Re-Thinking The Over 50s
Marketers choosing to ignore the ever-powerful 50+ market are playing a dangerous game, according to new marketing think tank ASK, which reveals the findings of its largest ever survey, highlighting key challenges to unlocking the sector’s value.
The old view that a consumer is dead by the time they reach 35 is a highly risky view for any marketer to hold now there are 20 million consumers over 50. This is coupled with the fact that there are now more main shoppers over 50 willing to switch brands than their 25-44 counterparts. The ASK (Access to Senior Knowledge) research shows that these sort of prejudices are dangerous in today’s commercial arena.
EMAP Esprit, publisher of 50+ women’s monthly magazine, Yours, has teamed up with agencies Leo Burnett and Starcom, together with Age Concern Research Services (ACRS), to create the continuous ASK research programme fuelled by the ACRS 50 plus panel of 10,000 senior consumers.
Sam Fitz-Gibbon, Publishing Director of Yours explained the increasing impact of older consumers, stating: “2006 sees the first of the Baby Boomer generation turning 60 and heralds a tidal wave of 8 million consumers heading for retirement age. It’s a defining moment in the 50+ market.”
ASK’s findings highlight four challenges for modern day marketers:
Challenge 1: Ignore The Over 60s At Your Peril
It is a widely held belief that brand switching at the age of 45, never mind 55 or 65 is a rare commodity. This ignores the fact that the Baby Boomers were the first true consumers of the 20th Century and that the over 60s are one of today’s biggest brand switching consumer groups.
Findings from the ASK research reveal 51% of 50-54 year olds claiming to switch brands regularly, compared to 44% of 60-64 year olds. One of the most interesting findings is that this propensity to switch reaches 47% amongst the over 90s.
The over 60s are also more likely to be consumers of branded goods. 49% of 60-64 year olds regularly buy branded goods compared to 42% of 50-54 year olds. With the over 60s accounting for 12.7 million consumers in the UK today, ASK’s findings confirm that the over 60s can’t be written off.
Challenge 2: Beware The Segmentation Trap; Don’t Exclude The Negative And Regressive!
Some existing studies segment the market based attitudinally on positivity and forward thinking. If not careful, this approach can lead brands to exclude some very valuable prospects.
For example, ACRS have developed six attitudinal clusters for the 50+ consumer transcending across age. Surprisingly in some cases, it is the older and more pessimistic consumers who are as likely to switch brands and experience new products and services as their younger counterparts.
One of these segments ‘The Inevitables’- a group of 65+ consumers with a highly pessimistic outlook, rank second highest against the statement “I like to try different brands regularly”. They account for 21% of the 50+ population – approximately 4 million people.
Challenge 3: Media Fragmentation Will Make The Over 50s More Difficult To Reach
In 2003 the Future Foundation cited media fragmentation as the biggest hurdle to effective marketing. The over 50s missed the initial ‘multi-channel’ boat and traditional mass media channels such as ITV and Channel 4 as well as national press are still relied upon to reach them.
Findings from ASK, suggest that as the digital age finally reaches this market, channel relationships will rapidly change.
With analogue switch off planned for 2012, the 60+ consumer appears to be the most excited by this prospect with 68% of 60-64 year olds agreeing that “it is good to have a wider choice of programming across more channels” rising to 70% by the age of 80.
Challenge 4: Will The Over 50s Have The Last Laugh?
With mounting evidence that the over 50s have as much ROI potential as the under 50s, the debate is moving to communicating to seniors more effectively.
ASK’s research shows 81% of consumers over 50 have a favourite commercial, with up to 70% citing humour as the main reason for recall. In short, the over 50s will respond to communications when they are engaged.
John Poorta, vice chairman of Leo Burnett London, outlined the change in attitude required by marketers to take advantage of older sectors. “Instead of thinking of the 50+ as being people who don’t ‘get’ advertising we would do well to remember that they were raised on ITV and have enjoyed some of the greatest ads ever written,” he explained. “It’s actually a real challenge to match their high expectations!”
ASK’s research also tracks other lifestyle measurements, with Paul Selby, head of Starcom’s Intelligence Unit highlighting their importance. “Engaging with consumers is only possible by discovering everything we can about them,” he said. “The over 50’s market is rapidly expanding and increasingly diverse, whereas existing research into this target audience was not.
2006 is shaping up to be an interesting year for the 50+ market. There are some huge opportunities, possibly the biggest of this decade, for marketers to capitalise on profitably. ASK urges marketers not to create another generation of prejudice when assessing the attractiveness of this consumer group. All they need to do is take the initiative and change the way they do business. Simple really.