Download Effectively Reach the Affluent Luxury Shopper through Newspapers

 Effectively Reach the Affluent Luxury Shopper through Newspapers Affluent consumers, with over $100,000 in household income, are a natural target audience for marketers due to their higher buying power and disposable income, and newspapers excel at reaching this desirable audience. Understanding Affluent Consumers The wealthiest U.S. households are willing to increase their personal discretionary spending – thanks in part to the increases in the stock market that have benefited those at the upper end of the wealth distribution scale. This group, which represents 10 percent of total U.S. households, accounts for about 60 percent of U.S. income, approximately 70 percent of U.S. net worth, 50 percent of all retail sales, 70 percent of all retail margins, and over five trillion dollars in spending or about 50 percent of U.S. non‐necessity spending. Two out of three affluent consumers are open to discovering new luxury products and experiences this year. Three‐
quarters of affluent consumers are planning on making apparel purchases during the next year, according to a new study by Unity Marketing. This audience, who values, understands and celebrates luxury, is the most valuable prospect for luxury marketers since they focus on quality, craftsmanship and service to rationalize price. The average affluent family will spend slightly more than $20,000 on categories such as fashion, travel, home entertainment, home decorating, electronics, jewelry and automobiles, among others, in the next 12 months ‐ a three percent increase over last year. This activity accounts for nearly two‐thirds of all luxury spending. Sixty‐three percent of consumers who plan to buy luxury products, and have a household income of more than $500,000, and sixty‐five percent of consumers with household income of at least $250,000, said that they find advertisements in newspapers to be the most effective compared to other channels. Affluent Consumers are Newspaper Readers Eighty‐six percent of affluent consumers read newspapers in print, 39 percent read them on computers, 14 percent read them via smartphone, and 7 million downloaded a newspaper app last year. Seventy percent of young affluents (age 18‐
34) read newspapers in print; over half of them read a newspaper on the computer, over a third on a tablet, and over a quarter on a smartphone. A recent study from Scarborough Research reveals that adults, who have read a newspaper in print or online, or visited a newspaper website in the past 30 days, are: 
13% more likely to be employed in a professional/managerial position 
26% more likely to have annual income of $250,000+ 
22% more likely to live in homes valued at $1,000,000+ 
24% more likely to hold a post‐graduate degree In addition, affluent customers are: 
77% more likely to read a newspaper or visit a newspaper website 
80% more likely to view newspaper content with their mobile device Affluent Consumers Rely on Newspapers for Purchasing Decisions Consumers rely on newspapers to help make purchasing decisions. According to “How America Shops and Spends 2013,” more than 80 percent of adults took action after seeing an ad in the newspaper, and more than half made a purchase. Of those who read advertisements in the newspaper in the past 30 days: 
64% have household income of $250,000+ 
61% have household income of $500,000+ Of those who had considerable, or some, interest in the newspaper advertising they read: 
55% have household income of $250,000+ 
61% have household income of $500,000+ Newspaper preprint circulars are also popular with consumers. More than half of affluent readers indicate that newspapers are their preferred source for receiving advertising circulars. Of those who read inserts the past 30 days: 
73% have household income of between $100,000 ‐ $149,999  74% have household income of $150,000+ Newspapers Engage Affluent Consumers with Credible Content The more likely a consumer is to make large purchases on a consistent basis, the more valuable they become to an advertiser. Not only do they have the economic means to buy what they would like, they are also interested in learning more about the products they are considering from a credible source. In the 2013 installment of “How America Shops and Spends,” a research report compiled by Frank N. Magid Associates, newspapers ranked first for being the most “believable and trustworthy,” as well as the most “engaging,” most “ethical/has the public’s best interest at heart,” the place where consumers “usually notice advertising,” and the medium from which consumers are most “likely to purchase.” Aligning advertising messaging with trusted newspaper content can increase reader engagement and lend credibility to a marketer’s campaign. Newspapers Can Help Advertisers Target Affluent Shoppers Most luxury brands consider their core audience to be females, age 45+, with a high household income, with a secondary target audience of females, age 35+. Recent findings reveal potential untapped markets among aspirational shoppers with a household income under $75K, and with male customers, age 55+. Understanding the habits and preferences of affluent consumers, newspapers can help advertisers attract this high‐
value audience by focusing on the following marketing strategies: Provide an outstanding customer experience o Luxury is continuing to become more customer‐centric. Ensure that you are delivering an excellent customer experience worthy of your brand. o Make it as simple as possible for new and loyal customers alike to browse and purchase from you. o Reassure your customer that your brand is truly special.  Send customers a thank you email after a purchase or provide a hand‐written note in their shipped package.  Find ways to increase your customer’s connection with your specific brand when they have your luxurious product in their hands for the first time.  For affluent and wealthy consumers, “quality in life” means experiences that bring them closer to their inner circle of friends and family. Create unique events like “girl’s night out” or “friends and family” that satisfies this need. 
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Make affluent consumers feel special o
Initiate a loyalty program to reward customers for their allegiance to your brand. o
Provide loyalty program customers with special exclusive offers. o
81% of affluent shoppers belong to some type of customer loyalty program. Evaluate your marketing message o
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Focus on the advantages luxury items have over commodity goods. The quality, craftsmanship, emotional connection and history are what distinguish your brand from others. Implement a media mix o
Affluent customers value print newspaper advertising most, so continue advertising in that manner. o
To complement your print newspaper campaign, add digital advertising (online and mobile) to the mix to reach those luxury shoppers who are reading the newspaper on their computer, tablet or smartphone. The newspaper industry is known for its strength and ability to attract a more educated and affluent audience. Marketers of luxury items will benefit from not only the quality of the audience newspapers provide, but from the quality of the environment in which their advertising will appear. Identified as the most credible medium, as well as the most effective forum for advertising information, high‐end advertisers will profit from the association that a newspaper provides to a desirable audience, exposed to luxury items. Sources: Ipsos MediaCT Mendelsohn Survey of Affluence and Wealth in America: 2010, 2012, 2013, iProspect Luxe Group – The Affluent Consumer Purchase Path, The Splurge Surge: Luxury Spending on the Rise, NAA 2013 Nielsen National Cross‐Media Engagement Study, NAA How America Shops and Spends 2013, Unity Marketing ‐ Affluent Consumers Survey, Shullman Luxury and Affluence Monthly Pulse: Reaching the Luxury Purchaser, Multi‐Media Database, Release 2 2012 – 12 month – Scarborough Report. Copyright 2013 Scarborough Research. All rights reserved., baltimoresunmediagroup.com, Four Reasons Newspaper Advertising Still Matters to Your Business, Affluence is in the Eyes of the Advertisers and Their Agencies, NAA 2012 Newspaper Multiplatform Usage Study, iProspect – The Luxury and Premium Online Consumer, Spring 2012 American Affluence Research Center Survey