Do you have a premium product? If so, are you showcasing its most important features in your search ads? In this post, we’ll look at a recent Nielsen report that highlights how consumers define and perceive a premium product. Then we’ll discuss how you can use that data in your search advertising.
Premium Products: Perception and Demand
According to Nielsen’s report on the global perception of and demand for premium products, people are looking to buy premium products, which Nielsen defines as goods costing at least 20 percent more than the average price in that category. Growth of the premium product sector actually tends to outpace that of fast-moving consumer goods the world over.
Consumers define “premium product” a little differently. While only 31 percent consider a product premium if it’s expensive, 54 percent and 46 percent place more emphasis on high-quality materials/ingredients and superior function/performance, respectively.
This should serve as a warning to brands that drive up prices without a clear value proposition—consumers need to see a reason for that higher price tag. High prices alone don’t say “premium” to most people.
Nielsen found the defining features of premium products to be quite similar across various age groups, Baby Boomers and Millennials alike emphasize quality, performance, brand, uniqueness and even location over cost.
However, there is some difference on the importance of each individual attribute. While 50 percent of Millennials say high-quality materials and ingredients is the most important feature, 61 percent of Baby Boomers, and 69 percent of those from the Silent Generation, rate the feature No. 1.
On the other hand, Millennials cite customer experience (40 percent) and superior style/design (39 percent) more often than Baby Boomers (31 and 32 percent respectively).
Interestingly, it’s not necessarily big-ticket items becoming worthwhile as premium goods to consumers. In fact, everyday items have the most potential for growth in this sector:
Using the Data in Your Paid Advertising
So, we know it’s vital that advertisers communicate value to consumers. How do you reach them with messages of quality? Fortunately, there are plenty of features available in a standard text ad to really highlight a premium product’s top attributes.
First, be aware that you have more room for AdWords text ads than you used to, and so more chances to present top features. Then, remember to assess the quality message as a whole, and determine which AdWords features will best support your creative strategy and messaging.
Ad extensions are an easy tool for making your ads better and more specific. Both automatic and manual extensions are available, and implementing them is simple and cost-free. They typically appear as small buttons and lines of text with your ad. You can see an example below from a screenshot taken from the AdWords help files:
Consider adding manual extensions for:
And there are automatic extensions for:
- Consumers ratings
- Previous visits
- Seller ratings
- Dynamic sitelinks
- Dynamic structured snippets
We also know from the data that different age groups define quality slightly differently. Depending on your product and who it’s for, you’ll need to emphasize different things in your ads. And your target audience will also drive the medium—where you place those ads.
What are the best places for targeting Millennials with your ads? In two words: Facebook and Google. From our research on mobile apps and advertising, we know that Facebook has 88 percent penetration with Millennials, and, along with Google, owns most of the top 10 mobile apps.
Intimidated by the idea of advertising on Facebook? Don’t be. We have some tips for taking advantage of Facebook’s advertising platform, along with its data and targeting.
If you’ve got a premium product, someone out there wants it, and is looking for your advertisements. As usual, you have to meet them where they are by knowing your audience, using the advertising tools available, and giving consumers the information they want.