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Luxury Benchmarks 
H1 2014
Contents 
Introduction 
The luxury landscape 
The stakes are high 
Sizmek benchmarks 
Value through sophistication – best practices from Sizmek experts 
Conclusion 
3 
4 
4 
5 
6 
7 
Luxury Benchmarks 
H1 2014
At first glance, luxury brands and the internet seem to have opposing objectives. 
Luxury is about exceptionality, indulgence, and scarcity, while the internet is an 
equalizer that anyone with a device and connection can use: Luxury brands in particular 
have no interest in anyone who can’t afford their goods. 
Due to this inherent conflict, luxury brands have been slow to adopt the internet as a 
marketing and sales channel, sticking to traditional routes to reach known customers. 
Nevertheless, luxury’s target customers are in fact online. And now there are tools that 
can create a sense of exclusivity and brand loyalty once available only via brick and 
mortar stores. With technologies like advanced audience targeting and cookie pooling, 
dynamic creative, interactive video, mobile HTML5, real-time analytics, social media, 
and verification, luxury advertisers can develop a valuable and lasting connection to 
their best customers. 
The following report offers tips based on Sizmek data and expertise for how to use 
these advanced digital features to enhance your luxury campaigns. We also highlight 
aggregate engagement data from more than 42 luxury brands worldwide running 
campaigns on Sizmek MDX from January to July of 2014. 
• U.S. affluent 
consumers spent 49 
hours online per week 
in September 2013 
(Ipsos MediaCT) 
• 48% of U.S. affluent 
consumers discovered 
new luxury products 
online 
(American Express Publishing) 
Interaction Rate Dwell Rate CTR 
Luxury Benchmark Luxury Benchmark Luxury Benchmark 
Introduction 
Flash Formats 
Rich Media 3.01% 2.93% 3.42% 4.41% 0.36% 0.22% 
Polite Banner 2.55% 1.32% 2.45% 2.34% 0.37% 0.13% 
Expandable Banner 4.52% 5.51% 6.43% 7.02% 0.31% 0.33% 
3 Sizmek Luxury Benchmarks: H1 2014
The luxury landscape 
• The target is defined. Traditionally, luxury brands know where to find their targets (affluents and aspirationals – A&A): 
high-end magazines, luxury locations, exclusive events, business and finance publications, and the like. In digital, A&As are first 
adopters. They’re mobile, cosmopolitan, and money isn’t a concern. 
• Brand is king. Luxury advertisers take their brands very seriously and will spend big money to retain their status across an entire 
campaign – be it on a billboard at Wimbledon or in the latest tablet edition of Vogue or Esquire. 
• Anything goes. Luxury brands will follow their consumers to the ends of the earth and are willing to experiment with new 
formats and features to get their attention – anything that fits with the brand story and values. 
• It has to look effortles. The key to luxury brand success is keeping the brand as a status symbol without patronizing the target. 
There is a fine line between a coveted accessory and over-eager aspirant. This applies to digital advertising as well – luxury 
brands carefully select the environment, format, and style of their ads. No flashing banners here - it has to be personal and 
appropriate. 
• The end game is the same. Obviously, the ultimate goal in all marketing is sales. In that, digital is unique as a channel. Not only is 
digital a branding vehicle, it also lets advertisers drive qualified customers to the checkout lane online (accounting for 5% of total 
luxury sales in 20131) or in-store visits. 
The stakes are high Allocation of Digital Luxury Ad Budget According to 
U.S. Ad Agencies and Luxury Brand Marketers 
% of total Ad agencies Luxury brand marketers 
Display 
28% 
17% 
16% 
16% 
11% 
11% 
11% 
Interactive TV 
7% 
9% 
10% 
26% 
13% 
Search 
Video 
Mobile 
Email 
Social 
3% 
22% 
Source: Martini Media and Digiday, "Engaging the Affluent Online: How Luxury 
Brands Are Leveraging Digital Marketing to Connect with Customers", 
Aug 23, 2012 
Worldwide, people are increasing their time spent with media on 
computers and mobile devices, and brands must connect with 
their customers in these environments. As a result, spending 
in these channels increased at a much faster growth rate than 
traditional media, overtaking print and broadcast TV in some 
regions. eMarketer estimates digital ad spending will reach 
$213.9 billion by 2018. 
Luxury marketing spend is no different. The 2014 Luxury 
Interactive Benchmarking Study by WBResearch found that 
97% of luxury advertisers were planning to increase their digital 
spending in 2014. The study went on to report that respondents 
were investing heavily in ecommerce, CRM, and display 
advertising. This data supports a 2012 survey from Martini 
Media and Digiday stating that 26% of luxury’s digital budget 
went to display while 22% went to social. These responses 
indicate that advertisers are using display advertising to build 
awareness of their brands and then carefully grooming new 
followers via social. 
1 Bain and Fondazione Altagamma 
4 Sizmek Luxury Benchmarks: H1 2014
Sizmek benchmarks 
What works in lux? Sizmek Research built custom rich media and HTML5 benchmarks with data from 42 luxury brands and 
advertisers from January to July of 2014. Below, we built out comparison tables using the H1 2014 Benchmark Data Book to see 
how they performed against the benchmark average. 
Interaction Rate Dwell Rate CTR 
Luxury Benchmark Luxury Benchmark Luxury Benchmark 
Flash Formats 
Rich Media 3.01% 2.93% 3.42% 4.41% 0.36% 0.22% 
Polite Banner 2.55% 1.32% 2.45% 2.34% 0.37% 0.13% 
Expandable Banner 4.52% 5.51% 6.43% 7.02% 0.31% 0.33% 
Luxury’s polite banner interaction rates were almost twice that of the benchmark number worldwide, hinting that great creative and 
imagery grab the viewer’s attention. Dwell rates, which are only counted once, were in line with other rich media units. Click-through 
rates (CTR) were higher for rich media on average and almost three times that for polite banners. 
Polite banners with video clips showed a 40% increase in interaction rate and a 10% higher CTR vs. all polite banners (both video and non). 
Interaction Rate Dwell Rate CTR 
Luxury Benchmark Luxury Benchmark Luxury Benchmark 
Rich Media Polite 
with Video 3.60% 2.81% 2.05% 1.66% 0.39% 0.17% 
In-banner video units also performed very well compared to the benchmark in all categories, suggesting that video strikes a chord 
with affluent targets. Both interactions and dwell are proven indicators of increased brand awareness. 
Luxury advertisers deployed a large number of HTML5 expandable banner formats. Luxury HTML5 expandable banners performed 
more than twice than the benchmark in terms of CTR and almost doubled interaction rates as well. While interaction rates for polite 
banners might not have hit the benchmark, dwell rates were higher and the CTR was equivalent at 0.35%. 
HTML5 Formats 
Interaction Rate Dwell Rate CTR 
Luxury Benchmark Luxury Benchmark Luxury Benchmark 
HTML5 Polite 0.61% 3.14% 3.98% 2.87% 0.35% 0.35% 
HTML5 Expandable 8.06% 4.58% 2.11% 4.79% 0.81% 0.37% 
HTML5 Standard -- -- -- -- 0.27% 0.31% 
In addition to added performance with HTML5, Sizmek's internal research shows that default delivery rates for HTML5 (when an 
impression fails to render on a user’s screen and they are shown a static image backup) are significantly lower than Flash rich media. 
5 Sizmek Luxury Benchmarks: H1 2014
Value through sophistication – best practices from Sizmek experts 
Jaime Singson, Director of Product Marketing 
• Driving users to stores: Use geo-targeting and a simple call out to push people to their nearest luxury brand location. Even 
listing just the neighborhood or store will do wonders especially since so many luxury advertisers don’t have e-commerce 
capabilities. 
• Retarget luxury users: While typical retargeting techniques (such as following users around with the products they looked at) 
are ill-suited to luxury brands, other retargeting strategies are ideal. Showcase featured items, personalize items based on 
categories the user enjoys, highlight new arrivals, etc. 
• Complement rich ad units with engaging shopping experiences: You’ve filled that large, lavish space with rich brand imagery 
and a great story – so why not let your users fall in love with your products as well? Users can browse the latest collections 
directly with carousels or other ad units featuring products. 
• Tailor your message and images: What gender do they buy for? Do they buy mostly gift cards or spend thousands of dollars 
every month? Consider shaping the experience with lifestyle photos tailored to your audience. 
• "Glocalize": Think global and local simultaneously. Some things must remain consistent to provide a coherent brand experience 
around the globe, but other things like copy style or holidays can be localized. Leverage dynamic creative to build out the global 
template and let your individual markets localize elements within it. 
Lauren Gonzales, Senior Manager at Peer39 by Sizmek 
Peer39 by Sizmek is the industry’s largest provider of data for ad decisions. By 
processing more than 60 billion ad impressions every day, we classify nearly 95% of all 
real-time bidding (RTB) inventory at page-level. 
• Protect the brand: Luxury advertisers need to create custom safety profiles to 
avoid negative content around their brand and the industry at large. For example, 
a luxury retailer may want to avoid content around child labor or unsafe working 
conditions. 
• Quality over quantity: Luxury brands should demand transparent inventory that 
has a low ad count and is content rich. 
• Target, target, and target some more: Align content environments for your ads 
with demographics that make the most sense, but do so contextually. For example, 
a high-end clothing brand might target content such as sailing, international travel, 
or investing, all of which are read by users in higher income brackets. 
• King of the mountain: Use contextual targeting to target content around your own 
brand on blogs or trend sites. Better yet, target those of your competitors to stay 
top of mind with their target consumer set. 
• Think global, execute local: Find tactics that work in one country or region and 
then employ them across the globe. Think about a chic sportswear brand targeting 
tennis content in the United States during the U.S. Open and then apply those 
parameters to Asia Pacific, Europe, and Latin America during local Grand Slam 
tournaments. Targeted reach can be instantly localized programmatically. 
6 Sizmek Luxury Benchmarks: H1 2014
Michael Lamb, Director of Product Marketing 
• Make the most of location data: Luxury marketers typically know down to the zip code level where their customers live and 
work. Take advantage of deep geographic reports to drill down through the engagement data of your campaigns to find new 
pockets of customers. 
• Who saw what? Digital ads and conversion tracking: Luxury brands build shopping profiles of their best customers online and 
off, thus figuring out which ads drove the purchase is key to planning future media investments. Attributing the right purchase 
to the right conversion in the path (was it a search ad, followed by display, followed by a social ad?) is vital to proving return on 
investment. 
• You built it, they came, now close the deal: Take advantage of the data produced by visits to your luxury website, where your 
brand has complete control of your customer’s experience. Use that data to inform your digital marketing campaigns. Linking 
your campaign to a single tag tracking solution can dynamically update the copy or featured products in your ad and improve the 
productivity of your existing website. 
• Tell your story, with a purpose: Luxury brands often lead with excellent storytelling. Use sophisticated digital campaigns to 
tell beautiful stories over multiple ad impressions and customize that story based on scripted logic tied to site interaction, ad 
interaction, location, content, and other data inputs. 
• Local campaigns roll up to global insights: While messaging and media strategy may be dictated locally, monitor trends across 
the globe. Collate local, country, and regional insights into a single reporting structure to make smarter creative and media 
decisions. 
sizmek.com 
© 2014 Sizmek, Inc. All rights reserved. 
7 Sizmek Luxury Benchmarks: H1 2014 
info@sizmek.com 
Conclusion 
According to the Luxury Institute 
survey, 97% of luxury advertisers 
increased their investment in digital 
initiatives in the past year. However, 
every advertiser must have a strategy 
to go along with that investment. 
Actionable information from Sizmek 
such as by-format comparisons 
and recommendations from 
product experts can help guide your 
investment. 
For more information and/or recommendations, 
contact your Sizmek representative today, or 
email us directly. If you’d like more information 
about the benchmarks or more detailed data, 
email research@sizmek.com and request the full 
Sizmek H1 2014 Data Book, with stats broken 
out by country, vertical, and format from the first 
half of 2014.

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The Luxury Brand Benchmark Report 2014

  • 2. Contents Introduction The luxury landscape The stakes are high Sizmek benchmarks Value through sophistication – best practices from Sizmek experts Conclusion 3 4 4 5 6 7 Luxury Benchmarks H1 2014
  • 3. At first glance, luxury brands and the internet seem to have opposing objectives. Luxury is about exceptionality, indulgence, and scarcity, while the internet is an equalizer that anyone with a device and connection can use: Luxury brands in particular have no interest in anyone who can’t afford their goods. Due to this inherent conflict, luxury brands have been slow to adopt the internet as a marketing and sales channel, sticking to traditional routes to reach known customers. Nevertheless, luxury’s target customers are in fact online. And now there are tools that can create a sense of exclusivity and brand loyalty once available only via brick and mortar stores. With technologies like advanced audience targeting and cookie pooling, dynamic creative, interactive video, mobile HTML5, real-time analytics, social media, and verification, luxury advertisers can develop a valuable and lasting connection to their best customers. The following report offers tips based on Sizmek data and expertise for how to use these advanced digital features to enhance your luxury campaigns. We also highlight aggregate engagement data from more than 42 luxury brands worldwide running campaigns on Sizmek MDX from January to July of 2014. • U.S. affluent consumers spent 49 hours online per week in September 2013 (Ipsos MediaCT) • 48% of U.S. affluent consumers discovered new luxury products online (American Express Publishing) Interaction Rate Dwell Rate CTR Luxury Benchmark Luxury Benchmark Luxury Benchmark Introduction Flash Formats Rich Media 3.01% 2.93% 3.42% 4.41% 0.36% 0.22% Polite Banner 2.55% 1.32% 2.45% 2.34% 0.37% 0.13% Expandable Banner 4.52% 5.51% 6.43% 7.02% 0.31% 0.33% 3 Sizmek Luxury Benchmarks: H1 2014
  • 4. The luxury landscape • The target is defined. Traditionally, luxury brands know where to find their targets (affluents and aspirationals – A&A): high-end magazines, luxury locations, exclusive events, business and finance publications, and the like. In digital, A&As are first adopters. They’re mobile, cosmopolitan, and money isn’t a concern. • Brand is king. Luxury advertisers take their brands very seriously and will spend big money to retain their status across an entire campaign – be it on a billboard at Wimbledon or in the latest tablet edition of Vogue or Esquire. • Anything goes. Luxury brands will follow their consumers to the ends of the earth and are willing to experiment with new formats and features to get their attention – anything that fits with the brand story and values. • It has to look effortles. The key to luxury brand success is keeping the brand as a status symbol without patronizing the target. There is a fine line between a coveted accessory and over-eager aspirant. This applies to digital advertising as well – luxury brands carefully select the environment, format, and style of their ads. No flashing banners here - it has to be personal and appropriate. • The end game is the same. Obviously, the ultimate goal in all marketing is sales. In that, digital is unique as a channel. Not only is digital a branding vehicle, it also lets advertisers drive qualified customers to the checkout lane online (accounting for 5% of total luxury sales in 20131) or in-store visits. The stakes are high Allocation of Digital Luxury Ad Budget According to U.S. Ad Agencies and Luxury Brand Marketers % of total Ad agencies Luxury brand marketers Display 28% 17% 16% 16% 11% 11% 11% Interactive TV 7% 9% 10% 26% 13% Search Video Mobile Email Social 3% 22% Source: Martini Media and Digiday, "Engaging the Affluent Online: How Luxury Brands Are Leveraging Digital Marketing to Connect with Customers", Aug 23, 2012 Worldwide, people are increasing their time spent with media on computers and mobile devices, and brands must connect with their customers in these environments. As a result, spending in these channels increased at a much faster growth rate than traditional media, overtaking print and broadcast TV in some regions. eMarketer estimates digital ad spending will reach $213.9 billion by 2018. Luxury marketing spend is no different. The 2014 Luxury Interactive Benchmarking Study by WBResearch found that 97% of luxury advertisers were planning to increase their digital spending in 2014. The study went on to report that respondents were investing heavily in ecommerce, CRM, and display advertising. This data supports a 2012 survey from Martini Media and Digiday stating that 26% of luxury’s digital budget went to display while 22% went to social. These responses indicate that advertisers are using display advertising to build awareness of their brands and then carefully grooming new followers via social. 1 Bain and Fondazione Altagamma 4 Sizmek Luxury Benchmarks: H1 2014
  • 5. Sizmek benchmarks What works in lux? Sizmek Research built custom rich media and HTML5 benchmarks with data from 42 luxury brands and advertisers from January to July of 2014. Below, we built out comparison tables using the H1 2014 Benchmark Data Book to see how they performed against the benchmark average. Interaction Rate Dwell Rate CTR Luxury Benchmark Luxury Benchmark Luxury Benchmark Flash Formats Rich Media 3.01% 2.93% 3.42% 4.41% 0.36% 0.22% Polite Banner 2.55% 1.32% 2.45% 2.34% 0.37% 0.13% Expandable Banner 4.52% 5.51% 6.43% 7.02% 0.31% 0.33% Luxury’s polite banner interaction rates were almost twice that of the benchmark number worldwide, hinting that great creative and imagery grab the viewer’s attention. Dwell rates, which are only counted once, were in line with other rich media units. Click-through rates (CTR) were higher for rich media on average and almost three times that for polite banners. Polite banners with video clips showed a 40% increase in interaction rate and a 10% higher CTR vs. all polite banners (both video and non). Interaction Rate Dwell Rate CTR Luxury Benchmark Luxury Benchmark Luxury Benchmark Rich Media Polite with Video 3.60% 2.81% 2.05% 1.66% 0.39% 0.17% In-banner video units also performed very well compared to the benchmark in all categories, suggesting that video strikes a chord with affluent targets. Both interactions and dwell are proven indicators of increased brand awareness. Luxury advertisers deployed a large number of HTML5 expandable banner formats. Luxury HTML5 expandable banners performed more than twice than the benchmark in terms of CTR and almost doubled interaction rates as well. While interaction rates for polite banners might not have hit the benchmark, dwell rates were higher and the CTR was equivalent at 0.35%. HTML5 Formats Interaction Rate Dwell Rate CTR Luxury Benchmark Luxury Benchmark Luxury Benchmark HTML5 Polite 0.61% 3.14% 3.98% 2.87% 0.35% 0.35% HTML5 Expandable 8.06% 4.58% 2.11% 4.79% 0.81% 0.37% HTML5 Standard -- -- -- -- 0.27% 0.31% In addition to added performance with HTML5, Sizmek's internal research shows that default delivery rates for HTML5 (when an impression fails to render on a user’s screen and they are shown a static image backup) are significantly lower than Flash rich media. 5 Sizmek Luxury Benchmarks: H1 2014
  • 6. Value through sophistication – best practices from Sizmek experts Jaime Singson, Director of Product Marketing • Driving users to stores: Use geo-targeting and a simple call out to push people to their nearest luxury brand location. Even listing just the neighborhood or store will do wonders especially since so many luxury advertisers don’t have e-commerce capabilities. • Retarget luxury users: While typical retargeting techniques (such as following users around with the products they looked at) are ill-suited to luxury brands, other retargeting strategies are ideal. Showcase featured items, personalize items based on categories the user enjoys, highlight new arrivals, etc. • Complement rich ad units with engaging shopping experiences: You’ve filled that large, lavish space with rich brand imagery and a great story – so why not let your users fall in love with your products as well? Users can browse the latest collections directly with carousels or other ad units featuring products. • Tailor your message and images: What gender do they buy for? Do they buy mostly gift cards or spend thousands of dollars every month? Consider shaping the experience with lifestyle photos tailored to your audience. • "Glocalize": Think global and local simultaneously. Some things must remain consistent to provide a coherent brand experience around the globe, but other things like copy style or holidays can be localized. Leverage dynamic creative to build out the global template and let your individual markets localize elements within it. Lauren Gonzales, Senior Manager at Peer39 by Sizmek Peer39 by Sizmek is the industry’s largest provider of data for ad decisions. By processing more than 60 billion ad impressions every day, we classify nearly 95% of all real-time bidding (RTB) inventory at page-level. • Protect the brand: Luxury advertisers need to create custom safety profiles to avoid negative content around their brand and the industry at large. For example, a luxury retailer may want to avoid content around child labor or unsafe working conditions. • Quality over quantity: Luxury brands should demand transparent inventory that has a low ad count and is content rich. • Target, target, and target some more: Align content environments for your ads with demographics that make the most sense, but do so contextually. For example, a high-end clothing brand might target content such as sailing, international travel, or investing, all of which are read by users in higher income brackets. • King of the mountain: Use contextual targeting to target content around your own brand on blogs or trend sites. Better yet, target those of your competitors to stay top of mind with their target consumer set. • Think global, execute local: Find tactics that work in one country or region and then employ them across the globe. Think about a chic sportswear brand targeting tennis content in the United States during the U.S. Open and then apply those parameters to Asia Pacific, Europe, and Latin America during local Grand Slam tournaments. Targeted reach can be instantly localized programmatically. 6 Sizmek Luxury Benchmarks: H1 2014
  • 7. Michael Lamb, Director of Product Marketing • Make the most of location data: Luxury marketers typically know down to the zip code level where their customers live and work. Take advantage of deep geographic reports to drill down through the engagement data of your campaigns to find new pockets of customers. • Who saw what? Digital ads and conversion tracking: Luxury brands build shopping profiles of their best customers online and off, thus figuring out which ads drove the purchase is key to planning future media investments. Attributing the right purchase to the right conversion in the path (was it a search ad, followed by display, followed by a social ad?) is vital to proving return on investment. • You built it, they came, now close the deal: Take advantage of the data produced by visits to your luxury website, where your brand has complete control of your customer’s experience. Use that data to inform your digital marketing campaigns. Linking your campaign to a single tag tracking solution can dynamically update the copy or featured products in your ad and improve the productivity of your existing website. • Tell your story, with a purpose: Luxury brands often lead with excellent storytelling. Use sophisticated digital campaigns to tell beautiful stories over multiple ad impressions and customize that story based on scripted logic tied to site interaction, ad interaction, location, content, and other data inputs. • Local campaigns roll up to global insights: While messaging and media strategy may be dictated locally, monitor trends across the globe. Collate local, country, and regional insights into a single reporting structure to make smarter creative and media decisions. sizmek.com © 2014 Sizmek, Inc. All rights reserved. 7 Sizmek Luxury Benchmarks: H1 2014 info@sizmek.com Conclusion According to the Luxury Institute survey, 97% of luxury advertisers increased their investment in digital initiatives in the past year. However, every advertiser must have a strategy to go along with that investment. Actionable information from Sizmek such as by-format comparisons and recommendations from product experts can help guide your investment. For more information and/or recommendations, contact your Sizmek representative today, or email us directly. If you’d like more information about the benchmarks or more detailed data, email research@sizmek.com and request the full Sizmek H1 2014 Data Book, with stats broken out by country, vertical, and format from the first half of 2014.