According to a recent article in the Biz Report, new research from the Interactive Advertising Bureau (IAB), shows that affluent consumers "are more willing to share information to allow the customization of ads that accompany free digital content."
The article goes on to say that, "Despite their affluence, they prefer free ad-supported content to having to pay for the privilege. The IAB's study found that affluents appreciate the relationship between free content and advertising more so than the general population (72% vs. 61%). As such, they are more willing to share personal information to help create a more relevant online experience (32% vs. 23%)." I guess they didn't become affluent by spending frivilously.Most affluent consumers tend to use much less traditional media than less affluent consumers, and are much more likely to be online using digital media.
So what does this mean for today's marketer? It means that digital channels, and mobile channels in particular, may be the long sought after solution for reaching and activating an audience ($100,000+ AI) that spends 3x more than other consumer populations.
Digital content providers listen up! If you really want to make money off your app or website, perhaps charging a subscription fee isn't the best option, assuming you want to reach consumers with plenty of disposable income. Advertising is still a relevant revenue stream. You just have to stop using 1995 business models.
Maybe it's time to regroup. I'm just sayin'...
