View all newsletters
Latest in Luxury - Sign up to our newsletter

Elite Traveler – ET Insider – May 28, 2009

Array

ET Insider – May 28, 2009

Elite Traveler Insider –

etlogo

May 28, 2009

Elite Traveler Insider

By Douglas D. Gollan, President and Editor-in-Chief, Elite Traveler Magazine  

Welcome to the latest issue of Elite Traveler Insider, the bi-weekly newsletter designed to update our top partners on trends in the private jet lifestyle. This information is provided to offer a better understanding of how to target these globetrotting elite travelers, their impact on your business and other trends that affect you. Remember, private jet travelers are paying up to $10,000 per hour to fly by private jet, so these super rich consumers could be and should be your best customer. We talk about them and how you can get more of them and more from them.

IN THIS ISSUE:

1. Behavioral Targeting to Reach the Super Rich on the Web

2. New Household Income Numbers Show Low Buying Power for Aspirational Titles

3. The P.R. Problem of the Rich? Or Let’s Create Jobs…

4. Conde Nast’s Concierge.com on Elite Traveler…

5. New Study Says Place Your Bets on Top 1%…

Over 90 percent of today’s Super Rich are Self Made and over 80 percent of the Super Rich have made their fortune in the past 10 years. Now is the best time to make sure they know your brand. 86% believe Elite Traveler is a good showcase for luxury products.

1. Behavioral Targeting to Reach the Super Rich on the Web

A couple weeks ago I attended an interesting event organized by Catalyst Partners, an investment fund that specializes in innovative media. The panel discussion was led by NBC/Universal CEO Jeff Zucker and included Jon Miller, the former AOL boss who now heads Rupert Murdoch’s web strategy team for News Corp on a global basis, and Chris Hughes, a partner with Catalyst but best known as the creator of President Obama’s web fund-raising strategy and a founder of Facebook.

Clearly the future is a bit foggy even for this distinguished group; in fact, Zucker, in a very candid comment, said that NBC had created its now popular Hulu web site with Fox as a defensive strategy to prevent its content being pirated as has happened in the music business. While at this point he called Hulu “trading dollars for pennies,” he expressed hope that it will eventually turn into nickels and dimes.

One of the most interesting themes shared across the panel was that Behavioral Targeting will be the key to a successful web marketing strategy (along with search). The idea is that more and more marketers have found that traditional banner ads and pop ups against unrelated content don’t really work, and the day has come where they are no longer automatically allocating dollars to anything internet.

Behavioral targeting enables marketers to target a potential customer when they are most open to receiving a marketing message. For example, imagine you are an uber-wealthy private jet owner. You use the web for some specific functions: e-mail, checking stock prices and B2B news about the industries in which you have businesses. You are time-poor, so you use the web when it provides a time value for you, not to kill time.

So let’s assume you own a distribution company in the Pharmaceutical industry. Your most frequented web sites could look something like the following:

www.pharmaceuticalnews.com www.epharmaceutical.com www.pharmexec.com www.ehealth.eu www.biotechmedia.com www.wsj.com www.financialtimes.com

When you are going to the above sites, you are focused on getting information related to your business, or perhaps personal finance. If there happens to be an ad for Lexus or Rolex, you weren’t going to the above sites to buy a car or watch; therefore, according to the Behavioral Targeting model, advertising these type of products in this environment is not going to be very effective.

Of course, as a private jet owner we know you take an average of 41 trips per year, including 10 intercontinental trips. You also spend about $150,000 per year on timepieces, over $200,000 per year buying autos, and of course some $400,000 at hotels and resorts, and over $250,000 on jewelry.

You read and like Elite Traveler. After all, with three principal residences and all that travel, Elite Traveler is the only magazine that comes directly into your living room – your private jet – and since it is distributed in over 100 countries, you always seem to have it in front of you.

You enjoy the stories in Elite Traveler featuring Top Suites in various cities, but while Milan was featured in the January issue (along with New York), you are now going to Milan in three weeks and don’t have the issue with you. You also weren’t happy with your regular hotel in New York the last two times, and are ready to try something new. Now you wish you had kept the January issue since it featured Top Suites in both cities and you saw some nice ones, and you want the information now.

You find that Elite Traveler’s content specifically fits your needs. The beauty of elitetraveler.com, the private jet lifestyle online, is that we have now put those stories – Top Suites of Milan and Top Suites of New York – into easy to ready, easy to download four-color PDF guides on our website. We have also expanded the content to include restaurants, clubs, bars, galleries and shopping via our partnership with Quintessentially, which has its own concierges in both cities and 70 more worldwide.

Even better, Elite Traveler is wherever in the world you are, 24/7/365 – just a click away.

So let’s go back to Behavioral Targeting: While it might not make sense for The Carlyle, a top five-star hotel in New York City, to advertise to you while you are on wsj.com or biotechmedia.com, reaching you specifically on the landing page for Top Suites of New York and with added content within the Top Suites of New York PDF would provide a targeted way to get its message to you right when you are interested – as you are selecting a hotel for your next stay in New York. And since private jet owners typically spend $1,000 to $10,000 per night for a suite and on average take three additional rooms and suites, the Return on Investment for an individual hotel can be staggering; in fact, a full-year marketing program can be paid off in full with just a single booking!

The same goes for a jewelry brand or designer who wants to reach wealthy consumers. The Elite Traveler Jewelry Review, written by Elite Traveler Style Editor Tanya Dukes, is a place on the web Elite Traveler readers know they can go to find a comprehensive overview of top jewelry designers and brands with some background on each and a featured piece of jewelry selected by Tanya and our team. From a marketing perspective, a jewelry brand can now target wealthy consumers (85% of elitetraveler.com visitors are readers of the magazine) specifically when they are in the shopping mood.

You can click here to specifically see both The Jewelry Review and example of some of the marketing programs currently running.

Elite Traveler’s BPA audited circulation aboard private jets and mega-yachts in over 100 countries means your ad is guaranteed to reach the highest spending luxury audience in the world no matter where they are from and where they happen to be today – each issue is read by 407,000 readers with a Household Income of $1 million +, the highest of any magazine or newspaper in the world! Sources: 2007 Prince ET/MMR for others

2. New Household Income Numbers Show Low Buying Power for Aspirational Titles

How much does a consumer have to make before taxes to buy that piece of jewelry or take that trip? Well a good a quick back-of-the-envelope exercise would be to take a magazine’s stated reader Median Household Income, cut it by 40 percent to account for taxes, and then deduct what a reader has to spend before paying rent, mortgages, car payments, groceries, repairs, tuition, loans, credit card debt and the like. According to Mediamark Research there certainly isn’t much left for luxury purchases these days when one looks at the just-released Household Incomes for various titles.

For example, W posted an $86,539 Median Household Income (meaning 50 percent of readers made less than this number). Female readers of Lucky came in a close second at $83,979, followed by In Style at $83,695. Marie Claire was at $75,368, while Elle came in at $71,964, and O, The Oprah Magazine placed at $72,922. Ranking income levels of Glamour’s female readers’ were essentially flat, at $66,142, while Harper’s Bazaar was $65,003, Vogue fell 2 percent to $64,828, and Town & Country was a paltry $62,995 – all before taxes and other expenses. Allure reported a decline of 9.5 percent to $59,324 and Cosmopolitan was down 3.5 percent to $57,298, according to the report in Women’s Wear Daily.

While the world’s economy today is unsteady, one thing is for sure: The wealthy consumers flying aboard private jets are your best bet, and only Elite Traveler delivers these elite travelers to our advertisers through our BPA audited circulation aboard private jets in over 100 countries, including Russia, the UAE, Kuwait, Qatar, Bahrain, Oman, India, Singapore, Korea and China. All with one ad buy!

3. The P.R. Problem of the Rich? Or Let’s Create Jobs…

When I penned my Jan/Feb President’s Letter it was early December and I had just gotten off the phone with Elite Traveler’s representative in Italy, Alessandra Arati. She was telling me how some of the jewelry makers in Vicenza and Valenza had closed their factories as business had dropped with the global recession. Having made a number of visits to both places, and spent interesting days touring factories where father, son, aunt and uncle worked side by side, Alex’s report had more personal meaning for me than picking up The Wall Street Journal to see the latest job loss figures.

My message in our Jan/Feb issue to readers was (and continues to be), “If you earned the money, have the money and want to spend it, you certainly should.” We know life has its unexpected turns, and as long as you have the money to pay the rent for the next couple years, buying something for someone special (including yourself) is in my opinion quite O.K. It is a main reason we haven’t dumbed down our editorial with lower price points as many magazines have done. In fact, my point was that when our wealthy readers spend, they are not only bringing some happiness and satisfaction for themselves and their loved ones, but are also helping the economy regain its footing.

So far, my President’s Letter has been the subject of scrutiny in venues including Harper’s, NPR, numerous blogs, and recently The Wall Street Journal, where Robert Frank wrote the following story:

The P.R. Problem of the Rich by Robert Frank

Did the wealthy cause the economic crisis or are they merely victims?

The question has been the subject of a debate spurred by the publication of a letter in Elite Traveler, a luxury magazine distributed on private jets. The letter to readers was written by Elite Traveler Editor Doug Gollan, who said the rich are being wrongly persecuted. He told jet-setters to ignore the attacks and keep spending, since their spending keeps the economy running:

“As we enter 2009, it is amazing to see how the general media has tried to shame wealthy individuals into not spending. The fact of the matter is the economic slump was not caused by the wealthy, it was caused by aspirational consumers who took out bigger mortgages than they could handle, leased cars they couldn’t afford and took vacations they shouldn’t have.”

“Should a person with a net worth of, say, 100 million have scaled back his or her holiday party because of the times? If we want to speak about getting the economy going again, the answer is no….I do hope you continue to do the things that provide you the enjoyment that you’ve earned and your financial wherewithal supports. ”

The letter was then reprinted in the May issue of Harper’s Magazine (subscription required) and apparently touched off all manner of populist outrage. In a follow-up interview on NPR’s “On The Media,” Mr. Gollan added that politicians in Washington are only adding to the unfair attacks since “trying to explain to the general public the importance of rich people is probably not what you would call a great campaign platform.”

Mr. Gollan makes some important points. Spending by the wealthy does create jobs, though so do their savings and investments. We would all be better off today if the wealthy kept spending, though it might be better for their PR and damp any populist outrage if there spending favored less in-your-face conspicuous consumption and more quieter, service-related items-like restaurants, vacations, hotels, household staff, etc.

But assigning blame for the financial crisis is a bit more complicated. Sure, a statement like “the economic slump was not caused by the wealthy” probably passes muster, but the wealthy certainly deserve a share of the blame-as does almost every sector of society. The rich borrowed, leveraged, made risky bets and lost site of the long-term consequences of their actions, just like everyone else.

Elite Traveler’s BPA audited circulation aboard private jets and mega-yachts in over 100 countries means your ad is guaranteed to reach the highest spending luxury audience in the world no matter where they are from and where they happen to be today – each issue is read by 407,000 readers with a Household Income of $1 million +, the highest of any magazine or newspaper in the world! Sources: 2007 Prince ET/MMR for others.

4. Conde Nast’s Concierge.com on Elite Traveler…

Below is from a recent report on Concierge.com outlining our encouragement of readers to keep spending.

Clear as Mud: Business Travel is Totally Cool, Except for When it Isn’t

After laying low for a while, the business travel industry is pushing back against critics who claim that first-class seats and lavish retreats aren’t appropriate in the current economic environment. Insurance company AIG came under fire last October for sending executives on a week-long retreat at a luxury resort and spa shortly after receiving relief funds, while auto executives were ridiculed for flying their private jets to Washington for the bailout hearings. With so many people in dire economic straits, it seems tacky for companies to flaunt their wealth these days, but is it fair to single out business travel as an unjustifiable expense? Or is it a cost of doing business that helps the economy as well?

That’s what the CEO of Travelocity told a Senate subcommittee on tourism last Wednesday. As the AP points out, Sam Gilliland said that the Treasury Department hasn’t done a good job defining acceptable versus unacceptable business travel, and that “meetings, conventions, and incentive travel,” were important business tools, and not a frivolous luxury that can be curtailed to no ill effect. Gilliland was joined by five other travel executives, including the chairman of Walt Disney Parks and Resorts, who provided examples of how business travel stimulates commerce and keeps people employed during rocky economic times.

Striking a similar tone, the editor of Elite Traveler, an in-flight magazine for private jets, caused a bit of a kerfuffle recently when he wrote that the rich should feel no guilt in flying their private jets and spending lavishly on parties. If you can afford it, he argued, there’s no reason not to spend it, especially since it keeps an entire industry going.

I’m not exactly sure where the line between appropriate and inappropriate business travel should be drawn. Bailed-out CEO’s probably don’t deserve the champagne-fueled Jacuzzi romps they’re used to, but I’m generally in favor of keeping things moving, and would acknowledge that conventions and corporate retreats are important ways to build a business. And as for those private jet owners, I say keep on flying! Just purchase your appropriate carbon credits, and give me a lift to someplace warm.

While the world’s economy today is unsteady, one thing is for sure: The wealthy consumers flying aboard private jets are your best bet, and only Elite Traveler delivers these elite travelers to our advertisers through our BPA audited circulation aboard private jets in over 100 countries, including Russia, the UAE, Kuwait, Qatar, Bahrain, Oman, India, Singapore, Korea and China. All with one ad buy!

5. New Study Says Place Your Bets on Top 1%…

Below is from a recent report on Concierge.com outlining our encouragement of readers to keep spending.

A new study by the American Affluence Research Center which regularly surveys consumers in the top 10 percent of Household Income and Net Worth says the best hope for luxury marketers in the foreseeable future is the very top of the pyramid – the 1% our households with a Net Worth of at least $6 million, a number which means Media Planners need to target Households with a $750,000 or higher Household Income.

“The wealthiest 1% (minimum $6 million net worth) are less inclined to be reducing or deferring expenditures. Only 31% of this group reported a conscious effort in the past and/or future to generally reduce or defer expenditures. About 83% of others in the sample reported efforts to reduce or defer expenditures,” AARC Ron Kurtz told us.

“A larger number of the higher net worth group has intentions to acquire a new motor vehicle (21% vs. 13% for others in sample), to do major home remodeling (13% vs. 9% for others), and to take a cruise (18% vs. 11% for others),” Kurtz noted.

This national survey included responses from 640 men and women in households with an average annual income of $290,000, an average net worth of $3.1 million, average investable assets of $1.4 million, and an average primary residence value of $1.2 million. This is the 15th in a continuing series of twice-yearly surveys of the wealthiest 10% of U.S. households, based on net worth, as determined by Federal Reserve Board research.

The top line results of the new survey reveal a substantial drop to record lows for the evaluation of current business conditions and the 12 month outlook for the economy and their personal income and spending plans, by the groups below the top 1 percent.

For those in the Middle and Lower Tiers of the Survey, more than two-thirds of the respondents have no plans to make any of the major expenditures in the next 12 months. Acquisition plans for all 8 of the major purchase items are equal to or at historic lows.

The strength of future purchase plans for major items lies within the highest ($6M+) net worth group, according to Kurtz.

He added, “In contrast to those who are reducing expenditures, those who have not and will not reduce expenditures have income and net worth about 45% higher, have double the investable assets, and are much more positive about the future (business conditions, the stock market, and personal household income).” Or as we say, if you are still on a private jet today, life is good!

Elite Traveler’s BPA audited circulation aboard private jets and mega-yachts in over 100 countries means your ad is guaranteed to reach the highest spending luxury audience in the world no matter where they are from and where they happen to be today – each issue is read by 407,000 readers with a Household Income of $1 million +, the highest of any magazine or newspaper in the world! Sources: 2007 Prince ET/MMR for others.

Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Be the first to know about the latest in luxury lifestyle news and travel.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED
Thank you

Thank you for subscribing to Elite Traveler.