‘Premium phone users drive engagement with premium products’ has been widely accepted knowledge for some time now. However, a new report has challenged this conventional wisdom, revealing that mid-range smartphone users are driving engagement with premium products, dispelling the myth that luxury consumption is primarily associated with high-end devices.
The study, conducted by media platform Bobble AI’s market intelligence division, highlighted that users with devices priced between Rs 9,000 and Rs 20,000 lead in searches and interactions for premium products, accounting for 63.71 per cent of digital footprints.
For years, the advertising industry has operated on the belief that high-end smartphone users (Rs 20,000 and above) were the primary consumers of luxury goods and services. The report challenged this assumption by analysing actual online behaviours across a range of device users. It found that mid-range smartphone owners, not their wealthier counterparts, are more engaged with premium fashion, automobiles, OTT subscriptions, and hospitality services.
Mid-range users outdo their rich counterparts
The study was conducted using anonymised and aggregated data from Google searches and chat platforms, focusing on two key metrics: Intent Affinity and Premium App Usage. The users were divided into three categories based on device price: low-end (below Rs 9,000), mid-range (Rs 9,000–Rs 20,000), and high-end (above Rs 20,000).
The findings showed that mid-range users were the most active in searching for and chatting about premium products, representing 63.71 per cent of such activities. Surprisingly, high-end users trailed with only 9.88 per cent, while low-end users accounted for 26.41 per cent. The report further revealed that mid-range users demonstrated the highest affinity for all premium categories, including fashion, automobiles, and hospitality, refuting the assumption that high-end smartphone users would dominate.
Difference in digital behaviour
The report also examined engagement with premium apps, revealing that mid-range users accessed premium apps with more purpose than high-end users. While both groups had similar open rates (a metric that measures the percentage of recipients who opened an email or other message), high-end users were largely passive, with 90 per cent engaging in scrolling rather than product searches.
High-end users led in session counts, but mid-range users were not far behind, demonstrating almost identical levels of engagement. However, mid-range users were more intentional in their interactions, aligning their behaviours with specific products.
Meanwhile, the time spent on premium apps varied across product categories. Low-end users spent the most time on fashion apps, followed by mid-range users, while high-end users spent the least.
Conversely, high-end users dominated OTT subscriptions and hospitality apps, where mid-range and low-end users were slightly behind but exhibited similar behaviours.
The report delivered a clear message that owning a high-end smartphone is no longer a reliable indicator of interest in premium products. Mid-range users, who demonstrate high levels of engagement and purpose-driven behaviour, are emerging as key players in the luxury market. For advertisers, this presents an opportunity to rethink strategies and capitalise on this growing demographic, it said.
First Published: Sep 23 2024 | 5:34 PM IST
