Lacoste Shoots Its Wad Online

It wasn't long ago that a fashion magazine reader could flip through the pages of Vogue and Elle to find advertisements from high-end French brand Lacoste. Not anymore.

The company known for its crocodile logo and polo shirts is ditching print ads and switching to a completely digital tactic in America. Lacoste spends $12 million a year on marketing in the U.S., according to TNS Media Intelligence, and all of that will go online. The change rolls out Thursday with the launch of a new Web site, from New York agency Euro RSCG, that lets shoppers build their own Lacoste wardrobes and share with friends on social networking sites.

The online shift is big news for a luxury brand that relied on traditional advertising for the past 30-plus years to get its name out to U.S. consumers. Lacoste says its biggest market, 18- to 34-year-olds, isn't heading to newsstands anymore, so the brand is placing display ads on sites such as Facebook, video streamer Hulu, radio player Pandora and Condé Nast digital media.

Premium brands like Lacoste once shunned the Internet for being too mainstream, and now--amid the recession and budget slashes--they're warming up. A year ago, just 33% of luxury brands advertised online, according to a marketing study conducted by NYU Stern School of Business. This year, 66% have flocked to the Web. Jewelry company Tiffany&Co. ( TIF - news - people ) now has a MySpace page. Clothier Ralph Lauren ( RL - news - people ) launched an iPhone application late last year. Cosmetic maker Estée Lauder lets people upload photos to a makeup widget online so they can test products on their faces virtually.

Betting everything online is a gutsy move for Lacoste. Soon, we'll know if it's a smart bet.