Luxury Buyers Suffer from Lack of Targeting
By Heidi Tolliver-Walker on July 5th, 2013
This week, MediaPost released data from its survey for “Engage: Affluent” (incomes of $75,000+, $250,000+, $550,000+) regarding their affinity for various channels when it comes to purchasing luxury goods.
The data show 1) the percentage of affluent buyers who recalled advertising messages in a variety of traditional and digital media, 2) the percentage who remembered seeing something of interest in those media, and 3) the rankings of the effectiveness of each medium.
In terms of effectiveness (as defined by MediaPost), the rankings were as follows:
- In-home mail
What I thought was interesting is that, while MediaPost ranked these channels based on the percentage of consumers (with affluents as a subset) who planned to purchase luxury goods, in nearly 100% of cases, the percentage of affluents who said they recalled or had “considerable” or “some” interest in the products being marketed was lower across all channels than consumers overall.
Recall of television ads — lower than average.
Recall of magazine ads — lower than average.
Recall of website ads — lower than average.
Recall of newspaper ads — lower than average.
Recall of in-home mail advertising — lower than average.
Level of interest in the material marketed? Lower, lower, lower, lower, and lower. The more affluent the respondent, the less interest they showed in advertising in any given channel.
This suggests just how poorly these channels are being used to segment, target, and personalize offers to this coveted audience. You would think that marketers would be doing the best job in targeting and personalizing to those with the most disposable income. Yet, this did not appear to be case.
There was only one channel that appeared to be doing better in a relative sense to all the others when it comes to engaging affluent audiences. Affluents were more likely than average to say they had seen products of interest in advertising in sporting arenas.
Especially if you have clients marketing and selling luxury goods, this might be data you want to investigate!