Source: radioink.com, November 2023
As radio and advertisers head into an uncertain holiday shopping season, Klaviyo and Qualtrics have released their joint 2023 Consumer Spending Report. With 82% of Americans adjusting their spending habits due to economic concerns, there are still demographics and categories for traditional radio and digital audio to capitalize on.
Consumers are increasingly spending on essential items such as food, utilities, and transportation. This is especially true for older generations, however, the report showed younger consumers, particularly Gen Z and Millennials, exhibit a more optimistic economic outlook. They are more inclined towards discretionary spending, including on non-essentials and ‘lipstick effect’ purchases like beauty services, makeup, and fast fashion as a distraction from economic stress.
Digital audio is recommended to entice younger audiences, especially when it comes to the experiential or luxury aspect of products. AM/FM is encouraged for older buyers, with a focus on the value and practicality of products.
In terms of where people shop, consumers are 2.25 times more likely to prefer shopping online, citing convenience as the main reason. Despite this, in-store shopping remains relevant, especially among older consumers who value the ability to see and touch products before purchasing.
By understanding these trends, marketers can develop campaigns that align with consumer preferences for online shopping, luxury spending, and the indulgence in discretionary goods, all of which can be effectively promoted through audio channels.
