There has been a perception in the past that mass marketing platforms such as Facebook, Twitter or email marketing doesn't correlate with luxury branding. However, as the digital marketing industry started releasing more data in 2012 on the average LSM audience, which showed a majority of online purchases made by the wealthy buy, the luxury marketers are quickly increasing their budgets for digital spend.
Some of this data showed that the high LSM demographic were 15% more likely to shop online than the lower LSM group, spending at least 19% more on each purchase.The benefits of online marketing
Digital media has grown a significant amount, in both audience and status, over the past few years. Here are some stats based on the opinions of agency marketers:
- 85% believe digital drives more traffic to online stores than TV
- 35% believe digital to be more effective than TV at driving brand favourability
- 83% believe that it's worth paying premium CPM rates to reach luxury online consumers
The importance when it comes to online campaigns, especially where the affluent consumer is concerned, is targeted marketing. While social media platforms such as Facebook and Twitter allow campaigns to go viral, it's through highly targeted content and customised email databases that the luxury marketer can reach its audience.South African online LSM breakdown
South African's have been doing better off in recent years, with an average income which increased by 29%, per person, between 1993 and 2011. Since the majority of studies are not limited to South African alone, we may have to investigate a little further in order to put a figure on the LSM 7-10, South African web browser.
Writer, Megan Chronis, used data from SAARF AMPS, RAMS and TRAMS and found substantial changes to the LSM 7-10 group in South Africa. For one, she found that people between the ages of 15-24 within the LSM 7-10 bracket has grown by over 26%. These findings, coupled with the fact that the average Facebook and Twitter growth rate in South Africa alone is 100 000 per month, can allow marketers to safely assume that the online presence in South Africa, within the higher LSM bracket, is growing.
Martini Media CEO, Skip Brand, said "... the affluent simply spend money to save time, and online is the best way to do that... affluent audiences are always wired, have very little 'free' time and more disposable income than any other segment..."
The trend is set to continue throughout 2013, with a strong focus on content marketing through customized email databases, social media and sophisticated website copy that speaks to the affluent shopper. Marketers will have to rise to the challenge of educating the high-brow shopper, as they turn to web to make a purchase. *LSM, in laments terms, is the measurement of living standards such as income and lifestyle.