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Boomers

The Sky Is Falling… Or is it?

September 11, 2012 • Newton Media > Steve Newton

Topics: ,

Every month we see a new article in one of the trades about the decline of DRTV and increased fragmentation, increasing DVR statistics and how VOD is destroying the infomercial. As a DRTV agency, we spend a lot of time in the trenches with our clients and their customers/donors, and I’m going to go out on a limb and disagree with Chicken Little. Here’s why…

The boomers are still booming!

A Nielsen study reported that over the 2010-2011 TV season , the heaviest users of traditional TV are adults 65+ (47 hours 33 minutes per week), closely followed by adults 50-64 (43 hours per week).

It is smart to focus on customers in their fifties to mid-sixties, the majority of them not yet reduced to living solely off a pension; this audience is the perfect target for many DRTV product categories including vitamin supplements, housewares, non-profits and entertainment. The Bureau of Labor Statistics, quoted in the New York Times, shows people aged 45 to 54 and 55 to 64 had the highest median weekly earnings of any age segment in the United States. The unemployment rate last year for those 20 to 24 years old was 14.2 percent; for those 25 to 34, it was 9.4 percent; for those 55 to 64 was only 6.2 percent.

They’re not afraid to spend – the lower unemployment rate, combined with lower expenses and more life experience means this group understands the ebb and flow of economics. “Look, the fact is an affluent 58-year-old is certainly more valuable than a 22-year-old who is just getting by,” says David Poltrack, chief research officer at CBS Corp. stated to the Wall Street Journal. *

Boomers tend to be the most loyal and fierce word-of-mouth champions; IF you can prove to them you will deliver. One example of a great boomer word-of-mouth marketing strategy was illustrated by Mark Bradbury on his Media Post blog:

“Focus Features, in marketing their limited-budget Cold War spy film, ‘Tinker Tailor Soldier Spy,’ utilized a game plan that relied on reverse spill from Boomer word-of-mouth. They needed a unique strategy to compete in the release-heavy, year-end movie market. Believing the movie would hit biggest among Boomers, it selected a small group of screens where its target audience who read John le Carré’s best-sellers would catch on, and then relied on Boomer word of mouth to do the heavy lifting… By walking before it ran, Focus was able to gauge its audience and determine where to add more screens.

“Word of mouth from the Boomer crowd seeped to a younger audience, who flocked to the film at night. Focus took its cue and ramped up the theaters in early January, avoiding the annual December blockbuster blitz and had a clear playing field for itself. The film began grossing more money per theater than George Clooney-starring ‘The Descendants’ and even the Tom Cruise blockbuster ‘Mission Impossible: Ghost Protocol.’” **

Stephen Reily, Vibrant Nation’s CEO, notes in his MediaPost blog that Boomers now find themselves in a new lifestage, one between the late 40’s and the late 60’s, that simply didn’t exist before. “The path of learning and discovering continues well past the stage when it ended for their parents. Boomer women have been telling us for many years that they inhabit a life-stage all its own… the longevity revolution didn’t add 20 years to the end of life; it added 20 years to the middle of life.”
And the Boomers are poised to make the most of these additional years. Popular shows like “Dancing with the Stars” and “American Idol” get it: they have a large segment of 50-plus viewers and we are seeing this reflected in the programs themselves, hence the additions last year of Martina Navratilova and Steve Tyler.

Yes, I believe DRTV will be around for a good while to come – with older demos growing who have discretionary income – spending on DRTV products and services will increase proportionately and grow more than ever before.

*http://online.wsj.com/article/SB10001424052748703559604576174983272665032.html
**http://www.mediapost.com/publications/article/166824/game-planning-for-success.html#ixzz1pyDQFSDg

(Published in Response Magazine, June 2012)

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The Golden Age is Coming – Are You Ready?

November 16, 2010 • Newton Media > Steve Newton

Topics: , , ,

Targeting the Boomer Generation

I recently attended a national non-profit fundraising conference and one of the hot topics was about how to reach Boomers with new media.   Now, I realize marketers have an innate need to stay on the cutting edge of technology and trends, but this is one area in particular that I think we need to take a more common-sense approach towards.  Let’s look at the facts according to various industry sources:

1)  The Boomer Generation, defined as the 77.3 million Americans born in the 10-year period following World War II,  is the first generation in America to grow up with television.  It makes sense that television is the marketing channel they are most comfortable with.

2)  More Boomers went to college than previous generations, making them the demographic with the most buying power.

3)  27% of the US population are Boomers.

4)  Currently, 30% of boomers report using social networking sites, a statistic that will continue to increase.  This means new media strategies need to factor increasingly into your marketing plans. Today, though, the focus is still traditional media.

5)  This generation is highly motivated by peer influence.  They are more likely to buy/give when a product or company is referred by a friend.

6)  Generally, boomers are not multi-taskers.  They are less likely to be watching your message while going online to buy or donate at the same time, as younger generations do.  Their most likely method of response is still to call at the end of the message or to write a check.

7)  The 2008 – 2009 recession hit the boomer generation hard.  Millions were lost in retirement accounts and real estate portfolios.  That resulted in a sharp shift in boomer behavior, from a consumption-based reality focused on material things, to a home and security-centric state-of-mind.  Messages that stress security, financial stability and long-term planning will connect well with this audience.

The Boomer Generation has shown throughout their history to be a strong demographic; they have the power to propel the nation. Baby Boomers control over 80% of personal financial assets and more than 50% of discretionary spending power. They are responsible for more than half of all consumer spending, buy 77% of all prescription drugs, 61% of OTC medication and 80% of all leisure travel.  As they head toward the “Senior” category, they are poised to be the strongest donor group in US history.

What does all this mean to a DRTV marketer?  The successful campaign will be one that understands the needs and motivations of this key demographic and uses both a creative message and a strategic buying plan to reach them.

Steve Newton is the founder and CEO of Newton Media, a full service media planning and buying company headquartered in Virginia with offices in Dallas. Founded in 1995, Newton Media’s team of seasoned experts has become a leader in both Ministry and Direct Response TV and radio.

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