Under 25 and Over 54:
Redefining the Mainstream
Presenters:
Joe Stagaman & Pat McDonough,
The Nielsen Company
Panelists:
University student and a 55+ consumer
June 2011
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Annual Estimate of the Resident Population
by Age
(2009)
30
25
Million
20
15
10
5
Under 5 5 to 9 10 to 14 15-19
Source: U.S. Census Bureau, Population Division
Release Date: June 2010
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70+
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
How Does The Media World Value These People?
Media World: Value of Each Age Group
Mainstream
Not important
Not important
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Using Only The 25-54 Demo Ignores About 58% Of
The Population
• This is only a problem if marketers don’t mind ignoring about
180mln people!
– 34% (105mln) under 25 years old
– 24% (74mln) over 54 years old
Percent of Total US by Age Groups, 2009
10%
9%
9%
8%
7%
6%
7%
7%
7%
7%
7%
7%
7%
6%
7%
7%
7%
6%
5%
5%
4%
4%
3%
2%
1%
0%
Under 5 5 to 9 10 to 14 15-19
20-24
Source: U.S. Census Bureau, Population Division
Release Date: June 2010
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70+
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Test: Which Of These Are Similar?
Anna, 24
Marie, 25
Julia, 54
Suzanne, 55
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Test: Which Of These Are Similar?
Anna, 24
Marie, 25
Julia, 54
Suzanne, 55
My third grader would say:
• Anna and Marie
• Julia and Suzanne
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Test: Which Of These Are Similar?
Anna, 24
Marie, 25
Julia, 54
Suzanne, 55
But your media community would say:
• Marie and Julia are similar
• The other two are irrelevant
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Two very different ways of looking at the world
1. Any 25-54 year old is important; others are ignored
2. At least those aged 12-24 and 55-64 should be considered
mainstream, not outliers, for reasons we will share today
– Their numbers
– Their growth rate
– Their value as consumers
– Their relevance as media users
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Instead Of Betting Only On Those 25-54…
• We believe advertisers who really think this through will
want to start “defining a new mainstream”
– Those over 54 and those under 25
• The 58% of the population we should no longer ignore!
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
The Case for 55+ Year Olds
1
Life expectancy √
2
Population growth well above average √
3
Buying rates still quite high √
4
They are open to switching brands √
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Life Expectancy and Population Growth
1
An average 55 year old will live for more than 25 more years (CDC, 2006)
2
The 55+ group…..
•will add nearly 10 million people by 2015
•is expected to grow at an annual compound rate of 2.7%, which is
much faster than the 25-54 year old group
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
55+ Year Olds Have Similar Buying Rates To
Those Of The 25-54 Year Olds
25-54
55+
DRY GROCERY
NON-FOOD
HEALTH & BEAUTY CARE
DAIRY
FROZEN
GENERAL MERCHANDISE
MEAT
ALCOHOLIC BEVERAGES
FRESH PRODUCE
DELI
0
200
400
600
800
1000
1200
1400
1600
Total USD per year
Source: Nielsen Homescan
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Older Audiences Will Switch Brands
Example: Powder Laundry Brands
25-54
Over 55
PRIVATE LABEL
SUN
ARM & HAMMER
CHEER
TIDE
GAIN
TIDE W/BLEACH
CLASSIC PUREX
SURF
-
20
40
60
80
Share of Category Requirements
Source: Nielsen Homescan
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Retailers Are Focused On Seniors
Kroger: Seniors receive a 10%
discount OFF of your total purchases
on the first Wednesday of every month.
Shopko offers a discount of 15 percent for seniors 55
and older on many Shopko purchases during their Senior
Citizen Events! Shopko understands that many senior
citizens are on a fixed income.
Source: Company websites
Rite-Aid offers 20% off your purchases the
first Tuesday of the month.
If you're 55+, you can save an additional
10% on your food bill the first Wednesday
of every month.
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Under 25
year olds
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Under 25 year olds: Two Things To Consider
1
Point of entry
2
Even if not the main purchaser in the household, 13-24 year
olds influence purchases in many categories
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Two Groups
1
Living on their own
2
Living with their parents or other head
of household
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Younger Heads Of Household Tend To Have Lower
Buying Rates Than Their 25-54 Counterparts
25-54
Under 25
DRY GROCERY
NON-FOOD
HEALTH & BEAUTY CARE
DAIRY
FROZEN
GENERAL MERCHANDISE
MEAT
ALCOHOLIC BEVERAGES
FRESH PRODUCE
DELI
0
200
400
600
800
1000
1200
1400
1600
Total USD per year
Source: Nielsen Homescan
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Gauging Influence
Which of the following statements best describes what you
usually do when you need to buy the following product?
1
I usually buy this type of product myself with my own money
2
I usually buy this type of product myself with money from my parents
3
My parents buy this type of product, but I usually tell them what
brand to purchase
4
My parents buy this type of product and my
parents usually decide what brand
to purchase
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
13-24 Year Olds Influence Purchases in Many
Categories
Household
Use
Personal
Entertainment
FashionUse
% Influence
Shoes
Clothing
Movie Theater Tickets
Fast Food
Femine Protection
Chewing Gum
Deodorant
Concert Tickets
Candy
Hair Care Products
Soft Drinks
Dinner @ Restaurant
Sports Tickets
Salty Snacks
Fruit Juice
Fresh Fruits & Vegetables
Jewelry
Laundry Detergent
Toilet Tissue
0%
95%
94%
91%
89%
89%
89%
88%
88%
86%
80%
77%
76%
71%
69%
63%
51%
46%
35%
32%
20%
40%
60%
80%
100%
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Gauging Influence
Which of the following do you, yourself own?
Cell Phone (other than smart phone)
Smart Phone
TV
Computer
Car
i*Pod/MP-3 Player
i*Pad/Tablet PC*
Who decided which type or brand of ( ) to buy?
1
You
2
Your Parents
3
You and your parents
*Very small sample
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
13-24s Play A Big Role In Selecting The Brand Or
Specific Product In Major Purchases
% Deciding on Product or Brand
i*Pad/Tablet PC*
88%
i*Pod/MP-3 Player
77%
Smart Phone
72%
Computer
60%
Car
56%
Cell Phone (other than smart phone)
55%
TV
44%
0%
*Very small sample
20%
40%
60%
80%
100%
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Summary
There are compelling reasons to include ages beyond 25-54 in the
mainstream target
• Over 54 year olds
– Population growing at well-above average rate
– Considerable economic power
– Open to switching brands and trying new products
• Under 25 year olds
– Represent an important point of entry opportunity
– Influence purchasing on many categories, including personal
care items, fashion/clothing, and entertainment
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Age & Gender
Watch
Differences
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Portrait of the day 12 to 24
a. Mainly shop on weekends
b. More texting, less talking
c. 99% of us watch TV
d. TV accounts for 3 1/2 hours a day, mobile video 13 minutes,
online 1 hour 10 minutes a day with 19 minutes of online streaming
e. For those of us who have mobile video,16% also have a tablet
f. Half of us time shift for an average of 35 minutes a day
g. Social very important to us
h. 75% of us use TV and are online at the same time
i. Males use video games at 3 times the rate of females
Age
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Portrait of the day 25 to 54
a. Silhouette image or similar with key points in day brought
to life
b. Highest employment rates
c. Most time shifted TV at 45 minutes a day
d. We do the most online shopping
e. We use our phones as much to talk as younger folks but
text much less
f. TV accounts for 4 1/2 hours a day, mobile video 8 minutes, online
use is 1 hour 45 minutes per day with 16 minutes of streaming
g. 14% of mobile video users have a tablet
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Portrait of the day – 55+
a. Most TV of all users
b. Most live TV
c. Shops frequently
d. Talks more texts less - but half of 55 to 64 text while
only ¼ of 65+ does
e. TV accounts for 6 1/2 hours a day, mobile video 6 ½ minutes, online use 1
hour 25 minutes with only 8 minutes of streaming
f. 55 to 64 (Alpha boomers) much more online and mobile use than 65+
g. 30 Million of us are on Facebook -over 25% of all users.
h. 11% of mobile video users have a tablet
i.
Still spend close to the average consumer in many categories
j.
75% of us use TV and are online at the same time
Age
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
AARP Redefining Its Audience
• “Today AARP sends AARP The
Magazine to all members, but sends
slightly different versions to those 50 to
59, 60 to 69, and over 70.”
• The covers are the same, but… “The
illustration for older readers features a man
who is bald rather than graying, a woman
wearing a long skirt rather
than jeans and, resting
between them, a cane.”
Source: The New York Times & AARP
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Additional
Things to
Know
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Younger Consumers More
Multicultural
Percent among Composite sample
2011-2012 – based on Advanced UEs
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Most Avid Users
• TV- Older Adults
• DVR - Adults 25-49
• Surfing – Adults 18-64
• On-Line Stream. – Adults 18-34
• Mobile Stream – Teens 13-17
• DVD - Kids 2-11
• Gaming - Males 12-17
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
The Value Of Cross Platform
Category A Ad Performance
TV Ad Only Exposed
TV + Internet Ad Exposed
80%
86%
70%
57%
44%
36%
36%
20%
General
Recall
Brand Recall
31%
14%
Message
Recall
18%
12%
Likeability
Brand Linkage
Message
Linkage
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Age &
Gender in
Action
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Younger Consumers Influence Soft Drink Purchase But
TV Campaign delivers more Older Consumers
Younger consumers buy and choose but older consumers
exposed to more ads
Source * Survey # NPOWER campaign results
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Younger Consumers Spend More of Their Time with
Online And Mobile But Ad $ Are More Skewed To TV
Soft Drink Ad Spending*
Online
8%
Time Spent per Day
Other
6%
TV
86%
*Selected soft drinks company
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Conclusions
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Conclusions
• The over 55 group and the 12-24 group deserve
considerably more media focus
– The over 55 group is growing rapidly, has considerable economic
clout, and are open to switching to your brand
– The younger group (12-24) is your consumer of the future, and
has great influence over the purchasing occurring in the
household, even when they live with their parents.
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Conclusions
The over 55 group are reached well with traditional media, but they also
spend time surfing on the internet
• You need to think multi media to reach this group
• And tailor your messages effectively to be relevant
Reaching the under 25 group will require a change in the mix
• To respect the fact that this group is much more multi-cultural than
their older counterparts
• To find them where they are spending their time consuming media
– Online and Mobile but TV too
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Panel Discussion
Discuss the findings and offer real life examples
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Some In The Media Community Act Like This Is The
Mainstream, Which Ignores 58% Of Population
Annual Estimate of the Resident Population by Age
(2009)
30
Not important
Not important
25
Million
20
15
10
5
-
Source: U.S. Census Bureau, Population Division
Release Date: June 2010
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Rather Than Considering Just 42% Of Population, We Think
The Mainstream Should Include At Least 65%
Annual Estimate of the Resident Population by Age (2009)
30
25
Not important
Not important
Million
20
15
10
5
-
Source: U.S. Census Bureau, Population Division
Release Date: June 2010
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
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