Archive for May, 2014

Home is Where the Heart (of Young Affluents) Is

Thursday, May 29th, 2014

marketing to young affluents investing in real estate

Young Affluents are investing in real estate.

After witnessing the Wall Street meltdown and their parents’ nest eggs crack open during the recession, Millennials are keeping their money close to home as in…their homes. For Generation Y, buying real estate appears more safe and less volatile than the stock market for good reason: home prices have come back to earth and interest rates remain very low.

There are more young affluents ($100K+ HHI) than in previous generations and this expanding group of real estate investors are buying more expensive first homes and investing in second homes. It helps that interest rates are even lower for jumbo mortgages over $400-$600K depending on the area.

Key findings among young affluents from a recent study include:

 

Gen Y home buyers are behaving very differently than their parents:

 

By some accounts this is the hardest-to-reach, but freest spending generation, which is why marketers should simply reach them directly via mail, email, telephone and online.

Yes, many are finding themselves marginalized in a difficult job market. But there are numerous “Young Affluents” who’ve landed high-paying jobs, profited from stock options and/or benefitted from the passing of wealth from the previous generation to theirs. This is the group driving the luxury real estate and upscale home renovation markets today.

 

Affluent Blacks and Latinos are Prime for Relevant Brand Marketing

Wednesday, May 21st, 2014

Luxury Brand Marketing to Affluent Blacks and Latinos Hispanics

Luxury Brand Marketing to Affluent Blacks and Latinos Must Be Relevant

As the percentage of the Hispanic and African American populations continues to outpace Whites in America, their ranks of six-figure earners are rising with it. Yet luxury brands are slow to recognize their growing numbers and failing to seize the opportunity to earn their business through targeted, relevant marketing.

The nation’s largest minority is rapidly gaining affluence:

 

African Americans constitute a major growth market:

 

While wealthy Blacks and Latinos may seemingly belong to the affluent mainstream, luxury marketers must:

  1. Develop strategies for directly reaching these segments of affluence and…
  2. Engage them in a culturally relevant manner.

 

By our count, there are 578,000 African Americans and 1,083,000 Hispanic Americans of very high income and net worth that luxury brands should be targeting with personalized marketing. When you acknowledge your ethnic audience with messaging and imaging that they can relate to, you can establish an emotional connection that is so essential for achieving high-end brand loyalty.

With No Limit on Total Political Campaign Contributions, the Rich Can Give More

Wednesday, May 7th, 2014

Find wealthy political campaign supporters and fundaising donors.

The race is on in the search for wealthy political fundraising donors.

SCOTUS recently ruled that the rich can now give money to an unlimited number of campaigns. Prior to the high court’s ruling, supporters were limited to giving individual candidates up to $5,200 for a maximum of $123,200 across races per two-year cycle. Now the rich can give that same amount to as many candidates as they want.

While this loosening of campaign finance laws may be controversial, one thing we can agree on is that it should be a nice boost to the direct marketing industry. The race for campaign funding is ON! With the 2014 midterms right around the corner, politicians of all stripes need to get their message out to as many super rich, passionate supporters as they can.

Aspiring and incumbent congressional candidates — you’ll find them all right here — must mount a fundraising blitz by mail, email, telephone and digital display advertising. But they need to be smart about it. Simply targeting high-income households by demographics won’t cut in in the fierce competition for donations.

Political  fundraisers need to identify major political donors who have given to campaigns and causes in the past. And they will increase their chances to gain maximum support if they target individuals of very high net worth,  rather than high income.

In today’s polarized political atmosphere, Americans are increasingly likely to participate in political activities, contribute money, contact candidates and talk to their colleagues about a campaign. This is particularly true among affluent Americans who participate more in civic life than other groups.

The lifting of the spending cap follows 2012’s Citizens United ruling, which allows political organizations funded by wealthy individuals to spend an unlimited amount of money to advance a politician’s agenda and campaign. These groups are already soliciting big-time donations from their power base and can add to that base with wealthy donors nationwide.

 What does it all mean for our country?

Don’t ask me. I only talk politics when it comes to helping our elected officials and their challengers accurately source the highest net worth supporters — whether on the left, on the right or on the fence.

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