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Luxury
Marketing
Outlook 2012
A Classic Guide
February 2012
$495
CONTENTS
PAGE
PAGE
3
EDITOR’S NOTE
Luxury marketing continues to evolve
By Mickey Alam Khan
23
OUT-OF-HOME
4
ADVERTISING
25
PRINT
6
CAUSE/EVENT
27
RADIO
8
COMMERCE
29
TELEVISION
10
DIRECT MAIL
13
IN-STORE
15
INTERNET
17
LEGAL/PRIVACY
19
MOBILE
21
MULTICHANNEL
Mobile, social media to be key advertising players
By Kayla Hutzler
Careful consideration necessary for cause, event
marketing
By Kayla Hutzler
Ecommerce, mcommerce set to thrive
By Kayla Hutzler
Out-of-home ads perfect medium for affluent
mobile users
By Rachel Lamb
Print marketing to become more exclusive
By Rachel Lamb
Pandora, Sirius to up the ante in 2012 radio
marketing
By Kayla Hutzler
Olympics, presidential elections to spike TV ads
in 2012
By Rachel Lamb
Direct mail stands out against cluttered Web world
By Kayla Hutzler
Employee, consumer relationship key to in-store
experience
By Kayla Hutzler
Social media cannot stand alone in 2012
By Kayla Hutzler
Domain names, trademarks to be main legal obstacles
By Kayla Hutzler
Location-based marketing, in-app commerce key
for 2012
By Rachel Lamb
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
outstanding performance of luxury marketers worldwide.
Expect that trend to continue, bar some act of God or
awful international incident.
Not a day goes by without some luxury brand or the other announcing new initiatives to better ingratiate themselves with
their customers.
Be it social media, mobile marketing, email or glossy print,
luxury marketers will continue their steady pace toward building better relationships with consumers who thirst for and
stand by products of high quality, limited distribution and great
perceived value in their eyes.
2012 is quite optimistic on the future of luxury marketing for
branding and customer acquisition, retention and reactivation.
Reporters Rachel Lamb and Kayla Hutzler have spent considerable time assembling insight and analysis on what luxury marketers can expect in various marketing mediums this year.
It is quite obvious that social media has caught the fancy of
luxury brands. So has the lure of mobile Web sites and applications. Both are driven by consumer demand.
Print continues to hold its charm for high-end luxury brands
looking to showcase their products in a desirable setting next
to content that fits with the label’s values.
Hold the line
What last year taught all luxury marketers is that a brand’s values are not worth diluting even when the global economy is
not where it should be. Holding the price line is critical, but so
is not resorting to desperate marketing measures.
Artful insight
Please read Luxury Daily’s Luxury Marketing Outlook 2012 from
cover to cover. Rachel and Kayla are owed thanks for their hard
work. Kayla also patiently worked on the art direction to make
this an easy read.
One trend that began last year and may have legs in 2012 is
the sale of independent luxury labels to luxury conglomerates.
Our thanks also to the industry experts whose insights helped
put this Classic Guide together. We hope you enjoy the read and
are inspired to push the marketing envelope even further this
year as luxury brands continue to hold their own in good times
and bad.
Such consolidation is reshaping the notion of luxury, particularly in the high-end market where exclusivity and nonpareil
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
Editor in Chief
[email protected]
Kayla Hutzler
Editorial Assistant
[email protected]
Mickey Alam Khan
Rachel Lamb
Associate Reporter
[email protected]
Jodie Solomon
Director, Ad Sales
[email protected]
401 Broadway, Suite 1408
New York, NY 10013
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PAGE 3
Luxury Daily LUXURY MARKETING OUTLOOK 2012
ADVERTISING
Mobile, social media to be key advertising players
By Kayla Hutzler
A
s mobile usage continues to grow and affluent consumers look to make real connections with their
preferred brands, mobile and social media will increasingly become the most important marketing platforms for luxury brands.
While luxury brands warmed up to newer forms of advertising such as Web, social media and mobile in the previous year, they will need to continue these efforts in 2012
to engage with consumers. As luxury marketers attempt to
be present on all platforms, they will have to strive harder
to maintain their high-end status.
“Social media, mobile Web and mobile apps are continuing
to be growth platforms,” said Jeff Cohen, director at MDG
Advertising, Boca Raton, FL.
Social flies
Social media played a large role in luxury marketing in
2011, though a select few brands were leading the pack in
terms of innovation.
For example, Oscar de la Renta was one of the first and
few to use Facebook commerce.
Meanwhile, Burberry led the race in entering the complex
Chinese social media landscape.
Luxury marketers are going to need to step it up and
maintain a more active presence on the key social media
platforms such as Facebook, Twitter, Google+ and Tumblr
if they wish to engage consumers in 2012.
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
PAGE 4 Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 smartcontent 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.
that engage consumers on a platform that
Simply being the
allows the brand to
first brands to adapt
update the content
to these new techeasily.
nologies will create
buzz for the brand
For example, gaming
while giving marketapps 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 marketers will continue to
struggle with the balance between
maximizing the reach of a luxury brand
versus losing the exclusivity and caché”
“Luxury brands will continue their digital 180 [in 2012] and Additionally, commerce-enabled apps are largely downembrace 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 maintaining 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 balcreate 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.
PAGE 5
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 undoubtedly grow, although highend brands will have to choose
their charities and foundations
more carefully this year or affluent
consumers will start to see through
them. Additionally, the typical
cocktail or dinner events thrown
by luxury brands will likely grow to
focus on their social causes.
“We really try to balance our support, with
a focus on the arts, health, civic affairs and
education, always keeping in mind those
causes that are most important to the Saks
Fifth Avenue customer”
“The explosion of corporate social responsibility initiatives
and cause-related marketing across the globe indicates
that socially-driven business practices are not just here to
stay, but increasingly becoming cost-of-entry,” said Hayley
Berlent, New York-based strategy director at Siegel+Gale.
Additionally, a brand that offers a portion of proceeds to
charity can help affluent consumers justify such extravagant purchases in the face of the unstable economy.
For example, Saks Fifth Avenue has seen a positive reaction 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 eventabout the programs, campaigns and events, the delivery and cause-marketing efforts,” said Kathleen Ruiz, vice
president of special events, public relations and social meand measurement of these efforts will evolve.”
dia at Saks Fifth Avenue, New York. “We expect this trend
will continue [since] our customers respond to connecting
Party people
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“We really try to balance our support, with a focus on the
ping on board.
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
Fifth Avenue customer,” she said.
bers over the year.
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 relatrials 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 responsibilFor example, studies by Cone’s Cause Global Corporate ity was seen in 2011, it will become a mainstay in 2012.
PAGE 6 Luxury Daily LUXURY MARKETING OUTLOOK 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 including 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.
Frette Chinese New Year email
The stroller brand stated its participation would help “the
Global Fund to help reach the goal of eliminating motherto-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.
Berlent said.
related charities.
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,
its employees and its customers in the related charity.
and do not fully commit to the cause.
The wealthy person now wants to see a brand supporting
a cause that aligns with the label’s brand’s image and they
want to see more than just a donation aspect, according to
Siegel+Gale’s Ms. Berlent.
“Cause marketing, whether it is programs, campaigns or
events are most effective when the cause relates to the
business,” Ms. Berlent said. “For example, Gucci’s causemarketing [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 Advancement of Women Now Inc.] indicate that its commitment is
per Ms. Berlent.
sincere and [its] passion is real.
Luxury brands should begin to look for ways to really involve 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
the two most fundamental factors for success.”
size data that can inspire action among brand loyalists.
PAGE 7 Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 recesfrom 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 insulated 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 powerfully as some experts expected in 2011.
Indeed, global luxury goods sales have continued 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.
Bloomingdale’s mcommerce
PAGE 8
Additionally, the longer the instability and
questionability of the economy and various
political problems continue, the more conscious wealthy consumers will become of their
spending habits.
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 timeLuxury customers began questioning their mainstay pieces and receive pricbrands 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
persuasive answers in 2011, they will need to consider this
question carefully and spend more time convincing affluent consumers that the price is equivalent with the quality
throughout this year.
Additionally, brand loyalists who know exactly
Mobile shoppers
what product they are looking for may
choose to buy a repeat item online rather than head back
into the store.
“Luxury brands must, by definition, be exclusive,” Ms.
Weinberg said. “However, their value must be recognized
and desired.”
Luxury marketers will also need to ensure that any new
platforms put into place are easy to transform and add
new features.
“The aspirational shopper may be less likely to purchase those luxury non-essential items when their
401k statements come in,” she said. “But those whose
wealth is less impacted by home values and shortterm stock losses do not view luxury in the same way.
“One person’s Bottega Veneta is
another person’s Guess”
“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 realBrand 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 comluxury brands that wish to engage and maintain affluent petitors in 2012.
consumers’ attention.
“This year will be a mashup of digital and physical expeIn line with convincing riences,” Ms. Weinberg said. “Successful companies will
consumers that luxury continue to engage consumers through omnichannel regoods 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 address 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?”
PAGE 9 Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 marketing and are learning to ignore the various advertising
formats such as banner advertisements and email marketing. Meanwhile, direct mail is resurfacing as an exclusive
method to reach affluent shoppers.
For example, Bergdorf Goodman has
transformed
its
traditional catalog
into a magalog over
the past few years.
Bergdorf Goodman resort catalog 2011
“There is a big resurgence in all types of direct mail right
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 highOrder Association, Minneapolis, MN.
end style and spending habits to visitors, per Mr. Schulte.
“Right now, you have less competition in the mail box and
it is easier to stand out from the crowd,” he said. “Direct
mail pieces such as catalogs are easier for people to relax with because they don’t have to look at the computer
screen on which they are used to doing work.”
You’ve got mail
While the Web
allows for seamless integration
through ecommerce platforms,
catalogs
will
continue to be
useful for showcasing products
in a way that reflects the brand’s style and quality.
Additionally, a luxury brand has more direct control over
the catalog’s look, feel and content than it does with a
digital ad.
Creating situations in which consumers can imagine
themselves wearing or using a brand’s item should be the
goal for all mail catalogs.
“Direct mail pieces such as catalogs are easier for
people to relax with because they don’t have to look
at the computer screen on which they are used to
doing work”
Magalogs and other content-filled branded direct mail
pieces will continue to be successful in 2012, according to
Mr. Schulte.
Luxury marketers should also be looking to try out new
formats this year such as a strictly product-focused catalog and a content-focused magalog to gauge the reaction
from their target audience.
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 eitherfor 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.
PAGE 10
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 ordering 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
However, luxury brands do need to realize that direct mail
cannot stand completely alone in the current digitallyevolving world.
“Direct mail is what people are comfortable with, particularly people who are 40 and older and who have a higher
income,” he said. “These consumers were brought up with
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 multichannel 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 onthe-go consumers to brands’
mobile applications and sites.
Conversely, luxury brands
should use other branded
PAGE 11
Brahmin’s Fall 2011 catalog
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 welcomed when they first enter a luxury location, according to Mr. Pedraza.
While a consumer browses, a luxury employee should be listening to the consumer’s interests and desires and gaining
information such as products bought previously 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.
A Chanel boutique in the French Alps uses iPads in-store
PAGE 12
Additionally, not offering as much of the
product range as possible at a particular
location could turn consumers off.
Luxury Daily LUXURY MARKETING OUTLOOK 2012
“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 classic products [as well
as] updated products that are really
relevant to the consumer and to the
brand will be key
going forward,” he
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
Technology can help to improve the in-store experience
dramatically and will become increasingly necessary to
beating out competitors in 2012.
For example, Chanel is attracting ultra-affluent guests at
the Courchevel resort in the French Alps by incorporating
iPads into the space, allowing guests to play and browse
while they shop.
Luxury brands need to implement the use of tablets or
smartphone devices in-store for employees.
“Mobile devices only make the sales professionals more
human and allow them to be more relevant and more personal to consumers,” Mr. Pedraza said.
“Mobile devices only make the sales
professionals more human and allow
them to be more relevant and more
personal to consumers”
Ultimately, this type
of intimate interaction and relationship
between a brand
and a consumer will
help increase consumer retention and
repeat purchases.
A huge benefit of in-store mobile devices is that the employee 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 capabilimaterial 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 communication 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.
PAGE 13
Burberry Brit store in Convent Garden, London
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 pronet 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 tackle Internet and social media marketing and expect sales For global brands in particular, photo or geo-locationwithout 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 Shuman, 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 multichannel 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.
Facebook will likely become the primary way in which
marketers share campaign photos.
Also, campaign and behind-the-scenes videos will
increase in importance and should be posted on a
brand’s Facebook page.
“The most successful campaigns
of 2012 will take advantage of
all mediums through some sort of
multichannel activity”
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 growits 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 adcan 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.
PAGE 14
Luxury Daily LUXURY MARKETING OUTLOOK 2012
If a marketer fails to provide
a satisfying ecommerce experience, affluent consumers
may likely turn to a thirdparty department store or
another brand.
Luxury brands must also realize that consumers will be
continuing to increase their
use of tablets and smartphones in 2012.
Including video or ecommerce stores within the ad will
help brands stand out and hold consumers’ attention.
Interactive Range Rover ad
Therefore, all Internet efforts
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
is engaging in ecommerce or not,” Mr. Shuman said. “If you
social media accounts so users can find similar material.
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
sale,” he said.
to-use ecommerce site.
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 expected 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.
PAGE 15
Burberry lets consumers shop trench coats online
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 consumers 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 faCalvaruso, chair of the trademark and copyright practice vor luxury brands by providing a way to inform the pubgroup 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 proyear to help luxury marketers distinguish a brand’s Web tect their brands if the new gTLDs do go into effect, acsite 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 applace 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
to ICANN within the approved
seven-month period.
“This is a significant blow to luxury brand
owners, in particular, who struggle to find
ways to protect its products in the absence
of U.S. protection for fashion designs”
PAGE 16
Also, a brand should register its
URL with ICANN’s appointed
Trademark Clearing House .
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 legal 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 upheld, 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 particular who struggle to find ways to protect its products
in the absence of U.S. protection for fashion designs,” Ms.
Calvaruso said.
Christian Louboutin Eugenie Dorsay shoe
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
Good examples are the Gucci horse bit and three stripe deand copyright laws.
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 actions,” 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.
PAGE 17
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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, analytics and commerce options in rich
mobile applications.
These efforts are the future of
mobile marketing and will help
luxury brands tap on-the-go consumers wherever they are while
also forming deep relationships.
Additionally, since mobile commerce is becoming increasingly
more popular, luxury brands
should take advantage by enabling transactions in-app.
“Rich apps with location-aware technology give retailers
the opportunity to immerse the consumer in their own
branded experience and send them promotional offers directly through the app based on the consumer’s physical
location, when they enter the retail store, how long they
are there and what they do inside,” said Dan Lowden, vice
president of marketing at Digby, Austin, TX.
Bulgari’s iPad app
Check-in to check-out
Among commerce and analytics, location-based in-app
advertising was an area where luxury retailers were way
behind other marketers in 2011.
Only a few marketers including Nordstrom and Bergdorf
Goodman took advantage of location-based ads last year.
Location-based ads are one of the most effective marketing techniques since consumers are literally right where
brands want them.
“For 2012, consumers will expect to engage with brands
in a more personal way through their favorite branded
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.”
“2012 will be the year that luxury
brands take full advantage of the true
opportunity mobile unlocks — location
awareness”
PAGE 18
Location-based services such as foursquare
use push notifications that alert consumers
when they are near a brand retail location.
“2012 will be the year that luxury brands
take full advantage of the true opportunity
mobile unlocks — location awareness,” Mr.
Lowden said.
Luxury Daily LUXURY MARKETING OUTLOOK 2012
“While many brands have a mobile-optimized Web site
and rich app that let their customers search, browse and
buy from the smartphone, many luxury brands are trying to figure out how to increase traffic to their physical
store locations.
because it is the only fool-proof medium to reach consumers wherever they are.
“Once luxury brands start capturing and understanding 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 imrectly 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 retailers 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-toaction 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 mobile to take advantage of instore deals. In fact, 46 percent
of consumers already use
smartphones to access product knowledge while in a retail
store, according to research
from Briabe Media.
However, it all comes back to
using location-based services
PAGE 19 Saks Fifth Avenue commerce-enabled iPad app
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 communicate 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 Ramey, 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 mobile ads and applications, social media and branded Web sites.
These forms of marketing allow for
more engagement such as commerce, 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 static, tangible marketing efforts, digital
advertising allows for interaction
Bottega Veneta print ad in Vanity Fair February 2012 issue with a luxury brand.
PAGE 20 Luxury Daily LUXURY MARKETING OUTLOOK 2012
Therefore, luxury marketers must have a multichannel Seamless multichannel marketing is especially imporstrategy 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’
business, you have to be wherever they are”
It used to be that only a few were
on mobile or on social media, but
now that most luxury brands have
different platforms to engage consumers, 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 marketers, 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 medium, 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, banner 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 campaign images from their latest collections
on their mobile apps as on they do on their
Facebook pages , Tumblrs and Web sites.
PAGE 21
Tiffany’s dedicated What Makes Love True microsite
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 difficult to measure. Therefore, brands could use mobile and Web calls-to-action to track performance.
Many luxury brands are using SMS or QR codes in billboards, phone booth and bus bench ads and the tops of
taxis. Mobile incorporation in these types of ads can measure how many consumers pay attention to ads.
“2012 is expected to be another good year for out-ofhome advertising, including the luxury market,” said Nicole Hayes, communications director at the Outdoor Advertising 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-ofhome continues to offer a more innovative
and interactive way to target a more optimistic affluent audience”
Additionally, Swarovski Elements attracted holiday shoppers in Los Angeles with an installment on Rodeo Drive that
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
Swarovski’s Facebook page.
bile site to see its scarf collection last spring.
PAGE 22
Luxury Daily LUXURY MARKETING OUTLOOK 2012
Not only can brands measure interaction with out-ofhome 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 continues to offer a more innovative and interactive way to target a more optimistic affluent audience,” Ms. Hayes said.
Urban outfitting
Large metropolitan areas where there is likely a high demographic 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 mobile 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
New Jersey into New York.
Audi’s A7 mobile landing page
Many affluent consumers who
live in New Jersey and commute 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 becoming more interactive and often
incorporate a digital element,”
Ms. Hayes said.
“However, luxury brands typically stand on their own and
bold, simple and traditional
outdoor ads can often be very
powerful advertising platSwarovski’s Rodeo Drive structure forms,” she said.
PAGE 23
Luxury Daily LUXURY MARKETING OUTLOOK 2012
PRINT
Print marketing to become more exclusive
By Rachel Lamb
D
espite evolving digital outlets, print will remain an
effective marketing technique for luxury brands to
advertise to affluent consumers but will conform to
a more niche market.
Since baby boomers and older affluent
consumers have grown up with and prefer
print, it probably is not going anywhere for
a while. However, to maintain the momentum, luxury brands may have to become
more choosey about the publications in
which they advertise.
Niche rich
Right now, high-end marketers are in luxury-focused publications, but some of the publications are mixed in with
mass-retail brands.
“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 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
publications such as Departures and Wall Street Weekend
Journal rather than mass marketers,” said Greg Furman,
CEO of the Luxury Marketing Council, New York.
“What’s happened is that the disparity between the haves
and the have-nots is increasing,” he said. “The aspirational
buyers have left the market and I don’t see them coming
back any time soon.”
For example, Dolce & Gabbana and Chanel are paired with
brands such as Guess in Conde Nast’s Vogue, W and Vanity
Fair magazines. This is because consumers of all demographics read these magazines.
Marketers generally advertise in these magazines because
there are some affluent consumers who read them, but
brands can also connect with younger consumers who
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 effective, 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-andsee game rather than jumping in to new
Yves Saint Laurent spring/summer print ads media,” Mr. Furman said.
PAGE 24
Luxury Daily LUXURY MARKETING OUTLOOK 2012
“They waited to sell online
and it’s pertaining to [mobile] 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 technology such as QR codes,
augmented reality and social 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 advertising strategies because it is easily malleable as new technology 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 reMila Kunis print ads for Miss Dior handbags shaped content in publications,” he said.
PAGE 25
Luxury Daily LUXURY MARKETING OUTLOOK 2012
RADIO
Pandora, Sirius to up the ante in 2012 radio marketing
By Rachel Lamb
T
raditional radio advertising will live on, but since luxury marketers have already begun to take advantage
of other services such as Pandora or Sirius, it is likely
these forms of radio marketing will take precedence.
“Radio provides strong reach opportunities with good targeting based on format and content,” said Greg Angland,
senior vice president and director of account management
at Blitz Media, Waltham, MA.
Traditional radio advertising will likely remain a staple for
marketers such as automakers. However, satellite and Pandora are services that allow brands to curate their own
channels, make visible advertisements and speak with customers one-on-one.
“The creative approach should differ dramatically from
that on TV, understanding the environment and how and
where it is consumed,” he said. “Radio can also be quite
efficient [particularly] on a national level.”
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 partnership with Sony Music to raise awareness and
funds for Cure Duchenne via radio advertising.
Cadillac auctioned pairs of tickets to destinations such as Australia where winners had a
chance to see Mr. Bieber in concert and meet
him after the show.
An ad on Pandora for Tiffany’s What Makes Love True Pandora station
PAGE 26
Unfortunately, there is no way to narrow
the audience in terms of wealth or age. This
means that messages could go out to consumers who cannot afford luxury products.
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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
Mercedes-Benz both curated special radio stations that raised brand
awareness and linked to branded
content.
“Radio provides strong reach opportunities
with good targeting based on format and
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 departAnother 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/sumand 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 continue this trend of Web and satelite
radio advertising in new ways
over the next few years.
“Content integration and personality endorsements are strong
attributes of the [radio] platform and advertising opportunities,” Mr. Angland said. “Radiotype 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.”
PAGE 27
Luxury Daily LUXURY MARKETING OUTLOOK 2012
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 Mercedescause 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 caters to all age groups.
However, affluent consumers tend to be more educated and therefore are often
more in touch with what is
going on on a national and
global level.
Jaguar ‘s 2012 United States commercial
PAGE 28
Therefore, it is safe to say
that a majority of the population interested in watching the presidential debates,
candidate speeches and
November’s election will be
somewhat affluent.
Luxury Daily LUXURY MARKETING OUTLOOK 2012
Both the Olympics and presidential elections are likely
to be huge sources of potential marketing attention for
luxury marketers this year.
In addition, Chanel tapped actress Keira Knightley for its
Coco Mademoiselle fragrance commercial.
“In regards to cable, it offers strong
targeting abilities due to the sheer
number of channels and targeted
programming while building reach
and frequency”
Brands would be smart to include Web or mobile
calls-to-action to further engage consumers.
“There is also a high incidence of viewers of both
TV and cable being online while watching across
all devices,” Mr. Angland said. “This can be seen
with significant search traffic increases tied directly to when spots air in many instances.”
A downside to TV ads is that it is hard to know
what kind of an audience views the commercial.
Smells like success
Another big change in 2012 will be brands other than au- However, advertising on cable rather than prime-time nettomakers advertising on TV.
works can help to narrow the gap.
Some luxury marketers that recently began using TV mar- “In regards to cable, it offers strong targeting abilities due
keting are fragrance labels.
to the sheer number of channels and targeted programming while also building reach and frequency,” Mr. AngFor example, Christian Dior’s J’Adore fragrance starring land said. “It can also be quite efficient, in particular, on a
Charlize Theron aired across many channels.
national level.”
Mercedes winter driving commercial
PAGE 29
Luxury Daily LUXURY MARKETING OUTLOOK 2012