Two major groups of consumers are reversing their spending habits of the past two years. Inflation is causing lower- and middle-income households to spend fewer discretionary dollars, which they have been willing to spend, while affluent consumers, who limited their spending, are ready to spend, collectively, $275 billion, according to analysis from Visa.
Visa estimates those with household incomes of $100,000 or more earn $185,000, on average and the average age of these affluent consumers is 48. Visa also estimates they will spend approximately $110,000 of those earnings and substantial amounts for their home and to travel.
Radio is an excellent reach medium to engage with these affluent consumers based on data from five representative 2021 consumer/market surveys conducted by The Media Audit. A home is certainly high on the list of planned purchases during the next two years, as adults 18+ with household incomes of $100,000 or more and heavily exposed to radio (180+ minutes during the average day) over-index, on average, at 132.
The complete table of these affluent adults who are heavily exposed to radio shows they over-index in almost every category of planned purchases. They over-index the most, on average, for planning to buy or lease a new vehicle during the next 12 months at 157.
“During periods of higher inflation and other economic uncertainties, it’s important to remember many consumers still have money to spend. If Visa’s analysis is correct, then brands and retailers are about to gain significantly from affluent adults’ pent-up purchasing and travel plans,” said Annette Malave, Senior Vice President, Insights, Radio Advertising Bureau. “Because affluent adults are also very busy and on the go, radio, available to them across platforms and devices, becomes the prime engagement point to reach them and attract more of their consumer dollars.”
Visa also forecasts many of these affluent adults will be traveling twice as much as they did during the early months of the pandemic, especially because their net worth has increased more since early 2021 than most other households.
A second table of data from The Media Audit’s five consumer/market surveys reveals these affluent adults who are heavily exposed to radio over-index in most instances in various travel categories.
The combination of the Visa insights and The Media Audit data of affluent adults’ consumer purchasing plans and travel trends correlated with their heavy exposure to radio is a winning formula for brands and retailers.