Wealthy Rush to Join Social Media Revolution-Luxury Institute
The latest Wealth Survey out of The Luxury Institute trumpets an explosion of participation by US affluent in online social networks – soaring from 27% in January 2007 to 60% a mere year later.
Luxury Institute CEO Milton Pedraza thinks marketers might be lagging behind that march, saying, “While some in the luxury industry are still debating e-commerce, search and banner ads, the majority of their customers have leaped into the online dialogue.
“Luxury,” asserts Pedraza, “needs to catch up quickly.”
Pedraza’s research showed that the average, affluent US Internet users
is a member of three online social networks – with 110 online
connections through these sites.
Looking ahead, he sees online communities continuing to fragment into
specialized and selective entities of like-minded members. For
marketers, that should make it easier to target if they handle it right.
No-no’s, according to Pedraza, are tactics like forcible opt-out’s on
private purchase information, difficulty in dropping out, etc.
An eMarketer analysis sees the affluent – with annual HHI of
$100,000-plus – constituting a full quarter of US Internet users, up
from 16% in 2001.
And perhaps belying once and for all the notion that social media are
for the young, Nielsen Online, according to eMarketer, sees the
affluent as representing nearly 30% of Facebook users and about 22% of
MySpace users.
Melissa Bradley’s On My Mind message in the Sept-Oct issue of Indagare—family focused travel--just happened to be what was on my mind as I reviewed some of the most recent surveys on consumer travel behavior in a struggling economy.
In the November 3rd issue, covering the Latest Quarterly Survey from American Express Publishing/Harrison Group on Affluence and Wealth in America, is a most informative visit to spending in a troubled economy.
One thing that struck us, as we listened to the October 2 presentation, was how the term affluent covered so much territory - There is “ Bedrocks” Affluent, “Upper Middle Class” Affluent, “Pinnacle” Affluent, “Super” Affluent and finally, just plain Wealthy – all together, some 20 million households.
But Lux 360 Found a Brighter -and we think, Sensible Side-
From Harvey Chipkin’s report in the British online Hotel Report-a paid service from William Reed Business Media- http://www.wr-bi.co.uk/ - Reproduced here with publisher permission
At the first industry wide meeting following the fall financial meltdown and the recent presidential election, the consensus seemed to be that, yes, the industry faces a historically challenging situation that will last for awhile. But there was also a feeling that lodging is in a better position than other industries – and, happily, a few silver linings were perceived as well.
We’ve all heard the bad news over and over: global liquidity drought, drops in rate and occupancy, a dismal outlook for employment, and a possibly extended recession. But some leaders managed to find ways to take – if not a positive view -- at least a more nuanced one. Following are a few comments about why weeping and gnashing may not be the only appropriate attitudes.
Steve Joyce, who recently became CEO of Choice Hotels International, said he has been “the only optimistic person in the room at a number of events over the last few weeks.” I strongly believe,” said Joyce, “that there is a paralysis factor and that you can’t base projections on two weeks of hysteria.”
“Forecasts in this environment,” he continued, “are entertaining but not much use.”
Other ‘smart marketer’ insights from Joyce, Mark Lomanno of Smith Travel Research; Peter Yesawich, CEO of The Y Partnership; Michael Kaufman, Chairman of National Restaurant Association; Patrick Ford, CEO of Lodging Econometrics; and Roger Thomas, Steve Wynn’s design guru for many years.
Nat Ives, in Ad Age Online Sept 6, cites new data from Ipsos MMR which assures that well-off readers read print publications just as much now as they did 5 years ago.
Also, survey respondents making more than $100,000 annually said their average hours online had grown to 22.1 each week from 10.7, while the time they said they spent watching TV sunk to 18.6 hours from 23.7 in the 2003 survey. Read the full Ives story at http://adage.com/mediaworks/article?article_id=130685. Lux 360 attended the client briefing this week and will provide additional perspective in our Sept. 30 issue, interviewing Ipsos MMR President Bob Shullman.
Issues & Insights 
