Total luxury spending by affluent consumers globally is expected to decline by 0.9%, but Millennials will up their spending by 8%, reports YouGov in its 2016 inaugural Affluent Perspective Global Study [pdf]. That might suggest a greater focus on young affluents, except that Boomers and Gen Xers are expected to collectively spend more than 4 times as much on luxury items than Millennials ($215B and $49B, respectively).
The category that is expected to see the biggest rise in luxury spending is travel (+10%), driven by a 16% increase in spending by Millennials.
The study notes that 9 in 10 affluent Millennials (18-37) have had their initial introduction by the age of 37. By comparison, far fewer Gen Xers (72%), Boomers (61%) and Matures (55%) had their first luxury experiences by that age.
Interestingly, 58% of younger Millennials (18-29) and 37% of older Millennials (30-37) reported that their first luxury experience was paid for by someone else. By contrast, more than 6 in 10 Gen Xers, Boomers and Matures paid for their first luxury item or experience. The majority of Millennials who were gifted their first luxury item or experience received it from their parents.
It’s worth noting that within the US, some 74% of affluent Millennials (21-36) report having received financial support from their parents after finishing college.
The following is a brief list of intriguing data points sourced from recent research.
- Close to 9 in 10 branding and marketing professionals believe that branded integrations such as product placements are effective ways of reaching target audiences, with 7 in 10 feeling that the branded integrations are successful as they allow for a more organic approach compared to traditional advertising. That’s according to an Ipsos study [pdf] – conducted on behalf of the Branded Entertainment Network (BEN) – which surveyed 102 US adults who work full-time in the marketing/advertising industry, including decision-makers or representatives of a specific brand and those working for an agency responsible for making decisions on behalf of brands.
- Customer interactions are increasing along the customer journey, per a Kitewheel analysis [download page] of more than a billion brand and customer interactions across its clients from 2014 and 2015. The analysis indicates that mobile app interactions have soared over that time frame, with email interactions also increasing. Surprisingly, while web interactions have increased and store ones are flat, social’s share of interactions has declined. However, a plurality of journey interactions are social, per the results.
- More than 6 in 10 B2B marketers target their audience by persona and/or buyer’s journey, though they’re more likely to do so by the former than the latter, per a recent survey from Conductor. Respondents were found to use blogs, videos, and whitepapers the most in terms of content types, with around 4 in 10 repurposing content either often (30%) or always (9%). Much more data on B2B digital marketing can be found here.
- Online adults aged 18-55 are now more likely to use social media than search to find media content, per results from a survey from Publicis’ Mediavest | Spark unit and BuzzFeed, reported here by MediaPost. Highlights reported from the study include 18-24-year-olds being twice as likely to get news from social media than 35-55-year-olds, and a majority of respondents overall saying that social media is their “most preferred source” for content about the topics they care about.
- Retail banks in the US are trailing those in other countries when it comes to adoption of mobile technology to enhance the customer experience, says Adobe Digital Index, noting that the US lags in smartphone retail banking visits per citizen. The quality of a financial institution’s mobile app is one of the leading motivators for switching behavior among Millennials (18-34), per the report, though it trails branch location, the leading reason among all age groups. For more on Millennials and financial institutions, see MarketingCharts’ comprehensive new report, Marketing Financial Services to Millennials.
- Which apps engender the most loyalty and engagement from their users? In analyzing more than 830,000 applications, Flurry from Yahoo finds that for Android apps, weather apps are among the most frequently used, while health and fitness apps have the highest 30-day retention rate. A similar pattern plays out for iOS apps: weather apps have high frequency and above-average retention, with health & fitness apps having the highest 30-day retention rate.
- There have been various estimates of the cost to the industry of ad fraud. Now, a new estimate has emerged on non-human traffic: a recent study from DeviceAtlas estimates that almost half (48%) of web traffic may be non-human generated traffic. More here [download page].
- Digital video ad spending continues to grow, having almost doubled between 2014 ($5.5 billion) and 2016 ($10.2 billion), according to a recent report from the IAB [pdf] released on conjunction with the NewFronts. More than 6 in 10 respondents – brand marketers and agencies – plan to increase their spending on digital/online video (63%) and mobile video (62%) over the next 12 months. The increase in spending is coming from a variety of sources, including broadcast (47%) and cable (41%) TV and non-video ads online (30%), with more than 4 in 10 drawing from an overall expansion in budgets. The report also finds that spending on original digital video advertising has more than doubled since 2014. This original digital video content now occupies 44% share of video budgets, up from 38% in 2014. Those drawing budgets from TV say that digital video’s ROI versus other media is the biggest obstacle to more spending. In fact, video advertising represents the digital channel most difficult to measure for ROI, per a recent survey.
- Finally, a study from Sprout Social finds that in Q1 2016, only 11% of questions posted to brands on social media were answered by those brands. An accompanying survey of more than 1,000 internet users finds that almost 3 in 10 consumers are more likely to go to a competitor if they are shunned on social media, with more than one-quarter less likely to use the product or service in question.
Have a great weekend!