Michael SmithJune 20, 2013
NEURO INSIGHTS FOR MARKETING TO THE BABY BOOMER GENERATION
THE BOOMERBRAIN
WHO ARE BOOMERS?
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THE “PIG IN THE PYTHON” GENERATIONGlobal demographic trends
"World Population Ageing." Welcome to the United Nations: It's Your World. http://www.un.org./esa/population/publications/worldageing19502050 (accessed May 15, 2013).The Nielsen Company, BoomAgers LLC. “Introducing Boomers – Marketing’s Most Valuable Generation,” 2012.
THE GLOBAL POPULATION IS AGINGdue to declines in fertility and mortality rates
THE OLDER POPULATION IS EXPECTED TO TRIPLE IN SIZE to approximately 2 billion during the next half century
THE YOUNG‐OLD BALANCE IS SHIFTING50% of U.S. Adult population will be aged 50+ by 2017
LABOR FORCE PARTICIPATION AMONG THE OLDER POPULATION IS DECLINING around the globe, and more so in more developed regions. Despite declines, there is an increase in female share of the older work force
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BOOMERS ARE 80 MILLION STRONG IN THE U.S.Proportionately similar in Canada and the rest of the developed world
The Nielsen Company, BoomAgers LLC (2012). “Introducing Boomers – Marketing’s Most Valuable Generation”
1940 1950 1960 1970
BABY BOOMERS: PEOPLE BORN BETWEEN 1946‐1964
In 2010, approximately 98 million US consumers were aged 50+
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BOOMERS ARE WELL‐HEELED…and becoming more so
The Nielsen Company, BoomAgers LLC. “Introducing Boomers – Marketing’s Most Valuable Generation,” 2012.
BABY BOOMERS STATS:63% OF BOOMER HOUSEHOLDS HAVE AT LEAST ONE PERSON WORKING
IN FIVE YEARS, U.S. ADULTS 50+ WILL CONTROL 70% OF THE COUNTRY’S DISPOSABLE INCOME.
BOOMERS IN THE U.S. STAND TO INHERIT $15 TRILLION IN THE NEXT TWENTY YEARS.
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BOOMERS ARE SPENDING FREELY
The Nielsen Company, BoomAgers LLC. “Introducing Boomers – Marketing’s Most Valuable Generation,” 2012.
49%
51%
41%
59%
40%
60%BABY BOOMERS
OTHER
CPG SALES WIRELESS HOME NETWORK
PREMIUM TRAVEL APPLE COMPUTERS
80%
20%
…a trend that will continue or accelerate
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BOOMERS ARE ONLINE – A LOT…connectivity will only increase
”Pick Baby Boomers as Your Target Market for the Holidays" Forbes. http://www.forbes.com/sites/kernlewis/2012/11/09/pick‐baby‐boomers‐as‐your‐target‐market‐for‐the‐holidays/(accessed May 15, 2013).The Nielsen Company, BoomAgers LLC. “Introducing Boomers – Marketing’s Most Valuable Generation,” 2012.
53% OF BOOMERS ARE ON FACEBOOK
71% OF BOOMERS GO ONLINE DAILY
33% OF BOOMERS SHOP ONLINE The 50+ segment spends almost $7 billion online in the U.S.
33%
67%
BOOMERS REPRESENT 33% OF INTERNET USERS
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BUT THEY’RE STILL WATCHING TV..but their viewing habits will accommodate 3+ screens with the general population
The Nielsen Company, BoomAgers LLC. “Introducing Boomers – Marketing’s Most Valuable Generation,” 2012.
BOOMERS WATCH 174 HOURS OF TV PER MONTHTelevision viewership increases with age
BOOMERS DRIVE THE TOP SHOWSSix of the top ten TV shows are dominated by the viewers aged 50‐64
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TRADITIONAL BIAS..create an opportunity.
The Nielsen Company, BoomAgers LLC. “Introducing Boomers – Marketing’s Most Valuable Generation,” 2012.
MARKETERS TRADITIONALLY FOCUS ON THE YOUTHLured by the prospect of a younger consumer, marketers continually focus on the 18‐49 age segment
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BOOMERS BRAINS ARE AGING…basic research documents real changes even in the healthy cohort
Gazzaley, Adam. “Cognitive Neuroscience: Cognitive Aging.” Lecture, Nielsen Neurofocus.
• The brain continues to evolve and change even past the age of 60
• Brain atrophy occurs with normal aging• This occurs as a result of shrinking neurons, rather than
as a loss of neurons
• Atrophy doesn’t occur consistently in all brain regions. For example, it is more pronounced in the frontal lobe
• White matter changes (resulting in diminished neural pathways)
• Neurotransmitter systems decline
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AND CONTINUING TO EVOLVE…the changes come with new opportunities in marketing strategy
Gazzaley, A. “Cognitive Neuroscience: Cognitive Aging.” Lecture, Nielsen Neurofocus.Kaszniak, AW, Menchola, M. “Behavioral Neuroscience of Emotion in Aging.” Behavioral Neurobiological of Aging. 2012: 51‐66.Mahncke, HW, Bronstone, AA, Merzenich, MM. “Brain plasticity and functional losses in the aged: scientific bases for a novel intervention.” Progress in Brain Research. 2006; 157: 81‐100.Quigley, C, Andersen, SK, Muller, MM. “Keeping focused: sustained selective visual attention is maintained in healthy old age.” Brain Research. 2012; 1469: 24‐34.
• Able to holistically process many concepts and see the big picture
• More even‐keeled and emotionally balanced
• Ability for sustained attention is maintainedTHE MATURE BRAIN
In fact, new research shows the brain has a high degree of plasticity and can regenerate and establish new neural connections, even very late in life
UNDERSTANDING THE BRAIN OF THE MATURE CONSUMER
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TRADITIONAL CONSUMER INSIGHTS MODELDoes it tell the whole story?
Market Data
• POS
• Panel
Consumer Data
• Focus Groups
• Questionnaires
A Complete View of the Consumer
ASSUMPTIONConsumers are able to fully comprehend, access,
and articulate their thoughts and feelings
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WE CAN ALWAYS CHOOSE TO “THINK” WE JUST OFTEN DON’T NEED TO …Two decision‐making “systems” in the brain*
*As described by Daniel Kahneman, in his Nobel Prize for Economics acceptance speech, 2003.
• Fast
• Parallel
• Effortless
• Associative
• Emotionally‐charged
Used for tasks like watching ads and
making most day to day purchase decisions
• Slow
• Serial
• Effortful
• Rule‐governed
• Non‐emotional
Used for tasks like taking tests and filling out questionnaires
Intuitive (“System 1”) Thinking Rational (“System 2”) Thinking
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NEUROSCIENCE CAN ACCESS UNARTICULATED, INTUITIVE RESPONSES TO MARKETING MESSAGES
Up to 32 sensors collect data over 500 times every second to fully capture activity across all brain regions
Eye‐tracking to pinpoint hot zones
High resolution dense‐array EEG measures
brain response
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NEUROSCIENCE MAY HELP COMPLETE THE PICTURE
Market Data
• POS
• Panel
Consumer Data
• Focus Groups
• Questionnaires
AMORE
Complete View of the Consumer
Implicit Consumer Data
• Non‐conscious
• Physiological Reactions
MARKETING TO THE MATURE BRAIN
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MARKETING TO THE MATURE BRAIN…acknowledge their strengths
Pradeep, A. K.. The Buying Brain: Secrets for Selling to the Subconscious Mind. Hoboken, N.J.: Wiley, 2010.
Acknowledge their point in life, but don’t overdo the “senior” status
CONCENTRATE ON BOOMERS’ ADVANTAGESOlder adults like to feel good about who they are and how far they’ve come
DON’T EMPHASIZE THE GENERATION GAPStudies show that
emphasizing the generation gap can backfire
UNDERSTAND THE MATURE BRAIN
60 year olds are still themselves, but they process information
differently than when they were 20
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PRECISION MARKETING MATTERS FOR BOOMERS
…success in targeting this group requires recognizing their heterogeneity
The Nielsen Company, BoomAgers LLC. “Introducing Boomers – Marketing’s Most Valuable Generation,” 2012.
• Boomers cannot be easily classified by stereotypes• Some are brand loyalists (“old habits die hard”)
• Others are open‐minded and eager to discover new things
• In actuality, Boomers are dynamic consumers • Boomers’ brand loyalty levels are the same as other age groups
• Brand loyalty is influenced more by household size/need than predisposition
• They are no more likely to compare prices or use coupons than other consumers
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TALK TO THE “REAL ME”…Mid‐life crises disrupt traditional gender stereotypes
"Midlife Crisis: Depression or Normal Transition?" WebMD. http://www.webmd.com/healthy‐aging/guide/midlife‐crisis‐opportunity (accessed May 15, 2013).Pradeep, AK. The Buying Brain: Secrets for Selling to the Subconscious Mind. Hoboken, N.J.: Wiley, 2010.
“Mid‐life crises” can occur between the ages of 40‐60, during which:
MEN MAY BECOME MORE NURTURINGThough men are traditionally more driven by a need to show success (stereotype: sports car purchase), many men will get more in touch with their “feminine” side
WOMEN MAY BECOME MORE FOCUSED ON THEMSELVESThough women are traditionally more nurturing, they may now return to school, change careers or start a business
Gender‐based marketing should reflect these changing tendencies and avoid stereotypes
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ACCENTUATE THE POSITIVE
Pradeep, AK. The Buying Brain: Secrets for Selling to the Subconscious Mind. Hoboken, N.J.: Wiley, 2010.Kaszniak, AW, Menchola, M. “Behavioral Neuroscience of Emotion in Aging.” Behavioral Neurobiological of Aging. 2012: 51‐66.
Present positive imagery, avoid “negative modifiers” in messaging
• In mature brain, the amygdala (an emotional center in the brain) tends to be active only when viewing positive images
• Negative images tend to be overlooked unless immediately relevant
• “Preferential processing” can lead some mature brains to overlook negative messaging
• Over time, directions such as “do not take with juice” can be recalled as “take with juice”
MATURE BRAINS EXPERIENCE FEWER NEGATIVE EMOTIONSAND HAVE MORE CONTROL
WHEN THEY DO
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SPEAK TO THEIR EMOTIONAL INTELLIGENCE…age brings wisdom and perspective
Pradeep, AK. The Buying Brain: Secrets for Selling to the Subconscious Mind. Hoboken, N.J.: Wiley, 2010.
• Boomers have a more positive emotional bias than young adults• Life experience endows mature brains with
high emotional resilience• A “don’t sweat the small stuff” mentality protects against
alarm messaging like “last chance to buy!”
• Wisdom— “emotional intelligence”—is reflected in greater capabilities including:• Reorganizing priorities
• Enhanced compensation strategies
• Effective intervention tools
Emphasize upbeat messaging, and acknowledge gains (not their losses)
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FOCUS ON THE FAMILIAR…ease‐of‐processing brings trust and acceptance
Pradeep, AK. The Buying Brain: Secrets for Selling to the Subconscious Mind. Hoboken, N.J.: Wiley, 2010.
Repetition of core message points can help the mature brain to process and recall them
IT IS EASIER FOR THE BRAIN TO PROCESS INFORMATION THAT IT IS FAMILIAR WITH
MEMORY DEFICITS CAN LEAD THE MATURE BRAIN TO BELIEVE THAT FAMILIAR INFORMATION IS TRUE.For example, “I’ve heard that before, so it’s likely to be true.”
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SUPPRESS DISTRACTIONS…increase signal, decrease noise
Gazzaley, A, Cooney, JW, Rissman, J, D’Esposito, M. “Top‐down suppression deficit underlies working memory impairment in normal aging.” Nature Neuroscience. 2005; 8: 1298‐1300.Gazzaley, A, Clapp, W, Kelley, J, McEvoy, K, Knight, RT, D’Esposito, M. “Age‐related top‐down suppression deficit in the early stages of cortical visual memory processing.” Proceedings of the National Academy of Sciences of the USA. 2008; 105: 13122‐13126.
For years, the working theory was that there is simply a decline in the ability to
store things in long‐term memory
THE AGING BRAIN IS ACTUALLY IMPACTED BY THE DECLINING ABILITY
TO SUPPRESS DISTRACTIONS
OLD THEORY NEW FINDING
Emphasize clean, distraction‐free messagingAvoid simultaneous stimuli like multiple sounds, and scrolling screens
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CREATE TOT TRIGGERS…and avoid hard‐to‐interpret names for new products and services
Pradeep, AK. The Buying Brain: Secrets for Selling to the Subconscious Mind. Hoboken, N.J.: Wiley, 2010.
Help combat TOT by creating mnemonic triggers for your brand or product
MATURE BRAINS CAN STRUGGLE WITH TOT
THEY CAN’T RECALL WHAT IS ON THE “TIP‐OF‐[THEIR]‐TONGUE”
MATURE BRAINS ARE GREATAT SUSTAINING ATTENTION
THIS ALLOWS MATURE BRAINS TO ABSORB MORE OF A MESSAGING SITUATION
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REMEMBER GENDERS…men and women can respond differently to messaging, regardless of age
Pradeep, AK. The Buying Brain: Secrets for Selling to the Subconscious Mind. Hoboken, N.J.: Wiley, 2010.
WOMEN RESPOND WELL TO TEXT‐BASED ADS
MEN STRONGLY PREFER IMAGERY‐FOCUSED ADS
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THE FOREST FOR THE TREES…keep the core message front and center
Oken BS, Kishiyama SS, Kaye JA, Jones DE. “Age‐related differences in global‐local processing: stability of laterality differences but disproportionate impairment in global processing.” Journal of Geriatric Psychiatry and Neurology. 1999; 12: 76‐81.
THE AGING BRAIN MAY HAVE DIFFICULTLY WITH “GESTALT PERCEPTION” –THE ABILITY TO DISTINGUISH THAT MANY SIMILAR ITEMS ARE PART OF A LARGER WHOLE
AVOID PRESENTING THE MATURE BRAIN WITH TOO COMPLEX OF A VISUAL PRESENTATION
USE POP‐OUTS IN TEXT BLOCKS TO MAKE KEY PHRASES EASY TO PROCESS
DIFFICULTY WITH GESTALT PERCEPTION SIMPLIFY GRAPHICS
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BOOMERS IGNORE BORDERS…core communications are crucial
BOOMERS OFTEN IGNORE THE BORDERS OF A TV ADThis is particularly true when the ad is busy or there is a lot of motion
Do not relegate important content to the edge of the ad
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BOOMERS IGNORE CLUTTER…keep it simple
Gazzaley, A, Cooney, JW, Rissman, J, D’Esposito, M. “Top‐down suppression deficit underlies working memory impairment in normal aging.” Nature Neuroscience. 2005; 8: 1298‐1300.Gazzaley, A, Clapp, W, Kelley, J, McEvoy, K, Knight, RT, D’Esposito, M. “Age‐related top‐down suppression deficit in the early stages of cortical visual memory processing.” Proceedings of the National Academy of Sciences of the USA. 2008; 105: 13122‐13126.Water Ways Travel. Advertisement. http://www.surfermag.com/buyers‐guide/surf‐camps/2013/waterways‐puertorico.htm (accessed May 21, 2013).
CLUTTERED PRINT ARE DISTRACTINGCLUTTERED ADS CAN CAUSE THE BOOMER BRAIN TO
IGNORE LARGE AREAS OF AN AD, SOMETIMES UP TO 50%.
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MARKETING TO THE MATURE BRAIN...
MAKE IT MEMORABLEBE POSITIVE KEEP IT SIMPLE DON’T STEREOTYPE
David CravitVice President, ZoomerMedia
HOW TO CONNECT WITH THE FASTEST GROWING ONLINE SEGMENT AND TRACK SUCCESS
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CONTENTS
• The numbers should make it obvious by now, but just in case…
• Boomers have always loved tech• What are they looking for?• What should you do about it?
– Messaging
– Tracking
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• 9.4 million Boomers and seniors (collectively, 45+) visited websites in the past month
• Spent $1.3 billion online in the past year• Highest growth rate in social media
– Nielsen 2011 vs 2012
THE NUMBERS SHOULD MAKE IT OBVIOUS BY NOW, BUT JUST IN CASE…
73% 70%82% 77%
65% 62%48%
31%
65%
Total 13‐17years
18‐24years
25‐34years
35‐44years
45‐54years
55‐64years
65‐74years
75+ years
% of Online Users
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33%
11%23%
32% 38% 42%
114%
Total 13‐17 18‐24 25‐34 35‐44 45‐54 55‐64
• Highest mobile growth rate on Facebook
– comScore 2011 vs. 2012
THE NUMBERS SHOULD MAKE IT OBVIOUS BY NOW, BUT JUST IN CASE…
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• Boomers have always loved tech• Never been technophobes• Yuppies of the 1970s
– Conspicuous consumption
– New brands – e.g., BMW, Sony
– First cell phones – shoe, flip
– If it was new, Boomers were interested – why would they stop now?
BUT WHY IS ANY OF THIS A SURPRISE?
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• Impossible to understand their interest in/usage of digital media without first understanding their attitude to life
• Living longer, living better• Attitudes and behaviors different than any previous generation of the same age
• Key drivers
– “I’m not getting off the stage”
– “I have plenty of time left and lots to do”
– “I’m in charge of my own future”
THE “REINVENTION” OF AGING
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• Above all, information– Products, services, news and ideas that will enable living
longer and living better – Tech is a means to an end, not just “cool” for its own sake– “What’s in it for me?”
WHAT ARE THEY LOOKING FOR?
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• Key topics of interest
– Health
– Money (including employment)
– Travel
– Food, wine, entertainment (recipes)
– Reinvention and retirement – “What’s next?”
WHAT ARE THEY LOOKING FOR?
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• Key usages of digital media– Research – Shopping – Exchange of ideas– Connections, relationships– Growing importance of mobile
– Apps that promote health, security– Recreational apps for tablets (brain
health)
WHAT ARE THEY LOOKING FOR?
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• Messaging “do’s”– Relevance
– Why is your story important? What’s the benefit of your product/ service? How is it relevant to their needs/wants/lifestyles?
– Context– Place your message alongside information they are already
seeking and finding– Branded content – created more focused microsites, rather than
have them wandering around your main site looking for what’s relevant to them
– Feedback– They like polls, surveys, forums, opportunities to express their
ideas– Downloadable reports, coupons
WHAT SHOULD YOU DO ABOUT IT?
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• Messaging “don’ts”
– The biggest sin: being patronizing or condescending, especially about the technology
– Unspoken message: “This is probably too tricky for you”
– Always stress the benefit of the content, rather than the “coolness” of how it is being delivered
– Don’t show them as old or helpless
WHAT SHOULD YOU DO ABOUT IT?
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• Tracking– Set tough performance metrics, with an emphasis on hard
rather than soft objectives– Funnel – clicks, downloads, purchases– Willingness to subscribe to your e‐promotions
– This includes research – Don’t settle for “awareness” – zero in on “relevance”
– Do they “get” why your brand/product/service is relevant to their lifestyle?
– Remember: they are the most accomplished players in the marketplace, when it comes to tuning out your message– Very unsentimental about brand choices – willing to switch to
something better– Very demanding
WHAT SHOULD YOU DO ABOUT IT?
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• Hugh breakthroughs in tech…• Only to arrive at marketing as it was 60 years ago
– The ability to figure out why your product/service matters
– The ability to tell a compelling story• It may be “cool,” but it’s still just marketing – especially when it comes to Boomers
– Don’t fall in love with the media or the method –keep your eye on the story
THE DIGITAL PARADOX