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Digital IQ INDEX®

Luxury

The L2 Digital IQ Index®: Luxury measures and ranks the digital digital footprint of 72 luxury brands across four dimensions: effectiveness of a brand’s site, digital marketing, social media, and mobile.

“2010 has been a seminal year for the luxury industry—some brands have put the weight of their organization behind digital, while others have stood still and have been left behind. The ‘it’ product in luxury is not a handbag or watch, but innovative social media programs.” —Scott Galloway

Key Findings

Facebook Upstream Traffic Doubles: Traffic to brand sites from Facebook more than doubled in 2010; growing from 3.4 percent to 7.1 precent with 73 precent of luxury brands registering the social media giant as a top eight source of traffic. Traffic from Twitter and You Tube decreased.

Social Sharing Drives Traffic: Brand sites with social sharing recorded annual traffic growth of 42 percent versus 18 percent for brands without social sharing suggesting the increasing importance of social media optimization.

Digital Competence Increases Site Traffic: The 21 brands that increased their Digital IQ demonstrate annual traffic growth of 52 percent versus traffic growth of just 8 percent for brands that registered IQ decreases.

Brands with E-Commerce Boast Higher IQs: The 39 brands that sell online boast a Digital IQ of 117 versus an average IQ of 79 for the 33 brands that are not e-commerce-enabled.

Easy Wins in Digital Marketing: There is still substantial low hanging fruit around basic digital marketing tactics. Only half of brands engage in email marketing, only two in five are purchasing search terms and only 10 percent have mobile sites.
In a major shift from last year’s results, Fashion brands hold eight of the top 10 slots in the second-annual L2 Digital IQ® Index: Luxury report. Only two brands, Louis Vuitton and Ralph Lauren, managed to hang on to their ‘Genius’ ranking, with newcomers, Coach, Gucci, Hugo Boss, Burberry, and Dolce & Gabbana making significant investments in the medium in 2010. The top 10-ranked brands are:
  1. Coach
  2. Ralph Lauren
  3. Louis Vuitton
  4. Gucci
  5. Hugo Boss
  1. Burberry
  2. Dolce & Gabbana
  3. Giorgio Armani
  4. Swarovski (tie)
  5. Tiffany (tie)

Top Ten Titles

Jan 2012Mobile IQ

Mar 2012Hotels

Oct 2011Fashion

Jun 2011Facebook IQ

Oct 2010Luxury

Dec 2010Gen Y Affluents – Media

Aug 2010U.S. Senate

May 2012Brazil Russia India

Dec 2011European Specialty Retail

Sep 2011Beauty 2011

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