“Government will not introduce hikes for personal income tax and corporate income taxpayers, in an effort to aid economic recovery and ease financial pressures on households and businesses. Government has also withdrawn proposed tax increases of R40bn over the next four years, announced in the MTBPS,” News24.

The bulk of the taxpayers are high income earners who also spend more. This announced tax measure will allow more expenditure in the economy and grow household consumption.

“Y-o-y growth in retail sales at constant prices improved nicely in December, to -1.3%, from -4.3% in November. It is necessary to highlight the fact that the lion’s share of retail sales in South Africa is consumed by a relatively small proportion of the population, i.e., between 15% and 20%, who earn over R25,000 per month. The majority of such salary earners did not lose employment and their well-being was not affected to anywhere near the same extent as the lower-income workers, especially those in services industries,” Econometrix.

Every brand or advertiser is looking to target this segment of the market that is resilient against covid19 and fundamental to business continuance and sustenance. According to Stats SA 2020Q4 employment report, 53% of those who worked from home due to the pandemic were skilled employees, professionals and managers who obviously fall into the category of high-income earners. Working from home or spending more time at home has presented more opportunity for media consumption, hyperlocal shopping (close to home) and e-commerce (shopping for delivery to the home). A lot of these people have renovated their homes to allow for working space or home offices which most likely has been the reason for better performance in household furniture, appliances, equipment, hardware, paint and glass retail

sales. ROOTS 2019 can pin point the residential areas where top earners live and target them with local newspapers. Local newspapers are the only print media that get into homes on a free subscription model, delivered door-to-door, distributing about 4.6 million copies every week.  The graph below shows average household income per month by socio-economic measure and top earners of R25 000 + per month all fall in SEM 9 and 10. Although they may be a small proportion of the population as pointed out earlier, they possess the most resources to fuel economic expenditure.

It is also important to note that top earners are avid readers, and brand communication placed in the right medium will reach them and receive the desired attention.

The more people read, the more they earn

With pressure on advertising budgets, now more than ever, advertisers need to target smartly.

The graph below, points out high incidence areas of SEM 9 – 10 which brands and advertisers should take note of and target. Local newspapers are well read in these areas.

With high internet access in this market segment, one might assume that less of them now consume local news offline, but ROOTS shows that they still very much read their local newspaper.

Local newspapers are distributed in geographically defined areas, making smart targeting in the ‘real world’ possible. The ROOTS consumer behaviour survey allows you to find areas with high incidences of specific audiences for tactical campaigns such as SEM 9-10 or top earners; active people in your product/service category.

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