Marketing to Adults 50+
1
Marketing to Adults 50+




Demographic Trends
Spending Patterns
Media/Technology Usage
Marketing to Adults 50+
Slides
Slides
Slides
Slides
3-13
14-19
20-28
29-31
2
Demographic Trends
3
Marketing to Adults 50+
Grows in Importance
Advertisers are increasingly targeting Adults 50+ for
several reasons:



Over the next several decades, population growth
will be almost entirely concentrated within older
demographic groups.
Large numbers of Baby Boomers are turning 60 –
7,918 people turned 60 each day in 2006.
Predictions are that Baby Boomers will work well
beyond today’s normal retirement age.
Source: U.S. Census Bureau
4
Percent Population Distribution
of Adults 50+
50-54 Years
22.9%
55-64 Years
35.8%
75+ Years
19.9%
65-74 Years
21.4%
Source : U.S. Census Bureau Population Estimates July 2008
Total Adult 50+
Population=94,048,088
5
Size of the Adult 50+ Marketplace






The first Baby Boomer turned 60 on Jan. 1, 2006.
According to AARP, an American turns 50 every 7
seconds – that’s more than 12,500 people every day.
By 2015, adults 50+ will represent 45% of the U.S.
population.
In the next 10 years, the 50+ demographic will grow
by 22 million.
In the next 15 years, the 50-64 age group will grow
by 50%, and the 65+ population will grow by 50%.
By 2030, Americans 65+ will double to 71.5 million,
and by 2050 will grow to 86.7 million people.
Source: immersionactive.com (Digital Boomer Agency)
6
Baby Boomers and Seniors Still a
Powerful Market Force





78 million Americans aged 50+ in 2001 controlled
67% of the country’s wealth, or $28 trillion.
Households headed by adults 55-64 had a median
net worth of $112,048 in 2000 – 15 times the
$7,240 reported for the adults under 35.
Adults 50+ have about $2.3 trillion in disposable
income.
By 2010, adults 45+ will out-spend younger adults
by $1 trillion annually.
According to JWT Boom-BoomerEyes/C&R Research
study, Boomers spend about $2 trillion annually.
Source: U.S. Census, Federal Reserve, AARP and JWT Boom study cited on immersionactive.com 9/09
7
States with Highest Percentage
of 50+ Residents
State
Florida
West Virginia
Pennsylvania
Maine
Arkansas
Iowa
Montana
Connecticut
Rhode Island
Vermont
2000 % 50+
33.5%
32.7%
31.3%
31.2%
29.9%
29.9%
29.7%
29.6%
29.4%
29.3%
Source: JWT Mature Market Group Live Wire Newsletter
State
West Virginia
Maine
Florida
Vermont
Montana
Pennsylvania
Hawaii
North Dakota
Wyoming
Iowa
2005 % 50+
35.7%
34.8%
34.4%
33.9%
33.9%
33.5%
32.9%
32.8%
32.6%
32.5%
8
Baby Boomer Consumer Segments
Baby Boomers are a diverse group and have many different kinds of
product consumption. Spectra Research conducted a consumer
segmentation study that divided Boomers into eight distinct groups.

Late-blooming Boomers – Typical household size between 2-3
people with children younger than 12 years old. Two-thirds of those
with children are in committed relationships and about one-third are
single parents. They tend to be the most highly educated group.

Ready to launch – Average 2-3 persons per household, with at
least one teenager. About half are couples and half are single
parents.

Trailing-edge families – Four-plus people per household with head
of household ages 42-48. Two to three children living at home and
about 1 in 8 have an adult child in the house.

Leading-edge families – Four-plus people per household with head
of household between 49 and 60. Also 2-3 children at home and
twice as likely as Trailing-edge family to have an adult child at home.
Source: Drug Store News 6/26/06 (latest available data)
Continued…
9
Baby Boomer Consumer Segments




(…continued)
Single Boomers – Tend to be highly educated and more
than 41% have never been married. About half of them have
lived in the same house for more than 5 years.
New family frontiers – Caregivers with at least 3 people in
the household, with either an adult child under 24 or a
relative. Almost 40% have a relative living with them and of
those, one-third is housing a parent.
Trailing-edge couples – Younger Boomers 42-54, without
children. Represent the highest incidence of unmarried
couples among all boomers.
Leading-edge couples – Older baby boomers ages 55-60,
typically married and living in older neighborhoods, with 67%
living in the same house for more than five years.
Source: Drug Store News 6/26/06 (latest available data)
10
Education Levels of Older Adults




82.2% of adults 55-59 completed high school.
69.9% of adults 65 and older finished
high school.
26.1% of adults 55-59 have a Bachelor’s Degree or
more, compared to 28.5% of Baby Boomers.
16.7% of adults 65+ have a Bachelor’s Degree or
more.
Source: Met Life Mature Market Institute 2007 (latest data available)
11
Racial & Ethnic Composition of Adults 55-64

8.5% of Adults ages 55-64 are minorities.

9.9% are Black.

7.5% are Hispanic origin.

3% are Asian or Pacific Islander.

.9% are American Indian.
Source: Met Life Mature Market Institute 2007 (latest data available)
12
Voting Patterns by Age Groups
In the 2004 Presidential Election:

70% of adults ages 59-64 voted.

Over 92% of the 59-64s were registered to vote.


70.8% of adults ages 65-74 voted, the highest
percentage of voters.
41.9% of adults 18-24 voted, the lowest percentage
of voters.
Source: Met Life Mature Market Institute 2007 (latest data available)
13
Spending Patterns of Adults 50+
14
Average Annual Expenditures
By Age – Consumer Expenditure Survey 2007
Avg. Annual Expenditure
All
Consumers
Total
Food
Housing
Transportation
Pers. Insur./Pensions
Health Care
Entertainment
Apparel & Services
Cash Contributions
Education
Pers. Care Prods.
Alcoholic Beverages
$49,638
6,133
16,920
8,758
5,336
2,853
2,698
1,881
1,821
945
588
457
45-54
Years Old
55-64
Years Old
$58,331
7,181
19,195
9,943
7,489
2,792
3,163
2,191
1,972
1,687
686
498
$53,786
6,241
17,223
9,608
6,193
3,476
2,730
1,888
2,746
929
632
533
Source: BLS.gov, Consumer Expenditure Survey 2007 (latest available data)
15
Profile of Older Baby Boomer Households
vs. Younger Boomers
Profile
Estimated spending power
% total spending power
Born
% with college degree
Total number of HH’s
Avg. number of people in HH
Avg. no. children under 18
Avg. no. earners in HH
Annual avg. HH income
Annual avg. spending/HH
55-64 Years Old
45-54 Years Old
$1 trillion
24%
1946-1955
62%
21.9 million
2.7
0.6
1.8
$58,889
$46,160
$1.1 trillion
26%
1956-1964
58%
23.9 million
3.3
1.3
1.7
$56,500
$45,149
Source: Met Life Mature Market Institute, 2007 (latest data available)
16
Spending Habits of Adults 50+





Adults 50+ accounted for an estimated $2 trillion in
total expenditures for 2005.
This consumer group has $2.3 trillion in disposable
income.
Adults 50 and older own 65% of the aggregate net
worth of all U.S. households.
Between Jan. 2007 and 2010, the total spending for
50+ households will increase by over $900 billion.
By 2010, adults 45+ will out-spend younger adults
by $1 trillion annually.
Source: immersionactive.com (Digital Boomer Agency)
17
Boomers Committed to Using
Green Products





A new study from ICOM Information & Communications
finds that Baby Boomers are the “greenest” generation.
Both men and women 55 years and older are aboveaverage users of environmentally friendly home goods.
Women in this demo were more than twice as likely as
the average consumer to use green products.
Men and women 25-34 years old are among the least
likely to buy category compared to the national average.
Although higher prices of green goods deter many, more
than 6 out of 10 say they are still buying such products.
Source: mediapost.com 9/9/08
18
Today’s Grandparents Are Marketing Targets




In a Pew poll, adults 65+ cited spending time with
grandchildren as one of the top two things they
value most about getting older.
A recent Census Bureau bulletin noted that as of
2007, 2.5 million grandparents were responsible for
the basic needs of one or more grandchildren who
lived with them.
Metlife’s survey this May found that 63% of
grandparents said they provided financial assistance
or monetary gifts to grandchildren.
Marketers are now concentrating on the
“grandtravel” category as well as the usual toys and
clothing advertising.
Source: AdWeek.com 7/27/09
19
Media/Technology Usage
20
Daily Activities of U.S. Seniors






According to Pew Research Center’s “Growing Old in
America” study, 28% of seniors (adults 65+) had
used the Internet in the 24 hours prior to polling.
The number one activity was talking with family and
friends at 90%.
Reading a book, magazine, or newspaper was the
number two activity, with 83% of the respondents.
Tied for the number two activity was taking
prescription medicine.
Number four is “Watching 1+ hour of TV” for 77%
of the respondents.
Nearly three-quarters of adults 65+ received very
few or no calls on their cell phones.
Source: Pew Research Center, “Growing Old in Amewrica: Expectations vs. Reality,” 6/09
21
Older Adults Go Online
A Pew Internet Project study on Generations
Online reveals differences in Americans’ going
online by age.






Ages 18-32
Ages 33-44
Ages 45-54
Ages 55-63
Ages 64-72
Age 73+
87%
82%
79%
70%
56%
31%
Source: Generations Online, January 2009, pewinternet.org
22
Reaching Baby Boomers Online
Pew Internet and American Life’s report on Generations
Online evaluated online activities.
 Online Boomers’ (ages 45-63) primary use of the Internet
was for email: 90% of this demo sends or receives email.
 Online search and researching health information were
the number two and three online occupations for this
age group.
 About 70% of online Boomers bought something online.
 Over two-thirds (68%) of online Boomers have used the
Internet to make travel reservations, compared with 70%
for Gen X (ages 33-44) or 65% for Gen Y (ages 18-32).
Source: Generations Online, January 2009, pewinternet.org
23
Top Online Activities for Seniors
56% of adults ages 64-72 go online




91% use email
70% get health info
73% research products
69% make travel reservations
31% of adults age 73+ go online




79% use email
67% get health info
65% make travel reservations
60% research products
Source: Generations Online, January 2009, pewinternet.org
24
Social Networking for Boomers
Social networking sites are expanding their focus to older users
now that penetration among younger demos is nearly total.
Boomers are an attractive target because they account for about
one third (the largest constituency) of the 193 million Internet
users in the U.S.




22% of adults 45-54 have a personal profile page on Facebook, MySpace,
LinkedIn or any other social networking website according to
Arbitron/Edison Research.
About 10% of adults 55-64 have a personal profile page on any of the
social networking websites.
According to the Pew Internet 2009 study, 20% of adults 45-54 have ever
used a social networking site, compared to 9% of adults 55-64.
Some of the popular Boomer social networking sites
are eons.com, with 100,000 members over 50; iRememberJFK.com focuses
on nostalgia about the 50s and 60s; and Boomergirl.com, a site for females
over 50.
Source: Arbitron/Edison’s The New Media Consumer 2009; Pew Internet Generations Online 2009
25
More Boomers Are Watching Online Video




Younger Boomers (ages 45-54) in particular are
watching videos online – 49% according to the Pew
Internet Generations Online Study 2009.
Older Boomers are also increasing their online video
viewing, at 30% in the current Pew Internet study.
Arbitron/Edison Media Research’s 2009 New Media
Consumer survey shows that 27% of people 12+ have
watched Internet video in the last week, approximately
69 million people.
26% of the total surveyed by Arbitron/Edison (12+)
have watched TV programming over the Internet
without downloading.
Source: Pew Internet Generations Online 2009; Arbitron/Edison Media Research New Media Consumer 2009
26
Time Spent Watching Online Video by Age



Monthly time spent (users 2+) watching video on the
Internet at home or work has increased from 1 hour 57
minutes in 1Q08, to 3 hours in 1Q09.
Viewers ages 45-54 spent a monthly average of 2 hours
45 minutes, compared to 1 hour 44 minutes for viewers
ages 55-64.
Video audience composition for the younger Boomers
(ages 45-54) viewing video on the Internet is 22% vs.
15% for older Boomers (ages 55-64).
Source: The Nielsen Company, A2/M2 Three Screen Report 1Q09
27
Boomers Are Big on Word-of-Mouth,
Not on Blogs




According to a study by BIGresearch, Baby Boomers
prefer to talk face-to-face about products, brands or
services.
Among the methods used by those on the Internet after
online searches to communicate with others about
products, 68.4% of adults 45-54 and 64.8% of adults
55-64 prefer face-to-face communications.
Younger and older Boomers both use Email
communications for sending product news to friends –
51.9% and 53.4% respectively.
The mobile phone was used more by younger Boomers,
23% vs. 19.5% for older Boomers.
Source: eMarketer 12/11/08
28
Marketing to Adults 50 Plus
29
Marketing to Adults 65+




According to a survey by Pew Research Center, 60%
of respondents age 65+ said they feel younger than
their actual age.
Among respondents 65-74, 33% say they feel 10-19
years younger than their age, and one in six say
they feel at least 20 years younger than their age.
In response to the question of whether they feel
old, 78% of the 65-74 year-olds and 61% of the
75+ said no.
Marketing to this cohort is complex – with some
companies using models 10-15 years younger than
the target market and others relying on images of
active and involved individuals.
Source: AdWeek.com, 7/27/09
30
Marketing Campaigns Targeted to
Baby Boomers




Starwood Hotels & Resorts Worldwide is targeting
Boomers with two new cheap chic hotel chains.
OSI Restaurant Partners (owners of Outback
Steakhouse) is trying to win back lost Boomer
customers by reducing some menu prices and
offering smaller cuts of beef to maintain margins.
Nordstrom’s began opening more lower-priced
Nordstrom Rack stores to appeal to Boomers who
still want fashion but at a discount.
Wal-Mart’s current tagline, “Live better, save more”
captures the current Boomer attitude of acting
frugally and getting more out of what they buy.
Source: Businesweek.com 7/23/09, MediaPost Engage: Boomers 7/20/09
31
Thank You!
32