Marketing to the
Baby Boomers
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Baby Boomers, defined as adults born between 1946
and 1964, include over 81 million Americans.
This demographic group represents more than half
the nation’s wealth, with an estimated $2.3 trillion
in annual buying power.
Marketers are realizing that Baby Boomers
present countless profit making opportunities.
Source: U.S. Census Bureau 2010, Met Life Mature Market Institute Demographic Profile
2
Percent Population Distribution
of Baby Boomers (ages 45-64)
60-64 Years
20.6%
45-49 Years
27.9%
55-59 Years
24.1%
50-54 Years
27.4%
Source: U.S. Census Bureau Population 2010
Total Boomer
Population=81,489,445
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Key Baby Boomer Facts
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Baby Boomers represent 26% of the population.
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48.8% are male; 51.2% are female.
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An American turns 50 every 7 seconds – that’s more than
12,500 people every day.
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 2015, those aged 50 and older will represent 45% of the
U.S. population.
By the year 2030, the Baby Boomers will be ages
66-84 and make up over 15% of the population.
Source: U.S. Census Bureau Population 2010
4
Baby Boomers Represent
26% of the Working Population
Median Weekly Income
Young vs. Old
Age
Median Weekly Income
20-24 yrs old
$454
25-34 yrs old
$682
35-54 yrs old
$844
55-64 yrs old
$860
Source: Bureau of Labor Statistics
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Baby Boomers’ spending patterns can be divided
into two subgroups: those born from 1956 to 1964
whose spending is still directed toward their
children, and those born from 1946 to 1955 who
are moving into their empty nesting years.
Both groups have very
desirable socioeconomic appeal.
Source: Met Life Mature Market Institute
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Profile of Older Boomer Households
vs. Younger Boomers
Profile
Estimated spending power
Older Boomers
Younger Boomers
(1946-1955)
(1956-1964)
$1 trillion
$1.1 trillion
% total spending power
24%
26%
% with college degree
62%
58%
Avg. number of people in HH
2.7
3.3
Avg. no. children under 18
0.6
1.3
Avg. no. earners in HH
1.8
1.7
Source: Met Life Mature Market Institute
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Adults Over 50 Control
67% of the Country’s Wealth
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81 million Americans who were 50 or older as of 2001
controlled $28 trillion of the country’s wealth.
Households headed by someone in the 55-64 age
group had a median net worth of $112,048 in
2000 – 15 times the $7,240 reported for the under 35
age group.
Adults 50+ have $2.4 trillion in annual income, which
accounts for 42% of all after-tax income.
Source: U.S. Census 2010 , Federal Reserve, AARP and JWT Boom Study 2009
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Baby Boomers Purchasing Power
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Between 2005 and 2010, total spending for 50+
households increased by over $900 billion.
As of 2010, Adults 45 years and older outspent
younger adults by $1 trillion annually.
96 percent of Baby Boomers participate in word-ofmouth or viral marketing by passing product or
service information on to friends.
Source: immersionactive.com, ThirdAge and JWT Boom
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Baby Boomers’ Effect on TV Programming
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The median age for audiences for every broadcast
network has move upward since 2006.
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NBC increased to 50.1 from 48.5
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ABC increased to 52.3 from 47.4
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FOX increased 45.4 from 41.5
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CBS increased to 56 from 53
Source: NY Times “In Shift, Ads Try to Entice Over 55 Set” May 14, 2011
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Baby Boomers: Wired and Connected
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Boomers are online in larger absolute numbers than any other
demographic group, with 72% of those 50 to 64 connected.
They are significantly richer than their parents, and dwarf the
numbers of the two generations that followed them, Gen X
and Gen Y.
Of the one-third of 195 million Internet users in the U.S.,
adults aged 50+ represent the Web’s largest constituency.
Email is the most popular online activity among 50+ users,
followed by web browsing, research and shopping.
The Internet is the most important source of information for
Baby Boomers when they make a major marketing purchase,
such as automobiles or appliances.
Source: Jupiter Research, ThirdAge and JWT Boom, Zoomerang,
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Boomers Display Differing Device Preferences
U.S. Consumers Who Own Tablets and Ereaders by Generation
57%
Baby Boomers
56%
44%
12%
Gen X
20%
38%
31%
Millennials
24%
Kindle
18%
iPad
Any ereader or tablet
Source: GFK MRI, “Survey of the American Consumer” as cited in press release June 30, 2011, eMarketer
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Baby Boomers Buy Online
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Adults 50+ spend an average of $7 billion online annually.
42% of all travel industry purchases happen online, and
adults 50+ account for 80% of all luxury travel spending.
Online sales to women aged 25-35 fell 8% in the year ended
in March, but sales to 55-64 year olds rose 11%.
65% of online apparel sales go to women over age 35
according to researcher NPD Group.
Of this group, the fastest growing sales are to women
between 55 and 64 years old – a Boomer population that has
always been known for willingness to indulge.
Source: SeniorNet, Pew Internet and American Life Project, NPD Group
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Social Networking Doubles
Among Boomers and Seniors
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Older web users are flocking to social networks, according to
a May 2010 Pew Internet & American Life Project survey.
Usage among Internet users ages 50 and older nearly
doubled during the past year, from 22% to 42%.
More specifically, 47% of 50-to-64 year old Internet users and
26% of seniors ages 65 and up indicate that they now use
these sites, with Facebook and LinkedIn being the main
beneficiaries of the more mature traffic.
Source: “Social Networking Doubles Among Boomers and Seniors” eMarketer, 9/13/10
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The Changing Boomer Audience:
Then and Now
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2000
40% Use Internet
<5% Broadband at home
34% Own a cell phone
0% Connect to Internet
wirelessly
<10% use “cloud”
= slow, stationary
connections that are built
around the computer
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2010
74% Use Internet
63% Broadband at home
81% Own a cell phone
46% Connect to Internet
wirelessly
>50% use “cloud”
= fast, mobile connections
that are moving to outside
servers and storage
Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10
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The Changing Boomer Role:
Then and Now
2000
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Boomers were 28%
of the Internet
population
and 24% of the traffic
on a typical day
2010
 Boomers are 34%
of the Internet
population
 and 32% of the traffic
on a typical day
Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10
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Boomer Internet Use Intensifies:
Then and Now
2000
2010
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24% online average day
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69% online average day
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5% online several times/day
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36% online several times/day
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20% go online occasionally
just for fun
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47% go online occasionally
just for fun
Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10
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Boomers are Often Like
Other Internet Users
94%
91%
88%
89%
Boomer Internet Users (Ages 46-64)
85%
78%
Millennials (Ages 18-29)
83%
74%
73%
% of internet users
64%
52%
41%
30%
Email
Search
Engines
Health Info
Get News
Govt. Sites
Research
Jobs
28%
Religious
Info
Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10
30%
31%
Online
Ratings
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Boomers and E-Commerce
81%
83%
81%
Boomer Internet Users (Ages 46-64)
Millennials (Ages 18-29)
70%
68%
% of internet users
62%
55%
58%
27% 26%
Research Products
Buy Goods
Travel Reservations
Banking
Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10
Auction
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Boomers and Social Media
% of internet users
85%
Boomer Internet Users (Ages 46-64)
81%
Millennials (Ages 18-29)
51%
45%
39%
38%
38%
33%
27%
26%
25%
29%
23%
18%
11%
Video Sharing
Sites
Use Social
Network Site
Rate
Product/Service
Read Blogs
Post Comments
Share Creations
Have Websites
Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10
18%
10%
Twitter
8%
Blog
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