How to Reach the Rich on Facebook
Published: December 3, 2013
Author: Joe Stanton
There are very few companies that would mind having rich customers. High-net-worth individuals have the ability to buy more and have connections to other rich, influential people. Furthermore, many industries, including but not limited to the hedge fund industry, depend on a healthy base of well-to-do clients.
My advertising agency has been preparing for months to launch sophisticated campaigns to attract “accredited investors” (people who earn over $200,000 annually or have more than $1,000,000 in assets) who might be interested in investing hedge funds. We face the challenge of reaching and converting these high-net-worth individuals online.
Hedge funds only recently won the right to advertise this September when the JOBS Act finally came into effect. Before the JOBS Act, the laws were so strict that it was illegal for hedge fund managers to even say in public that they worked for a hedge fund. Now that these new regulations have passed, hedge fund managers now have the same rights to free speech that pornographers and tobacco companies have had for years.
Mass media hedge fund marketing is a completely new industry, one with no proven technique. I have personally worked for a hedge fund for a few years. This hedge fund, which you can read about on SouthlandCapitalManagement.com, is not hard to sell. It provides high monthly dividends (over 20% annual dividend yield last year), there is no lock-up period for investors, it provides superior performance compared to other hedge funds and was the world’s 2nd highest performing hedge fund in its category in 2010 according to Morningstar.
The only true challenge my agency faces in acquiring new investors for Southland Capital Management is finding them.
Inside Our Campaigns
Without giving away all of my strategies, below I list (some of) the targeting options I’m using to reach the rich on Facebook and give you a look inside one of my 25 high-net-worth individual Facebook campaigns.
13 New Targeting Options to Reach the Wealthy on Facebook
The recent introduction of the Partner Categories (Datalogix, Acxiom, Epsilon) has benefited Facebook advertisers greatly. These are the targeting options that seem the most useful to market Southland Capital Management.
- Home Market Value (>$1,000,000)
- Vehicle Price (>$75,000)
- High End Retail Buyers
- Travel / Personal Services
- Luxury Apparel Buyers
- Likely / Highly Likely Investor
- Credit Card User > Premium Card
- Financial Services > Banking
- Vehicle Purchase Propensity > Likely to Buy a New Car
- Affluent Baby Boomers
- High Spenders
- Retail Spend > Above Average
- Donors > Charity / Conservative / Liberal / Veteran / World Relief Causes
The audience statistics listed in the pictures below are all for the entirety of the United States. In my more laser-targeted campaigns, I narrow down the audience by selecting users residing in the wealthiest zip codes and by education.
This is my favorite campaign, detailed below. Each picture features the audience size of that particular targeting option. This campaign was created specifically for Southland Capital Management, but it could work for virtually any company that wants rich clients.
Description: People who have made purchases for banking services, such as CDs, IRAs, mortgages, etc. Size: 27,568,600.
Premium Credit Card Users
Description: People who have a gold or platinum card, which generally has a higher credit limit. Size: 20,713,200.
Highly Likely Investors
Description: People who are highly likely to be investors, based on investment interests and a variety of additional demographic data and census median data. Size: 11,102,300.
Luxury Retail Buyers
Description: People who have made purchases at luxury, upscale, high-end department stores. Size: 12,758,500.
Home Market Value > $1,000,000
Description: People who live in a home valued over $1,000,000. Size: 1,025,800.
When you combine all of those targeting strategies, you end up with one perfectly sized audience, ideal for a Desktop News Feed advertisement:
Now, 11,000 people may not sound like a lot, but ads displayed on desktop news feed average a 1% CTR, yielding ~100 clicks. The suggested bid range is $0.98 – $2.20, so the total cost of the campaign should only be $98 – $220 to acquire all 100 clicks.
Though this campaign is one of my most micro-targeted, it is a good example of the potential Facebook offers for displaying ads to high net worth individuals.
So, Facebook marketers: take advantage of these new partner categories and start reaching rich customers today.
Ready to learn more? Check out 3Q Digital’s Complete Guide to Facebook Advertising, or contact the 3Q Social team directly.