Targeting high income individuals on Facebook can be a great strategy for certain businesses looking to advertise to an affluent audience. However, effectively reaching this demographic requires careful targeting and optimization. Here are some quick answers to key questions on how to best target high income users on Facebook:
– Lookalike Audiences – Create a lookalike audience based off your existing high value customers. This allows you to find new users with similar demographics and interests.
– Interest Targeting – Target users interested in high income hobbies, brands, etc such as golf, luxury travel, investment banking.
– Job Title Targeting – Target users with high income job titles like doctors, lawyers, executives.
– Education Level – Target users who have graduated from top universities or have advanced degrees.
– Household Income – Target users with a household income of $100k+ or other high income levels.
– Home Value – Target users living in homes above a certain value.
– Parents – Target parents located in high income zip codes.
– Frequency Capping – Set a frequency cap to optimize for users with high lifetime value rather than reach.
Why is it important to target high income individuals?
There are a few key reasons why targeting high income individuals on Facebook can be an important marketing strategy:
– High Disposable Income – Higher income households have more disposable income to spend on premium products and services.
– Higher Lifetime Value – High income customers often have higher lifetime value due to increased spending and loyalty.
– Increased Conversion Rates – Affluent users tend to have higher conversion rates when targeted with relevant offers.
– Higher Profit Margins – Businesses can often charge more and have higher profit margins on sales to high income consumers.
– Enhanced Brand Perception – Targeting high income users can enhance a brand’s prestige and positioning.
– Ideal Audience for Certain Verticals – Certain industries like finance, real estate, and luxury rely heavily on high income consumers.
Overall, affluent Facebook users represent an attractive and lucrative subset of the platform’s broader user base for brands looking to drive sales and growth. Capturing their attention and spend provides major upside.
How to find high income interests and demographics on Facebook
Here are some tips on researching and identifying high income interests and demographics to target on Facebook:
– Use Facebook’s Audience Insights – Dive into Audience Insights and search for interests and categories that over-index for high income users.
– Analyze Competitor Targeting – Study ads run by luxury brands and financial services companies who likely target high income consumers. Use their ad interests for inspiration.
– Leverage Third Party Data – Data aggregators like Acxiom provide detailed demographic segmentation for targeting. Identify segments with high indexing income levels.
– Search Facebook Groups – Join and analyze groups oriented around luxury travel, investment banking and other high income verticals. Target based on group topics and info.
– Conduct Surveys – Survey your existing high value customers about their interests both on and off Facebook to uncover potential targets.
– Monitor Engagement – Look at what content and pages on Facebook receive high engagement from your VIP followers and customers. Turn those into targeting interests.
– Test and Iterate – Try a wide range of potential targeting options in ads and analyze performance. Double down on what delivers the highest ROI among high income users.
What are some targeting best practices?
Here are some top best practices to keep in mind when targeting high income users on Facebook:
– Layer Targeting – Use multiple targeting factors like interests, job titles, education, and behaviors together for greater precision.
– Prioritize Quality Over Reach – Tightly targeted, smaller audiences often perform better than broader targeting.
– Test Specific Interests – Go beyond broad targeting and test specific high income interests. For example, target “golf” only rather than “sports”.
– Consider Buying Habits – Think about how high income consumers research and make purchasing decisions for your category when choosing targeting.
– Factor in Purchasing Power – Income level alone doesn’t always translate directly into wealth. Consider targeting known markers of affluence.
– Monitor Frequency -Watch frequency closely to avoid over saturating high income users who get shown too many of your ads.
– Use Lookalike Audiences – Continuously build new lookalike audiences based off your top converting users to keep prospecting.
– Adjust Creative Messaging – Tailor ad creative and messaging specifically to resonate with and motivate high income consumers.
What are some common targeting mistakes?
It’s important to avoid these common mistakes when targeting high income users on Facebook:
– Relying Solely on Income – Don’t target by income alone. Layer in multiple signals of wealth and affluence for better performance.
– Casting Too Wide a Net – Avoid loosely targeting all “luxury shoppers”. Go for precise interests representing high income consumers.
– Not Considering Lifetime Value – Don’t just target for conversions. Factor in customer lifetime value in your targeting strategies.
– Targeting Too Broad of Locations – Hyper target down to the zip code or neighborhood level where affluent consumers live rather than full cities.
– Assuming All College Educations Are Equal – Target graduates of specific universities rather than all college educated users.
– Overlooking Context – Don’t advertise luxury products next to content that isn’t brand safe or relevant to high income consumers.
– Copying Competitors’ Targeting – Do your own testing and research. Don’t assume competitors have the best high income targeting dialed in.
– Ignoring Fatigue – Monitor frequency and make sure you aren’t showing too many ads to your prime target audience.
How should you structure high income Facebook ad campaigns?
Here are some best practices for structuring Facebook ad campaigns aimed at high income users:
– Separate Campaign for High Income – Create a dedicated campaign for your high income audience separate from other efforts.
– Use a Conversion Campaign Objective – Optimize for conversions like sales or leads to drive tangible ROI from high income users.
– Tightly Control Targeting – Use precise, manually entered targeting instead of relying solely on Facebook’s tools.
– Allocate Significant Budget – High income users warrant larger budgets given their significant lifetime value.
– Cap Frequency Low – Set frequency caps at 1-3 per week to avoid oversaturating high income consumers.
– Focus on Highest Value Actions in Ads – Promote your most premium products/services and highlight associated benefits.
– Continually Refresh Creative – Frequently test new ad creative to combat creative fatigue among affluent users.
– Monitor ROI Closely – Dig into ROI metrics across devices, ages, genders, and interests to optimize high income performance.
– Build New Audiences – Use engaged high income users from campaigns to build additional lookalike and custom audiences to target.
What are some top high income interests to target?
Some examples of proven high income interests that could be relevant to target include:
– Golf – Targeting golf (sport, athletes, brands) indexes highly for $100k+ incomes.
– Luxury Travel – Target interests like luxury hotels and high end travel destinations.
– Fine Dining – Cuisine interests like wine, champagne, and celebrity chefs over-index among high income users.
– Investing – Target interests like stocks, investing, and wealth management.
– Fitness & Active Lifestyle – Affluent users are often interested in high end fitness pursuits like skiing.
– Ivy League Schools – Targeting graduates of Ivy League and other elite universities indexes well.
– Sailing & Boating – Nautical interests attract wealthier demographics.
– Luxury Fashion – Target interests related to designer brands and high end retailers.
– Country Clubs – Members of exclusive country clubs tend to be high income.
– Philanthropy & Charity – Wealthier individuals are often engaged in prestigious philanthropic causes and organizations.
What types of creatives resonate best?
Here are some creative strategies to make your ads stand out with high income audiences on Facebook:
– Highlight Exclusivity – Convey prestige and exclusivity in your offer or product. Affluent users crave luxury experiences.
– Focus on Quality Over Price – Emphasize superior quality, craftsmanship, and attention to detail rather than discounts or deals.
– Use High End Images & Video – Depict attractive, aspirational imagery and locations reflective of the affluent lifestyle.
– Leverage Influencers – Partner with influencers popular among high income demographics to boost credibility.
– Promote Limited Availability – Creating urgency and demand by promoting limited availability, reservations required, pre-orders, etc.
– Feature Premium Perks – Highlight VIP services and amenities included like white glove delivery, personal shoppers, priority access, etc.
– Call Out Prestigious Partners – Spotlight exclusive partnerships, rare features and any accolades from prestigious third parties.
– Infuse Your Brand Story – Showcase your brand heritage, achievements and commitment to excellence.
What metrics should you track?
To accurately evaluate the performance of campaigns targeting high income users, brands should closely monitor metrics like:
– Return on Ad Spend (ROAS) – Track the revenue generated from affluent users against dollars spent targeting them.
– Cost Per Acquisition – Understand the average cost to acquire a new high income customer.
– Lifetime Value – Review the long-term value of acquired high income customers over time.
– Customer Acquisition Cost – Calculate how much you need to spend to acquire affluent customers via paid advertising.
– Conversion Rate – Measure the percentage of high income users converting on your ads.
– Cost Per Click – Gauge the average amount you’re paying when high income users click your ads.
– Click-Through Rate – Determine how frequently your ads are clicked by wealthy demographics.
– Engagement Rate – Evaluate how often high income users engage with your ads vs. just seeing them.
– Loyalty & Retention – Analyze retention and repeat purchase rates among acquired high income customers.
Conclusion
Targeting high income consumers on Facebook can deliver outstanding returns for brands willing to do the work to analyze, identify, and precision target this lucrative group. By avoiding common mistakes, structuring campaigns effectively, testing creative, and monitoring key performance indicators, marketers can tap into significant spending power on the platform. The strategies and best practices provided above should serve as a blueprint for effectively unlocking the potential of the affluent demographic on Facebook moving forward.