Boomers: Still opening their wallets – One More Reason Why Marketers Still Need to Target Boomers

The recession has touched everyone’s pocketbooks, but recent research from Mediamark Inc. shows some bright spots. Over the past two years, the share of spending by consumers age 50+ was up in the following categories:
– Credit Card Expenditures +15%
– Home Furnishings +12%
– Home Improvements +11%
– Foreign Vacations +10%
– Health & Beauty Aids +9%
Of course, this demographic leaves out some of the later-stage Boomers, those 45 to 50, and includes seniors 65+, but it does indicate that there are still business opportunities out there for businesses with the vision to target those of Boomer age and beyond.
Source: Media Post Publications
 (On January 1, 2011, the first of the Baby Boom generation begins to turn 65. While marketers have traditionally viewed anyone over 49 as over the hill, there are compelling reasons why overlooking Boomers isn’t smart for business. During the course of the next few weeks, we’ll be highlighting 65 of those reasons.)

Boomers: Technology’s Big Spenders – One More Reason Why Marketers Still Need to Target Boomers

(On January 1, 2011, the first of the Baby Boom generation begins to turn 65. While marketers have traditionally viewed anyone over 49 as over the hill, there are compelling reasons why overlooking Boomers isn’t smart for business. During the course of the next few weeks, we’ll be highlighting 65 of those reasons.)

One of our main goals in creating the 65 Reasons to Target Boomers series is to puncture some of the myths that have been keeping businesses from embracing the magic of the Boomer market. Perhaps there’s no bigger myth-bubble to burst than the one that says Boomers are technophobes. We suspect that some of this comes from the propensity of researchers to lump Boomers into the age category of 50 and above, rather than the more representative 46-64.

This was borne out by a recent article in Advertising Age, which coalesced research from a number of sources to arrive at the somewhat astounding (to some) conclusion that Boomers are not only eager adapters of a wide range of technologies, but are in fact, some of the biggest consumers.

According to Forrester Research's annual benchmark tech study, Boomers in the 46 to 64 age group now spend more money on technology than any other demographic. This includes everything from purchase of devices and gadgets to monthly telecom fees, even online purchases! As Patricia McDonough, senior VP-analysis at Nielsen Company put it, Boomers “represent 25% of the population, but they consume 40% [in total dollars spent] of it."

From everything we can see, Boomers desire for technology will not diminish. In fact, we look forward to seeing how the demographics of purchasers of e-readers like the iPad and the Kindle break down. The implications of this for electronics manufacturers are staggering, even as they try to balance Boomers’ desire for the benefits of technology with the need for more user-friendly features for aging eyes and less-than-limber fingertips.

(Source: Advertising Age)
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Boomers: Driven to buy new cars

One More Reason Why Marketers Still Need to Target Boomers

(On January 1, 2011, the first of the Baby Boom generation begins to turn 65. While marketers have traditionally viewed anyone over 49 as over the hill, there are compelling reasons why overlooking Boomers isn’t smart for business. During the course of the next few weeks, we’ll be highlighting 65 of those reasons.)

How well do car commercial casting specs reflect the real world of car buyers? Not very well, according to a recent analysis performed by researchers at AARP Media Sales.

Using data supplied by J. D. Power and Associates, AARP found that nearly 39 percent of new cars were sold to people between the ages of 50 and 64. Add in those over age 65, and the number rises to over 62 percent -- more than 3 out of every 5 cars sold in 2010. And we’re not talking geezer-styled gas guzzlers, either. 73 percent of all battery-assisted vehicles, or hybrids, were purchased by the over-50 crowd.  In contrast, those 35 and under accounted for less than 13 percent of new car purchases. Some of this is demographic-driven, as that large cohort of Baby Boomers grows older; some due to the recession’s impact on younger pocketbooks. As further evidence of the purchasing power of both Boomers and those 65+, the study found that 33 percent of adults over 50 pay cash for their cars, compared to 13 percent of consumers under 50.

Does this offer opportunities for car manufacturers – and car dealers? Definitely. At Gen-Sights, we think that cars that are easier to enter and exit – and offer improved sightlines will benefit, as long as style hasn’t been sacrificed. We also think that dealers could set themselves apart by offering seminars or driving clinics on how to use the next-generation, computer-assisted technology that’s beginning to appear in their showrooms. One thing’s for certain: new cars purchases by older Americans are only going to increase, as more than 78 million Baby Boomers move to age 65 and beyond.

Source: Brand Week and AutoBlog 

65 Reasons Why Baby Boomers Remain a Powerful Target For Marketers.

From their diaper days onward, Boomers have reinvented every stage of life they’ve passed through. And as the first wave of 78 million Boomers turns 65 in 2011, there’s no reason to believe they’ll stop now. In the process, this will transform the way people think about everything from retirement to health care to aging in general. To celebrate this milestone, over the next few weeks, Gen-Sights will offer 65 reasons why businesses of every kind would be wise to keep Boomers in mind when designing and marketing products.

posted by Lynn Schweikart, Tom Gorski, Laura Willis

Boomers – Using Technology to Bridge the Gap Between Generations

How does my 77-year-old father-in-law stay in touch with his eight grandchildren?  The answer may strike you as a little surprising: through Facebook.  Of course, it does help that he’s relatively computer literate—after all, he was an early adapter of that revolutionary Internet invention, AOL dial-up! However computer literacy doesn’t always translate to understanding the intricacies of social media. For that, it takes a knowledgeable son-in-law and a father-in-law eager to learn.  The outcome? A grandfather who, with the simple click of a mouse, is now in touch daily with his grandchildren, ranging in age from 14 to 25.

Whoever would have guessed that Boomers like me, the sandwich generation, would come to serve as the catalyst uniting parents, in-laws, and children—through email and Facebook. After all, despite the fact that I was an ad guy at a cutting-edge Boston-based agency, in the early 1990’s when my first child was born, email was barely in my vocabulary. Facebook? Not even invented!

And it’s not only computer-savvy seniors like my father-in-law who’ve come to embrace the Internet. I realized a couple of years ago that my mother was very interested in getting online with a computer of her own.  After all, my kids frequently shared their favorite websites with her and read emails to her that they received from other family members.  So on her 80th birthday we bought her an iMac and brought her into the 21st Century – quite a leap for a Silent Generation denizen who remembers listening to FDR’s fireside chats on a Philips radio. As with my father-in-law, we were able to introduce her to a whole new world with the stroke of a key and a click of a mouse.

Two years later, via email, my mother delights as her oldest grandson begins his college years. She is thrilled to death to receive his emails and respond back to him with her pearls of wisdom. And she’s not alone: computer usage among seniors is growing. Studies indicate that it can help reduce loneliness and isolation and improve mental acuity. In fact, seniors can continue to live on their own without having to feel separated from their families. Witness Carolyn Rosenblatt’s experience of acquainting her elderly mother-in-law with Skype in her article “Can technology save an aging widow?”

All this demonstrates that I’m not alone in seeing the opportunities for using technology to cross generational lines and bring families together. And it’s proof that companies that are developing these products should be marketing to Boomers, too. After all, Boomers have not only embraced the benefits of technology for ourselves, we’re using it to connect the generations on either side of us. And when it comes to the senior market, for the most part, we’re the gatekeepers.

What’s more, new product opportunities will only grow as Baby Boomers cross over into their mature years, demanding the comfort and benefits of technology, plus a desire to stay ahead of the curve. Just make sure any technological enhancements have a purpose. One thing to keep in mind: Boomers expect that bells and whistles will make life easier and/or better, not just be there for their own sake.

Posted by – Tom Gorski

Boomers: Hungering for Health and Wellness

As I get up and meet my girlfriend at the gym for a workout at 7:00am, the body doesn't always want to cooperate. Or when there are more aches and pains than there used to be, sometimes, I wonder if it's worth it. Then I shake off the doubts and feel good that my body is keeping up with my girlfriend, who is more than 10 years my junior. Of course, I feel even better on those days when she's trying to keep up with me. I’m thankful we have each other to stay motivated! I also hate to think about what kind of issues I might have if I wasn’t.

Most statistics showing the rise in diabetes, heart disease, cancer, Alzheimer’s, and many other diseases, indicate these are exacerbated by diet and lifestyle. Being a Boomer, I'm hoping to be as healthy as I can for as long as possible and, hopefully live a good quality of life—maybe even for as long as the elders in my life—since my Dad's still around at age 90.

I went to a nutritionist a couple of years back after I turned 49, because I wanted to feel good about myself when I turned 50. I'm not perfect yet by any means, but it really helped me be more aware of the foods I was eating and how they made my body feel once I ate them, including what my mood was like and even how my brain functioned. The result? I’ve tried some new dishes that I probably wouldn't have tried on my own, and have come to love and even crave some incredibly healthy foods.

I found it amazing that when I cut way back on sugar, how naturally sweet fruits and vegetables taste!  And how some of those sugary things I used to crave, now taste so cloyingly sweet, I don't really desire them very often any more. Best of all, now, when I really feel like having something that's a little decadent, I have it and truly enjoy it, with no guilt (well, mostly no guilt, I said I wasn't perfect!), and trust that I'll be craving a salad the next day. With fresh vegetables from our garden during the summer months, it's easier to stay motivated.

I’ve also noticed that, more and more, there seem to be definite correlations between nutrition and brain health. I probably have more concerns about my brain giving out than my body. Especially on the days when I feel as forgetful as my dad—though thankfully, he's still pretty with it. Some facilities, including my father's, the Compass on the Bay, are working with specialists from Boston University to incorporate changes to their food preparation to build in brain-healthy ingredients that have been shown to boost memory and cognitive abilities.

Last year, Compass invited family members to a seminar given by Dr. Nancy Emerson Lombardo who spoke about Memory Preservation Nutrition® and told us about anti-oxidants, whole grains, and other helpful foods that Boomers could actually be eating now to prevent memory issues, instead of waiting until we're in a facility. Talk about an incredible opportunity for the health and wellness industry!

Currently, I’m working with a client whose target audience is primarily female Boomers. The challenge she's finding is that some people just don't take the time to think about their health. Small wonder! With caring for our elders, along with our spouses and children—all the while handling demanding jobs—who has time? This is a real challenge, but I’m gratified that Boomers are starting to realize a shift is necessary.

Of course, too often, people want to make a change, but find there are too many confusing choices. Though if anyone else is like me, the quick-fix plans are having less appeal—“been there, done that”. Boomers are starting to be more skeptical about unrealistic promises and may be coming to the realization that it really does come down to the basics of eating healthier foods and working in exercise in whatever little pockets of time we can.

Food marketers would be wise to address the life-stage shifts happening with Boomers. We've talked before about the opportunity for food companies to contribute to overall wellness by adjusting ingredients such as salt and fat to make their products healthier choices. With the Boomers at a critical stage in their lives, and being the largest segment of the population, I’d say it's definitely about time.  

– posted by Laura Willis

Boomers are Hip. Again!

Who says there are no second acts in American lives? Okay, F. Scott Fitzgerald did, but he didn’t know bupkiss about Boomers. In case you haven’t heard the news that’s been all over Twitter and the blogosphere in recent days, the venerable Nielsen Company has spoken: in their obsession with youth, i.e. consumers ages 18 to 34, “advertisers and consumer goods manufacturers have been overlooking a group that has tremendous buying power: the 78 million Baby Boomers in the U.S. today.” The prescient few who found their pronouncements on this very topic ridiculed or ignored—where have you gone, JWT Boom?—are justifiably saying, “we told you so.” 

Why the sea change in opinion? Sure, Baby Boomers are a huge generation – always have been; still will be for quite a while. But I think a major reason is that at the same time that Boomers reached the age where a generation would previously have been considered old, the goal line was moved considerably. What I mean is that people who are 60-65 today just don’t behave the way people of that age did in the past, (nor do the current crop of 70- and 80-year olds, for that matter.)

The conventional wisdom? People over 60 spend little; are stuck in their ways, technologically challenged, and winding down. The facts?  Boomers are open to new things and new brands. They are active; typically participating in ten or more activities on a regular basis. They are comfortable with technology because they’ve grown up with it. Heck, many of them are not even thinking about retirement – and those who are, are in the process of completely redefining it. Hence the term, encore careers.
If you’re still skeptical about the value of advertisers targeting the Boomer market, consider these Nielsen facts about Boomers
• Dominate 1,023 out of 1,083 consumer packaged goods categories
• Watch the most video: 9:34 hours per day
• Comprise 1/3 of all TV viewers, online users, social media users and Twitter users
• Time shift TV more than 18-24s (2:32 vs. 1:32)
• Are significantly more likely to own a DVD player
• More likely to have broadband Internet access at home

Not only are Boomers an excellent target for marketers’ existing products, they also provide an opportunity for new product designers who are able to respond to both the needs and desires of a population that’s still hip, after all these years. In a recent article on the blog Disruptive Demographics, Joseph Coughlin, Director of MIT’s Age Lab suggested that Boomer consumers are as captivated by fashion and fun as their younger cohorts, it’s just that Boomers demand function and value as well.

This has huge implications for businesses across a wide range of industries, from technology to housing, to healthcare. Personally, I think that any product that combines fun, fashion, function, and value would be of interest to all consumers. But then, I’m a Boomer.

– posted by Lynn Schweikart