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Marketing to the Baby Boomers

Marketing to the Baby Boomers.

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Marketing to the Baby Boomers

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  1. Marketing to the Baby Boomers

  2. 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

  3. 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% Total Boomer Population=81,489,445 Source: U.S. Census Bureau Population 2010

  4. Key Baby Boomer Facts • Baby Boomers represent 26% of the population. • 48.8% are male; 51.2% are female. • 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

  5. Baby Boomers Represent 26% of the Working Population Median Weekly Income Young vs. Old Source: Bureau of Labor Statistics

  6. 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

  7. Profile of Older Boomer Households vs. Younger Boomers Older Boomers Younger Boomers Profile (1946-1955) (1956-1964) Estimated spending power $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

  8. Adults Over 50 Control 67% of the Country’s Wealth • 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

  9. Baby Boomers Purchasing Power • 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-of-mouth or viral marketing by passing product or service information on to friends. Source: immersionactive.com, ThirdAge and JWT Boom

  10. Baby Boomers’ Effect on TV Programming • The median age for audiences for every broadcast network has move upward since 2006. • NBC increased to 50.1 from 48.5 • ABC increased to 52.3 from 47.4 • FOX increased 45.4 from 41.5 • CBS increased to 56 from 53 Source: NY Times “In Shift, Ads Try to Entice Over 55 Set” May 14, 2011

  11. Baby Boomers: Wired and Connected • 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,

  12. Boomers Display Differing Device Preferences U.S. Consumers Who Own Tablets and Ereaders by Generation Source: GFK MRI, “Survey of the American Consumer” as cited in press release June 30, 2011, eMarketer

  13. Baby Boomers Buy Online • 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

  14. Social Networking Doubles Among Boomers and Seniors • 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

  15. The Changing Boomer Audience: Then and Now 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 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

  16. The Changing Boomer Role: Then and Now 2000 • 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

  17. Boomer Internet Use Intensifies: Then and Now 2000 • 24% online average day • 5% online several times/day • 20% go online occasionally just for fun 2010 • 69% online average day • 36% online several times/day • 47% go online occasionally just for fun Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10

  18. Boomers are Often Like Other Internet Users Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10

  19. Boomers and E-Commerce Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10

  20. Boomers and Social Media Source: Pew Internet & American Life Project: “Baby Boomers In The Digital Age,” by Lee Rainie, 3/10

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