What trends are shaping media buys? We’re taking an inside look at luxury purchasers, spot radio and some facts about how dialed in the 18-34 crowd is to radio that could surprise you.
HOSPITALITY TRENDS UPDATES
All luxury purchasers (adult consumers age 18+) who bought one or more luxury goods or services in the prior 12 months constitute almost 20%, or about 46 million, of the 239 million adults in the United States. Luxury marketers would be correct in surmising that as household income increases, the proportion of luxury purchasers rises.
Notably, though, luxuries were bought by almost as many mass-market consumers whose household income is less than $75,000 (20 million adults who are not typically classified as affluent by marketers) as by those with household incomes of $75,000 to $249,999 (about 22 million affluent consumers), plus the four million luxury purchasers in the upper-income segment of $250,000 or more. This being so, it’s our point of view that the luxury market is actually much larger than many luxury marketers currently believe.
As might be expected, a relatively large proportion, one in five (21%), of mass-market luxury purchasers bought luxuries just once in the past 12 months. In contrast, more than one-third of very affluent luxury purchasers bought luxuries six or more times.
NATIONAL MEDIA TRENDS
Spot radio: Raring for a rebound
Spending and pricing were down in many of the top 10 markets during the first half of 2015, and inventory was readily available and negotiable in most cities. The second half of the year will see increased spending and perhaps higher pricing in a couple cities. Summers are generally tighter on radio, unlike TV, because people can listen while they’re doing outdoor activities such as going to the pool or having barbeques. This spending surge will continue into the fall, with back-to-school spending dominating late summer. Political will also give a year-end boost to a few markets. San Francisco and Philadelphia, for example, are holding mayoral elections this November.
Surprising facts about media usage
More 18-34s listen to radio each week than use a smartphone. Nielsen’s most recent total audience report, a quarterly document that tracks media use by different age groups, shatters a number of misconceptions about new and old media use. For example, it might surprise you to know that more Millennials listen to traditional AM/FM radio each week than use smartphones. Nielsen found 93 percent of adults 18-34 listen to radio weekly, while just 80 percent report using a smartphone. In fact, radio is the most frequently used medium among Millennials. It’s well ahead of TV at 76 percent and PCs at 49 percent. Radio has been a part of people’s lives for so long it’s easy to take for granted. New technology has definitely become a staple of today’s media use, but it’s important to remember it’s not the only option young people turn to. Overall the report found that radio has the greatest reach of all media among adults, with 93 percent saying they use it weekly, compared to 87 percent for TV.