The Interactive Advertising Bureau and Ipsos Mendelsohn, an independent research firm have released a new study Affluent Consumers in a Digital World. The study focuses on the behavior of Affluent Americans – the 21% of U.S. households that have a minimum $100,000 annual income or the top fifth of the country. They represent 70% of U.S. consumer wealth.
It’s an interesting study that reveals that these Americans, with concentrated buying power and generally low consumption rates of traditional media, are the heaviest users of digital media. While Affluent Americans are less likely than the general population to watch TV or listen to radio, they are more likely to own a smartphone, use the Internet and spend more time online.
Digital ads have considerable impact on awareness of products and companies for many Americans, but Affluent Americans are more likely than others to say that they learned about new products or learned about companies they were not aware of before due to digital ads.
Interestingly, this group prefers ad supported websites and are willing to provide more information about themselves in order to receive ads that they find relevant.
According to the study, video, banner, email and search ads are the most effective sorts of digital ads with this group, but I saw no evidence that digital audio ads were even included in the study. The IAB has only recently begun to acknowledge audio as a digital ad type – it’s been about a year since the IAB formed an audio committee (which I participate on) and released A Digital Audio Overview. On September 19th they will host an agency day at their office in New York City and they are making a strong effort to become a good resource for educating the agency and ad communities on digital audio ad opportunities.
A newly released study done by Targetcast, a communications firm, has some good and bad news for broadcast radio. The good: Adults 18 to 64 were found to still consider radio to be an important touchpoint for new music discovery. The not-so-good: 18 to 24 year olds were likely to indicate that radio is not so relevant to them.
Released study findings show that consumers indicate that several traditional media including newspapers, magazines and, to a lesser degree, radio, will need to change the most in the coming years. Newspapers led the pack of media needing to change, with nearly 60% of consumers surveyed identifying this medium as the one that will need to change the most – compared to 30% for magazines and 20% for radio.
Another notable discovery from the research: Men are more likely than women to replace radio with digital alternatives such as mp3 players or Internet stations, while women are more likely to stick with their favorite radio stations.
The bottom line should be taken as a shot across the bow by broadcast radio: “41% of those surveyed indicate that radio is still relevant in today’s media environment. According to respondents, radio provides a great venue to discover new music that cannot be experienced elsewhere. Maybe somewhat surprising, respondents overall prefer to listen to music through the radio station vs. Internet stations or on their mp3 player. ” However, within that overall conclusion there are several key demographics that are indicating a willingness to transfer their affinity to digital music sources including personal devices such as Internet radio, ipods, iphones and other multi-media devices.