Who Are The Baby Boomers…….....................................................3-5
Spending Power…..............................................................................6-7
Consumption Growth by age...................................................……8-9
Labor Force & Mortality…….......................................................... 10-11
Contents
Population Growth….......................................................................... 12
Boomer Spending by Category…...............................................14-15
Receptivity to Advertising…...............................................................16
TV v. Other Media….......................................................................17-18
Boomers & Auto…........................................................................ 20-21
Boomers and Health & Fitness…............................................... 23-24
Boomers & Healthcare….............................................................26-28
Boomers & Home/Remodeling….............................................. 30-31
Role of Digital................................................................................ 33-37
TV – Dominant Platform…............................................................... 38
Live TV Programming…............................................................... 39
Top Spare-time Activity…............................................................ 40
Top For News……............................................................................41
Mobile Shopping & Social media…...........................................42-44
TV Viewing Trends…….................................................................. 46-51
Multi-Generational Marketing…................................................53-54
WHO ARE THE
BABY BOOMERS
Who Are The Baby Boomers?
Individuals between the ages of 52 and 70, born in the United States from 1946-1964.
“Boom” was the result of demographic trends:
• In early part of 20th century, U.S. birth rates had been declining steadily. Then came the end
of WWII. In the first year of the baby boom (1946), more babies were born than ever before
(3.4 million), 20% more than in the previous year of 1945. This was the beginning of the
so-called “baby boom”.
• This trend continued until 1964, when the boom tapered off. By then, there were 76.4 million
“baby boomers” in the U.S. They made up almost 40% of the nation’s population.
For this report, we are focusing on adults 50+ to represent the boomers given the measurement
provided across various sources.
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
3
WHO ARE THE
BABY BOOMERS
The Adult 50+ Demographic is #1
111 Million
A50+
“Baby Boomers”
75 Million
A18-34
“Millennials”
61 Million
35-49
“Gen X”
#1 U.S. Consumer
Age Demographic
Source: Census Bureau, 2015 estimates…Population Division 12/14
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
4
WHO ARE THE
BABY BOOMERS
…and is Growing Fast
50+ population will grow by 16 million over the next decade –
3X Rate of Adults 18-49
A18-49 will only grow 5 million
Source: Census Bureau, 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
5
SPENDING POWER
Baby-Boomers Wield Immense
Spending Power
Adults 50+ annual U.S. spending power is $3.2 trillion.
With a shopping force 75 million consumers strong,
a large percentage of retails sales comes from the
Baby Boomer generation.*
By next year, they will control
70% of the disposable income.**
• But today, only 15% of marketing dollars are
currently being spent on boomers.***
Source: *U.S. Census Bureau; 6/15;**dealermarketing.com/4-steps-to-gear-up-your-marketing-strategy-for-baby-boomers; ***selltoseniors.com;
Spending power= U.S. census bureau, 2013 consumer expenditure survey
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
6
SPENDING POWER
Boomers Significantly Outspend Other Cohorts
Even though they comprise 35% of the population,
Boomers make up about 60% of Retail sales
U.S. Population
Spend Data
10%
15%
12%
33%
30%
25%
43%
19%
Millennials 16-34
Gen X 35-49
Boomers 50-68
Senior Boomers 69+
Source: Population= U.S. Census Bureau Population division 12/14; Spend data= Synchrony financial analytics,
5/2014-4/2015 data on credit cardholders based on sales from 73 retailers
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
7
CONSUMPTION
GROWTH BY AGE
Mature Consumers (A60+) Will Account for
Nearly 50% of All the Consumption Growth
In The Next 15 Years
Projected Consumption Growth in North America By Age2015-2030
.7%
21
A75+
%
.0
25
A60-74
%
.6
11
A45-59
%
.3
19
A30-44
%
.2
10
CH 0-14
%
.3
12
A15-29
Source: McKinsey Global Institute Cityscope; McKinsey Global Institute Analysis
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
8
CONSUMPTION
GROWTH BY AGE
…and Will Account for More than 40% of Consumption
Growth Across A Broad Range of Goods & Services
Aggregate US Household Consumption Growth by Head of Household Age (2015-30)
(Ranked in order of Consumption Growth Among A60+)
A75+
Health Care
31%
Personal Care Products & Services
20%
Housing
19%
Entertainment
17%
Transportation
15%
Apparel & Services
Personal Insurance & Pensions
Education
32%
4%
17%
6%
7%
16%
30%
7%
30%
16%
31%
6%
31%
30%
16%
12%
29%
18%
26%
32%
31%
35%
17%
23%
12%
3%
29%
14%
8%
30%
15%
29%
6%
26%
15%
29%
12%
17%
12%
13%
Alcoholic Beverages
16%
12%
38%
18%
Food
A15-29
A30-44
38%
28%
Reading
Tobacco Products & Smoking Supplies
A45-59
A60-74
24%
34%
39%
30%
8%
11%
10%
9%
7%
16%
Source: McKinsey Global Institute: Urban world: the global consumer to watch (BLS Consumer Expenditure Survey, 2013; McKinsey Global Institute Cityscope)
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
9
LABOR FORCE &
MORTALITY
No Retirement Just Yet: Boomers Are Slated To
Keep Working & Spending
65% of Boomers plan to work past age 65; of those, 62% are continuing to work to
maintain income or health benefits and the rest because they enjoy work.*
In 2030,there will be three working-age people for every person 65+.**
Labor-force Participation Rate of A65+
18.5%
(2012)
23%
(2022)
Source: *McKinsey Global Institute Urban World: The global consumers to watch; Labor force=U.S. Bureau of Labor stats;**census bureau:
Fueled by aging baby boomers, nation’s older pop to nearly double in next 20 years
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
10
LABOR FORCE &
MORTALITY
Not Only Are They Working Longer, They Are
Living Longer
Americans are living
3 decades longer
now than they did
a century ago
1900=47.3
Today= 79
Source: Census Bureau, 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
11
POPULATION GROWTH
With Boomer Population Projected To Grow
Another 21% In The Next Fifteen Years –
Spending Will Rise
Boomer Population Growth (in Millions)
50-64
65+
172,810
155,213
134,190
111,046
98,165
84,712
74,108
47,830
461,940
493,940
421,514
386,600
2015
2030
2045
2060
Source: U.S. Census Bureau; 12/14 estimates
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
12
Baby Boomers Outspend Other
Generations By $400 Billion Each Year
on Consumer Goods & Services
Source: Consumer Expenditure Survey, U.S. Labor of statistics 2014
BOOMER SPENDING
BY CATEGORY
They Tend To Spend More On Big Ticket &
Lifestyle Products & Services
A55+ Index To General Population
Index
Services
Spent $150+ on Beauty Parlor/Salon/last 6 months
126
Spent $150+ on Dry Cleaning/last 6 months 107
Spent $150+ on Flower Shop/last 6 months 135
Food/Restaurants
Spent $200+ on Fine Dining/last month
Spent $100+ on Other Restaurants/last month
114
106
Big Ticket
Spent $50K+ On Vehicle/last year
Spent $8K+ on Foreign Vacations/last year
Spent $7K+ on Domestic Vacations/last year
118
139
118
Index
Clothing
Spent $250+ on Men’s Sports Jacket/last year
113
Spent $100+ on Men’s Casual Slacks/last year
105
Spent $250+ on Women’s Coats & Jackets/last year
104
Spent $250+ on Women’s Blazers/last year
109
Shoes
Spent $150+ on Athletic Shoes/last year
Spent $250+ on Casual/Leisure Shoes/last year
Spent $250+ on Total Shoes/last year
137
105
135
Source: MRI Doublebase 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
14
BOOMER SPENDING
BY CATEGORY
They Tend To Spend More On Big Ticket &
Lifestyle Products & Services
A55+ Index To General Population
Index
HH Furnishings
Spent $700+ on Recliners/last year 136
Spent $700+ on Custom Window Coverings/last year 152
Spent $700+ on Wall-to-Wall Carpet/last year 142
Spent $1,000+ on Air Conditioners/last year
118
Accessories
Spent $400-$750 on Fine Jewelry/last year
Spent $250+ on Eyeglasses/last year
102
152
Index
Home Remodeling
Spent $3,000+ on Bathroom Remodel/last year
138
Spent $3,000+ on Kitchen Remodel/last year
130
Spent $3,000+ on Bedroom Remodel/last year
140
Spent $3,000+ on Converting Room to Home Office
111
/last year
Spent $3,000+ on Adding Bathroom/last year
135
Spent $3,000+ on Adding Deck/Porch/Patio/last year 113
Spent $3,000+ on Roofing/last year
139
Spent $3,000+ on Siding/last year
127
Spent $3,000+ on Ceramic Tile Floors/last year
144
Source: MRI Doublebase 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
15
RECEPTIVITY TO
ADVERTISING
Not Only Are Baby Boomers Big Spenders,
They are More Receptive To Advertising
A50+ Index To
General Population
Advertising helps me keep up-to-date
about products & services that I need
or would like to have
106
Advertising on TV provides me with
useful information about new
products& services
104
I like to look at advertising
103
Source: MRI Doublebase 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
16
TV V. OTHER MEDIA
…and TV Is The Media Boomers Trust the
Most;Right Environment For Advertisers To
Convey Their Message Effectively
Media Trusted Most
(A50+ % Composition by Media)
%
36
%
25
%
23
9%
TV
Newspaper
Internet
Radio
7%
Magazine
Source: MRI Doublebase 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
17
TV V. OTHER MEDIA
Overall, TV Is a Clear Leader for
Entertainment & Information By Far
A50+ % Composition by Media
TV
Internet
Newspapers
Magazines
Radio
%
88
%
76
%
73
%
28
%
27
%
40
%
50
%
68
%
57
%
42
%
39
%
%
33 33
%
24
11%
Pure Entertainment
%
48
Keeps Me informed/up to date
%
23
%
30
%
12
%
13
A Good Escape
Relaxes me
Source: MRI Doublebase 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
18
TV V. OTHER MEDIA
Boomers Have Money, Feel Young
and Are Active
Four Key Categories To Pay Attention to:
1. Auto: Boomers Are Driving Longer & Spend More On Vehicles
2. Health & Fitness – They Are Staying Active and Getting Fit
3. Healthcare – Outspent all other segments
4. H
ome/ Remodeling – staying put in their home and
investing in remodeling
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
19
BOOMERS & AUTO
Boomers Are Driving Longer –
Comprising A Larger Share Of Auto Sales
Boomers Make Up 59% of New Vehicle Sales
The average new car buyer is now 51.7 years old.*
In 2016, 59% of new vehicle buyers are 50 and older**
Out of an average of 13 new cars purchased in a lifetime,
7 of those are purchased after age 50*
54% of boomers expect to keep their vehicles 4 years or less*
Active Drivers
87% of baby boomers have a driver’s license (P50+)***
65% of baby boomers report driving (P50+)***
Drivers over the age of 65 have risen sharply and will
double to more than 70 million by 2030.****
Source: *selltoseniors.com;**2016 New Vehicle Experience Study from Strategic Vision; ***MRI Doublebase 2015; ****
(Commuting in America III: the third national report on commuting patters and trends, Transportation Research Board of the National Academies)
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
20
BOOMERS & AUTO
…and They Are More Likely To Spend More On
Vehicles and Auto Repairs/Services
A50+ Index to Gen Pop
A50+
Own
Own Convertible
128
Own Truck
110
Driving Sport/utility vehicle
102
Spent
Total Amount Spent on Net Any Vehicle $50,000 +
Total Amount Spent on Net Any Vehicle $30,000 +
Tires Amount Spent Last 12 Months $500+
107
110
103
Auto Repairs/Services
Air Filters Bought in the Last 12 Months
Car Wax & Polish Bought in the Last 12 Months
Oil Filters Bought in the Last 12 Months
Tires Bought in the Last 12 Months
Windshield Wipers Bought in the Last 12 Months
115
115
108
103
102
Source: MRI Doublebase 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
21
Health & Fitness
BOOMERS AND
HEALTH & FITNESS
Staying Fit & Healthy Is Top Priority For
Baby Boomers
% Who Selected Option As One of Their Top Three Aspirations
Fit & healthy
Family time
Make money
Fulfilling career
%
71
%
60
%
51
%
37
%
29
%
31
%
39
%
29
%
36
%
39
%
28
%
32
%
19
%
20
A15-20
A21-34
%
50
%
44
A35-49
%
21
11%
A50-64
%
10
3%
A65+
Source: Nielsen Generational Lifestyle Survey 1Q15
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
23
BOOMERS AND
HEALTH & FITNESS
Boomers Are Actively Involved In Diverse Leisure
& Sports Activities
Time spent on leisure & sports each day in the U.S. is expected to increase by 210 million
hours by 2030, and the 65+ age group will account for 195 million hours.*
A50+ Index to Gen Pop
A50+
Participate in Leisure Activities/1X a month
Attend art galleries/shows
153
Attend music perfomances
114
Volunteer for charity
116
Go to live theater
125
Participate In Sports/1X a month
Snorkeling/skin diving
168
Scuba diving
160
Sailing173
Water skiing
124
Auto racing
126
Jet skiing
113
Fishing - salt water
109
A50+
Active Travelers
Cruises # taken past 3 years [4+]
160
Foreign vacations- spent in total in
the last 12 months $8K+
137
Domestic vacations- spent in total in
the last 12 months $7K+
118
Own a valid passport
103
Source:MRI Doublebase 2015; *McKinsey Global Institute: Urban world: the global consumer to watch
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
24
Healthcare Spending
BOOMERS AND
HEALTHCARE
HealthCare Will Account For More Than One-Third
of P60+ Consumption Growth
$993 Billion Healthcare Consumption Growth among A60+
Share of 60+
60+ consumption
consumptiongrowth
growth
Healthcare
35%
Other
Consumption
65%
Source: McKinsey Global Institute Urban World: The global consumers to watch; United States figures
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
26
BOOMERS AND
HEALTHCARE
Mature Consumers Are More Concerned About Their
Health & More Likely To Utilize Healthcare Services
Over 50% of over the counter drugs are bought by people over the age of 50*
A50+ Index to Gen Pop
A50+A18-49
Go to doctor regularly for check-ups
11687
Take prescription medicines as prescribed
10497
Prefer popular brand-name drugs, even if cost more
10894
Will take RX drugs even if insurance doesn’t cover them
10993
Carry Prescription Drug Insurance
12779
Carry Hospital/Accident/Medical Ins
11291
Newer drug brands work better than older brands
11489
Medication has improved quality of my life
11985
Before I begin taking any drug, I look for as much information about it as possible
10696
Source: MRI 2015 Doublebase; * Selltoseniors: Trendsetting Seniors
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
27
BOOMERS AND
HEALTHCARE
…and They Are Highly Influenced By Healthcare
Advertising - Driving Consumers To Learn About
Drugs, Fill Their Prescriptions and Visit Doctors
Actions Taken as a Result of Healthcare Advertising Last 12 Months
Index to General Pop
71
7
13
Called toll-free number for info
87
76
1
13
Consulted Pharmacist
7
11
Requested free sample
86
A50+
91
1
11
Discussed ad with friend/relative
74
3
13
Discussed ad with doctor
A18-49
8
11
Asked Doctor to prescribe drug
94
7
10
Made appt to doctor
87
7
11
Refilled RX
Source: MRI 2015 Doublebase
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
28
Baby Boomers Are Staying
Put In Their Home –
Remodeling to Fit
Their Needs
BOOMERS & HOME/
REMODELING
4 Out of 10 Are Planning A Major Home
Improvement In The Next Three Years
Baby Boomers Will Spend 1 Out of Every 4 Dollars On Rent or Home Purchases In Next Five Years
$1.9 trillion will be spent on home purchases between now and start of next decade
Top Reasons
%
78
Make Repairs
Energy Efficiency
%
65
plan for a
major home
improvement
in next
3 years
%
66
39%
%
78
Increase Home Value
Update Home Style
Aging-related reasons
%
58
Easier To Maintain
%
44
Easier For Aging
%
23
Health Needs
Source: Nielsen Baby Boomers: Not Heading South for their golden years
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
30
BOOMERS & HOME/
REMODELING
Boomers Are More Likely To Own Homes &
Spend Money On Fixing Them Up
A50+ Index to Gen Pop
A50+
Home Value
Value of Owned Home $500,000+
124
Value of Owned Home $750,000+
125
Own or Rent Home
120
# Owned-Vacation/Weekend Home [2+]
164
A50+
Home Remodeling Done In Past Year
Roofing129
Clad-wood/Wood windows
129
Swimming pool - in ground
129
Kitchen counter tops
125
Concrete or masonry work
121
Exterior doors
120
Add deck/porch/patio
114
Garage doors
114
Add other rooms - exterior addition
113
Carpeting110
Interior doors
110
Remodel bathroom
107
Remodel kitchen
106
Source: MRI 2015 Doublebase
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
31
Baby Boomers
Are Increasingly
Embracing Digital
ROLE OF DIGITAL
Device Adoption Among A50+ Has Grown
But Still Behind Its Younger Cohorts
Device Penetration by Age
18-29
%
% 81
78
%
86
30-49
50-64
65+
%
83
%
70
%
55
%
58
%
50
%
57
%
%
56
55
%
37
%
30
%
32
%
30
8%
Computer
(laptop/desktop)
Smartphone
Tablet
Game Console
Source: Pew Research center Survey 3/17-4/12/15 for all devices except smartphone which was 6/10-7/12/15
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
33
ROLE OF DIGITAL
Fewer Boomers Are Using The Internet On
Computer & Viewing Video But Spending
Significantly More Time
Boomer Internet/Video Usage On Computer/ Monthly:
1Q16
Number of Users (P50+)
Absolute Change
%Diff
Internet On PC
-1,706,000-2%
Video On PC
-3,778,000-7%
Time Spent HRS:MIN (P55+)
Absolute Change
%Diff
Internet On PC
+8:59
+31%
Video On PC
+2:06
+27%
Source: Nielsen Total Audience Report 1Q16
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
34
ROLE OF DIGITAL
…and Spending The Same Amount of Time as
Their College Age Cohorts
Time Spent With Internet On Computer Monthly: 1Q16
(HRS:MIN)
:11
49
:31
47
:28
45
:25
36
A18-24
:01
33
A25-34
A35-49
A50-64
A65+
Source: Nielsen Total Audience Report 1Q16
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
35
ROLE OF DIGITAL
Smartphone Usage Is Up and Growing
Among A50+
Smartphone Usage Monthly: 1Q16
# of Users P50+/Monthly
(OOO)
Time Spent among P55+/Monthly
(Hrs:Min)
1Q15
7
,73
1
6
1Q16
:10
49
8
,76
0
7
1
,04
0
5
+15%
:54
32
2
,50
9
3
+51%
+27%
+23%
5
1:0
App/Web on
Smartphone
Video on
Smartphone
App/Web on
Smartphone
9
1:2
Video on
Smartphone
Source: Nielsen Total Audience Report 1Q16
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
36
ROLE OF DIGITAL
Many More Baby Boomers Are Sampling Internet
Connected TV Devices But Spending Same
Amount of Time
# of A50+ Multimedia Device Users (OOO) Monthly:
1Q16
1
,09
9
1
9
86
,
1
1
Time Spent
(23:17) v.
YAG is Flat
44
7,7
1Q14
1Q15
1Q16
Source: Nielsen Total Audience Report 1Q16; multimedia device-usage of internet connected devices viewing source (includes apple tv, roku, google chromecast, smartphones and
audio-video viewing sources |(computer/latops, tablets, karaoke, video camcorders, security/digital cameras) that are connected to home TV set
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
37
TV – DOMINANT
PLATFORM
TV Remains The Dominant Platform - More
Than Three-Quarters Of Video Time Is Spent
With the Television
Share Of Average Time Spent
5% 1%
3%
0%
9%
9%
4%
TV
5%
DVD/Blu-ray
4%
3%
Game Console
P50-64
Multimedia Device
P65
Video on PC
77%
Video on Smartphone
82%
Source: Nielsen Total Audience Report 1Q16
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
38
LIVE TV PROGRAMMING
…and Majority of Their Viewing is With ‘Live TV’
% Time Spent With ‘Live TV’ v. Timeshifted
12%
15%
88%
85%
A50-64
A65+
Live TV
DVR
Source: Nielsen Total Audience Report 1Q16
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
39
TOP SPARE-TIME ACTIVITY
TV is Their Top Spare-Time Activity
Percentage who selected activity as one of their top three
A50-64
Watch TV
A65+
42%
Read42%
Read29%
Watch TV
40%
Connect w/ friends & family
Connect w/ friends & family
29%
28%
Travel22%
Travel25%
Listen to music
Garden22%
19%
Source: Nielsen Generational Lifestyle Survey 1Q15
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
40
TOP FOR NEWS
…and Their Preferred Medium For Getting
Up-To-Date News
What is your preferred source for getting up-to-date news?
%
65
%
70
P50-64
P65+
%
38
%
32
%
25
%
28
%
25
%
18
%
20
% %
18 18
%
17
%
14
% %
15 15
% %
10 10
8%
TV
Search Engine
Print
News Sites
Newspapers
Friends/
family
Social
Media Sites
5%
Radio
Online
Newspaper
Sites
Online TV
News Sites
Print
Magazines
3%
Online
Magazine
Sites
4% 2%
Other
3%
1%
Online
Radio Sites
Source: Nielsen Consumer Confidence Report; 1Q15; multiple answers can be selected
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
41
MOBILE SHOPPING &
SOCIAL MEDIA
Despite The Rise of Digital, Baby Boomers’
Use of Mobile Devices For Shopping is Still In
Its Infancy Stage
Baby Boomer Use of Digital Devices
%
42
%
32
%
19
%
17
%
13
Shopping Related
Tasks on Mobile
Active on Social
Media Sites
Research Via
Mobile
Receive Special
Offers Via Mobile
Purchased
Product on Mobile
Source: 2015 Digital Study, Synchrony Financial
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
42
MOBILE SHOPPING &
SOCIAL MEDIA
In Fact, Many Research Products Online But
Then Head to the Store To Purchase
Have researched a product online
in past 3 months: % Comp
In general, if the item you want is available online
and in a nearby store, do you prefer shopping in
a store, online or on your phone?
Boomers
81%81%
Boomers
31%
31%
Online
Online
A55-64
67% 67%
A55-64In TheIn The
Store
90% Millennials
90% Millennials
Store
2%
On2%
My
Phone
On My
Phone
Enjoy shopping in store as 89%
like to ‘touch and feel’ products
Source: Research products online= 2016 Synchrony Financial; Where shopping occurs=Timetrade State of Retail: Baby Boomers 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
43
MOBILE SHOPPING &
SOCIAL MEDIA
4 Out of 10 Are Following A Brand On Social
Media But Are Not To Likely To Purchase the
Products Seen
Social Media Brand Connection (2015)
%
67
Baby Boomers 50-68
%
52
%
53
Millennials 16-34
%
42
%
38
GenX 35-49
%
21
%
18
Senior 69+
6%
Like or Follow Brands
on Social Media
Purchase Product After
Seeing On Social Media
Source: 2015 Digital Study, Synchrony Financial
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
44
Boomers Remain
Committed To
The TV Set
TV VIEWING TRENDS
Boomer TV Population Has Continued To
Grow – Up 1.4 Million versus Year Ago
A50+ TV Population Growth (in Millions)
.7
94
.0
97
.6
96
.3
99
3.6
10
5.4
10
6.8
10
.2
73
.9
54
1980
.5
61
1990
2000
2010
2011
2012
2013
2014
2015
2016
Source: Nielsen TV UE report; 2/16
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
46
TV VIEWING TRENDS
Older Consumers Are Heavy TV Viewers –
Spending 2X The Time Throughout The Day
Time Spent With TV / Week (hrs:min)
15/16
P18-49 P50+
Total Day (M-Su 6a-6a)
26:07
46:58
Primetime (M-Sa 8-11p & Su 7-11p)
6:24
11:19
Early Morning (M-F 6a-10a)
1:24
2:49
Daytime (M-F 10a-4:30p)
3:53
7:55
Access (M-F 4:30-7:30p)
2:44
5:52
Late Night (M-F 11:30pm-2a)
2:03
2:54
Overnight (M-F 2a-6a)
1:13
1:43
Source: VAB analysis of Npower timeperiod put level data; 15/16 =9/21/2015 - 06/26/2016
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
47
TV VIEWING TRENDS
Time Spent With Ad-Supported Television
Content Is High
A50+ Time Spent Per Week (Hrs:Min)/ 15/16 Season
:50
37
Broadcast
Ad-Supported Cable
:27
21
:23
16
Total TV
9
9:3
8
5:2
1
1
4:
Total Day
Primetime
Source: Nielsen Npower timeperiod Live+7 data; 15/16= 9/21/2015 - 06/26/2016 ; bdcst=6 nets
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
48
TV VIEWING TRENDS
TV Viewership Among Adults 50+ Is Up
Slightly This Season
15/16 v. YAG % Change
Total Day
P50+
P50-64P65+
Total TV
+2%
+2%
+2%
Ad-Supp Cable
+4%
+4%
+4%
English Broadcast
0%
0%
0%
Primetime
P50+
P50-64P65+
Total TV
+1%
0%
+1%
Ad-Supp Cable
+5%
+4%
+5%
English Broadcast
-4%
-4%
-4%
Source: Nielsen Npower timeperiod Live+7 data; 15/16 =9/21/2015 - 06/26/2016 v. YAG; bdcst=6 nets
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
49
TV VIEWING TRENDS
TV Viewership Is Up Every Day Of The Week –
Including Key Retail Days
Ad-Supported TV Absolute A50+ Viewership (OOO) Change By Day:
15/16 v. YAG
Sunday
Total Day
+1,148
Monday Tuesday WednesdayThursday
+811
+795
+858
Prime +747+7+318+618
+687
Friday Saturday
+1,078+1,164
+332 +434+970
Retail Days
Source: Nielsen Npower timeperiod PUT; 15/16 =9/21/2015 - 06/26/2016
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
50
TV VIEWING TRENDS
To Sum Up, TV Delivered Over 3 Trillion
Impressions among A50+ In First Half of 2016
Total Ad-Supported Television Ad Impressions: A50+
(in thousands)
Jan-June 2015
2,921,748,967
2.9
Trillion
Jan-June 2016
3,039,097,543
3.0
Trillion
Total Ad-Supported TV
(Cable + Broadcast)
Source: Nielsen Ad*Intel, Total Day Live+sd, impressions
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
51
Multi-Generational Marketing:
Along With Millennials,
Boomers Offer Significant
Value To Advertisers
MULTI-GENERATIONAL
MARKETING
Two Generations, One Unified Experience
There is much written about Millennials these days but they only make up a fraction (12%) of the retail sales currently.
Although they are not spending in large amounts, they are a large segment of the workforce. Millennials are growing in
number and their purchasing power is mounting. For the most effective retail strategy, need to target both generations.
Millennials & Boomers Similar Shopping Styles
Take advantage
of discount offers
More likely to purchase if have
loyalty discount or coupon
Have researched a product
online in past 3 months
Millennials 69%
Boomers 63%
Millennials 66%
Boomers 63%
Millennials 90%
Boomers 71%
Source: 2016 Synchrony Financial
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
53
MULTI-GENERATIONAL
MARKETING
Similar Shopping Behavior Lets Advertisers
Target Multi-Generations Simultaneously
Similar Buying Styles among Generations (Comp%)
Buying Styles
A50+
A18-34
I know the price I pay for most of the foods and packaged goods I buy
86%
81%
I like to shop around before making a purchase
77%
74%
If I really want something I will buy it on credit rather than wait
43%
39%
I buy based on quality, not price
69%
63%
I buy natural products because I am concerned about the environment
55%
51%
Price is more important to me than brand names
72%
71%
It’s important to me that salespeople be knowledgeable about the
products they sell
86%
81%
I only use coupons for those brands I usually buy
56%
48%
I am willing to give up convenience in return for a product that is
environmentally safe
49%47%
If a product is made by a company I trust, I’ll buy it even if it is slightly
more expensive
76%71%
I prefer a store that has a large selection of familiar brands
79%
72%
Source: MRI Doublebase 2015
50 SHADES OF GREEN
VAST SPENDING POWER OF ADULTS 50+
54
CONTACT US
For More Information Visit Us Online
TheVAB.com
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Sean Cunningham
Danielle DeLauro
President & CEO
SVP Strategic Sales Insights
212-508-1223
212-508-1239
Jason Wiese
Evelyn Skurkovich
[email protected]
VP Strategic Insights
212-508-1219
[email protected]
[email protected]
VP Strategic Research & Insights
212-508-1220
[email protected]