Shocking new study defines vast Boomer (ugh!) spending power
A shocking new study from the Video Advertising Bureau (VAB) shamelessly lauds those pariahs of the 18-49 love-fest community, Boomers.
It’s the kind of data we might expect from AARP but not from a respected Madison Avenue insider.
The free report 50 Shades Of Green: Vast Spending Power Of Adults 50+ should strike terror into hearts the length and breadth of adland: it provides a deluge of statistics that demonstrate the folly of ignoring this enormous population – the world’s third largest economy.
Mainstream brand strategists, steel yourself; here are some disruptive nuggets about the 111 million Americans aged fifty-plus. According to the VAB they …
- Control 70% of disposable income
- Account for 58% of retail sales
- Over-index on high ticket and lifestyle brands
- Will buy 59% of all new vehicles sold in 2016
- Will grow by 15 million new members by 2025 – vs. only 5 million new arrivals in the 18-49 demo
- Will fuel 50% of U.S. consumption growth thru 2030
- BUT: garner only 15% of marketing dollars spent
Okay, we already hear the defensive group-think … “see, see, we don’t need to advertise to geezers – we get the Boomer business already!”
Well, it’s very chummy that brands agree to a hands off policy in the 50+ space when it comes to stealing share from competitors. Of course, the stockholders will understand – who needs more brand share, more profit and bigger dividends anyway?
The VAB reports that 7 of the 13 vehicles (54%) bought in a typical new car buyer lifetime are purchased after age fifty. So, 54% of the market receives 15% of the marketing budget.
Hmm. Kind of answers the old conundrum “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
Sure, we understand the “grab ’em when they’re young” philosophy but growing an auto brand is all about conquest business.
Extreme example? Nope. Here’s the point: find the right message, make the right offer, and Boomers business can be stolen from under the nose of complacent rivals – whether its cars, cosmetics, CPGs or smart home IoT devices.
While we’re on the subject of technology …
The Pew Research Center finds that people over 50 are the fastest growing market for smartphones. True, over 80% of Millennials and Gen Xers already have one, and ownership lags for 50-64 year-olds (58%) and the 65-plus (30%), but the over-50 audience will add 18-20 million new buyers in the next few years as penetration increases. Younger segments are already saturated – brands cannot afford to ignore the obvious …
The late, but inevitable, Boomer arrival isn’t exactly news.
For years, marketing experts have explained that while older consumers may be slower to adopt new technology, their huge numbers make them worth waiting for.
In his savvy, highly readable book Advertising to Baby Boomers, adman Chuck Nyren put it this way: “When it comes to new technology, most Baby Boomers learn only about what interests them, what they believe will be useful. They don’t feel the need to know everything there is to know about technology, computers, and the web.”
Mastering Boomer-speak: words bring numbers to life
Despite the incredible value of the 50+ market, most mainstream brands recoil from the idea of active engagement.
It’s not that advertisers don’t understand the Boomer metrics – it’s that most just don’t know how to communicate with them. Apart from the work of the few grownups in the field, the occasional attempts they do make are often cringe-worthy.
Why is this? Well, ad agency staffers have the youngest median age of any occupation tallied by the U.S. Bureau of Labor Statistics. Brilliant though they may be – they’re the Boomers’ kids, after all – without proper coaching it’s impossible for young creatives and strategists to understand, engage and motivate older consumers of mainstream brands.
Jim Gilmartin, principal of Coming Of Age, a 50+ marketing agency explains: “(These markets are) more complex than younger because older minds don’t work through choices the same way younger minds do. The older view of life can be a perplexing mystery to younger people.”
Fortunately for brave disruptors seeking to communicate with the 50+ population, it is dominated by the socio-culturally connected the Boomer-Plus Generation™ comprised of Baby Boomers, their slightly older sisters/brothers and Gen Xers over 50. Sure, they all have different stories but they tell them in that most subtle and nuanced of dialects, Boomer-speak. Deceptively easy on the surface, it is actually so complex that outsiders routinely commit ghastly gaffes without even knowing it.
When your brand is ready to learn, remember, it’s our native language.