luxury marketing outlook 2012

Luxury Daily TM

www.LuxuryDaily.com

LuxuryMarketingOutlook 2012

A Classic GuideFebruary 2012

$495THE NEWS LEADER IN LUXURY MARKETING

Luxury Daily LUXURY MARKETING OUTLOOK 2012

PAGE

3

CONTENTS

EDITOR’S NOTELuxury marketing continues to evolveBy Mickey Alam Khan

ADVERTISINGMobile, social media to be key advertising playersBy Kayla Hutzler

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

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

INTERNET Social media cannot stand alone in 2012By Kayla Hutzler

DIRECT MAIL Direct mail stands out against cluttered Web worldBy Kayla Hutzler

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

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

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

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

PRINT Print marketing to become more exclusive By Rachel Lamb

RADIO Pandora, Sirius to up the ante in 2012 radio marketingBy Kayla Hutzler

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

PAGE

4

6

8

10

13

15

17

19

21

23

25

27

29COMMERCEEcommerce, mcommerce set to thriveBy Kayla Hutzler

Moët & Chandon 2012

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 an-nouncing 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 build-ing better relationships with consumers who thirst for and stand by products of high quality, limited distribution and great perceived value in their eyes.

Hold the lineWhat last year taught all luxury marketers is that a brand’s val-ues 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.

One trend that began last year and may have legs in 2012 is the sale of independent luxury labels to luxury conglomerates.

Such consolidation is reshaping the notion of luxury, particu-larly 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

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 consider-able time assembling insight and analysis on what luxury mar-keters 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 applica-tions. 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.

Artful insightPlease 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.

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.

401 Broadway, Suite 1408New York, NY 10013

Tel: 212-334-0128Fax: 212-334-6339

Email: [email protected] site: www.LuxuryDaily.com

For newsletter subscriptions:http://www.luxurydaily.com/

newsletter.php

For advertising:http://www.luxurydaily.com/cms/

general/1.htmp

Luxury Daily is the leading trade publication focusing on how luxury brands are conducting their marketing and commerce efforts across all media channels. The Napean-owned franchise comprises Luxury Daily, LuxuryDaily.com, the Luxury Daily newsletter, Luxury Daily Summit, Luxury Marketer of the Year, Luxury Retailer of the Year and the Luxury Daily Awards.

©2012 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.

Luxury Daily LUXURY MARKETING OUTLOOK 2012PAGE 3

Mickey Alam KhanEditor in [email protected]

Rachel LambAssociate [email protected]

Kayla HutzlerEditorial [email protected]

EDITOR’S NOTE

Jodie SolomonDirector, Ad [email protected]

Luxury marketing continues to evolve

O

Mickey Alam Khan

s mobile usage continues to grow and affluent con-sumers look to make real connections with their preferred brands, mobile and social media will in-

creasingly become the most important marketing plat-forms for luxury brands.

While luxury brands warmed up to newer forms of adver-tising such as Web, social media and mobile in the previ-ous 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.

“Marketers are also converging and blurring the lines be-tween them,” he said. “As a higher percentage of luxury consumers adopt smartphones, more of their online activ-ity will be both social and mobile.”

Social fliesSocial 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 these outlets to find news and information about a brand.

Indeed, Facebook commerce and exclusive sales are set to increase brand awareness and affinity in 2012.

Mobile, social media to be key advertising playersBy Kayla Hutzler

PAGE 4 Luxury Daily LUXURY MARKETING OUTLOOK 2012

A

ADVERTISING

Oscar de la Renta Facebook commerce

Luxury marketers should also be looking to Tumblr and branded blogs to extend special sneak-peeks and brand content to loyal fans.

Marketers will need to to stake out and aim to dominate emerging social media platforms such as Pinterest and Google+ as well as Chinese networks.

Simply being the first brands to adapt to these new tech-nologies will create buzz for the brand while giving market-ers time to work out the kinks and determine the plat-forms’ overall style.

“Luxury brands will continue their digital 180 [in 2012] and embrace platforms they previously scoffed at, including social media,” Mr. Cohen said.

“Social media will allow luxury brands to build consumer desire and word-of-mouth dominance while maintaining the exclusivity of their customer base,” he said.

Mobile madnessMobile should be the second-largest focus for luxury ad-vertising this year.

Optimized mobile sites will be critical for luxury brands to maintain consumers and gain new ones.

A majority of af-fluent consumers will be mainly ac-cessing the Web on their mobile phones and tablets in the future.

Therefore, a lux-ury brand should first and foremost create an effec-tive, easy-to-use mobile site.

Additionally, mobile search will only continue to increase in importance as consumers readily turn to their smart-phones to find retail locations, read reviews and compare prices while in-store.

After a mobile site is in place, brands should be developing mobile applications that engage consum-ers on a platform that allows the brand to update the content easily.

For example, gaming apps will continue to

entertain consumers, but should be updated frequently if the brand expects ROI.

Additionally, commerce-enabled apps are largely down-loaded solely by brand loyalists and therefore should be updated frequently as well as offer exclusive sales and items to reward shoppers.

Indeed, all mobile and social efforts going forward should be focused on engaging and communicating with a brand’s core customers.

Affluent consumers are the most likely to influence other wealthy and aspirational consumers, and they have the ability to turn acquaintances onto a brand with which they have had a good experience.

“Luxury customers are more poised than any group to be highly-influential brand advocates,” Mr. Cohen said.

“Done properly, luxury customers [will help] build increased demand, which in turn converts new luxury customers,” he said.

However, the age-old question of luxury brands main-taining their mystique while opening up to all advertising platforms will continue to haunt marketers.

“Luxury marketers will continue to struggle with the bal-ance between maximizing the reach of a luxury brand versus losing the exclusivity and caché of the brand,” Mr. Cohen said.


“Luxury marketers will continue to struggle with the balance between maximizing the reach of a luxury brand versus losing the exclusivity and caché”

Tag Heuer mobile site

Careful consideration necessary for cause, event marketing

ause and event marketing will not taper off in 2012 since affluent consumers have now come to expect that luxury brands act responsibly and align them-

selves with social causes.

Indeed, cause marketing will un-doubtedly grow, although high-end 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.

“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.

“In 2012, cause marketing will continue to thrive,” she said. “Although I predict [that] as consumers become savvier about the programs, campaigns and events, the delivery and measurement of these efforts will evolve.”

Party peopleCorporate social responsibility acts soared in 2011 with every industry from hotel chains to footwear makers hop-ping on board.

Indeed, this trend is set to increase in strength and num-bers over the year.

Brands will be expected to act responsibly every step of the way from sourcing environmentally-conscious mate-rials to aligning and donating to carefully-selected chari-ties and fundraisers.

For example, studies by Cone’s Cause Global Corporate

Responsibility Opportunity report have shown that being associated with a cause not only influences affinity, but also inspires behavior change among consumers.

Additionally, a brand that offers a portion of proceeds to charity can help affluent consumers justify such extrava-gant purchases in the face of the unstable economy.

For example, Saks Fifth Avenue has seen a positive reac-tion to its cause-related events and special products, such as its Breast Cancer Awareness month.

“We continue to see customer engagement around event- and cause-marketing efforts,” said Kathleen Ruiz, vice president of special events, public relations and social me-dia at Saks Fifth Avenue, New York. “We expect this trend will continue [since] our customers respond to connecting with our brand through causes they believe in.

“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,” she said.

Affluent consumers often feel a responsibility to give back to society and therefore will find themselves easily relat-ing to and choosing a brand that does the same.

However, while an increase in corporate social responsibil-ity was seen in 2011, it will become a mainstay in 2012.


CBy Kayla Hutzler

CAUSE/EVENT

“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”

Luxury brands will not have a choice as to whether or not to choose a cause, rather they will be expected to choose a cause and also display a genuine effort of support to its related charities.

The affluent consumer is beginning to see through those brands that support a charity just for the sake of doing so 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.

In fact, cocktail parties, dinners and speeches about the cause will no longer be enough for luxury brands.

Instead, a consistent presence at all of the charity’s events is also essential, and a luxury brand should look to have an executive at as many of a foundation’s programs as possible, per Ms. Berlent.

Luxury brands should begin to look for ways to really in-volve the consumer in the cause by holding events that showcase human stories more powerfully and share bite-size data that can inspire action among brand loyalists.

Pause for causeGiven 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-to-child HIV-transmission by 2015.”

“The cause is [now] aligned with their customers’ lifestyle, life stage and interests, and there is a tangible goal,” Ms. Berlent said.

In 2012, affiliating a brand to a social cause will no longer be enough. Instead, a marketer will have to immerse itself, its employees and its customers in the related charity.

“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 cause-marketing [is] in line with their audience’s interests such as female empowerment and children’s well-being.

“Additionally, they don’t just pay their nonprofit partners lip service or tie their efforts to the bottom line,” she said. “The consistent support by and visibility of their CEO and creative director at events from UNICEF to FFAWN [The Mary J. Blige and Steve Stoute Foundation for the Advance-ment of Women Now Inc.] indicate that its commitment is sincere and [its] passion is real.

“This combination of passion from the top and alignment of the cause with the company’s business or audience are the two most fundamental factors for success.”


Frette Chinese New Year email

Ecommerce, mcommerce set to thrive By Kayla Hutzler


mobile platforms as well as in-store will be important to increase brand reach and affinity amongst customers.

“A myriad of global economic issues are forcing luxury executives to address the possibility of a global reces-sion and consequential slowdown in the consumption of 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 warningThe 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 spending habits.

he truly affluent will continue to spend on luxury goods and services this year, looking to buy and in-teract with brands on all platforms.

Luxury brands should expect to see some residual effects from the instability of the stock market last year. However, being open and available for consumers on digital and

T

COMMERCE

Bloomingdale’s mcommerce


The recession will cause affluent consumers to take a time-out from their overspending, extravagant ways to reassess, reevaluate and reprioritize their lives, per Ms. Weinberg.

Luxury customers began questioning their mainstay brands and the value of their goods and services in 2011, and will continue to do so more heavily in 2012.

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 afflu-ent consumers that the price is equivalent with the quality throughout this year.

“Luxury brands must, by definition, be exclusive,” Ms. Weinberg said. “However, their value must be recognized and desired.”

“The aspirational shopper may be less likely to pur-chase those luxury non-essential items when their 401k statements come in,” she said. “But those whose 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.”

Brand everywhereLuxury brands also need to adapt to new commerce plat-forms that they have been avoiding in the past few years.

Mobile and ecommerce will no longer be an option for luxury brands that wish to engage and maintain affluent consumers’ attention.

In line with convincing consumers that luxury goods and services are worth the price, mar-keters will also need to put the same effort into ensuring that their commerce platforms represent the same level of high-end quality as their products.

While a majority of af-fluent consumers may

not buy a watch via their mobile devices, they will likely want to review and research the time-pieces and receive pric-ing information before heading in-store.

Additionally, brand loy-alists who know exactly what product they are looking for may choose to buy a repeat item online rather than head back into the store.

Luxury marketers will also need to ensure that any new platforms put into place are easy to transform and add new features.

Web and mobile-commerce technologies continue to move at a fast pace and features such as augmented real-ity may become more desired among luxury customers as they become increasingly popular.

Therefore, having a platform on which these tools can be put into place will help luxury brands stay ahead of com-petitors in 2012.

“This year will be a mashup of digital and physical expe-riences,” Ms. Weinberg said. “Successful companies will continue to engage consumers through omnichannel re-tailing using mobile, social content and social commerce to lead the way.

“Luxury brands should identify, as best as they can, some of the future requirements they will have and make sure they understand the implications to the platforms they are considering,” she said.

“Two pivotal questions that luxury brands now need to ad-dress are how, where and why they are looking to grow, and whether it is more important to have a creative or business brain at their helm?”

“One person’s Bottega Veneta is another person’s Guess”

Barney’s ecommerce site

Mobile shoppers

Direct mail stands out against cluttered Web world By Kayla Hutzler


irect mail will increasingly become more effective for luxury brand marketing as the Web continues to get overcrowded with advertising and spam.

Consumers may be starting to see through Internet mar-keting and are learning to ignore the various advertising formats such as banner advertisements and email market-ing. Meanwhile, direct mail is resurfacing as an exclusive method to reach affluent shoppers.

“There is a big resurgence in all types of direct mail right now because there is so much clutter on the Internet these days,” said John Schulte, president of the National Mail Order Association, Minneapolis, MN.

“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 re-lax with because they don’t have to look at the computer screen on which they are used to doing work.”

You’ve got mailWhile the Web allows for seam-less integration through ecom-merce platforms, catalogs will continue to be useful for show-casing products in a way that re-flects the brand’s style and quality.

Magalogs and other content-filled branded direct mail pieces will continue to be successful in 2012, according to Mr. Schulte.

Indeed, catalog-format advertising engages consumers for a longer amount of time than a Web site or video ad since they generally spend more time flipping through the

pages than they would looking at a banner ad or email.

For example, Berg-dorf Goodman has transformed its traditional catalog into a magalog over the past few years.

A printed catalog could even become a coffee-table book for affluent consumers who want to show off their high-end style and spending habits to visitors, per Mr. Schulte.

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.

Luxury marketers should also be looking to try out new formats this year such as a strictly product-focused cata-log and a content-focused magalog to gauge the reaction from their target audience.

Everything from the quality and size of the paper to the content and product images inside the pages can either-help or hinder a luxury brand’s direct mail success and ROI, per Mr. Schulte.

D

DIRECT MAIL

“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”

Bergdorf Goodman resort catalog 2011


“The goal is to get a measurable response in a sales for-mat,” Mr. Schulte said. “If the magalog is really digging into the return, then maybe a different format should be tested against it.

“No luxury marketer should be content with what they’ve got,” he said.

Direct ordersHowever, luxury brands do need to realize that direct mail cannot stand completely alone in the current digitally-evolving world.

Direct mail pieces should be incorporated into larger mul-tichannel approaches and should have references that drive consumers in-store or online to gain more informa-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

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.

Luxury marketers need to ac-knowledge that this year’s affluent shopper will be looking for a well-rounded experience from the brand.

“I like the idea of working towards making things as easy as possible for consumers to make a purchase,” Mr. Schul-te said. “You want to alleviate all barriers that may stop them from ordering.

“Direct mail is what people are comfortable with, particu-larly 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.

“However, you may want to drive people to the Web site to order items rather than through mail or phone.”

Brahmin’s Fall 2011 catalog

Ferragamo ‘s Fall catalog

Employee, consumer relationship key to in-store experienceBy Kayla Hutzler


uxury brands must encourage and motivate salespeo-ple to build relationships with consumers if they wish to increase in-store sales this year.

Not enough luxury brands focused on creating and nur-turing a relationship with consumers in 2011. However, to maintain a loyal consumer base in the current unstable and overcrowded environment, luxury brands are going to have to out-behave competitors in service as well as out-perform them in product.

“It looks like the holiday season was not as strong as ex-pected and that seems to indicate that there is some sort of loss of momentum in the buying power of the affluent consumer,” said said Milton Pedraza, CEO of the Luxury Institute, New York.

“And we know that in Europe we are seeing a slowing down – even in China we are beginning to see a slowdown.

“This year, luxury brands will really have to hone-in on consumer retention and relationship building,” he said.

Long-term relationship tipsLuxury brand employees should not just be looking to sell a product while the consumer is in-store, per Mr. Pedraza.

Instead, they should be looking to build a lasting relation-ship with the consumer.

Affluent consumers expect to receive luxury service when they enter a luxury brand store, especially if they have 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 location could turn consumers off.

L

IN-STORE

A Chanel boutique in the French Alps uses iPads in-store


“This is the year when brands have to execute the fun-damentals that fit their brand DNA and they have to be disciplined on that,” Mr. Pedraza said.

“Having more clas-sic products [as well as] updated prod-ucts that are really relevant to the con-sumer 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.”

Mobile movesTechnology can help to improve the in-store experience dramatically and will become increasingly necessary to beating out competitors in 2012.

Luxury brands need to implement the use of tablets or smartphone devices in-store for employees.

A huge benefit of in-store mobile devices is that the em-ployee will be able to further explain the history and the design of any particular item to a consumer by having the material at his or her fingertips.

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.

Employees should also use the mobile devices to send a quick thank you email and digital receipt to the consumer shortly after the purchase is made.

Ultimately, this type of intimate interac-tion and relationship between a brand and a consumer will help increase con-sumer retention and repeat purchases.

Indeed, some luxury brands got a head-start 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.

“Mobile devices only make the sales professionals more human and allow them to be more relevant and more per-sonal to consumers,” Mr. Pedraza said.

“Mobile devices such as smartphones or tablets should dramatically enhance the relationship-building capabili-ties of the sales professional,” he said.

Burberry Brit store in Convent Garden, London

“Mobile devices only make the sales professionals more human and allow them to be more relevant and more personal to consumers”

Social media cannot stand alone in 2012By Kayla Hutzler


ocial media will continue to lead the way for Inter-net marketing in 2012. However, for social media to be most effective it must be incorporated into a

multichannel approach.

Facebook will likely become the main platform for luxury brands to spread campaign images and other marketing campaigns this year. However, a label cannot look to tack-le Internet and social media marketing and expect sales without a well-functioning ecommerce site.

“Social media marketing will continue to grow as a mech-anism for engagement and so will mobile,” said Fadi Shu-man, New York-based cofounder of Pod 1.

“But, I think the most successful campaigns of 2012 will take advantage of all mediums through some sort of mul-tichannel activity,” he said.

Social cues 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.

Indeed, all videos should ideally be easily linked to a brand’s social media account since video, be it funny or cute, is highly-shared amongst online consumers due to its ability to spark emotion.

In addition to using Facebook to spread the reach of im-ages and videos, marketers should also look at how they can use the platform to host contests.

Luxury retailers such as Bergdorf Goodman and Neiman

Marcus both ran social media contests last year to pro-mote new collections that were coming to their stores.

Taking it one step further, Condé Nast’s W magazine saw 3,500 downloads for its iPad application from its Daily W social mobile sweepstakes that asked consumers to share daily content on their Facebook pages.

For global brands in particular, photo or geo-location-based content will help make consumers feel as if they are part of a branded community no matter where they are in the world.

Luxury marketers should also be ready to adapt to new technologies such as Pinterest and Google+ as more con-sumers begin to feel comfortable on these new platforms.

Brand-curated editorial content will also continue to be important this year as more sites begin to offer similar functionality, per Mr. Shuman.

“Ultimately, engaging content is what will differentiate your brand from the competition, so I see this area grow-ing in importance,” he said.

Following throughBrands should also continue to use banner and tower ad-vertisements on Web sites. However, marketers should be looking to make them as interactive as possible for the 2012 consumer.

S

INTERNET

“The most successful campaigns of 2012 will take advantage of all mediums through some sort of multichannel activity”


Including video or ecommerce stores within the ad will help brands stand out and hold consumers’ attention.

A luxury brand should also consider linking ads to their social media accounts so users can find similar material.

Additionally, going beyond banner ads to full-site take-overs and solo sponsorships will also gain brands facetime with Web surfers.

However, all of this advertising will turn to marketing waste if a luxury brand fails to create a functional, easy-to-use ecommerce site.

Affluent consumers are expecting luxury brands to not only provide quality items but provide heightened service 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.

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.

Therefore, all Internet efforts should be viewable on these devices as well.

“The most important thing to consider is whether a brand is engaging in ecommerce or not,” Mr. Shuman said. “If you are marketing online and your customer cannot transact through your Web site, then you’re really missing a trick and will lose every time to your competition.

“If ecommerce is enabled on your site, then make sure the experience is a positive one that works on all platforms and devices otherwise you will lose that all-important sale,” he said.

“Long gone are the days of Flash-only Web sites that take a long time to load and don’t actually add any value.”

Interactive Range Rover ad

Burberry lets consumers shop trench coats online

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


uxury brands will continue to struggle with fake goods this year as the scale of the counterfeit market increases on the Web.

While the Internet Corporation for Assigned Names and Numbers has proposed a new domain name to help con-sumers decipher between counterfeit sites and luxury brand retailers, the effects are likely to be headache-caus-ing rather than helpful. Additionally, legal problems sur-rounding luxury trademarks will likely continue to plague the industry this year.

“ICANN’s new proposed gLTD [generic top level domains] launch has the potential to create new legal challenges for all brand owners, including luxury brands,” said Andrea Calvaruso, chair of the trademark and copyright practice group at lawfirm Kelley Drye & Warren LLP, New York.

“This new expansion of the Internet will not only increase the number of potential infringing gTLD strings and do-main names, but also more Web platforms for infringers to sell counterfeit goods,” she said.

Brand namesThe new domain name “.brand” may become available this year to help luxury marketers distinguish a brand’s Web site from third-party fakes.

However, this may not be the answer to luxury brands’ prayers, per Ms. Calvaruso.

The new domain names will make the Internet market-place even larger, leaving way for more counterfeit good

retailers to sell their products over the Internet.

Additionally, luxury brands will need to take the time and money to educate their customers as to which domain name is the correct one.

More so, this suggests that consumers are not aware that they are looking for and buying fake goods when they shop for these products online.

On the other hand, many consumers are aware of the acts that they are commiting and are selectively choosing these fake luxury products.

“While some argue that the new .brand gTLDs may fa-vor luxury brands by providing a way to inform the pub-lic which Web sites sell authorized goods,” Ms. Calvaruso said. “This, in my opinion, falsely presumes all those who purchase counterfeit goods online believe the goods they purchase are genuine.

“It would also cause brands to incur substantial costs to educate consumers,” she said.

Luckily, there a few steps luxury marketers can take to pro-tect their brands if the new gTLDs do go into effect, ac-cording to Ms. Calvaruso.

First, the brand will need to decide whether they should applying to register for a .brand gTLD.

Either way, the luxury brand should monitor the gTLD ap-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.

Also, a brand should register its URL with ICANN’s appointed Trademark Clearing House .

L

LEGAL/PRIVACY

“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”


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 detailsUnfortunately, 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. Calvaruso said.

Until the decision is upheld, a label must be as specific and repetitive as possible to differentiate its goods from oth-ers under the current United States trademark, trade dress and copyright laws.

Currently, this includes the consistent use of color or other design features to educate consumers that such feature is a brand identifier.

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,” she said.

Christian Louboutin Eugenie Dorsay shoe

Yves Saint Laurent’s red-soled heel

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


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.

“Rich apps with location-aware technology give retailers the opportunity to immerse the consumer in their own branded experience and send them promotional offers di-rectly 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.

“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 their own branded rich mobile app will better understand and engage with their consumers like never before, driving sales, customer loyalty and deep in-store analytics.”

Check-in to check-outAmong 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 market-ing techniques since consumers are literally right where brands want them.

Brands can use location to their advantage with banner ads in apps or on mobile sites or through services such as foursquare, Gowalla or Facebook check-in.

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.

L

MOBILE

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

Bulgari’s iPad app


“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 try-ing to figure out how to increase traffic to their physical store locations.

“A location-aware branded rich app enables retailers to di-rectly communicate through their app to drive loyal cus-tomers to specific store locations with regional or local 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, locationAnother 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

because it is the only fool-proof medium to reach con-sumers wherever they are.

“Once luxury brands start capturing and understand-ing the behavior of their mobile consumers around and within specific store locations, they can compare loca-tions, determine patterns and measure the economic im-pact and success of operations or marketing initiatives,” Mr. Lowden said.

Saks Fifth Avenue commerce-enabled iPad app

Multichannel marketing will become second nature in 2012By Rachel Lamb


lthough many brands use many channels in which to market new products and services, multichannel ad-vertising will definitely become more involved over

the course of the year.

Consumers, especially affluent ones, are not just one me-dium. Therefore, high-end marketers need to communi-cate a seamless experience across all channels that effec-tively relays the brand image.

“Multichannel marketing is the norm today,” said Chris Ra-mey, president of Affluent Insights, Miami. “However, it’s still the Wild West [in that it] allows for experimentation and innovation.

“It’s as essential to their shopping and daily habits as visit-ing their favorite showroom or eating,” he said.

Multiple marketsLuxury marketers also need to take different generations into consideration.

Print marketing is one of the most effective and common types of marketing.

Placement in a luxury-focused magazine or newspaper with a high-income demographic can be one of the best ways to be seen by affluent consumers.

Along the same lines, catalogs and direct mail pieces help brands to stick out from the crowded Internet.

This medium is especially effective in marketing towards baby boomers and older consumers, who are likely more 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 with a luxury brand.

A

MULTICHANNEL

Bottega Veneta print ad in Vanity Fair February 2012 issue


Therefore, luxury marketers must have a multichannel strategy to increase the reach, wherever customers may be demographically and geographically.

“In my opinion, luxury brands will find a way to limit who is admitted behind the velvet ropes,” Mr. Ramey said. “It may be more social private sites where they can become more personal or perhaps a limit their access on traditional sites.

“Regardless, exclusivity is a traditional luxury strategy that will return as the economy gets back on its feet,” he said. “Affluent customers will demand it because being one of many thousand fans won’t always feel special.”

Seamless WebObviously, 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.

Seamless multichannel marketing is especially impor-tant since luxury brands are quickly moving into other channels and need to present one brand image across all marketing platforms.

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 con-sumers, it is important that they

differentiate themselves on these mediums in a way that still shares the brand voice.

“Multichannel marketing may seem revolutionary to mar-keters, but its merely evolutionary for the affluent,” Mr. Ramey said. “They don’t view multichannel marketing as being separate.

“If you want the affluent consumers’ business, you have to be wherever they are,” he said.

“If you want the affluent consumers’ business, you have to be wherever they are”

Tiffany’s dedicated What Makes Love True microsite

Out-of-home ads perfect medium for affluent mobile usersBy Rachel Lamb


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.”

Bill of healthUsing an interactive call-to-action on a billboard not only builds brand awareness, but engagement factors will en-sure that consumers spend more time with the marketer.

Brands have already started to use these techniques.

For example, department store Bloomingdale’s used a QR code and SMS call-to-action to bring consumers to a mo-bile site to see its scarf collection last spring.

Bloomingdale’s used an eye-catching ad on a telephone booth that attracted consumers and then used mobile to retain them.

On the site, consumers were able to buy products from the Bloomingdale’s optimized site, watch videos and locate stores.

Additionally, Swarovski Ele-ments attracted holiday shop-pers in Los Angeles with an in-stallment on Rodeo Drive that used social media and mobile.

Consumers could send texts or tweets that would appear on the installment and they could watch a live-action feed of the installation on Swarovski’s Facebook page.

O

OUT OF HOME

We’ll likely see more investment as out-of-home continues to offer a more innovative and interactive way to target a more opti-mistic affluent audience”

Bloomingdale’s SMS call-to-action


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 outfittingLarge 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 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-forms,” she said.

Audi’s A7 mobile landing page

Swarovski’s Rodeo Drive structure

Print marketing to become more exclusive By Rachel Lamb


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 momen-tum, luxury brands may have to become more choosey about the publications in which they advertise.

“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.”

Niche richRight now, high-end marketers are in luxury-focused pub-lications, but some of the publications are mixed in with mass-retail brands.

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 demo-graphics 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 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 media,” Mr. Furman said.

D

PRINT

“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”

Yves Saint Laurent spring/summer print ads


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

Cracking the codeLuxury 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.

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-shaped content in publications,” he said. Mila Kunis print ads for Miss Dior handbags

Prada spring/summer 2012 print ads

Pandora, Sirius to up the ante in 2012 radio marketingBy Rachel Lamb


raditional radio advertising will live on, but since lux-ury 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.

Traditional radio advertising will likely remain a staple for marketers such as automakers. However, satellite and Pan-dora are services that allow brands to curate their own channels, make visible advertisements and speak with cus-tomers one-on-one.

“Radio provides strong reach opportunities with good tar-geting based on format and content,” said Greg Angland, senior vice president and director of account management at Blitz Media, Waltham, MA.

“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 airwavesLuxury 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-sumers who cannot afford luxury products.

T

RADIO

An ad on Pandora for Tiffany’s What Makes Love True Pandora station


To combat this, luxury marketers can take slots on pre-mium satellite radio channels such as Sirius.

For example, designer and filmmaker Tom Ford revealed his vision and inspiration in an exclusive monthly series on Sirius XM Radio in 2011.

Mr. Ford was able to target a likely affluent demographic since wealthy consumers are more likely to afford satellite radio prices.

Also, most luxury cars come equipped with satellite radio or at least offer a free trial at purchase.

Out of the boxAnother important marketing medium in 2012 for radio will likely be Internet radio service Pandora.

Luxury brands have already taken advantage of this outlet and in a few different ways.

For instance, Lexus took out solo homepage ads to pro-

mote its “Engineering Amazing” campaign.

The ads took users to the automaker’s Web site where consumers could watch videos and read about the brand’s engineering.

In addition, Lexus and competitor Mercedes-Benz both curated spe-cial radio stations that raised brand awareness and linked to branded content.

The Mercedes station helped bring the brand into the world of music lovers by featuring only emerging artists from around the world.

Other marketers such as Nordstrom and Tiffany & Co. are taking advantage of Pandora’s mobile application.

Nordstrom used location-based advertising in the app on selected music pop music stations to promote the depart-ment store’s lingerie events nationwide.

Meanwhile, Tiffany promoted its What Makes Love True microsite and app and, at a separate time, its spring/sum-mer 2012 collection.

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 own unique benefits.”

“Radio provides strong reach opportunities with good targeting based on format and content”

Mercedes-Benz station on Pandora

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


The 2012 London Olympic games and presidential elec-tions this year are likely to be one of the main sources of television advertising revenue for luxury brands.

TV advertising is supposed to be up 5 percent to 10 per-cent, this year according to industry experts. TV is an easy way to get a message across to consumers, but it can be difficult for luxury brands to reach target audiences be-cause the medium is so mass.

“The main draws for radio and TV are the ability to build reach quickly and depending on the geography and the execution can be quite efficient, although with a higher out-of-pocket cost due to the scale,” said Greg Angland, senior vice president and director of account management at Blitz Media, Waltham, MA.

“TV in particular allows you to build brand awareness, as well as deliver holistic brand messages in a compelling way utilizing the attributes of the medium,” he said.

“Industry trades are projecting TV to be up this year, big contributing factors are political [spots] and the Olympics.”

Elected ad spotsLuxury automakers have always led the pack when it comes to TV advertising.

For example, brands such as Mercedes-Benz, Audi, Lexus and BMW often use highly-viewed TV spots such as the Super Bowl.

Therefore, it makes sense that luxury automakers would take advantage of a similar situation.

However, while sporting events such as the Super Bowl historically attract a male audience, the Olympics have a pretty equal male- and female-watching ratio.

Another big factor in TV advertising this year will be the presidential elections.

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 somewhat affluent.

T

TELEVISION

Jaguar ‘s 2012 United States commercial

Audi’s untitled Jersey City project


Both the Olympics and presidential elections are likely to be huge sources of potential marketing attention for luxury marketers this year.

Smells like successAnother big change in 2012 will be brands other than au-tomakers advertising on TV.

Some luxury marketers that recently began using TV mar-keting are fragrance labels.

For example, Christian Dior’s J’Adore fragrance starring Charlize Theron aired across many channels.

In addition, Chanel tapped actress Keira Knightley for its Coco Mademoiselle fragrance commercial.

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 di-rectly 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.

However, advertising on cable rather than prime-time net-works can help to narrow the gap.

“In regards to cable, it offers strong targeting abilities due to the sheer number of channels and targeted program-ming while also building reach and frequency,” Mr. Ang-land said. “It can also be quite efficient, in particular, on a national level.”

“In regards to cable, it offers strong targeting abilities due to the sheer number of channels and targeted programming while building reach and frequency”

Mercedes winter driving commercial

luxury marketing outlook 2012

Business

home luxury marketing

luxury marketingwww

notion of luxury

luxury retailer

luxury dailytm

luxury daily newsletter

luxury daily summit

luxury daily awards