Gilt Groupe: New Magazine Aims for "Luxury Customers"February 29, 2012
New York Times
by Amy Chozick
Do you have a net worth of $5 million? A house worth more than $1.5 million? An average income of more than $250,000? And an affinity for bargain hunting?
If you answered yes, then, aside from being extremely lucky, you’re just the reader for Du Jour, a new digital and print magazine. The publication comes from Jason Binn, founder of luxury magazines like Hamptons, Ocean Drive, Gotham and Aspen Peak, and a chief adviser of the Gilt Groupe, which offers online bargains on luxury goods.
Mr. Binn, in collaboration with Gilt Groupe and Hudson News, has devised a data analysis system that aims to cull three million high-end subscribers who sign up to receive a weekly Du Jour e-mail newsletter.
A quarterly lifestyle luxury magazine expected to be introduced in the fall will be mailed to 235,000 readers who fit the publisher’s high-end criteria (as per above). An additional 15,000 print copies will be sold on newsstands. The digital editions will allow readers to click and buy products and services featured in editorial spreads.
“We have three million fully engaged Gilt members,” Mr. Binn said in an interview. “These are real shoppers spending hundreds of millions of dollars.”
All this may sound painfully pre-recession, but strong advertising revenue at a handful of luxury magazines shows that marketers are still eager to pay for a targeted platform with which to reach the well-heeled.
Advertising revenue at W magazine increased 14.3 percent in the quarter that ended last Dec. 31, compared with the same period in 2010, according to the Association of Magazine Media. Departures, American Express’s high-end magazine, had a 46.2 percent increase in advertising revenue in the same period, the association said. Earlier this month, Bloomberg started a new luxury glossy magazine called Bloomberg Pursuits.
Du Jour will aim at readers in cities like New York, Miami, Los Angeles, Chicago, Dallas and San Francisco. Half the editorial content in each issue will be focused on a local region. Seasonal editions in the Hamptons, Aspen and Sun Valley also will be available. A full-page ad in the print edition will cost $32,000, according to Du Jour’s ad sales materials.
But it’s not the sexy locales that make Du Jour unique, Mr. Binn said. Plenty of competitors home in on high-end cities, but Du Jour has access to Gilt Groupe’s trove of subscribers, an online club of shoppers who already have an obsession with all-things name brand. (And yes, Mr. Binn said the uber-wealthy still like a good bargain. Who knew?)
In order to receive the magazine, readers must meet five of seven criteria, including donating $10,000 or more annually to philanthropic causes or offline luxury purchases of $100,000 or more annually.
“We can make sure they can really afford what they see,” Mr. Binn said. “They love bargains but they’re also big luxury customers.”