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Social Media is Gateway to Newly Affluent

Posted on June 2nd, 2011 in Social Media

The American Dream is the stuff of Hollywood. Kids grow up with stars in their eyes and visions of being the next Miss America, rock star or Bill Gates. In media sound bites, we hear over and over again that small business is the backbone of the American economy. Work hard, and someday you can be rich too!

The politically astute and savvy marketers know the real score. Over the last 30 years, there has been a profound erosion of the middle class in America. The old adage that “the rich get richer, and the poor get poorer” has never been truer than it is today. Now, a new Ad Age Insights White Paper from Digitas spells it all out for those who wish to reach today’s dominant segment of consumers.

Ad Age Affluence White Paper from Digitas

A new study explains why mass affluence is over, which households are likely to achieve wealth in the next decade, and how media use changes the wealthier one becomes.

According to the study, the concentration of wealth in America has become so extreme that “the top 1% alone control nearly 40% of the wealth,” and “10% of U.S. households account for almost half of [all] consumer spending.” In the good old days of the mid-twentieth century when sophisticated B2C marketing really came into its own, the vast emerging middle class was easy to identify and target.

Today, as the sun quickly sets on that same middle class, one of the biggest challenges faced by marketing firms is predicting who will be included in the new, narrow demographic of affluent consumers. The study goes on to say that a person’s earnings in their 20s and early 30s is a major predictor of future wealth. Madison Avenue is no stranger to idea that there are significant benefits from establishing and building brand loyalty in emerging consumers rather than hitting mature consumers with what amount to “cold call” messages.

Here’s the pearl: The new wave of affluent consumers have “widely adopted interactive and social media” while their senior counterparts have increasingly employed media filters to make themselves less accessible to advertisers. In a rapidly changing landscape, paying attention to how social media and its successors extract and leverage personal information will surely pay dividends.

Published by Lexicon Media LLC

One Response to “Social Media is Gateway to Newly Affluent”

  1. Adobe’s High-Tech Counterfeit Deterrence | Lexicon Media Says:

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