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Wealthy Rush to Join Social Media Revolution-Luxury Institute Print E-mail
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.”

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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.

Harvey Chipkin
 
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From the Editor

Ipsos Mendelsohn and American Express Publishing-Harrison Group
Offer Fresh Insight on Consumer Behavior in 2010


According to new studies from two blue-chip research sources, Ipsos Mendelsohn and American Express Publishing - the affluent are not only ready to travel -- they are frequently going to spend more on it. While the Ipsos study focused on intent and American Express Publishing on mindset, they both point to a surge in affluents taking to the road (Amex sees an increase of 6 to 8% in spending on all luxury categories). Interestingly, both studies agree on a positive attitude despite lingering concerns about the economy. Here's a look at the highlights of both 2010 studies.

LuxuryTravel 360 has long looked to the affluent as a burgeoning market in business and leisure travel, fueling growth in more affordable, common sense luxury - less glitz and glamour, but ready to pay extra for memorable family experiences and genuine local culture.

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