June 12, 2013
Sixty-three percent of consumers who plan to buy luxury products and have a household income of more than $500,000 said that they find advertisements in newspapers to be the most effective compared to other channels, according to new research from the Shullman Research Center.
The “Shullman Luxury and Affluence Monthly Pulse: Reaching the Luxury Purchaser” report found that while digital platforms can be useful for reaching certain consumer demographics, luxury brands should not forget about newspapers, TV and magazines to reach their buyers. The majority of ultra-affluent consumers reported being interested in advertising that they saw in newspapers, in magazines and on TV.
“In the luxury space, marketers need to continue to be aware that purchasers are still very comfortable and still use traditional sources of media such as TV, magazines, radio and newspapers,” said Bob Shullman, founder/CEO of the Shullman Research Center, New York.
“Screens are important and are part of the mix, but they are not the only part of the mix,” he said.
The Shullman Research Center conducted this survey online Feb. 26-March 6 among five samples of adult U.S. consumers – all household income levels plus four income samples of 250 surveys each as follows: $75,000-$149,999, $150,000-$249,999, $250,000-$499,999 and more than $500,000.
The Reaching the Luxury Purchaser report is based on the data found for the “March Preview Wave” report, which takes into account the responses of adults with a household income of $250,000 or more. Approximately 3 percent of adults in the U.S. live in these households, according to Shullman Research Center.
Traditional advertising
Even though many marketers are focusing on digital, luxury brands should remember to include the more traditional types of advertising as well to reach their consumers.
Consumers rank TV, Web sites and magazines the highest as places where they report seeing ads.
Seventy-one percent of all consumers said they see ads on TV, compared to 81 percent of affluent consumers with a household income of more than $250,000 and who plan to buy luxury.
Still from a Range Rover TV commercial
However, seeing ads does not always translate to taking an interest in the ad.
Out of those ultra-affluent consumers who are planning to spend on luxury, 63 percent take an interest in newspaper ads, while 57 percent take an interest in magazine ads and another 57 percent are interested in TV ads.
These numbers are similar to those of consumers with a household income of at least $250,000. Sixty-six percent of these consumers are interested in magazine ads, 65 percent are interested in newspaper ads and 59 percent are interested in TV ads.
This data shows that luxury marketers need to be using these more traditional advertising methods to reach affluent consumers who are willing to spend on luxury products.
Living in a digital world
Digital advertising is still an important piece of the marketing puzzle.
Most importantly, luxury marketers need to figure out who their audience is and what media their audience consumes.
“TV, newspapers and magazines will help you reach certain consumers,” Mr. Shullman said. “If you use TV to reach certain groups, it could be quite wasteful depending on which group you are trying to reach.
“In many respects, marketers need to look at the whole marketing mix,” he said. “Look at who your target is and what these people enjoy consuming, whether it’s Facebook or a Web site or a newspaper.
“I think the luxury marketer needs to spend time understanding who their target is and find what is the most reasonable way to reach those people.”
Final take
Erin Shea, editorial assistant on Luxury Daily, New York
Share your thoughts. Click here
