… but you can’t say the same for people on the lower end of the income chart.
The highest inflation in 40 years has mostly hit the spending habits of lower and middle-income US consumers.
Between July 2021 and July 2022…
- Shoppers earning more than $100,000 increased spending by 20%.
- Shoppers earning between $50,000 and $99,999 spent 8% more, remaining almost consistent with inflation rate.
- Shoppers with incomes of less than $50,000 decreased spending by 1%.
Also, according to Morning Consult data, just 39% of those earning less than $50,000 had money left over after paying essential living expenses each month.
Why we care: If you’re in a non-essential niche and you’re targeting medium to lower-income consumers, your conversion rates will likely drop as the struggle continues.
Pivoting to higher-income consumers during tough economic times could lift your ad performance and keep those conversions coming.