Commentary
'OTT Affluencers' Wield Outsized Influence...And Welcome Advertising
- by Karlene Lukovitz @KLmarketdaily, August 13, 2019
It’s no secret that affluent consumers have a weighty influence on U.S. spending.
Specifically, although they represent only 20% of the population, households with incomes of $125,000 and over account for 60% of total household expenditures, according to the Ipsos research firm, which has been fielding its Ipsos Affluence Survey (IAS) for …
Karlene Lukovitz is editor of MediaPost's "Digital News Daily" and writes the weekly "Video Insider" and "Advanced TV Insider" columns. You can reach her at karlene@mediapost.com.
Karlene, no one can argue about the buying power of affluent Americans relative to those with lower incomes. That's a given as is the fact that affluents are more likely to be streamers. And, not surprisingly, many marketers consider affluents to be better prospects for their products or services. However, the hidden message in this study ---one that is implied by the admonition not to underestimate the power of affluents as doing so might be perilous----is that advertisers should pay much more attention to streaming media. Which is fine, but the same study reveals that many affluents also have "Pay TV", meaning that it's not an either or situation. More likely a mix of both for most advertisers ---with "TV" probably getting the lion's share of the dollars commensurate with its overall viewing tonnage and reach edge. I also find it difficult to accept the implication that affluents are more receptive to ads ---TV commercials, I assume---than others. Sure, they, like every body else, respond best to ads that are of interest to them but every study I have seen finds that, overall, lowbrows are more accepting of ads---especially TV ads--- than highbrows.