In an effort to consolidate resources during the economic downturn, four digital media companies focusing on the online luxury market are coming together under a single name, RGM Group.
The four companies — RGM (which stands for Razavi Global Media), JustLuxe, LuxeCreative and InterLuxe Media — already shared the same ownership and frequently worked as a unit, meaning the shift to the RGM Group name is more akin to a restructuring than a merger.
RGM, an ad network focused on luxury sites, and JustLuxe, a portal for high-end travel, were both founded in 2004. LuxeCreative, which helped RGM clients design ads, and InterLuxe Media, also a luxury ad network, debuted in 2008.
“With the economic downturn and some people falling out of the luxury space, there is the opportunity for a partnership that can better help reach affluent people and service the advertising community,” said Kamran Razavi, RGM Group CEO and founder. “We can provide one-stop shopping and much more value with all these entities working together.”
As a unit, the RGM Group claims more than 35 million unique visitors in the affluent market in the U.S. That definition of affluence, however, is hardly the yacht-and-caviar set.
Razavi said his group defines an affluent consumer as anyone from a household of more than $100,000 a year, which is twice the median household income in the U.S.
The company, which combined boasts about 25 employees, is based in Venice, CA, with offices in NYC, San Diego and Denver. Clients include American Express, Bellagio, Gucci and British Airways.
Despite the shrinking budgets for advertisers looking to reach affluent customers, Razavi said RGM had its best quarter ever in Q1 2009 and had its best year in 2008.
“We’re able to have success by focusing in on one specific niche and providing such compelling offerings to our clients,” he said.
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