In an analysis of a series of reports from multiple agencies, research firm Marketing Charts is reporting that marketers are overlooking one the biggest goldmines for disposable income – the Baby Boomer generation.
In its debrief “Advertising to Baby Boomers: The Why and How,” which includes data from Nielsen and other research organizations, Marketing Charts observes that less than 5% of advertising budget monies are spent on the members of this group, despite the fact that they control almost 70% of the available disposable and discretionary income in the United States.
What makes this oversight even more of a missed opportunity is that Boomers currently make up 44% of the adult U.S. population (those 50 and older comprise close to one-third of the total population), purchase almost half of all consumer-packaged goods (CPG), and spend more than $7 billion annually while online. In addition, more than half who make up this group say they rely on advertising to find products and use the Internet as the main reference when comparison shopping.
However, despite their use of advertising to locate goods and services, the lack of targeted marketing has created a gap, leaving Boomers feeling they are a snubbed population, which has contributed to a negative view of all marketing efforts.
Given that the 50 and older group is experiencing a 34% growth rate – almost three times the rate of adults aged 18 to 49 – and that they will continue to control a steadily increasing percentage of available income, marketers may be well-served to rethink their strategies and begin to tap into this particular demographic.
Marketing Charts. “The Logic of Advertising to Baby Boomers,” June 3, 2014.
Marketing Charts. “Boomers to Control 70% of US Disposable Income,” August 7, 2012.
Nielsen. “Introducing Boomers: Marketing’s Most Valuable Generation,” 2012.