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Gucci provides upfront pricing with interactive New York Times ads

September 1, 2011

Gucci interactive ad on NYTimes.com

Italian fashion house Gucci has taken prime real estate on the New York Times Web site with two interactive, clickable advertisements that feature products and prices from this season’s collection.

The Gucci ads frame the paper’s masthead and, in a unique marketing turn, display product prices upfront. The jury is still out on whether or not the open prices are a good idea for the brand.

“NYTimes.com is currently the fifth-most popular news Web site in the U.S. and one of the largest affluent and high net worth online subscriber bases, making it a potential profitable advertising platform for Gucci,” said James Dean, vice president and head of luxury practice at WealthEngine, Bethesda, MD.

“It remains to be seen whether providing pricing for each product in each advertisement is a good idea,” he said.

“I do think, however, this is a fresh approach for luxury good online advertising.”

Mr. Dean is not affiliated with Gucci, but agreed to comment as third-party expert.

Gucci did not respond by press deadline.

Tags and bags
The Gucci ads framed the New York Times title on the left- and right-hand sides.

The ad on the left was a stagnant ad that clicked-through to the branded Gucci Web site.

However, the ad on the right-hand side was extremely interactive.

When a consumer scrolled over the ad, a drop-down box opened up that displayed a product picture with the three bullet points of information regarding the product.

The last bullet point displayed the product price.

New York Times framed by Gucci ads

Consumers could scroll to the left or right to see additional products including shoes, bags and other accessories.

Upon clicking on a product, an individual page opened up in the New York Times site in the area that article text would normally be displayed.

However, providing such detailed information in the one ad may prove detrimental to Gucci.

“I expect consumers to draw conclusions from the online advertisement before they enter the Gucci Web site, which could discourage some consumers from shopping online with Gucci,” Mr. Dean said.

“It is a more effective strategy to require the consumers to click through to the Gucci Web site to shop and learn about pricing and enjoy the shopping experience.”

Gucci in-site product page

Times up
Gucci probably had the right intentions by taking out ad space on the New York Times site, and has had success on the site many times in the past.

The retailer’s ads on the New York Times site will likely be successful in increasing its reach and awareness.

The New York Times site receives as many as 60 million unique monthly visitors, giving Gucci a large consumer reach with little effort.

Gucci is not the first to key into the New York Times’ affluent readers.

For example, watchmaker Omega recently promoted its PGA Golf tournament sponsorship with interactive advertisements on the New York Times Web site (see story).

In addition, brands such as Oscar de la Renta and Calvin Klein have taken out similar masthead advertising on Vogue.com (see story).

Also, Balenciaga and David Yurman have taken over New York Magazine’s The Cut masthead this season. And their is the perennial favorite – Tiffany & Co.

The current economy could be one reason luxury brands are going above and beyond traditional online advertising to really stand-out to affluent consumers.

However, Gucci may have strayed too far by including pricing upfront.

“I do not think luxury consumers will be enticed to click through to Gucci’s Web site more than they normally would because pricing is stated upfront,” Mr. Dean said.

“Traditional online advertising of luxury goods is likely not as effective as the past in this volatile economy, as the affluent consumer is more finicky about shopping and purchasing luxury items,” he said.

Final Take
Kayla Hutzler, editorial assistant on Luxury Daily, New York

Kayla Hutzler is an editorial assistant on Luxury Daily. Her beats are automotive, consumer electronics, consumer packaged goods, financial services, media/publishing, software and technology, telecommunications, travel and hospitality, real estate, retail and sports. Reach her at kayla@napean.com.