales and
items to reward shoppers.
“Social media will allow luxury brands to build consumer
desire and word-of-mouth dominance while maintaining Indeed, all mobile and social efforts going forward should
the exclusivity of their customer base,” he said. be focused on engaging and communicating with a brand’s
core customers.
Mobile madness
Mobile should be the second-largest focus for luxury ad- Affluent consumers are the most likely to influence other
vertising this year. wealthy and aspirational consumers, and they have the
ability to turn acquaintances onto a brand with which
Optimized mobile sites will be critical for luxury brands to they have had a good experience.
maintain consumers and gain new ones.
“Luxury customers are more poised than any group to be
A majority of af- highly-influential brand advocates,” Mr. Cohen said.
fluent consumers
will be mainly ac- “Done properly, luxury customers [will help] build increased
cessing the Web demand, which in turn converts new luxury customers,”
on their mobile he said.
phones and tablets
in the future. However, the age-old question of luxury brands main-
taining their mystique while opening up to all advertising
Therefore, a lux- platforms will continue to haunt marketers.
ury brand should
first and foremost “Luxury marketers will continue to struggle with the bal-
create an effec- ance between maximizing the reach of a luxury brand
tive, easy-to-use versus losing the exclusivity and caché of the brand,”
Tag Heuer mobile site mobile site. Mr. Cohen said.


CAUSE/EVENT
Careful consideration necessary for cause, event marketing
By Kayla Hutzler

C
ause and event marketing will not taper off in 2012 Responsibility Opportunity report have shown that being
since affluent consumers have now come to expect associated with a cause not only influences affinity, but
that luxury brands act responsibly and align them- also inspires behavior change among consumers.
selves with social causes.

Indeed, cause marketing will un-
doubtedly grow, although high-
“We really try to balance our support, with
end brands will have to choose a focus on the arts, health, civic affairs and
their charities and foundations
more carefully this year or affluent education, always keeping in mind those
consumers will start to see through
them. Additionally, the typical
causes that are most important to the Saks
cocktail or dinner events thrown Fifth Avenue customer”
by luxury brands will likely grow to
focus on their social causes.
Additionally, a brand that offers a portion of proceeds to
“The explosion of corporate social responsibility initiatives charity can help affluent consumers justify such extrava-
and cause-related marketing across the globe indicates gant purchases in the face of the unstable economy.
that socially-driven business practices are not just here to
stay, but increasingly becoming cost-of-entry,” said Hayley For example, Saks Fifth Avenue has seen a positive reac-
Berlent, New York-based strategy director at Siegel+Gale. tion to its cause-related events and special products, such
as its Breast Cancer Awareness month.
“In 2012, cause marketing will continue to thrive,” she said.
“Although I predict [that] as consumers become savvier “We continue to see customer engagement around event-
about the programs, campaigns and events, the delivery and cause-marketing efforts,” said Kathleen Ruiz, vice
and measurement of these efforts will evolve.” president of special events, public relations and social me-
dia at Saks Fifth Avenue, New York. “We expect this trend
Party people will continue [since] our customers respond to connecting
Corporate social responsibility acts soared in 2011 with with our brand through causes they believe in.
every industry from hotel chains to footwear makers hop-
ping on board. “We really try to balance our support, with a focus on the
arts, health, civic affairs and education, always keeping in
Indeed, this trend is set to increase in strength and num- mind those causes that are most important to the Saks
bers over the year. Fifth Avenue customer,” she said.

Brands will be expected to act responsibly every step of Affluent consumers often feel a responsibility to give back
the way from sourcing environmentally-conscious mate- to society and therefore will find themselves easily relat-
rials to aligning and donating to carefully-selected chari- ing to and choosing a brand that does the same.
ties and fundraisers.
However, while an increase in corporate social responsibil-
For example, studies by Cone’s Cause Global Corporate ity was seen in 2011, it will become a mainstay in 2012.


Pause for cause
Given the emphasis that should be placed on cause and
event marketing in 2012, a high-end brand cannot choose
their charities and causes lightly.

A luxury brand’s cause should excite its employees includ-
ing everyone from top executives to salespeople.

Additionally, the brand must also ensure that the charity
and its relationship with a particular cause aligns with its
target customers.

For example, The Global Fund’s (red) campaign had retailers
jumping on board left and right.

However, high-end stroller company Bugaboo more closely
related the cause to its target customer of new mothers.

The stroller brand stated its participation would help “the
Global Fund to help reach the goal of eliminating mother-
Frette Chinese New Year email
to-child HIV-transmission by 2015.”
Luxury brands will not have a choice as to whether or not
to choose a cause, rather they will be expected to choose “The cause is [now] aligned with their customers’ lifestyle,
a cause and also display a genuine effort of support to its life stage and interests, and there is a tangible goal,” Ms.
related charities. Berlent said.

The affluent consumer is beginning to see through those In 2012, affiliating a brand to a social cause will no longer
brands that support a charity just for the sake of doing so be enough. Instead, a marketer will have to immerse itself,
and do not fully commit to the cause. its employees and its customers in the related charity.

The wealthy person now wants to see a brand supporting “Cause marketing, whether it is programs, campaigns or
a cause that aligns with the label’s brand’s image and they events are most effective when the cause relates to the
want to see more than just a donation aspect, according to business,” Ms. Berlent said. “For example, Gucci’s cause-
Siegel+Gale’s Ms. Berlent. marketing [is] in line with their audience’s interests such as
female empowerment and children’s well-being.
In fact, cocktail parties, dinners and speeches about the
cause will no longer be enough for luxury brands. “Additionally, they don’t just pay their nonprofit partners
lip service or tie their efforts to the bottom line,” she said.
Instead, a consistent presence at all of the charity’s events “The consistent support by and visibility of their CEO and
is also essential, and a luxury brand should look to have an creative director at events from UNICEF to FFAWN [The
executive at as many of a foundation’s programs as possible, Mary J. Blige and Steve Stoute Foundation for the Advance-
per Ms. Berlent. ment of Women Now Inc.] indicate that its commitment is
sincere and [its] passion is real.
Luxury brands should begin to look for ways to really in-
volve the consumer in the cause by holding events that “This combination of passion from the top and alignment
showcase human stories more powerfully and share bite- of the cause with the company’s business or audience are
size data that can inspire action among brand loyalists. the two most fundamental factors for success.”


COMMERCE
Ecommerce, mcommerce set to thrive
By Kayla Hutzler

T
he truly affluent will continue to spend on luxury mobile platforms as well as in-store will be important to
goods and services this year, looking to buy and in- increase brand reach and affinity amongst customers.
teract with brands on all platforms.
“A myriad of global economic issues are forcing luxury
Luxury brands should expect to see some residual effects executives to address the possibility of a global reces-
from the instability of the stock market last year. However, sion and consequential slowdown in the consumption of
being open and available for consumers on digital and luxury goods,” said Ronit Weinberg, senior consultant at
FitForCommerce, New York.

“That being said, while aspirational buying
may slow down, people who are more insu-
lated from the current economic rollercoaster
will still continue to purchase [from] luxury
brands,” she said.

“[Therefore], luxury brands need to consider
platforms that will give them the flexibility
and control to innovate and experiment with
new and dynamic features.”

Global warning
The instability of the economy on a global
scale did not affect luxury spending as power-
fully as some experts expected in 2011.

Indeed, global luxury goods sales have contin-
ued 2010’s double-digit growth trajectory and
saw an increase of 10 percent to $257 billion
in 2011, according to Bain & Co.’s 10th Luxury
Goods Worldwide Market Study.

This does not mean that 2012 will be a breeze.

In fact, aspirational consumers will continue
to be affected by the uncertainty surrounding
the economy in the upcoming year.

Additionally, the longer the instability and
questionability of the economy and various
political problems continue, the more con-
scious wealthy consumers will become of their
Bloomingdale’s mcommerce spending habits.


The recession will cause affluent consumers to take a time- not buy a watch via their
out from their overspending, extravagant ways to reassess, mobile devices, they will
reevaluate and reprioritize their lives, per Ms. Weinberg. likely want to review
and research the time-
Luxury customers began questioning their mainstay pieces and receive pric-
brands and the value of their goods and services in 2011, ing information before
and will continue to do so more heavily in 2012. heading in-store.

While many luxury brands were not able to come up with Additionally, brand loy-
persuasive answers in 2011, they will need to consider this alists who know exactly Mobile shoppers
question carefully and spend more time convincing afflu- what product they are looking for may
ent consumers that the price is equivalent with the quality choose to buy a repeat item online rather than head back
throughout this year. into the store.

“Luxury brands must, by definition, be exclusive,” Ms. Luxury marketers will also need to ensure that any new
Weinberg said. “However, their value must be recognized platforms put into place are easy to transform and add
and desired.” new features.

“The aspirational shopper may be less likely to pur-
chase those luxury non-essential items when their
“One person’s Bottega Veneta is
401k statements come in,” she said. “But those whose another person’s Guess”
wealth is less impacted by home values and short-
term stock losses do not view luxury in the same way.

“One person’s Bottega Veneta is another person’s Guess.” Web and mobile-commerce technologies continue to
move at a fast pace and features such as augmented real-
Brand everywhere ity may become more desired among luxury customers as
Luxury brands also need to adapt to new commerce plat- they become increasingly popular.
forms that they have been avoiding in the past few years.
Therefore, having a platform on which these tools can be
Mobile and ecommerce will no longer be an option for put into place will help luxury brands stay ahead of com-
luxury brands that wish to engage and maintain affluent petitors in 2012.
consumers’ attention.
“This year will be a mashup of digital and physical expe-
In line with convincing riences,” Ms. Weinberg said. “Successful companies will
consumers that luxury continue to engage consumers through omnichannel re-
goods and services are tailing using mobile, social content and social commerce
worth the price, mar- to lead the way.
keters will also need
to put the same effort “Luxury brands should identify, as best as they can, some
into ensuring that their of the future requirements they will have and make sure
commerce platforms they understand the implications to the platforms they are
represent the same level considering,” she said.
of high-end quality as
their products. “Two pivotal questions that luxury brands now need to ad-
dress are how, where and why they are looking to grow,
While a majority of af- and whether it is more important to have a creative or
Barney’s ecommerce site fluent consumers may business brain at their helm?”


DIRECT MAIL
Direct mail stands out against cluttered Web world
By Kayla Hutzler

D
irect mail will increasingly become more effective pages than they
for luxury brand marketing as the Web continues to would looking at a
get overcrowded with advertising and spam. banner ad or email.

Consumers may be starting to see through Internet mar- For example, Berg-
keting and are learning to ignore the various advertising dorf Goodman has
formats such as banner advertisements and email market- transformed its
ing. Meanwhile, direct mail is resurfacing as an exclusive traditional catalog
method to reach affluent shoppers. into a magalog over
the past few years.
“There is a big resurgence in all types of direct mail right Bergdorf Goodman resort catalog 2011
now because there is so much clutter on the Internet these A printed catalog could even become a coffee-table book
days,” said John Schulte, president of the National Mail for affluent consumers who want to show off their high-
Order Association, Minneapolis, MN. end style and spending habits to visitors, per Mr. Schulte.

“Right now, you have less competition in the mail box and Additionally, a luxury brand has more direct control over
it is easier to stand out from the crowd,” he said. “Direct the catalog’s look, feel and content than it does with a
mail pieces such as catalogs are easier for people to re- digital ad.
lax with because they don’t have to look at the computer
screen on which they are used to doing work.” Creating situations in which consumers can imagine
themselves wearing or using a brand’s item should be the
You’ve got mail goal for all mail catalogs.
While the Web
allows for seam-
less integration “Direct mail pieces such as catalogs are easier for
through ecom-
merce platforms,
people to relax with because they don’t have to look
catalogs will at the computer screen on which they are used to
continue to be
useful for show- doing work”
casing products
in a way that re-
flects the brand’s style and quality. Luxury marketers should also be looking to try out new
formats this year such as a strictly product-focused cata-
Magalogs and other content-filled branded direct mail log and a content-focused magalog to gauge the reaction
pieces will continue to be successful in 2012, according to from their target audience.
Mr. Schulte.
Everything from the quality and size of the paper to the
Indeed, catalog-format advertising engages consumers content and product images inside the pages can either-
for a longer amount of time than a Web site or video ad help or hinder a luxury brand’s direct mail success and ROI,
since they generally spend more time flipping through the per Mr. Schulte.


platforms to gain awareness
and spread the reach of their
direct mail efforts.

For example, a brand’s Web site
should have an obvious link
that allows readers to sign up
for a catalog.

In addition, every print ad
should have a well-placed
mention of a brand’s catalog
and a toll-free number for or-
dering the book.
Ferragamo ‘s Fall catalog
Luxury marketers need to ac-
“The goal is to get a measurable response in a sales for- knowledge that this year’s affluent shopper will be looking
mat,” Mr. Schulte said. “If the magalog is really digging for a well-rounded experience from the brand.
into the return, then maybe a different format should be
tested against it. “I like the idea of working towards making things as easy
as possible for consumers to make a purchase,” Mr. Schul-
“No luxury marketer should be content with what they’ve te said. “You want to alleviate all barriers that may stop
got,” he said. them from ordering.

Direct orders “Direct mail is what people are comfortable with, particu-
However, luxury brands do need to realize that direct mail larly people who are 40 and older and who have a higher
cannot stand completely alone in the current digitally- income,” he said. “These consumers were brought up with
evolving world. catalogs and luxury brands can certainly show their story
and imagery much better in print than online.
Direct mail pieces should be incorporated into larger mul-
tichannel approaches and should have references that “However, you may want to drive people to the Web site
drive consumers in-store or online to gain more informa- to order items rather than through mail or phone.”
tion and order certain products, per Mr. Schulte.

This can include incentives
such as “certain colors only
available online” or “this style
only available in-store.”

A catalog should also contain
scanable bar codes or SMS
calls-to-action that bring on-
the-go consumers to brands’
mobile applications and sites.

Conversely, luxury brands
should use other branded Brahmin’s Fall 2011 catalog


IN-STORE
Employee, consumer relationship key to in-store experience
By Kayla Hutzler

L
uxury brands must encourage and motivate salespeo- “And we know that in Europe we are seeing a slowing
ple to build relationships with consumers if they wish down – even in China we are beginning to see a slowdown.
to increase in-store sales this year.
“This year, luxury brands will really have to hone-in on
Not enough luxury brands focused on creating and nur- consumer retention and relationship building,” he said.
turing a relationship with consumers in 2011. However, to
maintain a loyal consumer base in the current unstable Long-term relationship tips
and overcrowded environment, luxury brands are going to Luxury brand employees should not just be looking to sell
have to out-behave competitors in service as well as out- a product while the consumer is in-store, per Mr. Pedraza.
perform them in product.
Instead, they should be looking to build a lasting relation-
“It looks like the holiday season was not as strong as ex- ship with the consumer.
pected and that seems to indicate that there is some sort
of loss of momentum in the buying power of the affluent Affluent consumers expect to receive luxury service when
consumer,” said said Milton Pedraza, CEO of the Luxury they enter a luxury brand store, especially if they have
Institute, New York. been in that store before.

Therefore, a consumer should be wel-
comed when they first enter a luxury lo-
cation, according to Mr. Pedraza.

While a consumer browses, a luxury em-
ployee should be listening to the con-
sumer’s interests and desires and gaining
information such as products bought pre-
viously and the occasion for the current
purchase.

The employee should then offer useful
and personalized suggestions.

That is where product comes in, according
to Mr. Pedraza.

A luxury brand cannot expect to draw
consumers in-store when it does not offer
the right product.

Additionally, not offering as much of the
product range as possible at a particular
A Chanel boutique in the French Alps uses iPads in-store location could turn consumers off.


“This is the year when brands have to execute the fun- Employees should also use the mobile devices to send a
damentals that fit their brand DNA and they have to be quick thank you email and digital receipt to the consumer
disciplined on that,” Mr. Pedraza said. shortly after the purchase is made.

“Having more clas- Ultimately, this type
sic products [as well
as] updated prod-
“Mobile devices only make the sales of intimate interac-
tion and relationship
ucts that are really professionals more human and allow between a brand
relevant to the con- and a consumer will
sumer and to the them to be more relevant and more help increase con-
brand will be key
going forward,” he
personal to consumers” sumer retention and
repeat purchases.
said. “You have to
have great products or the people will not even show up.” Indeed, some luxury brands got a head-start in 2012.

Mobile moves For example, Chanel is attracting ultra-affluent guests at
Technology can help to improve the in-store experience the Courchevel resort in the French Alps by incorporating
dramatically and will become increasingly necessary to iPads into the space, allowing guests to play and browse
beating out competitors in 2012. while they shop.

Luxury brands need to implement the use of tablets or “Mobile devices only make the sales professionals more
smartphone devices in-store for employees. human and allow them to be more relevant and more per-
sonal to consumers,” Mr. Pedraza said.
A huge benefit of in-store mobile devices is that the em-
ployee will be able to further explain the history and the “Mobile devices such as smartphones or tablets should
design of any particular item to a consumer by having the dramatically enhance the relationship-building capabili-
material at his or her fingertips. ties of the sales professional,” he said.

Additionally, while the employees get to the know
a consumer, they should be making notes on their
preferences, any important dates or occasions
and past product purchases as well as gaining
contact information and preffered communica-
tion platforms such as email or phone.

This information can be used to help retain the
customer and continue the relationship beyond
the store.

For example, if an employee can learn the date
of a consumer’s anniversary, the brand can then
be sure to send out new product information at
a time when it will be relevant to the consumer.

Additionally, a luxury brand will be able to offer
free repairs and services or extended warrantees
in a timely manner after the original purchase. Burberry Brit store in Convent Garden, London


INTERNET
Social media cannot stand alone in 2012
By Kayla Hutzler

S
ocial media will continue to lead the way for Inter- Marcus both ran social media contests last year to pro-
net marketing in 2012. However, for social media mote new collections that were coming to their stores.
to be most effective it must be incorporated into a
multichannel approach. Taking it one step further, Condé Nast’s W magazine saw
3,500 downloads for its iPad application from its Daily W
Facebook will likely become the main platform for luxury social mobile sweepstakes that asked consumers to share
brands to spread campaign images and other marketing daily content on their Facebook pages.
campaigns this year. However, a label cannot look to tack-
le Internet and social media marketing and expect sales For global brands in particular, photo or geo-location-
without a well-functioning ecommerce site. based content will help make consumers feel as if they are
part of a branded community no matter where they are in
“Social media marketing will continue to grow as a mech- the world.
anism for engagement and so will mobile,” said Fadi Shu-
man, New York-based cofounder of Pod 1. Luxury marketers should also be ready to adapt to new
technologies such as Pinterest and Google+ as more con-
“But, I think the most successful campaigns of 2012 will sumers begin to feel comfortable on these new platforms.
take advantage of all mediums through some sort of mul-
tichannel activity,” he said. Brand-curated editorial content will also continue to be
important this year as more sites begin to offer similar
Social cues functionality, per Mr. Shuman.
While luxury brands were warming up to social media
in 2011, it will truly become the go-to platform for
marketers this year. “The most successful campaigns
Facebook will likely become the primary way in which of 2012 will take advantage of
marketers share campaign photos.
all mediums through some sort of
Also, campaign and behind-the-scenes videos will multichannel activity”
increase in importance and should be posted on a
brand’s Facebook page.

Indeed, all videos should ideally be easily linked to a
brand’s social media account since video, be it funny or “Ultimately, engaging content is what will differentiate
cute, is highly-shared amongst online consumers due to your brand from the competition, so I see this area grow-
its ability to spark emotion. ing in importance,” he said.

In addition to using Facebook to spread the reach of im- Following through
ages and videos, marketers should also look at how they Brands should also continue to use banner and tower ad-
can use the platform to host contests. vertisements on Web sites. However, marketers should be
looking to make them as interactive as possible for the
Luxury retailers such as Bergdorf Goodman and Neiman 2012 consumer.


If a marketer fails to provide
a satisfying ecommerce ex-
perience, affluent consumers
may likely turn to a third-
party department store or
another brand.

Luxury brands must also re-
alize that consumers will be
continuing to increase their
use of tablets and smart-
phones in 2012.
Interactive Range Rover ad
Including video or ecommerce stores within the ad will Therefore, all Internet efforts
help brands stand out and hold consumers’ attention. should be viewable on these devices as well.

A luxury brand should also consider linking ads to their “The most important thing to consider is whether a brand
social media accounts so users can find similar material. is engaging in ecommerce or not,” Mr. Shuman said. “If you
are marketing online and your customer cannot transact
Additionally, going beyond banner ads to full-site take- through your Web site, then you’re really missing a trick
overs and solo sponsorships will also gain brands facetime and will lose every time to your competition.
with Web surfers.
“If ecommerce is enabled on your site, then make sure the
However, all of this advertising will turn to marketing experience is a positive one that works on all platforms
waste if a luxury brand fails to create a functional, easy- and devices otherwise you will lose that all-important
to-use ecommerce site. sale,” he said.

Affluent consumers are expecting luxury brands to not “Long gone are the days of Flash-only Web sites that take
only provide quality items but provide heightened service a long time to load and don’t actually add any value.”
and experiences as well.

As customers become more comfortable purchasing items
via the Internet, they are expecting all brands to give them
the option to do so, particularly luxury brands that are ex-
pected to be up-to-date with technology.

Luxury brands must remember that practicality is key
when designing a Web site.

In 2011, many brands got caught-up in creating videos
that required Flash on their Web sites and sometimes the
download speed and the time it takes to actually get to a
product page turned consumers off.

For maximum retention, a luxury label needs to ensure
that its Web site looks professional while also serving the
needs of its customers. Burberry lets consumers shop trench coats online


LEGAL/PRIVACY
Domain names, trademarks to be main legal obstacle
By Kayla Hutzler

L
uxury brands will continue to struggle with fake retailers to sell their products over the Internet.
goods this year as the scale of the counterfeit market
increases on the Web. Additionally, luxury brands will need to take the time and
money to educate their customers as to which domain
While the Internet Corporation for Assigned Names and name is the correct one.
Numbers has proposed a new domain name to help con-
sumers decipher between counterfeit sites and luxury More so, this suggests that consumers are not aware that
brand retailers, the effects are likely to be headache-caus- they are looking for and buying fake goods when they
ing rather than helpful. Additionally, legal problems sur- shop for these products online.
rounding luxury trademarks will likely continue to plague
the industry this year. On the other hand, many consumers are aware of the
acts that they are commiting and are selectively choosing
“ICANN’s new proposed gLTD [generic top level domains] these fake luxury products.
launch has the potential to create new legal challenges
for all brand owners, including luxury brands,” said Andrea “While some argue that the new .brand gTLDs may fa-
Calvaruso, chair of the trademark and copyright practice vor luxury brands by providing a way to inform the pub-
group at lawfirm Kelley Drye & Warren LLP, New York. lic which Web sites sell authorized goods,” Ms. Calvaruso
said. “This, in my opinion, falsely presumes all those who
“This new expansion of the Internet will not only increase purchase counterfeit goods online believe the goods they
the number of potential infringing gTLD strings and do- purchase are genuine.
main names, but also more Web platforms for infringers
to sell counterfeit goods,” she said. “It would also cause brands to incur substantial costs to
educate consumers,” she said.
Brand names
The new domain name “.brand” may become available this Luckily, there a few steps luxury marketers can take to pro-
year to help luxury marketers distinguish a brand’s Web tect their brands if the new gTLDs do go into effect, ac-
site from third-party fakes. cording to Ms. Calvaruso.

However, this may not be the answer to luxury brands’ First, the brand will need to decide whether they should
prayers, per Ms. Calvaruso. applying to register for a .brand gTLD.

The new domain names will make the Internet market- Either way, the luxury brand should monitor the gTLD ap-
place even larger, leaving way for more counterfeit good plication process to identify third-party applications that
are looking to use the brand’s
name so that they can object
“This is a significant blow to luxury brand to ICANN within the approved
seven-month period.
owners, in particular, who struggle to find
ways to protect its products in the absence Also, a brand should register its
URL with ICANN’s appointed
of U.S. protection for fashion designs” Trademark Clearing House .


Lastly, the brand should ensure that it budgets additional
enforcement funds to protect its brand name during the
new gTLD process.

Key is in the details
Unfortunately, counterfeit parties will not be the only le-
gal obstacles luxury brands will face in the upcoming year.

Arguments over trademarks and tradecolors are likely to
ensue in 2012, per Ms. Calvaruso.

Indeed if the southern New York District Court decision in
the Christian Louboutin versus Yves Saint Laurent is up-
held, these instances would only increase.

Currently, the decision states that a single color cannot
function as an identifier or trademark for a fashion brand.

“This is a significant blow to luxury brand owners in par-
ticular who struggle to find ways to protect its products
in the absence of U.S. protection for fashion designs,” Ms. Christian Louboutin Eugenie Dorsay shoe
Calvaruso said.
Currently, this includes the consistent use of color or other
Until the decision is upheld, a label must be as specific and design features to educate consumers that such feature is
repetitive as possible to differentiate its goods from oth- a brand identifier.
ers under the current United States trademark, trade dress
and copyright laws. Good examples are the Gucci horse bit and three stripe de-
sign, Tiffany & Co.’s use of the robin’s egg or “Tiffany blue”
and Hermes’ use of a certain shade of orange, according
to Ms. Calvaruso.

However, luxury brands should take precautionary steps in
the event that the color decision made in the Louboutin
case is upheld.

“Brand owners and their counsel would be well-advised
to be as particular as possible in identifying the trademark
protection they claim, including color for fashion-related
items in U.S. trademark applications and enforcement ac-
tions,” Ms. Calvaruso said.

“For example, specifying a particular pantone color or
range, placement of the mark on the product and other
distinguishing features of the claimed mark such as high
gloss or matte may help combat or avoid claims that
the trademark claim is overbroad and unprotectable,”
Yves Saint Laurent’s red-soled heel she said.


MOBILE
Location-based marketing, in-app commerce key for 2012
By Rachel Lamb

L
uxury marketers looking to
stay ahead of the curve in
2012 should aim to develop
location-based marketing, analyt-
ics and commerce options in rich
mobile applications.

These efforts are the future of
mobile marketing and will help
luxury brands tap on-the-go con-
sumers wherever they are while
also forming deep relationships.
Additionally, since mobile com-
merce is becoming increasingly
more popular, luxury brands
should take advantage by en-
abling transactions in-app.
Bulgari’s iPad app
“Rich apps with location-aware technology give retailers Check-in to check-out
the opportunity to immerse the consumer in their own Among commerce and analytics, location-based in-app
branded experience and send them promotional offers di- advertising was an area where luxury retailers were way
rectly through the app based on the consumer’s physical behind other marketers in 2011.
location, when they enter the retail store, how long they
are there and what they do inside,” said Dan Lowden, vice Only a few marketers including Nordstrom and Bergdorf
president of marketing at Digby, Austin, TX. Goodman took advantage of location-based ads last year.
Location-based ads are one of the most effective market-
“For 2012, consumers will expect to engage with brands ing techniques since consumers are literally right where
in a more personal way through their favorite branded brands want them.
apps,” he said. “Those retailers who enable location-based
marketing and analytics in their mobile strategy through Brands can use location to their advantage with banner
their own branded rich mobile app will better understand ads in apps or on mobile sites or through services such as
and engage with their consumers like never before, driving foursquare, Gowalla or Facebook check-in.
sales, customer loyalty and deep in-store analytics.”
Location-based services such as foursquare
use push notifications that alert consumers
“2012 will be the year that luxury when they are near a brand retail location.

brands take full advantage of the true “2012 will be the year that luxury brands
opportunity mobile unlocks — location take full advantage of the true opportunity
mobile unlocks — location awareness,” Mr.
awareness” Lowden said.


“While many brands have a mobile-optimized Web site because it is the only fool-proof medium to reach con-
and rich app that let their customers search, browse and sumers wherever they are.
buy from the smartphone, many luxury brands are try-
ing to figure out how to increase traffic to their physical “Once luxury brands start capturing and understand-
store locations. ing the behavior of their mobile consumers around and
within specific store locations, they can compare loca-
“A location-aware branded rich app enables retailers to di- tions, determine patterns and measure the economic im-
rectly communicate through their app to drive loyal cus- pact and success of operations or marketing initiatives,”
tomers to specific store locations with regional or local Mr. Lowden said.
deal-of-the-day promotions,” he said.

“In 2012, brands should focus
on unlocking the location of
their customers, driving them
to the store and measuring
consumer buying behavior
once they are there so retail-
ers can market to them based
on their preferences and
buying habits.”

Location, location, location
Another mobile component
that marketers should take
advantage of is integrating
mobile with other channels.

For example, brands can use
QR codes or SMS calls-to-
action on print, out-of-home
and mail ads.

“Mobile is a game-changer as
it can be leveraged across all
channels,” Mr. Lowden said.

Brands can also leverage mo-
bile to take advantage of in-
store deals. In fact, 46 percent
of consumers already use
smartphones to access prod-
uct knowledge while in a retail
store, according to research
from Briabe Media.

However, it all comes back to
using location-based services Saks Fifth Avenue commerce-enabled iPad app


MULTICHANNEL
Multichannel marketing will become second nature in 2012
By Rachel Lamb

A
lthough many brands use many channels in which to Multiple markets
market new products and services, multichannel ad- Luxury marketers also need to take different generations
vertising will definitely become more involved over into consideration.
the course of the year.
Print marketing is one of the most effective and common
Consumers, especially affluent ones, are not just one me- types of marketing.
dium. Therefore, high-end marketers need to communi-
cate a seamless experience across all channels that effec- Placement in a luxury-focused magazine or newspaper
tively relays the brand image. with a high-income demographic can be one of the best
ways to be seen by affluent consumers.
“Multichannel marketing is the norm today,” said Chris Ra-
mey, president of Affluent Insights, Miami. “However, it’s Along the same lines, catalogs and direct mail pieces help
still the Wild West [in that it] allows for experimentation brands to stick out from the crowded Internet.
and innovation.
This medium is especially effective in marketing towards
“It’s as essential to their shopping and daily habits as visit- baby boomers and older consumers, who are likely more
ing their favorite showroom or eating,” he said. able to afford luxury goods.

In contrast, many luxury marketers
are using new methods such as mo-
bile ads and applications, social me-
dia and branded Web sites.

These forms of marketing allow for
more engagement such as com-
merce, behind-the-scenes pictures,
videos and real-time interaction.

Digital marketing tends to target
younger consumers.

These consumers may not be able
to buy luxury products right now,
but when they are able to, younger
shoppers will already have made a
relationship with a brand.

Where print and direct mail are stat-
ic, tangible marketing efforts, digital
advertising allows for interaction
Bottega Veneta print ad in Vanity Fair February 2012 issue with a luxury brand.


Therefore, luxury marketers must have a multichannel Seamless multichannel marketing is especially impor-
strategy to increase the reach, wherever customers may tant since luxury brands are quickly moving into other
be demographically and geographically. channels and need to present one brand image across all
marketing platforms.

“If you want the affluent consumers’ It used to be that only a few were
on mobile or on social media, but
business, you have to be wherever they are” now that most luxury brands have
different platforms to engage con-
sumers, it is important that they
“In my opinion, luxury brands will find a way to limit who is differentiate themselves on these mediums in a way that
admitted behind the velvet ropes,” Mr. Ramey said. “It may still shares the brand voice.
be more social private sites where they can become more
personal or perhaps a limit their access on traditional sites. “Multichannel marketing may seem revolutionary to mar-
keters, but its merely evolutionary for the affluent,” Mr.
“Regardless, exclusivity is a traditional luxury strategy that Ramey said. “They don’t view multichannel marketing as
will return as the economy gets back on its feet,” he said. being separate.
“Affluent customers will demand it because being one of
many thousand fans won’t always feel special.” “If you want the affluent consumers’ business, you have to
be wherever they are,” he said.
Seamless Web
Obviously, some marketers are already using
a multichannel approach with campaigns.

Since mobile is the fastest-growing medi-
um, quite a few brands are transitioning the
same experience that consumers receive on
their Web sites and print advertisements as
they are through mobile applications, ban-
ner ads or optimized sites.

For example, jeweler Tiffany & Co. is the
master of a seamless transition.

Its What Makes Love True campaign was
easily recognizable through its print, Web
site, microsite, social media and mobile ads.

Images from the microsite were found in
print ads, while components from the app
were found on optimized sites.

Additionally, other brands such as Gucci
and Dolce & Gabbana use the same cam-
paign images from their latest collections
on their mobile apps as on they do on their
Facebook pages , Tumblrs and Web sites. Tiffany’s dedicated What Makes Love True microsite


OUT OF HOME
Out-of-home ads perfect medium for affluent mobile users
By Rachel Lamb

O
ut-of-home advertisements remain a viable way to
connect with consumers, but the engagement is dif-
ficult to measure. Therefore, brands could use mo-
bile and Web calls-to-action to track performance.

Many luxury brands are using SMS or QR codes in bill-
boards, phone booth and bus bench ads and the tops of
taxis. Mobile incorporation in these types of ads can mea-
sure how many consumers pay attention to ads.

“2012 is expected to be another good year for out-of-
home advertising, including the luxury market,” said Ni-
cole Hayes, communications director at the Outdoor Ad-
vertising Association of America, Washington.

“Affluent consumers are feeling more confident about the
economy and the luxury market is returning to health,”
he said. “Out-of-home advertising is an ideal medium for
reaching more affluent and mobile audiences, and many
display formats can target luxury consumers with timely
messages near the point of sale.” Bloomingdale’s SMS call-to-action

Bill of health
Using an interactive call-to-action on a billboard not only Bloomingdale’s used an eye-catching ad on a telephone
builds brand awareness, but engagement factors will en- booth that attracted consumers and then used mobile to
sure that consumers spend more time with the marketer. retain them.

Brands have already started to use these techniques. On the site, consumers were able to buy products from the
Bloomingdale’s optimized site,
watch videos and locate stores.
We’ll likely see more investment as out-of-
Additionally, Swarovski Ele-
home continues to offer a more innovative ments attracted holiday shop-
and interactive way to target a more opti- pers in Los Angeles with an in-
stallment on Rodeo Drive that
mistic affluent audience” used social media and mobile.

Consumers could send texts or
For example, department store Bloomingdale’s used a QR tweets that would appear on the installment and they
code and SMS call-to-action to bring consumers to a mo- could watch a live-action feed of the installation on
bile site to see its scarf collection last spring. Swarovski’s Facebook page.


Not only can brands measure interaction with out-of-
home ads by adding mobile, but it also allows consumers
to feel as if they are part of the brand.

“We’ll likely see more investment as out-of-home contin-
ues to offer a more innovative and interactive way to tar-
get a more optimistic affluent audience,” Ms. Hayes said.

Urban outfitting
Large metropolitan areas where there is likely a high de-
mographic of affluent consumers is typically where luxury
marketers place out-of-home ads.

For example, Audi of America launched its newest A7
model with an interactive billboard in Times Square in New
York that was supported by mobile elements such as a mo-
bile site, foursquare, QR codes and SMS.

Just as many affluent consumers work in Times Square,
the area is also populated by affluent tourists who visit the
attractions and luxury brand boutiques.

Additionally, rival Mercedes-Benz plays by the same rules.

Mercedes puts up ads for its newest models right in front
of the Holland Tunnel, a tunnel that goes from Northern Audi’s A7 mobile landing page
New Jersey into New York.

Many affluent consumers who
live in New Jersey and com-
mute to New York are very
likely to see billboards.

“Out-of-home campaigns in
metropolitan areas, where
luxury brands are more often
found, are increasingly becom-
ing more interactive and often
incorporate a digital element,”
Ms. Hayes said.

“However, luxury brands typi-
cally stand on their own and
bold, simple and traditional
outdoor ads can often be very
powerful advertising plat-
Swarovski’s Rodeo Drive structure forms,” she said.


PRINT
Print marketing to become more exclusive
By Rachel Lamb

D
espite evolving digital outlets, print will remain an Niche rich
effective marketing technique for luxury brands to Right now, high-end marketers are in luxury-focused pub-
advertise to affluent consumers but will conform to lications, but some of the publications are mixed in with
a more niche market. mass-retail brands.

Since baby boomers and older affluent
consumers have grown up with and prefer “It’s like when TV came out there was
print, it probably is not going anywhere for
a while. However, to maintain the momen- radio and people thought that there
tum, luxury brands may have to become
more choosey about the publications in
wasn’t going to be any more radio, but
which they advertise. new media doesn’t replace old media”
“Print is always going to be a big part
of marketing, but I think that print is a
continuing trend and continues to move to more niche For example, Dolce & Gabbana and Chanel are paired with
publications such as Departures and Wall Street Weekend brands such as Guess in Conde Nast’s Vogue, W and Vanity
Journal rather than mass marketers,” said Greg Furman, Fair magazines. This is because consumers of all demo-
CEO of the Luxury Marketing Council, New York. graphics read these magazines.

“What’s happened is that the disparity between the haves Marketers generally advertise in these magazines because
and the have-nots is increasing,” he said. “The aspirational there are some affluent consumers who read them, but
buyers have left the market and I don’t see them coming brands can also connect with younger consumers who
back any time soon.” read the magazines in the hope of building relationships
for when they eventually are able to buy
luxury goods.

For high-end print marketing to remain ef-
fective, brands must start to advertise in only
luxury-focused magazines such as American
Express’ Departures or Monocle, which only
have high-income readerships.

Another reason why print marketing will
likley remain effective in 2012 is that luxury
brands are conservative and often hesitant
when it comes to new media.

“Luxury brands like to play the wait-and-
see game rather than jumping in to new
Yves Saint Laurent spring/summer print ads media,” Mr. Furman said.


“They waited to sell online
and it’s pertaining to [mo-
bile] apps as well,” he said.

Cracking the code
Luxury brands are hardly
innovators when it comes
to new marketing, but they
cannot deny that it exists
and that consumers are on
digital media.

However, brands can still
use print marketing and
modernize it with new tech-
nology such as QR codes,
augmented reality and so-
cial meda calls-to-action. Prada spring/summer 2012 print ads

Indeed, some already are.

Dolce & Gabbana, Gucci, Fendi, Mercedes-Benz, Audi and
Chanel use Web calls-to-action in all of their print ads.

Indeed, marketers such as Bergdorf Goodman, American
Express, Saks Fifth Avenue, BMW and Porsche are raising
the bar in terms of combining the technology and print
industries.

These brands have used bar codes or SMS calls-to-action
in their print ads.

Print marketing will likely remain a part of luxury advertis-
ing strategies because it is easily malleable as new tech-
nology comes out.

Indeed, it can conform to new marketing rather than be
taken over by it.

“It’s like when TV came out there was radio and people
thought that there wasn’t going to be any more radio, but
new media doesn’t replace the old media,” Mr. Furman
said. “It just means that they have another channel with
which to reach and sell products to consumers.

“New media will reshape print the way that online re-
Mila Kunis print ads for Miss Dior handbags shaped content in publications,” he said.


RADIO
Pandora, Sirius to up the ante in 2012 radio marketing
By Rachel Lamb

T
raditional radio advertising will live on, but since lux- “Radio provides strong reach opportunities with good tar-
ury marketers have already begun to take advantage geting based on format and content,” said Greg Angland,
of other services such as Pandora or Sirius, it is likely senior vice president and director of account management
these forms of radio marketing will take precedence. at Blitz Media, Waltham, MA.

Traditional radio advertising will likely remain a staple for “The creative approach should differ dramatically from
marketers such as automakers. However, satellite and Pan- that on TV, understanding the environment and how and
dora are services that allow brands to curate their own where it is consumed,” he said. “Radio can also be quite
channels, make visible advertisements and speak with cus- efficient [particularly] on a national level.”
tomers one-on-one.
Into the airwaves
Luxury automakers are historically the luxury
brands that advertise on radio.

Car brands delve out responsibility to their
dealerships that make local announcements
about deals, events and parties.

However, automakers can also make national
announcements about deals and promotions
across the country.

Radio is an effective channel since it has the
ability to target a large number of people at
once.

Last year, General Motors Co.’s Cadillac used
teen pop sensation Justin Bieber in a partner-
ship with Sony Music to raise awareness and
funds for Cure Duchenne via radio advertis-
ing.

Cadillac auctioned pairs of tickets to destina-
tions such as Australia where winners had a
chance to see Mr. Bieber in concert and meet
him after the show.

Unfortunately, there is no way to narrow
the audience in terms of wealth or age. This
means that messages could go out to con-
An ad on Pandora for Tiffany’s What Makes Love True Pandora station sumers who cannot afford luxury products.


To combat this, luxury marketers can take slots on pre- mote its “Engineering Amazing” campaign.
mium satellite radio channels such as Sirius.
The ads took users to the automaker’s Web site where
For example, designer and filmmaker Tom Ford revealed consumers could watch videos and read about the brand’s
his vision and inspiration in an exclusive monthly series on engineering.
Sirius XM Radio in 2011.
In addition, Lexus and competitor
“Radio provides strong reach opportunities Mercedes-Benz both curated spe-
cial radio stations that raised brand
with good targeting based on format and awareness and linked to branded
content.
content”
The Mercedes station helped bring
Mr. Ford was able to target a likely affluent demographic the brand into the world of music lovers by featuring only
since wealthy consumers are more likely to afford satellite emerging artists from around the world.
radio prices.
Other marketers such as Nordstrom and Tiffany & Co. are
Also, most luxury cars come equipped with satellite radio taking advantage of Pandora’s mobile application.
or at least offer a free trial at purchase.
Nordstrom used location-based advertising in the app on
Out of the box selected music pop music stations to promote the depart-
Another important marketing medium in 2012 for radio ment store’s lingerie events nationwide.
will likely be Internet radio service Pandora.
Meanwhile, Tiffany promoted its What Makes Love True
Luxury brands have already taken advantage of this outlet microsite and app and, at a separate time, its spring/sum-
and in a few different ways. mer 2012 collection.

For instance, Lexus took out solo homepage ads to pro- The jeweler not only took out ad space on Pandora but
also created its own playlist that
featured classic love songs.

It is likely that brands will contin-
ue this trend of Web and satelite
radio advertising in new ways
over the next few years.

“Content integration and per-
sonality endorsements are strong
attributes of the [radio] plat-
form and advertising opportuni-
ties,” Mr. Angland said. “Radio-
type programming continues to
broaden – including terrestrial,
satellite, Pandora, streaming and
Spotify – and each should be
evaluated [and used] for their
Mercedes-Benz station on Pandora own unique benefits.”


TELEVISION
Olympics, presidential elections to spike TV ads in 2012
By Rachel Lamb

T
The 2012 London Olympic games and presidential elec- Elected ad spots
tions this year are likely to be one of the main sources Luxury automakers
of television advertising revenue for luxury brands. have always led the
pack when it comes to
TV advertising is supposed to be up 5 percent to 10 per- TV advertising.
cent, this year according to industry experts. TV is an easy
way to get a message across to consumers, but it can be For example, brands
difficult for luxury brands to reach target audiences be- such as Mercedes-
cause the medium is so mass. Benz, Audi, Lexus and
BMW often use highly-
“The main draws for radio and TV are the ability to build viewed TV spots such
reach quickly and depending on the geography and the as the Super Bowl. Audi’s untitled Jersey City project
execution can be quite efficient, although with a higher
out-of-pocket cost due to the scale,” said Greg Angland, Therefore, it makes sense that luxury automakers would
senior vice president and director of account management take advantage of a similar situation.
at Blitz Media, Waltham, MA.
However, while sporting events such as the Super Bowl
“TV in particular allows you to build brand awareness, as historically attract a male audience, the Olympics have a
well as deliver holistic brand messages in a compelling pretty equal male- and female-watching ratio.
way utilizing the attributes of the medium,” he said.
Another big factor in TV advertising this year will be the
“Industry trades are projecting TV to be up this year, big presidential elections.
contributing factors are political [spots] and the Olympics.”
This is an especially viable
marketing spot since it ca-
ters to all age groups.

However, affluent consum-
ers tend to be more educat-
ed and therefore are often
more in touch with what is
going on on a national and
global level.

Therefore, it is safe to say
that a majority of the popu-
lation interested in watch-
ing the presidential debates,
candidate speeches and
November’s election will be
Jaguar ‘s 2012 United States commercial somewhat affluent.


Luxury Marketing Outlook 2012

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