Overcoming the Age Bias

Thursday, March 06, 2008

Overcoming the Age Bias

I've seen the quote pop up a lot recently regarding bank robber Willie Sutton, who was asked, "Why rob banks?" And his answer, "Because that's where the money is!"

Over the past 40 plus years, companies often would follow the baby boom generation and target their products and services to them. I am part of the tail end of that demographic, being born in the 1950's by 20 days. (You do the math if you want).

When I worked on the air in Top 40 radio in my early 20's, the desirable demo was 18-34 year olds. Then it shifted slightly to 25-54 year olds. But instead of following the baby boomers into their 50's, 60's and beyond, the advertising community, generally speaking stopped keeping up with the boomers and went back to the younger generations.

A huge mistake or huge opportunity, depending on what you do or don't do.

The 60 year old of 2008 is not the feeble minded 60 year old of 1938. Odds are they will live into their 80's. And they have money despite what the politicians are telling us.

The 50 plus, and 60 plus demo is under served, and if you want to find a niche market that has money, just follow Willie's advice and go to where the money is.

Here's some stats to back me up from the Center for Media Research:

Thursday, March 6, 2008

Retirees, Followed By Boomers, Will Redefine Retirement

According to a report from The Media Audit, adults who are nearing retirement are now one of the fastest growing demographics in the country. 17.9% of all U.S. adults are now retired, a figure that has increased by 6% in the last five years and will rapidly increase as Boomers exit the workforce over the next few decades.

Consumption habits of aging Americans are likely very different from those of their predecessors because they are living longer, achieving higher levels of education, are wealthier, and redefining what it means to be retired.

83% of the retired adults in the U.S now own their own home
Thirty percent of retired adults have cash, stocks and CD's valued at more than $100,000, the highest figure ever reported
13.1% of new automobile purchasers are retired, compared to 11.1% five years ago. 8.3% of adults who have a car loan are retired, compared to 6.4% five years ago, an increase of nearly 30%
16% of adults who frequently stay in hotels are retired, compared to 14.7% five years ago, a jump of almost 10%
Among frequent beer consumers, 13% are retired, compared to 11.3% five years ago
Adults who are retired are 6% more likely than the average U.S. adult to frequently dine out at a full service restaurant and retirees now make up nearly 20% of all adults who frequently dine out.
14.3% adults who plan to take an ocean cruise in the next year are retired.

Nearly one in five adults who plan to have lasik eye surgery are retired, and are 5% more likely than the average adult to be planning a lasik eye surgery procedure.

The report further reveals that adults who are retired today compared to the average U.S. adult:

Spend nearly 30% more time watching broadcast TV,
14% more time watching cable TV
25% more time reading a daily newspaper

Retired adults today spend only 89 minutes per day online, a figure that is 26% less than the average U.S. adult who spends 123 minutes per day online. The next generation of retirees, though, is expected to be more computer and internet friendly, since Baby Boomers between the ages of 45 and 64 spend a considerably higher amount of time online - 123 minutes per day.

The most affluent retirees can be found in larger markets such as Washington, D.C., where the average retired adult earns $64,000 in household income.

San Jose, California, Fort Myers- Naples, Florida, San Francisco, California and Long Island, New York, follow behind with household incomes of more than $50,000.

And, currently the top ranking retiree markets are: