Not all Affluent Households are Alike
Reaching high-income households online isn't hard. There are many digital targeting segments based on income that can be used to market to wealthy consumers. Reaching households that have significant stashes of money in their pockets may be a prerequisite for some online marketing campaigns. But it's not the only thing that counts. Consider the following descriptions of three segments of Gen X households that are likely to have over $200,000 in income. Are they all alike?
- Segment 1: “I’m sitting on a ton of unused vacation time. I should go to Cabo and do some diving.”
- Segment 2: “With the kids almost out of the house, we’re looking forward to that remodel we’ve been planning.”
- Segment 3: “Honey, let’s pick a date to go to the gallery again. They need our decision on that painting we like.”
Which Segment is Right for You?
Which segment would appeal to a travel marketer trying to fill a resort property in October? The first one of course, and rightly so, because it mentions travel. But read deeper – it uses the word “I”, whereas the second one mentions kids. Few families are pulling their kids out of school in the middle of October. So the travel marketer needs to make sure its digital ads reach the households in Segment 1.
How about Segment 2? This group has high income just like the first segment, but they also have kids. They are likely spending a huge chunk of money on clothes, laptops, activities and family outings. This might be a good segment to target for many kinds of marketers, as long as they recognize that there are kids in the mix. Meanwhile, Segment 3 sounds like a high-income Gen X couple that is focused on acquiring luxury goods, perhaps a good fit for high-end marketers.
Dig Deeper with Digital Targeting Segments
Combining estimated income with family status gives a much better indication of how households are likely to spend their money. And there are many other criteria that marketers can use to help their digital ads reach their desired audience.
Plus, if you know that your best customers are concentrated in several segments, then it's easy to target households with similar characteristics via digital campaigns. Or if you're looking to further penetrate a segment with higher estimated income, higher spending, or younger/older than your typical customer, then digital targeting segments are for you. They're based on a comprehensive household segmentation system that allows you to differentiate and deliver your online ads to each of your desired audiences.
Learn more about Digital Targeting Segments from Equifax.