Content & Strategy Director @ Switch - We help businesses with subscription models lower their CAC and increase LTV
I read that a Japanese nappy maker announced that it has stopped producing diapers for babies and will instead make them for adults. This is purely a market-driven decision with birth rates dropping faster than Sunak’s approval ratings and an ageing population with 35% aged over 65. The older generation is clearly a growing market. And often a wealthy one too. Seniors are already the wealthiest age group in the US, projected to be spending $15tn per annum within the next 10 years. They also have an average wealth of $834,000, double that of Generation X and far more than Millennials with $68,871 per person. And yet we’re obsessed with youth marketing. Industry statistics suggest that only 5% of advertising is aimed at people over 50. Understandably, marketing directors want to attract the next generation of consumers that they hope to hold onto. But we also know that pressure from investors means immediate ROI is often a leading factor in marketing. So why wouldn’t you want to aim at a wealthy, growing audience with a high disposable income? Do we really think it’s easier to get a 25yr old to buy a new car when they can’t afford their rent? Especially when you know that over 75% of new car purchases each year are made by Boomers or Gen X. And if you think that the young person will stay with your brand for a long time, that’s very wishful thinking with a demographic who are exceptionally quick to change brand loyalties. Perhaps you think the older demographic is hard to target and stuck in their ways. Then you may not realise that over 90% bank online and own a smartphone and 84% regularly post on social media. Most importantly, 52% said they were open to switching brands and trying new things. So why isn’t this a growing sector in the advertising industry? Why aren’t more agencies showing a better understanding and expertise of this lucrative and growing audience? Why do ads show this audience either struggling on stair lifts or smiling while skydiving. It’s ignorant and insensitive to a hugely diverse audience with a wide variety of interests. Maybe it’s because just 5% of ad agency employees are over 50, and we know that most are not in the creative department. It seems to be a twofold problem. Marketers are obsessed with targeting youth and agencies don't appreciate the value and skills of experienced creatives. Just like the nappy manufacturer who saw an opportunity to pivot their business, it’s time for us to see the clear opportunity of this audience and tailor our expertise towards it.
Creative Director/Owner @ Switch - We help businesses with subscription models lower their CAC and increase LTV
7moSometimes marketing to a younger demographic can be attractive to older generations. Theres that old story, how Mini targeted youth, but were purchased in the main by middle aged women.!