Advertising Dos and Don’ts for High Income HouseholdsJanuary 27, 2020
Affluent consumers are often depicted as sitting on a literal pile of money, standing while dollars rain down or spending money on frivolities like boats, designer clothes and private chefs.
These portrayals are far from accurate. Affluent households—meaning an income over $150,000—account for a little more than one-fifth of all U.S. households. Most affluent households consist of married couples with both earning incomes.
Why do we need to be concerned about reaching affluent consumers? The number of affluent households in the U.S. has increased 90% in the past 9 years.
We need to ditch the misconceptions so we can target this growing demographic effectively. We share 3 do’s and 3 don’ts for advertising to this growing income demographic in this blog post.
DO: Use The Right Channels
Reaching affluent consumers hinges on meeting them on the right channels.
Which channels do they use?
- 90% of adults in affluent households have a smartphone while 67% of adults with less than $50,000 annual income have smartphones.
- 59% of affluent consumers use social media extensively, mostly to watch sports and conduct product research.
- Facebook, Instagram and Twitter are among the top social networks used.
- 65% have used a mobile device to purchase a product online.
Sharing the right message on the right channel is important. It’s also important to use channels that allow for high-income household targeting.
DO: Share your Company’s Values
Affluent consumers are value-hunters, but not in just in terms of price. 47% shop at stores that reflect their values and 37% will stop buying from retailers that fail to reflect their values, even this means they have to spend more elsewhere.
Use your channels to share your company’s values. Add a page to your website, create a social media campaign or post in-store signage that showcase your values.
DO: Appeal to Social Status
Affluent consumers tend to be interested in brands and products that enhance their social status.
Affluent Internet users are 50% more likely to fall into the “status-seeker” and “cosmopolitan” segments than the average user. 69% of affluent consumers buy the premium version of a product if it’s a well-respected brand that will raise their standing among their peers.
Don’t: Neglect Offerings Deals
Just because they have money doesn’t mean they are eager to part with it. Affluent shoppers are just as likely to buy specials or wait to purchase something on sale than non-affluent shoppers.
50% of U.S. consumers who earn $100,000 or more annually frequently worry about their financial situation. About half of affluent consumers wait for a sale before making a purchase. Many use coupons and purchase private-label products..
Don’t: Assume they will Spend Big
Most affluent consumers feel insecure about their financial situations and worry about paying their bills. The average affluent consumer is married, family-oriented, from a dual-income household and balancing stress and time management.
Not only are many affluent consumers on the lookout for a deal, but most won’t purchase luxury goods due to concerns about their finances.
Don’t: Forget about Baby Boomers
Given the data we’ve shared so far about how the typical affluent consumer is tech-savvy, a social media user and part a dual-income family unit, it can be easy to think that most affluent consumers are Millennials. However, Baby Boomers account for 54% of all affluent U.S. households.
Baby Boomers were born between 1944-1964. This generation is also tech-savvy, healthy and active.
Putting it All Together
Affluent consumers are a growing demographic. They are more likely to pursue deals, status-enhancing products/brands or check out a company’s core values than spend lots of money on luxury items. Carefully crafted advertising materials that target affluent consumers on the right channels. Need some help getting started? We offer a variety of print, digital and creative solutions that will help you reach affluent households. Contact us today to get started!