Char Beales

Boomers Break the Mold
December 12, 2006

It’s commonly believed that younger generations lead the way in adopting new technologies and advanced services.

So many advertisers and marketers concentrate on reaching so-called Millennials (18–29 year olds) and Gen Xers (30–39 year-olds) when promoting their products and services.

But Henry Schleiff, the newly installed CEO of Hallmark Channel, has it right (“Fishing in Boomer Lake,” Voices, November 13). While it makes sense to focus on those segments of the market that are most likely to purchase your products, many marketers and advertisers are ignoring the largest and potentially the most productive consumer group in the U.S. – Baby Boomers (40–59 year-olds).

The 82 million Baby Boomers currently make up 39% of the population. In the September/October 2006 Pulse, research conducted by CTAM, it’s clear that Baby Boomers are just as likely as Millennials and Gen Xers to purchase and use many advanced technologies, including digital cable, cable modems, DVRs, home networks, VoIP and on-demand.

Need more reasons to start paying attention to Baby Boomers?

They have much higher levels of household income than the other two groups, and they are more likely to be college-educated and employed full-time than Millennials. Additionally, they are more likely than the other generations to own their homes, including second and vacation abodes. Just think of the marketing and advertising opportunities for home improvement, furnishings and other products and services.

We also found that 41% of Boomers try to keep up with developments in technology and 57% say they like to gather more information about a product before purchasing -- both right on par with their younger counterparts. Marketers may also want to keep in mind that Boomers are influencing others' purchasing decisions at a level equal to other age groups. Specifically, 22% of Boomers report that people come to them for advice before making a purchase, compared to 23% of Gen Xers and 24% of Millenials. (Of course, that same Boomer still may have to ask a Millennial how to use that new purchase!)   

Looking at this from another perspective, digital-cable subscribers of all age groups are more tech-savvy and enthusiastic about electronics than satellite subscribers. A total of 46% of digital-cable subscribers try to keep up with developments in technology, compared with 40% of satellite customers. And 31% of digital-cable subscribers love to buy new gadgets, compared with 27% of satellite subscribers. But I digress, back to the Boomers.

Not only do the Baby Boomers have more disposable income, they are adopting new spending options. They are more likely to purchase items by mail, online or over the phone than in previous years (62% in 2006 compared with 58% in 2004). They also show greater brand loyalty and are willing to pay more for the brands that they know and love than other age groups -- 37% vs. 29% of Gen Xers and 26% of Millennials. And Baby Boomers are more likely than others groups to be absorbed in different forms of media and can be reached through a variety of advertising efforts. They are equally or more likely likely to reportlistening to the radio (85% vs. 84% of Gen Xers and 80% of Millennials), watching TV (84% vs. 78% vs. 72%), reading a magazine (79% vs. 76% vs. 75%) or reading a newspaper (70% vs. 57% vs. 50%).

So, think about this research not only when you’re planning your next marketing or advertising campaign, but when you’re out finishing your holiday shopping over the next few weeks. Put down the books and sweaters, because your mother quite possibly may want a DVR or HDTV cable service for that spanking new set.

This Pulse research was based on The Simmons National Consumer Survey, a study of the U.S. adult population (18+) which provides information on consumer usage behavior for all major media, 450+ product categories, over 8,000 brands; and includes in-depth demographics, psychographics, and lifestyle descriptors of the American population. The survey is fielded semi-annually and data are reported twice a year in the spring and fall for approximately 25,000 respondents. (This study has a +/-1.1% to 1.5% percentage point margin of error.)

Posted by Char Beales on December 12, 2006 | Comments (1)