Boomers: Overlooked by Advertising for Too Long
With the advertising world gravitating to more and more digital plays, many marketers put their focus on Millennials and Gen Z to take center stage as the most valuable consumer groups, but they could not be more wrong.
Although apps like TikTok, Facebook, and Instagram have pushed spend for advertising targeting younger age groups, undervaluing Boomers and their potential spending power is a huge mistake.
According to new research from the Federal Reserve, people aged 55+ control 70% of all personal wealth in the US. This often makes them the underdogs of potential target audiences, as they can get overlooked by advertisers wanting to age down their brands in hopes of staying trendy. Surveys from the Bureau of Labor Statistics reveal that 56% of new cars are being purchased by older adults, 55% for personal care products, 65% for healthcare, and 68% for home maintenance.
So why are advertiser dollars to Boomers so misappropriated? And how can advertisers leverage their preferences and insights to engage this demographic?
Folks aged 55 plus are also quite digitally savvy. In fact, research has shown that Boomers spend just as much time online as Gen Z. They are also spending more and more of their money online, making them a valuable focus for digital advertisers. In fact, during the pandemic, consumers aged 65 and over became the fastest group of online shoppers, citing data from the NPD Group’s checkout tracking. These consumers spent an average of $1,615 online from January to October 2020, rising by 49% in that year alone. Today, 90% of Boomers shop online, versus 89% in-store, outnumbering Gen Z by almost 20%.
Not only does this very appealing age group purchase online, but they also watch TV, and they actually read. Thus, DRTV offers, print, and direct mail are also very viable advertising vehicles to capture the discretionary spending of this important demographic.
Advertisers have neglected Boomers for far too long. With their collective wealth and vastly underestimated online presence, marketers should allocate appropriate spending to address and engage this hugely valuable consumer segment in all available media outlets.