Marketers Are Missing Out On The Grey Pound
Advertisers are overlooking older consumers, particularly those aged between 50 and 64, despite their high disposal income and increasing presence in society, according to the latest research from Datamonitor.
The Targeting Seniors Effectively study reveals that older people are the most affluent segment of European society, both in terms of income and wealth. However, it claims they are consistently overlooked by advertisers when it comes to product marketing.
The number of European seniors, or well off older folk (Woofs), is expected to rise to 147 million by 2007. The study urges marketers to take advantage of this growing demographic, which it claims has an increasing volume of disposable income due to an empty nesthood, higher earnings and the lessening impacts of long-term financial payments.
These so-called Woofs are the first generation to have grown up immersed in a consumer culture and consequently use brands to help construct their identities. The study claims this translates into a “new age of senior consumerism” which makes older people, full of increasing hedonism and an innate fear of ageing, more likely to adopt youth brands.
Daniel Bone, an analyst at Datamonitor, said: “Contemporary seniors are also subject to greater influence from their children. Due to delays in the average age of first births and a growing tendency for young adults to remain in the parental home for longer, current and future cohorts of seniors will be subject to growing influence from their off-spring.”
The report recommends that advertisers should take a more “ageless” approach to marketing and should show more sensitivity to the changing lifestyles of older people. It also claims the well worn assumption that older people are more brand loyal and less likely than younger people to try new products is incorrect.
Bone added: “This is perhaps the greatest marketing myth associated with senior consumers and stems from a historic and stereotypical references. In reality, many seniors are moving onto a new phase of life are ready to experience new things, particularly once they are unencumbered by children.”
The study highlights that few marketing campaigns and associated advertising messages speak directly to seniors and points out that there is still a tendency to stereotype the lifestyles of older people, which has led to the over 50s taking an increasingly cynical approach to advertising.
The findings echo a recent report from market information provider Key Note, which claimed middle-aged and older consumers are being ignored by media and marketing executives (see Research Shows Grey Consumers Ignored By Advertisers).
Datamonitor: 020 7675 7271 www.datamonitor.com
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