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Don’t Ignore Boomers – The Most Valuable Generation

Demographics | 08-06-2012
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Born between 1946 and 1964, the Baby Boomers are 80 million strong. Yet despite their significant size and spending power, these high potential consumers have been largely unaddressed by marketers and advertisers since they started to age out of the popular 18-49 cohort. In five years, 50 percent of the U.S. population will be 50+. These consumers spend close to 50 percent of all CPG dollars yet less than 5 percent of advertising is geared towards them. A new report by Nielsen in collaboration with BoomAgers, examines this opportunity and guides the way forward with actionable insights into this valuable cohort, dubbed the “Most Valuable Generation."

Baby Boomer Growth Statistics

Money Makers… and Spenders

In the next five years, Boomers are set to control 70 percent of the disposable income in the U.S. What’s more, they stand to inherit $15 trillion in the next 20 years. As they age out of the work force, 67 percent of Boomers plan to spend more time on their hobbies and interests, moving from a life dedicated to making money to one that is directed to spending money. This lifestyle requires two simple ingredients: money to spend and the time to spend it. The Boomer is a dynamic consumer and a very valuable one. It’s clear that taking their loyalty for granted, or forsaking them for being too loyal or set in their ways, are both risky approaches for marketers.

Booming Technology Adoption

Boomers Technologically Connected

There is no doubt that younger generations are the first to adopt new technologies, but once they go mainstream, it is the Boomers’ adoption that is driving the real growth of technology. The Boomers have always embraced science and technology and are using today’s internet-linked products to enrich their lives by staying connected, socializing, shopping and entertaining themselves. While they are slower to adopt the new technologies, once they are mainstream, Boomers buy in. Savvy marketers can engage once they identify the types of technologies and social media most likely to be used by Boomers.

For more insights into the Boomer cohort, download Introducing Boomers: Marketing’s Most Valuable Generation.

Tagged:  GENERATION
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