Luxury Marketing Outlook 2012
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Luxury Marketing Outlook 2012

Luxury Marketing Outlook 2012

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Luxury Marketing Outlook 2012 Luxury Marketing Outlook 2012 Document Transcript

  • Luxury Daily TM A Classic Guide February 2012 $495THE NEWS LEADER IN LUXURY MARKETINGwww.LuxuryDaily.comLuxuryMarketingOutlook 2012
  • CONTENTSPAGE PAGE3 EDITOR’S NOTE 23 OUT-OF-HOME Luxury marketing continues to evolve Out-of-home ads perfect medium for affluent By Mickey Alam Khan mobile users By Rachel Lamb4 ADVERTISING 25 PRINT Mobile, social media to be key advertising players Print marketing to become more exclusive By Kayla Hutzler By Rachel Lamb6 CAUSE/EVENT 27 RADIO Careful consideration necessary for cause, event Pandora, Sirius to up the ante in 2012 radio marketing marketing By Kayla Hutzler By Kayla Hutzler8 COMMERCE 29 TELEVISION Ecommerce, mcommerce set to thrive Olympics, presidential elections to spike TV ads By Kayla Hutzler in 2012 By Rachel Lamb10 DIRECT MAIL Direct mail stands out against cluttered Web world By Kayla Hutzler13 IN-STORE Employee, consumer relationship key to in-store experience By Kayla Hutzler15 INTERNET Social media cannot stand alone in 2012 By Kayla Hutzler17 LEGAL/PRIVACY Domain names, trademarks to be main legal obstacles By Kayla Hutzler19 MOBILE Location-based marketing, in-app commerce key for 2012 By Rachel Lamb21 MULTICHANNEL Multichannel marketing will become second nature in 2012 By Rachel Lamb Moët & Chandon 2012PAGE 2 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • EDITOR’S NOTELuxury marketing continues to evolveO ne consistent bright spot in the sea of rough news is the 2012 is quite optimistic on the future of luxury marketing for outstanding performance of luxury marketers worldwide. branding and customer acquisition, retention and reactivation. Expect that trend to continue, bar some act of God orawful international incident. Reporters Rachel Lamb and Kayla Hutzler have spent consider- able time assembling insight and analysis on what luxury mar-Not a day goes by without some luxury brand or the other an- keters can expect in various marketing mediums this year.nouncing new initiatives to better ingratiate themselves withtheir customers. It is quite obvious that social media has caught the fancy of luxury brands. So has the lure of mobile Web sites and applica-Be it social media, mobile marketing, email or glossy print, tions. Both are driven by consumer demand.luxury marketers will continue their steady pace toward build-ing better relationships with consumers who thirst for and Print continues to hold its charm for high-end luxury brandsstand by products of high quality, limited distribution and great looking to showcase their products in a desirable setting nextperceived value in their eyes. to content that fits with the label’s values.Hold the line Artful insightWhat last year taught all luxury marketers is that a brand’s val- Please read Luxury Daily’s Luxury Marketing Outlook 2012 fromues are not worth diluting even when the global economy is cover to cover. Rachel and Kayla are owed thanks for their hardnot where it should be. Holding the price line is critical, but so work. Kayla also patiently worked on the art direction to makeis not resorting to desperate marketing measures. this an easy read.One trend that began last year and may have legs in 2012 is Our thanks also to the industry experts whose insights helpedthe sale of independent luxury labels to luxury conglomerates. put this Classic Guide together. We hope you enjoy the read and are inspired to push the marketing envelope even further thisSuch consolidation is reshaping the notion of luxury, particu- year as luxury brands continue to hold their own in good timeslarly in the high-end market where exclusivity and nonpareil and bad.quality were the key charms. How to translate that into masssales without losing the luxury brand’s mystique in this day andage of social and mobile media will be the challenge du jour.As readers will notice, Luxury Daily’s Luxury Marketing Outlook Mickey Alam Khan 401 Broadway, Suite 1408 New York, NY 10013 Mickey Alam Khan Rachel Lamb Tel: 212-334-0128 Editor in Chief Associate Reporter Fax: 212-334-6339 mickey@napean.com rachel@napean.com Email: news@napean.com Web site: www.LuxuryDaily.com For newsletter subscriptions: http://www.luxurydaily.com/ newsletter.php Kayla Hutzler Jodie Solomon Editorial Assistant Director, Ad Sales For advertising: kayla@napean.com ads@napean.com http://www.luxurydaily.com/cms/ general/1.htmpLuxury Daily is the leading trade publication focusing on how luxury brands are conducting their marketing and commerce effortsacross 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.PAGE 3 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • ADVERTISINGMobile, social media to be key advertising playersBy Kayla HutzlerA s mobile usage continues to grow and affluent con- Social flies sumers look to make real connections with their Social media played a large role in luxury marketing in preferred brands, mobile and social media will in- 2011, though a select few brands were leading the pack increasingly become the most important marketing plat- terms of innovation.forms for luxury brands. For example, Oscar de la Renta was one of the first andWhile luxury brands warmed up to newer forms of adver- few to use Facebook commerce.tising such as Web, social media and mobile in the previ-ous year, they will need to continue these efforts in 2012 Meanwhile, Burberry led the race in entering the complexto engage with consumers. As luxury marketers attempt to Chinese social media landscape.be present on all platforms, they will have to strive harderto maintain their high-end status. Luxury marketers are going to need to step it up and maintain a more active presence on the key social media“Social media, mobile Web and mobile apps are continuing platforms such as Facebook, Twitter, Google+ and Tumblrto be growth platforms,” said Jeff Cohen, director at MDG if they wish to engage consumers in 2012.Advertising, Boca Raton, FL. Affluent and aspirational consumers alike are looking to“Marketers are also converging and blurring the lines be- these outlets to find news and information about a brand.tween them,” he said. “As a higher percentage of luxuryconsumers adopt smartphones, more of their online activ- Indeed, Facebook commerce and exclusive sales are set toity will be both social and mobile.” increase brand awareness and affinity in 2012. Oscar de la Renta Facebook commercePAGE 4 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • Luxury marketers should also be looking to Tumblr and Additionally, mobile search will only continue to increasebranded blogs to extend special sneak-peeks and brand in importance as consumers readily turn to their smart-content to loyal fans. phones to find retail locations, read reviews and compare prices while in-store.Marketers will need to to stake out and aim to dominateemerging social media platforms such as Pinterest and After a mobile site is in place, brands should be developingGoogle+ as well as mobile applicationsChinese networks. “Luxury marketers will continue to that engage consum- ers on a platform thatSimply being the struggle with the balance between allows the brand tofirst brands to adaptto these new tech- maximizing the reach of a luxury brand update the content easily.nologies will create versus losing the exclusivity and caché”buzz for the brand For example, gamingwhile giving market- apps will continue toers time to work out the kinks and determine the plat- entertain consumers, but should be updated frequently ifforms’ overall style. the brand expects ROI.“Luxury brands will continue their digital 180 [in 2012] and Additionally, commerce-enabled apps are largely down-embrace platforms they previously scoffed at, including loaded solely by brand loyalists and therefore should besocial 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 consumerdesire and word-of-mouth dominance while maintaining Indeed, all mobile and social efforts going forward shouldthe exclusivity of their customer base,” he said. be focused on engaging and communicating with a brand’s core customers.Mobile madnessMobile should be the second-largest focus for luxury ad- Affluent consumers are the most likely to influence othervertising this year. wealthy and aspirational consumers, and they have the ability to turn acquaintances onto a brand with whichOptimized mobile sites will be critical for luxury brands to they have had a good experience.maintain consumers and gain new ones. “Luxury customers are more poised than any group to be A majority of af- highly-influential brand advocates,” Mr. Cohen said. fluent consumers will be mainly ac- “Done properly, luxury customers [will help] build increased cessing the Web demand, which in turn converts new luxury customers,” on their mobile he said. phones and tablets in the future. However, the age-old question of luxury brands main- taining their mystique while opening up to all advertising Therefore, a lux- platforms will continue to haunt marketers. ury brand should first and foremost “Luxury marketers will continue to struggle with the bal- create an effec- ance between maximizing the reach of a luxury brand tive, easy-to-use versus losing the exclusivity and caché of the brand,” Tag Heuer mobile site mobile site. Mr. Cohen said.PAGE 5 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • CAUSE/EVENTCareful consideration necessary for cause, event marketingBy Kayla HutzlerC ause and event marketing will not taper off in 2012 Responsibility Opportunity report have shown that being since affluent consumers have now come to expect associated with a cause not only influences affinity, but that luxury brands act responsibly and align them- also inspires behavior change among consumers.selves with social causes.Indeed, cause marketing will un-doubtedly grow, although high- “We really try to balance our support, withend brands will have to choose a focus on the arts, health, civic affairs andtheir charities and foundationsmore carefully this year or affluent education, always keeping in mind thoseconsumers will start to see throughthem. Additionally, the typical causes that are most important to the Sakscocktail or dinner events thrown Fifth Avenue customer”by luxury brands will likely grow tofocus on their social causes. Additionally, a brand that offers a portion of proceeds to“The explosion of corporate social responsibility initiatives charity can help affluent consumers justify such extrava-and cause-related marketing across the globe indicates gant purchases in the face of the unstable economy.that socially-driven business practices are not just here tostay, but increasingly becoming cost-of-entry,” said Hayley For example, Saks Fifth Avenue has seen a positive reac-Berlent, New York-based strategy director at Siegel+Gale. tion to its cause-related events and special products, such as its Breast Cancer Awareness month.“In 2012, cause marketing will continue to thrive,” she said.“Although I predict [that] as consumers become savvier “We continue to see customer engagement around event-about the programs, campaigns and events, the delivery and cause-marketing efforts,” said Kathleen Ruiz, viceand measurement of these efforts will evolve.” president of special events, public relations and social me- dia at Saks Fifth Avenue, New York. “We expect this trendParty people will continue [since] our customers respond to connectingCorporate social responsibility acts soared in 2011 with with our brand through causes they believe in.every industry from hotel chains to footwear makers hop-ping on board. “We really try to balance our support, with a focus on the arts, health, civic affairs and education, always keeping inIndeed, this trend is set to increase in strength and num- mind those causes that are most important to the Saksbers over the year. Fifth Avenue customer,” she said.Brands will be expected to act responsibly every step of Affluent consumers often feel a responsibility to give backthe way from sourcing environmentally-conscious mate- to society and therefore will find themselves easily relat-rials to aligning and donating to carefully-selected chari- ing to and choosing a brand that does the same.ties and fundraisers. However, while an increase in corporate social responsibil-For example, studies by Cone’s Cause Global Corporate ity was seen in 2011, it will become a mainstay in 2012.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 includ- ing everyone from top executives to salespeople. Additionally, the brand must also ensure that the charity and its relationship with a particular cause aligns with its target customers. For example, The Global Fund’s (red) campaign had retailers jumping on board left and right. However, high-end stroller company Bugaboo more closely related the cause to its target customer of new mothers. The stroller brand stated its participation would help “the Global Fund to help reach the goal of eliminating mother- Frette Chinese New Year email to-child HIV-transmission by 2015.”Luxury brands will not have a choice as to whether or notto choose a cause, rather they will be expected to choose “The cause is [now] aligned with their customers’ lifestyle,a cause and also display a genuine effort of support to its life stage and interests, and there is a tangible goal,” Ms.related charities. Berlent said.The affluent consumer is beginning to see through those In 2012, affiliating a brand to a social cause will no longerbrands that support a charity just for the sake of doing so be enough. Instead, a marketer will have to immerse itself,and do not fully commit to the cause. its employees and its customers in the related charity.The wealthy person now wants to see a brand supporting “Cause marketing, whether it is programs, campaigns ora cause that aligns with the label’s brand’s image and they events are most effective when the cause relates to thewant to see more than just a donation aspect, according to business,” Ms. Berlent said. “For example, Gucci’s cause-Siegel+Gale’s Ms. Berlent. marketing [is] in line with their audience’s interests such as female empowerment and children’s well-being.In fact, cocktail parties, dinners and speeches about thecause 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 andis also essential, and a luxury brand should look to have an creative director at events from UNICEF to FFAWN [Theexecutive at as many of a foundation’s programs as possible, Mary J. Blige and Steve Stoute Foundation for the Advance-per Ms. Berlent. ment of Women Now Inc.] indicate that its commitment is sincere and [its] passion is real.Luxury brands should begin to look for ways to really in-volve the consumer in the cause by holding events that “This combination of passion from the top and alignmentshowcase human stories more powerfully and share bite- of the cause with the company’s business or audience aresize data that can inspire action among brand loyalists. the two most fundamental factors for success.”PAGE 7 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • COMMERCEEcommerce, mcommerce set to thriveBy Kayla HutzlerT 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 luxuryLuxury brands should expect to see some residual effects executives to address the possibility of a global reces-from the instability of the stock market last year. However, sion and consequential slowdown in the consumption ofbeing open and available for consumers on digital and luxury goods,” said Ronit Weinberg, senior consultant at FitForCommerce, New York. “That being said, while aspirational buying may slow down, people who are more insu- lated from the current economic rollercoaster will still continue to purchase [from] luxury brands,” she said. “[Therefore], luxury brands need to consider platforms that will give them the flexibility and control to innovate and experiment with new and dynamic features.” Global warning The instability of the economy on a global scale did not affect luxury spending as power- fully as some experts expected in 2011. Indeed, global luxury goods sales have contin- ued 2010’s double-digit growth trajectory and saw an increase of 10 percent to $257 billion in 2011, according to Bain & Co.’s 10th Luxury Goods Worldwide Market Study. This does not mean that 2012 will be a breeze. In fact, aspirational consumers will continue to be affected by the uncertainty surrounding the economy in the upcoming year. Additionally, the longer the instability and questionability of the economy and various political problems continue, the more con- scious wealthy consumers will become of their Bloomingdale’s mcommerce spending habits.PAGE 8 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • The recession will cause affluent consumers to take a time- not buy a watch via theirout from their overspending, extravagant ways to reassess, mobile devices, they willreevaluate and reprioritize their lives, per Ms. Weinberg. likely want to review and research the time-Luxury customers began questioning their mainstay pieces and receive pric-brands and the value of their goods and services in 2011, ing information beforeand will continue to do so more heavily in 2012. heading in-store.While many luxury brands were not able to come up with Additionally, brand loy-persuasive answers in 2011, they will need to consider this alists who know exactly Mobile shoppersquestion carefully and spend more time convincing afflu- what product they are looking for mayent consumers that the price is equivalent with the quality choose to buy a repeat item online rather than head backthroughout this year. into the store.“Luxury brands must, by definition, be exclusive,” Ms. Luxury marketers will also need to ensure that any newWeinberg said. “However, their value must be recognized platforms put into place are easy to transform and addand desired.” new features.“The aspirational shopper may be less likely to pur-chase those luxury non-essential items when their “One person’s Bottega Veneta is401k statements come in,” she said. “But those whose another person’s Guess”wealth is less impacted by home values and short-term stock losses do not view luxury in the same way.“One person’s Bottega Veneta is another person’s Guess.” Web and mobile-commerce technologies continue to move at a fast pace and features such as augmented real-Brand everywhere ity may become more desired among luxury customers asLuxury 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 beMobile and ecommerce will no longer be an option for put into place will help luxury brands stay ahead of com-luxury brands that wish to engage and maintain affluent petitors in 2012.consumers’ attention. “This year will be a mashup of digital and physical expe- In line with convincing riences,” Ms. Weinberg said. “Successful companies will consumers that luxury continue to engage consumers through omnichannel re- goods and services are tailing using mobile, social content and social commerce worth the price, mar- to lead the way. keters will also need to put the same effort “Luxury brands should identify, as best as they can, some into ensuring that their of the future requirements they will have and make sure commerce platforms they understand the implications to the platforms they are represent the same level considering,” she said. of high-end quality as their products. “Two pivotal questions that luxury brands now need to ad- dress are how, where and why they are looking to grow, While a majority of af- and whether it is more important to have a creative or Barney’s ecommerce site fluent consumers may business brain at their helm?”PAGE 9 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • DIRECT MAILDirect mail stands out against cluttered Web worldBy Kayla HutzlerD irect mail will increasingly become more effective pages than they for luxury brand marketing as the Web continues to would looking at a get overcrowded with advertising and spam. banner ad or email.Consumers may be starting to see through Internet mar- For example, Berg-keting and are learning to ignore the various advertising dorf Goodman hasformats such as banner advertisements and email market- transformed itsing. Meanwhile, direct mail is resurfacing as an exclusive traditional catalogmethod to reach affluent shoppers. into a magalog over the past few years.“There is a big resurgence in all types of direct mail right Bergdorf Goodman resort catalog 2011now because there is so much clutter on the Internet these A printed catalog could even become a coffee-table bookdays,” said John Schulte, president of the National Mail for affluent consumers who want to show off their high-Order Association, Minneapolis, MN. end style and spending habits to visitors, per Mr. Schulte.“Right now, you have less competition in the mail box and Additionally, a luxury brand has more direct control overit is easier to stand out from the crowd,” he said. “Direct the catalog’s look, feel and content than it does with amail pieces such as catalogs are easier for people to re- digital ad.lax with because they don’t have to look at the computerscreen on which they are used to doing work.” Creating situations in which consumers can imagine themselves wearing or using a brand’s item should be theYou’ve got mail goal for all mail catalogs.While the Weballows for seam-less integration “Direct mail pieces such as catalogs are easier forthrough ecom-merce platforms, people to relax with because they don’t have to lookcatalogs will at the computer screen on which they are used tocontinue to beuseful for show- doing work”casing productsin a way that re-flects the brand’s style and quality. Luxury marketers should also be looking to try out new formats this year such as a strictly product-focused cata-Magalogs and other content-filled branded direct mail log and a content-focused magalog to gauge the reactionpieces will continue to be successful in 2012, according to from their target audience.Mr. Schulte. Everything from the quality and size of the paper to theIndeed, catalog-format advertising engages consumers content and product images inside the pages can either-for a longer amount of time than a Web site or video ad help or hinder a luxury brand’s direct mail success and ROI,since they generally spend more time flipping through the per Mr. Schulte.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 or- dering the book. Ferragamo ‘s Fall catalog Luxury marketers need to ac-“The goal is to get a measurable response in a sales for- knowledge that this year’s affluent shopper will be lookingmat,” 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 betested 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 stopgot,” he said. them from ordering.Direct orders “Direct mail is what people are comfortable with, particu-However, luxury brands do need to realize that direct mail larly people who are 40 and older and who have a highercannot stand completely alone in the current digitally- income,” he said. “These consumers were brought up withevolving world. catalogs and luxury brands can certainly show their story and imagery much better in print than online.Direct mail pieces should be incorporated into larger mul-tichannel approaches and should have references that “However, you may want to drive people to the Web sitedrive 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 incentivessuch as “certain colors onlyavailable online” or “this styleonly available in-store.”A catalog should also containscanable bar codes or SMScalls-to-action that bring on-the-go consumers to brands’mobile applications and sites.Conversely, luxury brandsshould use other branded Brahmin’s Fall 2011 catalogPAGE 11 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • IN-STOREEmployee, consumer relationship key to in-store experienceBy Kayla HutzlerL 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 onNot enough luxury brands focused on creating and nur- consumer retention and relationship building,” he said.turing a relationship with consumers in 2011. However, tomaintain a loyal consumer base in the current unstable Long-term relationship tipsand overcrowded environment, luxury brands are going to Luxury brand employees should not just be looking to sellhave 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 sortof loss of momentum in the buying power of the affluent Affluent consumers expect to receive luxury service whenconsumer,” said said Milton Pedraza, CEO of the Luxury they enter a luxury brand store, especially if they haveInstitute, New York. been in that store before. Therefore, a consumer should be wel- comed when they first enter a luxury lo- cation, according to Mr. Pedraza. While a consumer browses, a luxury em- ployee should be listening to the con- sumer’s interests and desires and gaining information such as products bought pre- viously and the occasion for the current purchase. The employee should then offer useful and personalized suggestions. That is where product comes in, according to Mr. Pedraza. A luxury brand cannot expect to draw consumers in-store when it does not offer the right product. Additionally, not offering as much of the product range as possible at a particular A Chanel boutique in the French Alps uses iPads in-store location could turn consumers off.PAGE 12 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 adamentals that fit their brand DNA and they have to be quick thank you email and digital receipt to the consumerdisciplined on that,” Mr. Pedraza said. shortly after the purchase is made.“Having more clas- Ultimately, this typesic products [as wellas] updated prod- “Mobile devices only make the sales of intimate interac- tion and relationshipucts that are really professionals more human and allow between a brandrelevant to the con- and a consumer willsumer and to the them to be more relevant and more help increase con-brand will be keygoing forward,” he personal to consumers” sumer retention and repeat purchases.said. “You have tohave great products or the people will not even show up.” Indeed, some luxury brands got a head-start in 2012.Mobile moves For example, Chanel is attracting ultra-affluent guests atTechnology can help to improve the in-store experience the Courchevel resort in the French Alps by incorporatingdramatically and will become increasingly necessary to iPads into the space, allowing guests to play and browsebeating out competitors in 2012. while they shop.Luxury brands need to implement the use of tablets or “Mobile devices only make the sales professionals moresmartphone devices in-store for employees. human and allow them to be more relevant and more per- sonal to consumers,” Mr. Pedraza said.A huge benefit of in-store mobile devices is that the em-ployee will be able to further explain the history and the “Mobile devices such as smartphones or tablets shoulddesign of any particular item to a consumer by having the dramatically enhance the relationship-building capabili-material at his or her fingertips. ties of the sales professional,” he said.Additionally, while the employees get to the knowa consumer, they should be making notes on theirpreferences, any important dates or occasionsand past product purchases as well as gainingcontact information and preffered communica-tion platforms such as email or phone.This information can be used to help retain thecustomer and continue the relationship beyondthe store.For example, if an employee can learn the dateof a consumer’s anniversary, the brand can thenbe sure to send out new product information ata time when it will be relevant to the consumer.Additionally, a luxury brand will be able to offerfree repairs and services or extended warranteesin a timely manner after the original purchase. Burberry Brit store in Convent Garden, LondonPAGE 13 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • INTERNETSocial media cannot stand alone in 2012By Kayla HutzlerS ocial media will continue to lead the way for Inter- Marcus both ran social media contests last year to pro- net marketing in 2012. However, for social media mote new collections that were coming to their stores. to be most effective it must be incorporated into amultichannel approach. Taking it one step further, Condé Nast’s W magazine saw 3,500 downloads for its iPad application from its Daily WFacebook will likely become the main platform for luxury social mobile sweepstakes that asked consumers to sharebrands to spread campaign images and other marketing daily content on their Facebook pages.campaigns this year. However, a label cannot look to tack-le Internet and social media marketing and expect sales For global brands in particular, photo or geo-location-without a well-functioning ecommerce site. based content will help make consumers feel as if they are part of a branded community no matter where they are in“Social media marketing will continue to grow as a mech- the world.anism for engagement and so will mobile,” said Fadi Shu-man, New York-based cofounder of Pod 1. Luxury marketers should also be ready to adapt to new technologies such as Pinterest and Google+ as more con-“But, I think the most successful campaigns of 2012 will sumers begin to feel comfortable on these new platforms.take advantage of all mediums through some sort of mul-tichannel activity,” he said. Brand-curated editorial content will also continue to be important this year as more sites begin to offer similarSocial cues functionality, per Mr. Shuman.While luxury brands were warming up to social mediain 2011, it will truly become the go-to platform formarketers this year. “The most successful campaignsFacebook will likely become the primary way in which of 2012 will take advantage ofmarketers share campaign photos. all mediums through some sort ofAlso, campaign and behind-the-scenes videos will multichannel activity”increase in importance and should be posted on abrand’s Facebook page.Indeed, all videos should ideally be easily linked to abrand’s social media account since video, be it funny or “Ultimately, engaging content is what will differentiatecute, is highly-shared amongst online consumers due to your brand from the competition, so I see this area grow-its ability to spark emotion. ing in importance,” he said.In addition to using Facebook to spread the reach of im- Following throughages and videos, marketers should also look at how they Brands should also continue to use banner and tower ad-can use the platform to host contests. vertisements on Web sites. However, marketers should be looking to make them as interactive as possible for theLuxury 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 ex- perience, affluent consumers may likely turn to a third- party department store or another brand. Luxury brands must also re- alize that consumers will be continuing to increase their use of tablets and smart- phones in 2012. Interactive Range Rover adIncluding video or ecommerce stores within the ad will Therefore, all Internet effortshelp brands stand out and hold consumers’ attention. should be viewable on these devices as well.A luxury brand should also consider linking ads to their “The most important thing to consider is whether a brandsocial media accounts so users can find similar material. is engaging in ecommerce or not,” Mr. Shuman said. “If you are marketing online and your customer cannot transactAdditionally, going beyond banner ads to full-site take- through your Web site, then you’re really missing a trickovers 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 theHowever, all of this advertising will turn to marketing experience is a positive one that works on all platformswaste if a luxury brand fails to create a functional, easy- and devices otherwise you will lose that all-importantto-use ecommerce site. sale,” he said.Affluent consumers are expecting luxury brands to not “Long gone are the days of Flash-only Web sites that takeonly 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 itemsvia the Internet, they are expecting all brands to give themthe 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 keywhen designing a Web site.In 2011, many brands got caught-up in creating videosthat required Flash on their Web sites and sometimes thedownload speed and the time it takes to actually get to aproduct page turned consumers off.For maximum retention, a luxury label needs to ensurethat its Web site looks professional while also serving theneeds of its customers. Burberry lets consumers shop trench coats onlinePAGE 15 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • LEGAL/PRIVACYDomain names, trademarks to be main legal obstacleBy Kayla HutzlerL 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 domainWhile the Internet Corporation for Assigned Names and name is the correct one.Numbers has proposed a new domain name to help con-sumers decipher between counterfeit sites and luxury More so, this suggests that consumers are not aware thatbrand retailers, the effects are likely to be headache-caus- they are looking for and buying fake goods when theying rather than helpful. Additionally, legal problems sur- shop for these products online.rounding luxury trademarks will likely continue to plaguethe 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 challengesfor all brand owners, including luxury brands,” said Andrea “While some argue that the new .brand gTLDs may fa-Calvaruso, chair of the trademark and copyright practice vor luxury brands by providing a way to inform the pub-group at lawfirm Kelley Drye & Warren LLP, New York. lic which Web sites sell authorized goods,” Ms. Calvaruso said. “This, in my opinion, falsely presumes all those who“This new expansion of the Internet will not only increase purchase counterfeit goods online believe the goods theythe number of potential infringing gTLD strings and do- purchase are genuine.main names, but also more Web platforms for infringersto sell counterfeit goods,” she said. “It would also cause brands to incur substantial costs to educate consumers,” she said.Brand namesThe new domain name “.brand” may become available this Luckily, there a few steps luxury marketers can take to pro-year to help luxury marketers distinguish a brand’s Web tect their brands if the new gTLDs do go into effect, ac-site from third-party fakes. cording to Ms. Calvaruso.However, this may not be the answer to luxury brands’ First, the brand will need to decide whether they shouldprayers, per Ms. Calvaruso. applying to register for a .brand gTLD.The new domain names will make the Internet market- Either way, the luxury brand should monitor the gTLD ap-place even larger, leaving way for more counterfeit good plication process to identify third-party applications that are looking to use the brand’s name so that they can object“This is a significant blow to luxury brand to ICANN within the approved seven-month period.owners, in particular, who struggle to findways to protect its products in the absence Also, a brand should register its URL with ICANN’s appointedof U.S. protection for fashion designs” Trademark Clearing House .PAGE 16 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • Lastly, the brand should ensure that it budgets additionalenforcement funds to protect its brand name during thenew 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 toensue in 2012, per Ms. Calvaruso.Indeed if the southern New York District Court decision inthe Christian Louboutin versus Yves Saint Laurent is up-held, these instances would only increase.Currently, the decision states that a single color cannotfunction 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 productsin the absence of U.S. protection for fashion designs,” Ms. Christian Louboutin Eugenie Dorsay shoeCalvaruso said. Currently, this includes the consistent use of color or otherUntil the decision is upheld, a label must be as specific and design features to educate consumers that such feature isrepetitive as possible to differentiate its goods from oth- a brand identifier.ers under the current United States trademark, trade dressand copyright laws. Good examples are the Gucci horse bit and three stripe de- sign, Tiffany & Co.’s use of the robin’s egg or “Tiffany blue” and Hermes’ use of a certain shade of orange, according to Ms. Calvaruso. However, luxury brands should take precautionary steps in the event that the color decision made in the Louboutin case is upheld. “Brand owners and their counsel would be well-advised to be as particular as possible in identifying the trademark protection they claim, including color for fashion-related items in U.S. trademark applications and enforcement ac- tions,” Ms. Calvaruso said. “For example, specifying a particular pantone color or range, placement of the mark on the product and other distinguishing features of the claimed mark such as high gloss or matte may help combat or avoid claims that the trademark claim is overbroad and unprotectable,” Yves Saint Laurent’s red-soled heel she said.PAGE 17 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • MOBILELocation-based marketing, in-app commerce key for 2012By Rachel LambL uxury marketers looking to stay ahead of the curve in 2012 should aim to developlocation-based marketing, analyt-ics and commerce options in richmobile applications.These efforts are the future ofmobile marketing and will helpluxury brands tap on-the-go con-sumers wherever they are whilealso forming deep relationships.Additionally, since mobile com-merce is becoming increasinglymore popular, luxury brandsshould take advantage by en-abling transactions in-app. Bulgari’s iPad app“Rich apps with location-aware technology give retailers Check-in to check-outthe opportunity to immerse the consumer in their own Among commerce and analytics, location-based in-appbranded experience and send them promotional offers di- advertising was an area where luxury retailers were wayrectly through the app based on the consumer’s physical behind other marketers in 2011.location, when they enter the retail store, how long theyare there and what they do inside,” said Dan Lowden, vice Only a few marketers including Nordstrom and Bergdorfpresident of marketing at Digby, Austin, TX. Goodman took advantage of location-based ads last year. Location-based ads are one of the most effective market-“For 2012, consumers will expect to engage with brands ing techniques since consumers are literally right wherein a more personal way through their favorite branded brands want them.apps,” he said. “Those retailers who enable location-basedmarketing and analytics in their mobile strategy through Brands can use location to their advantage with bannertheir own branded rich mobile app will better understand ads in apps or on mobile sites or through services such asand engage with their consumers like never before, driving foursquare, Gowalla or Facebook check-in.sales, customer loyalty and deep in-store analytics.” Location-based services such as foursquare use push notifications that alert consumers“2012 will be the year that luxury when they are near a brand retail location.brands take full advantage of the true “2012 will be the year that luxury brandsopportunity mobile unlocks — location take full advantage of the true opportunity mobile unlocks — location awareness,” Mr.awareness” Lowden said.PAGE 18 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • “While many brands have a mobile-optimized Web site because it is the only fool-proof medium to reach con-and rich app that let their customers search, browse and sumers wherever they are.buy from the smartphone, many luxury brands are try-ing to figure out how to increase traffic to their physical “Once luxury brands start capturing and understand-store locations. ing the behavior of their mobile consumers around and within specific store locations, they can compare loca-“A location-aware branded rich app enables retailers to di- tions, determine patterns and measure the economic im-rectly communicate through their app to drive loyal cus- pact and success of operations or marketing initiatives,”tomers to specific store locations with regional or local Mr. Lowden said.deal-of-the-day promotions,” he said.“In 2012, brands should focuson unlocking the location oftheir customers, driving themto the store and measuringconsumer buying behavioronce they are there so retail-ers can market to them basedon their preferences andbuying habits.”Location, location, locationAnother mobile componentthat marketers should takeadvantage of is integratingmobile with other channels.For example, brands can useQR codes or SMS calls-to-action on print, out-of-homeand mail ads.“Mobile is a game-changer asit can be leveraged across allchannels,” Mr. Lowden said.Brands can also leverage mo-bile to take advantage of in-store deals. In fact, 46 percentof consumers already usesmartphones to access prod-uct knowledge while in a retailstore, according to researchfrom Briabe Media.However, it all comes back tousing location-based services Saks Fifth Avenue commerce-enabled iPad appPAGE 19 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • MULTICHANNELMultichannel marketing will become second nature in 2012By Rachel LambA 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 commonConsumers, especially affluent ones, are not just one me- types of marketing.dium. Therefore, high-end marketers need to communi-cate a seamless experience across all channels that effec- Placement in a luxury-focused magazine or newspapertively relays the brand image. with a high-income demographic can be one of the best ways to be seen by affluent consumers.“Multichannel marketing is the norm today,” said Chris Ra-mey, president of Affluent Insights, Miami. “However, it’s Along the same lines, catalogs and direct mail pieces helpstill 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 moreing their favorite showroom or eating,” he said. able to afford luxury goods. In contrast, many luxury marketers are using new methods such as mo- bile ads and applications, social me- dia and branded Web sites. These forms of marketing allow for more engagement such as com- merce, behind-the-scenes pictures, videos and real-time interaction. Digital marketing tends to target younger consumers. These consumers may not be able to buy luxury products right now, but when they are able to, younger shoppers will already have made a relationship with a brand. Where print and direct mail are stat- ic, tangible marketing efforts, digital advertising allows for interaction Bottega Veneta print ad in Vanity Fair February 2012 issue with a luxury brand.PAGE 20 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • Therefore, luxury marketers must have a multichannel Seamless multichannel marketing is especially impor-strategy to increase the reach, wherever customers may tant since luxury brands are quickly moving into otherbe demographically and geographically. channels and need to present one brand image across all marketing platforms.“If you want the affluent consumers’ It used to be that only a few were on mobile or on social media, butbusiness, you have to be wherever they are” now that most luxury brands have different platforms to engage con- sumers, it is important that they“In my opinion, luxury brands will find a way to limit who is differentiate themselves on these mediums in a way thatadmitted behind the velvet ropes,” Mr. Ramey said. “It may still shares the brand voice.be more social private sites where they can become morepersonal or perhaps a limit their access on traditional sites. “Multichannel marketing may seem revolutionary to mar- keters, but its merely evolutionary for the affluent,” Mr.“Regardless, exclusivity is a traditional luxury strategy that Ramey said. “They don’t view multichannel marketing aswill return as the economy gets back on its feet,” he said. being separate.“Affluent customers will demand it because being one ofmany thousand fans won’t always feel special.” “If you want the affluent consumers’ business, you have to be wherever they are,” he said.Seamless WebObviously, some marketers are already usinga multichannel approach with campaigns.Since mobile is the fastest-growing medi-um, quite a few brands are transitioning thesame experience that consumers receive ontheir Web sites and print advertisements asthey are through mobile applications, ban-ner ads or optimized sites.For example, jeweler Tiffany & Co. is themaster of a seamless transition.Its What Makes Love True campaign waseasily recognizable through its print, Website, microsite, social media and mobile ads.Images from the microsite were found inprint ads, while components from the appwere found on optimized sites.Additionally, other brands such as Gucciand Dolce & Gabbana use the same cam-paign images from their latest collectionson their mobile apps as on they do on theirFacebook pages , Tumblrs and Web sites. Tiffany’s dedicated What Makes Love True micrositePAGE 21 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • OUT OF HOMEOut-of-home ads perfect medium for affluent mobile usersBy Rachel LambO 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 oftaxis. 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 theeconomy and the luxury market is returning to health,”he said. “Out-of-home advertising is an ideal medium forreaching more affluent and mobile audiences, and manydisplay formats can target luxury consumers with timelymessages near the point of sale.” Bloomingdale’s SMS call-to-actionBill of healthUsing an interactive call-to-action on a billboard not only Bloomingdale’s used an eye-catching ad on a telephonebuilds brand awareness, but engagement factors will en- booth that attracted consumers and then used mobile tosure that consumers spend more time with the marketer. retain them.Brands have already started to use these techniques. On the site, consumers were able to buy products from the Bloomingdale’s optimized site, watch videos and locate stores.We’ll likely see more investment as out-of- Additionally, Swarovski Ele-home continues to offer a more innovative ments attracted holiday shop-and interactive way to target a more opti- pers in Los Angeles with an in- stallment on Rodeo Drive thatmistic affluent audience” used social media and mobile. Consumers could send texts orFor example, department store Bloomingdale’s used a QR tweets that would appear on the installment and theycode and SMS call-to-action to bring consumers to a mo- could watch a live-action feed of the installation onbile site to see its scarf collection last spring. Swarovski’s Facebook page.PAGE 22 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • Not only can brands measure interaction with out-of-home ads by adding mobile, but it also allows consumersto 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 luxurymarketers place out-of-home ads.For example, Audi of America launched its newest A7model with an interactive billboard in Times Square in NewYork 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 theattractions and luxury brand boutiques.Additionally, rival Mercedes-Benz plays by the same rules.Mercedes puts up ads for its newest models right in frontof the Holland Tunnel, a tunnel that goes from Northern Audi’s A7 mobile landing pageNew Jersey into New York. Many affluent consumers who live in New Jersey and com- mute to New York are very likely to see billboards. “Out-of-home campaigns in metropolitan areas, where luxury brands are more often found, are increasingly becom- ing more interactive and often incorporate a digital element,” Ms. Hayes said. “However, luxury brands typi- cally stand on their own and bold, simple and traditional outdoor ads can often be very powerful advertising plat- Swarovski’s Rodeo Drive structure forms,” she said.PAGE 23 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • PRINTPrint marketing to become more exclusiveBy Rachel LambD espite evolving digital outlets, print will remain an Niche rich effective marketing technique for luxury brands to Right now, high-end marketers are in luxury-focused pub- advertise to affluent consumers but will conform to lications, but some of the publications are mixed in witha more niche market. mass-retail brands.Since baby boomers and older affluentconsumers have grown up with and prefer “It’s like when TV came out there wasprint, it probably is not going anywhere fora while. However, to maintain the momen- radio and people thought that theretum, luxury brands may have to becomemore choosey about the publications in wasn’t going to be any more radio, butwhich they advertise. new media doesn’t replace old media”“Print is always going to be a big partof marketing, but I think that print is acontinuing trend and continues to move to more niche For example, Dolce & Gabbana and Chanel are paired withpublications such as Departures and Wall Street Weekend brands such as Guess in Conde Nast’s Vogue, W and VanityJournal rather than mass marketers,” said Greg Furman, Fair magazines. This is because consumers of all demo-CEO of the Luxury Marketing Council, New York. graphics read these magazines.“What’s happened is that the disparity between the haves Marketers generally advertise in these magazines becauseand the have-nots is increasing,” he said. “The aspirational there are some affluent consumers who read them, butbuyers have left the market and I don’t see them coming brands can also connect with younger consumers whoback any time soon.” read the magazines in the hope of building relationships for when they eventually are able to buy luxury goods. For high-end print marketing to remain ef- fective, brands must start to advertise in only luxury-focused magazines such as American Express’ Departures or Monocle, which only have high-income readerships. Another reason why print marketing will likley remain effective in 2012 is that luxury brands are conservative and often hesitant when it comes to new media. “Luxury brands like to play the wait-and- see game rather than jumping in to new Yves Saint Laurent spring/summer print ads media,” Mr. Furman said.PAGE 24 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • “They waited to sell onlineand it’s pertaining to [mo-bile] apps as well,” he said.Cracking the codeLuxury brands are hardlyinnovators when it comesto new marketing, but theycannot deny that it existsand that consumers are ondigital media.However, brands can stilluse print marketing andmodernize it with new tech-nology such as QR codes,augmented reality and so-cial meda calls-to-action. Prada spring/summer 2012 print ads Indeed, some already are. Dolce & Gabbana, Gucci, Fendi, Mercedes-Benz, Audi and Chanel use Web calls-to-action in all of their print ads. Indeed, marketers such as Bergdorf Goodman, American Express, Saks Fifth Avenue, BMW and Porsche are raising the bar in terms of combining the technology and print industries. These brands have used bar codes or SMS calls-to-action in their print ads. Print marketing will likely remain a part of luxury advertis- ing strategies because it is easily malleable as new tech- nology comes out. Indeed, it can conform to new marketing rather than be taken over by it. “It’s like when TV came out there was radio and people thought that there wasn’t going to be any more radio, but new media doesn’t replace the old media,” Mr. Furman said. “It just means that they have another channel with which to reach and sell products to consumers. “New media will reshape print the way that online re- Mila Kunis print ads for Miss Dior handbags shaped content in publications,” he said.PAGE 25 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • RADIOPandora, Sirius to up the ante in 2012 radio marketingBy Rachel LambT raditional radio advertising will live on, but since lux- “Radio provides strong reach opportunities with good tar- ury marketers have already begun to take advantage geting based on format and content,” said Greg Angland, of other services such as Pandora or Sirius, it is likely senior vice president and director of account managementthese forms of radio marketing will take precedence. at Blitz Media, Waltham, MA.Traditional radio advertising will likely remain a staple for “The creative approach should differ dramatically frommarketers such as automakers. However, satellite and Pan- that on TV, understanding the environment and how anddora are services that allow brands to curate their own where it is consumed,” he said. “Radio can also be quitechannels, make visible advertisements and speak with cus- efficient [particularly] on a national level.”tomers one-on-one. Into the airwaves Luxury automakers are historically the luxury brands that advertise on radio. Car brands delve out responsibility to their dealerships that make local announcements about deals, events and parties. However, automakers can also make national announcements about deals and promotions across the country. Radio is an effective channel since it has the ability to target a large number of people at once. Last year, General Motors Co.’s Cadillac used teen pop sensation Justin Bieber in a partner- ship with Sony Music to raise awareness and funds for Cure Duchenne via radio advertis- ing. Cadillac auctioned pairs of tickets to destina- tions such as Australia where winners had a chance to see Mr. Bieber in concert and meet him after the show. Unfortunately, there is no way to narrow the audience in terms of wealth or age. This means that messages could go out to con- An ad on Pandora for Tiffany’s What Makes Love True Pandora station sumers who cannot afford luxury products.PAGE 26 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 whereFor example, designer and filmmaker Tom Ford revealed consumers could watch videos and read about the brand’shis vision and inspiration in an exclusive monthly series on engineering.Sirius XM Radio in 2011. In addition, Lexus and competitor“Radio provides strong reach opportunities Mercedes-Benz both curated spe- cial radio stations that raised brandwith good targeting based on format and awareness and linked to branded content.content” The Mercedes station helped bringMr. Ford was able to target a likely affluent demographic the brand into the world of music lovers by featuring onlysince wealthy consumers are more likely to afford satellite emerging artists from around the world.radio prices. Other marketers such as Nordstrom and Tiffany & Co. areAlso, 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 onOut of the box selected music pop music stations to promote the depart-Another important marketing medium in 2012 for radio ment store’s lingerie events nationwide.will likely be Internet radio service Pandora. Meanwhile, Tiffany promoted its What Makes Love TrueLuxury brands have already taken advantage of this outlet microsite and app and, at a separate time, its spring/sum-and in a few different ways. mer 2012 collection.For instance, Lexus took out solo homepage ads to pro- The jeweler not only took out ad space on Pandora but also created its own playlist that featured classic love songs. It is likely that brands will contin- ue this trend of Web and satelite radio advertising in new ways over the next few years. “Content integration and per- sonality endorsements are strong attributes of the [radio] plat- form and advertising opportuni- ties,” Mr. Angland said. “Radio- type programming continues to broaden – including terrestrial, satellite, Pandora, streaming and Spotify – and each should be evaluated [and used] for their Mercedes-Benz station on Pandora own unique benefits.”PAGE 27 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • TELEVISIONOlympics, presidential elections to spike TV ads in 2012By Rachel LambT 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 toTV advertising is supposed to be up 5 percent to 10 per- TV advertising.cent, this year according to industry experts. TV is an easyway to get a message across to consumers, but it can be For example, brandsdifficult for luxury brands to reach target audiences be- such as Mercedes-cause the medium is so mass. Benz, Audi, Lexus and BMW often use highly-“The main draws for radio and TV are the ability to build viewed TV spots suchreach quickly and depending on the geography and the as the Super Bowl. Audi’s untitled Jersey City projectexecution can be quite efficient, although with a higherout-of-pocket cost due to the scale,” said Greg Angland, Therefore, it makes sense that luxury automakers wouldsenior 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 awell as deliver holistic brand messages in a compelling pretty equal male- and female-watching ratio.way utilizing the attributes of the medium,” he said. Another big factor in TV advertising this year will be the“Industry trades are projecting TV to be up this year, big presidential elections.contributing factors are political [spots] and the Olympics.” This is an especially viable marketing spot since it ca- ters to all age groups. However, affluent consum- ers tend to be more educat- ed and therefore are often more in touch with what is going on on a national and global level. Therefore, it is safe to say that a majority of the popu- lation interested in watch- ing the presidential debates, candidate speeches and November’s election will be Jaguar ‘s 2012 United States commercial somewhat affluent.PAGE 28 Luxury Daily LUXURY MARKETING OUTLOOK 2012
  • Both the Olympics and presidential elections are likely In addition, Chanel tapped actress Keira Knightley for itsto be huge sources of potential marketing attention for Coco Mademoiselle fragrance commercial.luxury marketers this year. Brands would be smart to include Web or mobile calls-to-action to further engage consumers.“In regards to cable, it offers strongtargeting abilities due to the sheer “There is also a high incidence of viewers of both TV and cable being online while watching acrossnumber of channels and targeted all devices,” Mr. Angland said. “This can be seen with significant search traffic increases tied di-programming while building reach rectly to when spots air in many instances.”and frequency” A downside to TV ads is that it is hard to know what kind of an audience views the commercial.Smells like successAnother big change in 2012 will be brands other than au- However, advertising on cable rather than prime-time net-tomakers 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 dueketing are fragrance labels. to the sheer number of channels and targeted program- ming while also building reach and frequency,” Mr. Ang-For example, Christian Dior’s J’Adore fragrance starring land said. “It can also be quite efficient, in particular, on aCharlize Theron aired across many channels. national level.” Mercedes winter driving commercialPAGE 29 Luxury Daily LUXURY MARKETING OUTLOOK 2012