A new study by Aki Technologies finds that two-thirds of high-income consumers will spend the same amount of money — or more — on holiday shopping this year compared with last.
The Holiday Insights Report found that overall 43% plan to spend less. High earners, meanwhile, are 20% more likely to spend more or maintain. (Aki Technologies defines high earners as individuals who make more than $65,000, the U.S. median income. Low earners, meanwhile, are defined as those below the median.)
There’s data that strongly suggests radio is a strong tool for reaching high-earning consumers. According to The Media Audit, radio listeners are 10% more likely than the general population to have an annual household income of $150,000 or more — with radio reaching 76.7% of those earners. They’re also 8% more likely than the general population to earn $200,000 or more, and 5% more likely to earn $300,000 or more. Radio reaches roughly three-quarters of both financial demographics.
Despite the dramatic proliferation of e-commerce (and fears of COVID-19), the survey reveals that brick-and-mortar stores will continue to play a key role: 82% say they’ll do at least some of their shopping in stores.
Nearly two in five (39%) said “online shopping isn’t a viable alternative to the in-store Black Friday experience,” the report said, noting that a third of consumers find fun in the Black Friday in-store shopping experience.
According to the survey, roughly half of consumers will buy more in store than online, with just 10% saying they expect to shop exclusively online. Of those consumers who choose to shop in store, 22% typically go for the deals; 37% like to touch and feel the products they’re considering for purchase; and 26% are motivated to identify gift ideas.
Nearly half, the survey says, positively respond to in-store display advertising and find it useful for identifying gifts for friends and family.
The survey also finds that social distancing, which affects the size of gatherings, will therefore have an impact on gift giving. Forty-five percent say they expect to see fewer people than usual this holiday season.
“Retailers and marketers: The decrease in overall spending means a fight for the customer’s dollar will be fiercer than ever — there just won’t be as large a pie to divide, so capturing your share is imperative,” the survey says in its conclusion.
To capture share and stay within budget, Aki offers the following steps: leverage a highly specific targeting strategy; invest in interactive, rich media that drives in-store and “in-store like” inspirational, thrilling experiences; don’t limit your marketing success; and adapt strategies to the present moment.
You can download the study HERE.
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