Luxury Institute Survey: Wealthy Americans Rate Luxury Auto Ads for Mercedes SL, Lexus GS Hybrid and Acura RL Most Effective Ads in First Half of 2006

NEW YORK--Sept. 5, 2006--Luxury automobile makers have spent mega-millions of dollars on print media advertising in 2006 without a clue as to the effectiveness of their campaigns. To assist luxury firms to better understand advertising effectiveness, New York City- based Luxury Institute announced the results of its first Luxury Ad Effectiveness Index for Luxury Autos. In this innovative survey, a statistically valid panel of wealthy consumers rated 29 competitive print ads that ran during the first six months of 2006 in the Luxury Auto category on fundamental communication metrics, as well as each ad's ability to influence brand and product reputation, brand purchase, and recommendation intent.

Mercedes-Benz's SL-Class ad with the headline "The word 'engineering' means different things to different people" is the top-rated print advertisement in terms of overall LAEI (Luxury Advertisement Effectiveness Index) score. The headline "The word 'engineering' means different things to different people," resonated with wealthy consumers. Respondents associated the ad with good engineering, strength and performance. Viewers responded favorably to the detailed vehicle information contained in the ad.

Mercedes-Benz's SL Class print ad was rated most likeable and rated first in each of the following component indexes: clarity of message, relevance of message, and appropriateness for the brand. It also rated first in creating a favorable opinion of the brand. An exception, the Lexus GS Hybrid placed first in terms of being "unique and different." Interestingly, The Lexus GS Hybrid advertisement, "In 5.2 seconds, stereotypes are obliterated," was the clear winner in the critical print ad outcome measures of increasing likelihood of purchase and willingness to recommend the brand to people they care about most.

"Luxury Auto firms are literally 'driving blind' on their massive print advertising investments," said Milton Pedraza, CEO of the Luxury Institute. "Our new independent LAEI surveys are designed to provide a quantitative dashboard for Luxury Auto firms to measure ad effectiveness. To their credit, luxury goods and services CEOs and Board members at leading firms, many of whom have requested this critical set of metrics internally without results, inspired this survey. The only ratings that count today in print advertising are target consumer ratings, and wealthy consumers have voted in this major category."

Twenty-nine print ads were rated including: Acura MDX: "At One With Both Worlds," Acura RL: "Please Inform Webster's...," Acura TL: "Call the Office...," Acura TSX: "Your Life, Your Car...," Audi A6: "The Lap of Luxury," BMW Z4: "It's why we go to work...," Cadillac Escalade: "The New Escalade," Cadillac SRX: "The Cadillac SRX," Cadillac STS: "Every Wheel Has Its Role," Cadillac V-Series: "High Performance," Infiniti FX: "Drawing Board Concept Car," Infiniti G35: "Details Disappear...", Infiniti QX56: "Polished, Not Glaring," Jaguar VAR: "Gorgeous Dares Welcome...," Jaguar XK: "Gorgeous Pays for Itself...," Land Rover Range Rover: "Rush Hour...," Lexus GS: "The Entirely New 300HP GS 430," Lexus GS Hybrid: "Stereotypes are Obliterated," Lexus IS: "Some See a Butterfly...,"' Lexus LS: "Intuitive Climate Control," Lexus RX 350: "You Are Here...," Lincoln Zephyr: "In the Eyes of the Optimist...," Mercedes Benz S: "You're Buying a Belief," Mercedes Benz SL: "The Word Engineering...," Porsche Boxster: "Happiness. As Purchased..." Porsche Cayenne: "Willpower is no Match...," Porsche Cayman: "A Body Built for Sin," Saab 9-5: "The New Saab 9-5 Sedan," and Saab 9-7X: "An SUV with Altitude."

A nationally representative sample of 400 wealthy consumers was surveyed online, with a 50% female and 50% male split. Respondents had an average household income of $241k and average net worth of $1.6m. At least 100 respondents rated each ad.

About the Luxury Institute

The Luxury Institute is the uniquely independent and objective research institution that is the trusted and respected voice of the high net worth consumer. The Institute provides a portfolio of proprietary publications and research that guides and educates high net-worth individuals and the companies that cater to them on leading edge trends, high net worth consumer rankings and ratings of luxury brands, and best practices. Publications include the monthly Wealth Report, the Luxury Brand Status Index surveys, the Luxury Best Practices surveys and the Luxury Consumer Experience Index surveys. To reach the Luxury institute, please call 646-792-2669 or go to www.luxuryinstitute.com.