splurge

Social Media Not There Yet As An Advertising Platform For Luxury Goods

Source: https://intelligence.businessinsider.com/welcome

Social media advertising is less effective than traditional media for driving sales of luxury goods and services among wealthier U.S. consumers, according to the Shullman Research Center

Seventy percent of respondents with a household income of $75,000 or greater said they planned to purchase a luxury good or service this year as a result of seeing a social media ad. Magazines had more influence on this income bracket, with 79% of respondents saying print ads would lead them to splurge on a purchase.

But, as income increases, declining proportions of consumers say social media influences will drive their luxury purchases: 40% of consumers with a household income of $250,000, and only 34% of consumers who bring home $500,000 or more. 

The wealthiest consumers say they are most influenced by newspaper and radio ads. 

Why is traditional media more effective than new media? It’s likely due to two related factors:

  1. The highest median income per member of household was among people between the ages of 54 and 64, according to the U.S. Census. But analytics company Pingdom found that people ages 55 to 64 represented just 6% of total social media users in 2012
  2. As such, when brands target young users on social media, they are not necessarily finding the consumers with the deepest pockets, and may be missing opportunities to communicate with relevant older audiences. 

As time goes on, and older and wealthier demographics grow more accustomed to social media, these numbers may shift. For now, social media lags traditional media as a platform for luxury brands.  

Download this chart and data in Excel. 

BII social ad luxury

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Monday, June 24th, 2013 news No Comments

Google Play carrier billing goes live for impulse buyers on Verizon

Source: http://www.engadget.com/2012/10/31/google-play-carrier-billing-goes-live-for-verizon-impulse-buyers/

Google Play carrier billing goes live for impulse buyers on Verizon

Google gave the broadest of targets when it said Google Play carrier billing would reach Verizon in the “coming weeks” — those last two words are often hints from companies that we shouldn’t hold our breath. Call us surprised, then, when Google quietly takes the option live two weeks later. At least one Droid-Life reader has discovered that it’s now possible to load as many as $25 in purchases per month on an existing Big Red smartphone bill and pay through just the one channel. The move puts all four major US carriers on the same page, and gives Verizon subscribers an incentive to splurge on apps and movies for that new Droid RAZR HD… so long as they remember to deal with the financial fallout afterwards.

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Google Play carrier billing goes live for impulse buyers on Verizon originally appeared on Engadget on Wed, 3! 1 Oct 20 12 14:04:00 EDT. Please see our terms for use of feeds.

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Wednesday, October 31st, 2012 news No Comments

Switching to Private Label Products is Accelerating and Irreversible

See the charts below from comScore, Nielsen and Symphony/IRI.  The percent buying branded products of past has dropped to 43%.  The percentage switching (2nd graph) is most in OTC drugs and apparel. And even if the economy improves, consumers would continue to buy private label. Whole Foods has been offering their 365 “house brand” for many years and Trader Joe’s also has great private label products that are often equal to or arguably higher quality than branded alternatives.

Brand Loyalty is Declining

 

 

 

 

 

 

 

willingness to switch to generic or private label versus branded product

 

 

 

 

consumers will continue buying private label even when economy improves

 

 

 

Related Article:  Spend Polarization – consumers save money in the down economy by buying more from Costco, Sam’s Wholesale, and BJ’s but when they splurge, they buy ultra-high-end.

 

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Monday, November 28th, 2011 Branding No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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