As rapid adoption of Internet around globe made digital marketing an indispensable means of gaining competitive advantage for many sectors (Leeflang, Verhoef, Dahlstrom, & Freundt, 2014), its appropriateness for luxury products remains debatable. The main lures to luxury products for many consumers are their exclusivity and rarity, two valuable attributes that are at odds with digital medias’ ubiquitousness and pervasiveness (Hennigs, Wiedmann, & Klarmann, 2012). The main purpose of this paper is to examine effects of online promotion of luxury brands on different aspects of their brand image. Additionally, paper checks how impact of Internet on luxuries’ brand image varies across different segments of luxury consumers and levels of brand luxuriousness.The main hypothesis of study, that Internet affects luxury brand image, is grounded in McLuhan’s (1964) assertion that the medium is message. The congruence of medium to advertised brand has a positive effect on brand evaluations (Dahlen, 2005). Given that Internet could serve as a tool for luxury firms to enhance their creative aspects (Okonkwo, 2009), question arises as to how congruent Internet is as a medium to luxury brands that sell on basis of their exclusivity. The congruence of Internet to luxury brands is moderated by: level of luxuriousness of brand and perceived luxury values.Dahlen, Granlund & Grenros (2009) have shown that use of new media benefit more “low reputation” brands rather than “high reputation” ones. In high reputation brands consumers have expectations of higher standards from medium and are more attentive to changes in advertising medium. Moreover, by definition higher level of brand luxuriousness higher its exclusivity and rarity. Hence, it is hypothesized that Internet’s appropriateness as a medium will be negatively related to luxuriousness of brand.Luxury values influence consumer choices for luxury brands and brand image perceptions. Luxury value activation by contextual cues like advertising medium is expected to align image perceptions to expressed values. As a result, we expect brand image attributes that express specific luxury values to be influenced by extent to which medium promotes or inhibits expression of such values. In luxuries, Wiedmann, Hennings and Siebels (2007) identified four categories of luxury values (financial, functional, individual and social) that are hypothesized to have a differential impact on effect of Internet to luxury brand image.To test hypothesized relationships, an experimental design was used. Facebook was selected as a platform for “online” promotion and stimuli were luxury watches. The results indicated online luxury promotion adversely affects luxury brand’s perceptions hedonism and uniqueness. The effects were more pronounced to most luxurious brands and to specific luxury value segments. The results provide useful insights for development of luxury brand strategies.