What is the premium audience? Until very recently the answer that most advertisers and agencies would give was very simple: people who can afford to buy premium brands, usually paying between 20% and 50% more than mid-market prices.
Research from Microsoft Advertising has challenged much of this received wisdom about premium consumers. Titled ‘A Cut Above the Rest’ it proves that premium consumers and the luxury audience are not identical and, perhaps most significantly, that the premium audience cannot be defined by demographics at all.
There is no denying the importance of the premium audience, which makes up 40% of Europe’s online consumers. Yet only 45% of the premium audience are defined as ‘affluent’ and the average household income of premium consumers stands at €39,000. As a result, campaigns targeting by affluence are likely to miss 55% of premium consumers.
Premium consumers economise in many areas in order to be able to afford the premium products that matter most to them. Their motivation is the improved performance that they perceive premium products to deliver. They respond to a combination of emotional and rational drivers – following a journey to purchase that is very different from luxury consumers, who are motivated by indulgence and status. Online plays a key role for premium consumers as they carefully research products and seek recommendations and reassurance from friends.
In order to reach the premium audience effectively, advertisers should adopt a holistic online strategy, aiming to drive awareness whilst providing information and reassurance to mirror the customer journey. Online display advertising, social media advertising and search advertising all have important roles to play, whilst online behavioural targeting offers the most effective means or identifying and targeting premium consumers.
Click here to download Beware the Great Ignored, our Whitepaper on the premium market, as a PDF.
