Affluents are a key target for many advertisers, and their outlook can vary from the rest of the population. To develop a better understanding of this market, Ipsos again released their yearly Affluent Survey Barometer (conducted August 2013).
The survey defines affluents as those 18+ with a household income of $100k+, and defines ultra affluents as 18+ with a $250k+ HHI. This year's study focused on several key areas including an Optimism Update, Affluents & Personal Security, and Luxury Indices.
The study found several positive indicators that affluent outlook remains optimistic, noting that concerns about the economy and unemployment eased significantly in 2013. It was also revealed that interest in gold continues to ease- which is often an indicator of economic anxiety. This all means that affluents may be more open to spending in the near future. In fact, the survey found that one-fourth of affluents are primed to spend more if they perceive the economy is improving.
Affluents & Personal Security
Security is a significant area of concern for affluents, with more than 1 in 4 feeling less safe than only one year ago. Most affluents also consider individuals, such as criminals or hackers, to be a larger threat to their privacy than the government or private companies. Topping the affluent's list of concerns are security related to personal credit cards, computers, and smartphones. This may be another factor contributing to the slow expansion of the mobile wallet.
Ipsos reports that luxury growth indicators are trending towards neutral or negative, although it remains to be seen if this is a short-term blip or a long-term trend. The survey reports signs of luxury growth potential in select categories:
The results show that affluents, along with ultra affluents, are more likely to be interested in luxury brands for select categories including vacations and personal travel, automobiles, and groceries. Brands falling in these categories may find benefit targeting the affluent demographics to make the most of these growth indicators.