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Mobile and Video Speak to Luxury Shoppers

JUNE 29, 2011

Buyers of high-end goods are highly engaged with online visual and mobile tools

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Affluent consumers are tapping into mobile and online tools to support purchase decisions more frequently than the general population, research indicates. This gives marketers more opportunities to reach them through newer digital channels.

According to a survey conducted by the Affluence Collaborative, the majority of affluent internet users who earn more than $200,000 a year conduct product research on a weekly basis. And about a quarter of the highest-earning affluents (those earning at least $500,000 a year) research products and services every day.

The survey also indicates that more than half of online affluents use the mobile internet on a weekly basis—and about 40% do so daily. Given the high penetration and usage of smartphones among wealthy consumers, mobile video may be an opportunity to reach affluent or luxury product shoppers.

Frequency of Accessing the Internet on Their Mobile Phone According to US Affluent vs. General Population Internet Users, by Income, Feb 2011 (% of respondents)

An automotive study by Google, Compete and Polk supports this. The research found that 30% of luxury car shoppers watched videos on their mobile phones prior to a purchase. And luxury car shoppers were twice as likely as volume car shoppers to watch consumer-generated online video on their PC and on their mobile device.

Data from an Ad-ology Research complements these findings. In the firm’s survey of auto purchasers, more respondents said that online photos and videos were integral to the purchase process for luxury and sports cars than for other types of cars.

US Internet Users Who Think Online Photos and Videos of Vehicles Are Very Important When Making a Decision, by Vehicle Type, May 2011 (% of respondents)

Luxury automaker Land Rover knows that mobile and video are two crucial tactics to reach its target audience. According to Ken Bracht, marketing communication manager at Land Rover, a high percentage of its customer base uses smartphones, so the brand has taken “calculated risks” in mobile for several years now.

During the pre-launch of its 2012 Range Rover Evoque, Land Rover introduced a mobile app called Pulse of the City and also created an online interactive movie in hopes of entertaining and informing its early-adopter, tech-savvy target audience.

The videos have returned higher-than-average engagement. “It’s difficult to get anyone to spend more than 120 seconds with your content,” Bracht told eMarketer. “But we’re seeing an average of 7 minutes.”

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Check out today’s other article, “Social Media Brings New Engagement to TV.”

 

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