Few Americans have been untouched by the economic downturn gripping the country. But how we respond varies widely by demographics, according to a Nielsen study. Understanding how we differ in the ways we cut back can create opportunities for manufacturers and advertisers.
Nielsen created eight segments that divided households into groups based on their behavior and reaction to the decline. Despite conventional thinking that these segments are based primarily on income, characteristics such as age, household size and location were important factors in determining groups based on how they cut back expenses.
Eight Household Groups To Watch In A Recession
Advertisers can reach the least-affected segments by understanding what media these people consume. For example, "Recession Indifferent" consumers tend to view sports and news programming while "Recession Insensitive" consumers prefer comedy and quiz shows. By targeting and reaching an audience based on their purchasing habits during difficult economic times, marketers can make the most effective use of their ad spending.
To learn more about how to effectively reach optimal audience segments for your products, read more about Nielsen's segmentation analysis in the current issue of Consumer Insight.