Baby Boomers - Amazon Web Servicescopacino.s3.amazonaws.com/.../11/BabyBoomers_FINAL.pdf · This year, the last of the baby boomers turn 50. As a whole, they will represent 80% of
%This year, the youngest baby boomers will turn 50. The generation will represent 80% of our senior citizens. Nielsen & BoomAgers Report, 2012
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This year, the last of the baby boomers turn 50. As a whole, they will represent 80% of our senior citizens.
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Reasons to pursue boomers
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Boomer myths dispelled
Steps to reach boomers
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In this presentation, we’ll walk through: 5 reasons to pursue what Nielsen has coined, “the most valuable generation” 5 de-bunked myths about boomers And 5 steps to effectively reach boomers
5 Reasons to pursue boomers
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“Why do boomers matter?”
They’ve got numbers.
LOTs…
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Exiting More people are
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the traditional 18-49 demo than are entering it.
Nielsen & BoomAgers Report, 2012
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According to the US Census, an American turns 50 every 7 seconds—that's more than 12,500 people every day.
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Ages 50-68 Ages 50+
35% Of Adult Population 42% Of Adult
Population Boomers are 77MM strong. 50+ age demo is 100MM.
Scarborough and US Census
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According to the US Census, the senior age group is now, for the first time, the largest in terms of size and percent of the population in the U.S. By 2015, the 50+ demo will grow to 45% of the US population and eventually 50% further down the road.
Demo Growth Rate
Age 50+
Age 18-49
34%
12%
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Over the next 20 years, 50+ demo growth rate will outpace that of 18-49
by nearly 3x.
Nielsen & BoomAgers Report, 2012
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The 50+ age group grew at a much faster rate than the total population between 2000 and 2010. And is growing far faster than the much heralded “all important 18-49 audience” for advertisers.
Their record of influence on consumer culture.
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Made it so.
the 18-49 demographic is so
important because
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Boomers
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“Typically, once a group of consumers reaches the age of 49, marketers renew their focus on a new crop of 18-49’s, starting all over again.” As marketers we tend to be lured by youth, long-term potential and the idea of life-time loyalty. But we need to ask, where did this idea of Youth Marketing come from? Answer: The Boomers.
The year that the first Baby Boomer turned 18 and the generation became part of Madison Avenue’s fashionable 18-49 target audience. Nielsen & Boomagers Report, 2012
1964
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“50 years ago Boomers entered their formative years with their distinctly different attitude…a consumer that launched and defined whole categories with their influence and spending power.” - Beth Brady, Nielsen
They’re the wealthiest and the biggest spenders.
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50% In 5 years, the 50+ population will represent 50% of US adults.
70% It is estimated that they will control 70% of disposable income.
Nielsen & BoomAgers Report, 2012
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Boomers represent 49% of CPG sales 49%
Nielsen & BoomAgers Report, 2012
$15 trillion In 20 years, they will inherit
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They are marketing-friendly.
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consumer Of marketing messages delivered via electronic media.
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original The
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They are THE original consumer of marketing messages delivered via electronic media (aka, the television).
Adults 55+ Agree: • Advertising helps to keep up-to-date about
products and services (117 index)
• Looking at advertisements is enjoyable (113 (Index)
• Advertised brands are better in quality than non-advertised brands (113 Index)
19 GfK MRI 2013 Doublebase
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Boomers have the most favorable opinions about advertising of all generations.
TV Hours per month
MILLENIALS
GEN X
BOOMERS
107
133
174
20 Nielsen & BoomAgers Report, 2012
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And Boomers watch more traditional TV more than any other generation, making traditional advertising methods still very relevant.
They are under- represented despite their size.
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50% CPG Dollar Spend contributed by 50+
10-15% Ad Dollars
Aimed at 50+
Nielsen & BoomAgers Report, 2012
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5 boomer myths dispelled
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Myth: life after 55 looks the same for all generations.
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Fact: Boomers are aging differently, incorporating more work and play into post-55 life.
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As they have changed culture throughout their lives, Boomers will change retirement and old age as well.
60% believe they will Live
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longer Than previous generations.
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One of the main reasons retirement looks differently for boomer is because of the growing life expectancy. Average life expectancy increased 30 years between 1900 and 2000. In 2000, the avg. life expectancy was 76.8.
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62% Of Boomers 49% Of working
Boomers Are still working either full or part time
Don’t plan to retire until after 65.
15% Of Boomers
Have a desire to live in a retirement community.
GfK MRI 2013 Doublebase and Gallop Poll, Dec. 2013
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Most boomers are still working and few see a “near end” to employment. Once they do retire, very few to retire into a “home” lifestyle. Rather, many boomers are finding their way back into cities as they reach and surpass the typical retirement age.
10 Activities.
The Average boomer is involved in
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Favorite activities include shopping, traveling, entertaining and socializing. And 67% say they plan to spend more time on their hobbies and interests. As boomers begin to leave the workforce, they will look to spend their money on these activities.
Myth: boomers fear aging.
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Fact: Research shows they find joy in aging and social sciences believe that with age comes happiness.
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73% Of Boomers 61% Of
Boomers believe that their best years are ahead of them.
report feeling an average of 9 years younger.
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Boomers are actually very optimistic as the enter or near retirement
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5.8
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6.2
6.4
6.6
6.8
7
7.218
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22-2
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26-2
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30-3
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34-3
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42-4
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47-4
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50-5
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54-5
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58-6
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62-6
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66-6
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74-7
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78-8
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82-8
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Self-reported well-being, on a scale of 1-10
“A snapshot of the age distribution of psychological well-being in the United States” by Arthur Stone
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Social sciences have also found that perceived well-being can fluctuate based on generations. For example, earlier generations that grew up during the great depression were more likely to be less happy. Because boomers grew up in a rather prosperous economic and social economy, their happiness levels are believed to be higher than the generations before them.
Myth: boomers are price-sensitive shoppers.
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Fact: They are value, not price, conscious.
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% dollars
spent on deal
MILLENIALS
GEN X
BOOMERS
GREATEST GEN
31%
27%
25%
26%
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Boomers are no more likely than other generations to buy an item for a deal. Boomers are no more likely to compare prices or use coupons than other consumers.
Myth: boomers are already loyal to their brands.
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Fact: They have the same brand loyalty levels as other age groups.
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Brand shopping is common • 78% switch TV service regularly • 70% switch home appliance brands
• 73% switch clothing brands
• 50% say they will buy generic because it costs
less
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The truth is, boomers’ brand loyalty levels are the same as other age groups. Boomers’ brand loyalty is influenced more by household size/need than predisposition.
Myth: boomers are not tech-savvy.
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Fact: They put the ‘movement’ in “tech movement.”
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1/3 53% Of Boomers
Boomers represent 1/3 of all online and social media users
Are on Facebook; 55+ cohort makes up 16% of Facebook users (80% growth)
38% Of Boomers
Are heavy Internet users
Nielsen & BoomAgers Report, 2012
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As many of us probably know, Internet users over 50 are the driving force behind the growth in social networking. Between 2011 and 2012, for instance, 50+ cohort’s use of social network nearly doubled to 42%! This year, Facebook usership from 13-17 and 18-24 age groups have declined 25% and 8% in the last year, potentially indicating an upcoming trend of Facebook (and potentially other social networks) becoming “older.”
$7 billion online.
The 50+ segment spends
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1/3 of boomers online shop and the 50+ segment spends almost $7 billion online. Specifically, according to Forrester Research, Boomers’ 3-month total online spend in 2010 was 12% greater than Gen X and 53% greater than Millennials’. While these other generations are more likely to shop online, Boomers have the propensity to spend more in a shopping visit, making them most valuable. Boomers spend 12% more online shopping than GenXers; 52% more than Millennials
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5 Steps to reach boomers
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empathy
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“Give me technology, but make it easy for me.”
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Apple demonstrated empathy with the Genius Bar, and was rewarded with a huge customer base over age 55.
Nielsen & BoomAgers Report, 2012
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Apple’s extension of its famous ease of use into the retail environment via the Genius Bar is a brilliant demonstration of empathy toward an audience. The Genius Bar made it easier for older audiences to learn how to use their new tech toys, rather than asking a young household member for help. And Boomers have rewarded Apple with their loyalty—and record sales.
segmentation
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5.1 Late Blooming Boomers
15.5 Trailing Edge Families
9.8 Leading Edge Families
9.3 Ready to Launch
22.1 Single Boomers
15.5 Trailing Edge Couples
11.5 Leading Edge Couples
11.3 New Family Frontiers
No Kids Kids <18
Nielsen
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It is not recommended for brands to market to all 77 million baby boomers in the US. Due to the sheer size and variances between the wide array of ages, this would not be efficient. Nielsen tells us that the overriding factor dictating Boomer consumer segments proved to be the presence of children in the home. A detailed ACNielsen Homescan & Spectra analysis of Baby Boomer households revealed eight discrete segments that clustered into two broad groups: four Boomer segments with children under 18 and four without children. Late Blooming Boomers are highly educated and span the entire Baby Boomer age group. This segment either made the choice to start families later in life or are the by-product of divorce. As a result, they have smaller, younger families comprising one to two children under the age of 12. A single parent heads 1/3 of Late Blooming households and the segment over-indexes for African-American and Asian ethnicities, but below average for Hispanics. Trailing Edge Families comprise larger, stable households of 4+ persons who have lived at the same address for more than five years. Unlike Late Blooming Boomers, these heads of household fall into a narrow age parameter, sharing a birth date between the years 1958 and 1964. Averaging 2.5 children per household, they have far fewer adult children than Leading Edge families, which appears to be a direct function of parental age. This group is the least educated and has an above average concentration of Hispanics. Leading Edge Families feature older parents born between 1946 and 1957, large households averaging 2.4 children, with approximately one “adult child” for every four children under age 18. While better educated than pre-and post-Boomers, Leading Edge Families fall into the lower tier of academic accomplishment compared with other Boomer segments. After Trailing Edge Families, Leading Edge Families are the most Hispanic-dominant of any Boomer group and far and away the “most married.” 7 in 10 Leading Edge Family households are headed by married couples. The Ready-to-Launch segment has the lowest incidence of Hispanics and the highest incidence of African-Americans among Boomers. All Ready-to-Launch households have at least one child over 12, and for the most part, only children over twelve, skewing toward the late teens. Heads of household can be any age within the Boomer bandwidth, and there are few adult children in view. Single Boomers tie with Late Bloomers for the title of “most educated.” Some 41% of Single Boomers never opted for marriage, and established single households. Half of the Single segment has lived in the same home for 5+ years. Trailing Edge Couples report the highest rate of unmarried partners living together. Trailing Edge Couples typically are headed by a person born in the 1952–1964 period and have occupied the same house for the past five years. They are less educated and have fewer Hispanic and African-American members. Leading Edge Couples, with a head of household born between 1946 and 1951, represent the first group of the Boomer generation to serve as social change agents. They are in the top three best-educated Boomer segments and exhibit a higher marriage rate than Trailing Edge Couples. Like Trailing Edge Couples, they are less ethnically diverse. The New Family Frontiers segment is characterized by three or more adults sharing a household. The typical New Family Frontiers household encompasses 1.1 children between the ages of 18 and 24, and can also include another resident relative such as a parent or adult siblings. From an economic perspective, it is worthwhile to note that 54% of New Family Frontiers households have three or more employed workers in the home and are among the highest earning households.
traditional
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62% Of Boomers are heavy TV users (154 Index)
43% 55% Of Boomers are heavy newspaper users (136 Index)
Of late Boomers are heavy radio users (107 Index)
Moderate - light Magazine consumption
GfK MRI 2013 Doublebase
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Baby Boomers are heavy consumers of traditional media in all forms. They are the heaviest viewers of TV and readers of newspapers. And while overall magazine consumption is light, specific titles can be very effective for reaching this audience.
digital
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Boomers engage with brands digitally
1/3 of shoppers 50-64 have engaged with a brand digitally before buying.
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26%
18%
11%
5%
Pew Research Internet Project
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1/3rd of shoppers in the 50-64 age bracket have directly engaged with a brand digitally while buying a CPG items 26% with websites 18% with emails 11% with social networking websites and 5% each with online blogs and mobile apps
“me”ssaging
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Messaging is…
• Customized • Personal • Authentic
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Messaging examples
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Brain Change Ad copy “Do” Ad Copy “Don’t”
Better at recognizing central theme
Clear & unique benefit statements that give facts & details
Clutter and complexities
Think more linearly
Easy to read: traditional headline & body copy format
