BY Kathy Crosett
Late last year, WARC called out the shrinking middle class as an area of concern for marketers in 2026. Analysts have consistently pointed out that the top 20% of U.S. households, measured in income, increasingly account for a disproportionate share of spending. Looking ahead, your accounts should be targeting affluent households.
The vanishing middle class
At least one in three consumers believes they will struggle to make ends meet in the coming year. While middle-income consumers felt positive coming out of the recent pandemic, the mindset has changed. Unrelenting inflation has dented their optimism and spending levels.
That has been the case since the pandemic. Most consumers are barely keeping up with, or are steadily losing ground to, inflation. At least 17% of consumers fear they will be less well-off next year, reports AudienceSCAN, powered by AdMall. Around 23% of this audience has a household income of $75,000-$149,000.
To cope, these consumers are focusing on value in the grocery store. When they go out to eat, they are seeking deals. And they may be skipping drinks and desserts.
Rethinking the targeting strategy
Continuously offering discounts will squeeze profitability for your accounts. In addition, they likely know that the old way of targeting audiences, through demographics such as age or family structures, are no longer effective. WARC analysts encourage marketers to consider “cultural and ideological values.” AudienceSCAN gives subscribers unique insights into details like purchase motivators, aspirations and more. These details can help marketers connect in unique ways with their audience.
Targeting affluent households
Your clients must decide who to target with their ad money. Affluent households continue to splurge on experiences. But they are also looking for ways to keep their spending under control.
They shop at discount stores
Research shows a significant increase in the number of households earning over $100,000 shopping at discount retailers such as WalMart in the past few years.
To attract these shoppers, retailers are updating their stores. They should also update their marketing strategies. AudienceSCAN data shows that affluent households are 32% more likely than other adults to say local media "helps them take advantage of sales/special offers from local businesses.”
They pay for experiences
The continued spending by higher-income consumers is well-documented. They may be holding off on buying high-end household goods, but they pay for experiences. For example, Delta Airlines has reported that its steady sales growth is attributed to consumers who can afford to pay for premium seating and services when they fly.
Around 22% of affluent consumers belong to a frequent flyer program. These consumers pay attention to what loyalty can get them, and they can afford to pay for it. According to AudienceSCAN, 11% of affluent householders are frequent business travelers.
They like luxury products
When making purchases, affluent shoppers are far more likely than other adults to seek items that make them feel prestigious, popular, or unique/distinctive. They are also far more likely than average to buy only high-end or luxury products.
A focus on health care services
These consumers spend confidently on their health. Around 8% will pay for LASIK surgery. And 7.7% pay for concierge medicine. Accounts that offer cosmetic surgery, injectable fillers and elective surgery procedures should be targeting affluent households.
Marketers can target them through streaming TV ads, social network ads and mobile apps — nearly 60% have responded to these types of ads in the past month. As the middle class shrinks, your clients will have to decide how to position their messaging. Targeting affluent households is one way for them to maintain sales and profit margins.
Image by Max Vakhtbovycn on Pexels.
