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boomers’ billions:the spending habits of marketing’s most valuable generation
The hype about millennials in marketing circles goes on, but if you think you think they’re “marketing’s most valuable generation”, you’d
be wrong. That honour goes to the boomers*.
“marketing’s most valuable generation”
Source: * Nielsen Report “Marketing’s Most Valuable Generation”; Yearly Income: Numeris | RTS, Canada | Fall 2018
YEARLY INCOME(billions)
Boomers have billions of dollars to spend - so why don’t they get more of advertisers’ attention? Perhaps
because we continue to market based on decades’ old assumptions.
Boomer Myths: Boomers are saving, not spending
Boomers are set in their ways and unlikely to switch brands
Boomer Truth: Boomers not only make the most money, they spend the most money
Boomers are just as likely to experiment with new products, and
Boomers have brand loyalty levels equivalent to other age groups*
Boomers spend close to 50% of all CPG dollars* and spend billions of dollars in other categories annually.
Might you be leaving money on the table?
$296
$472
A18-34 A50-64
2
perception
realityVS
3
millennials are many …m i l l e n n i a l s h a v e s u r p a s s e d b o o m e r s a s t h e l a r g e s t d e m o g r a p h i c g r o u p
8,2267,249
7,742
6,367
A18-34 A35-49 A50-64 A65+
POPULATION (000)
Source: Numeris | RTS, Canada | Fall 20184
… but they can’t compete with boomers’ billions
69% higher
AVERAGE PERSONAL YEARLY INCOME YEARLY INCOME
+ $176 billion
$36,000
$61,000
A18-34 A50-64
$296Billion
$472Billion
A18-34 A50-64
Source: Numeris | RTS, Canada | Fall 20185
millennials & boomers by the numbers
54% work full-time25% work part-time
57% work full-time12% work part-time
$296 billion in personal income annually $472 billion in personal income annually
investments/savings* $271 billion investments/savings* $1.5 trillion
31% own their home 82% own their home
MILLENNIALS BOOMERSA18-34 A50-64
Source: Numeris | RTS, Canada | Fall 2018 | * Excludes real estate 6
cashing in
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$63.7 B
$48.3 B
$22.8 B
New & Used Vehicles Groceries Home Improvement
hungry? boomers spend $15 billion more on groceries alone
b o o m e r s s p e n d m o r e t h a n m i l l e n n i a l s a c r o s s n u m e r o u s c a t e g o r i e s
ANNUAL EXPENDITURES
Source: Numeris | RTS, Canada | Fall 2018
+ $20 billion + $14 billion + $5 billion
A18-34 A50-64
8
boomers are on the moves p e n d i n g $ 4 b i l l i o n m o r e i n t r a v e l
$18.0 B
$14.7 B
Non-Grocery Retail Travel (last vacation)
ANNUAL EXPENDITURES
Source: Numeris | RTS, Canada | Fall 2018
+ $1.2 billion + $4 billion
A18-34 A50-64
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the brand loyalty myth
So, boomers have the money, but are they actually spending that money?
You bet.
In fact, when it comes to brands, it’s young families who are the most entrenched, and for most CPG categories it’s the boomers – “generation wealth” - that are most willing to try different and multiple brands.
the brand loyalty myth
Source: Kantar Worldpanel consumer survey, 2017 11
26%
17%
13%16%
38%
34%32%
38%41%
33% 33%
38%
UNDER-28 28-44 45-64 OVER-65
Average brand loyalty by age of principal buyer (% share of requirements)
Alcohol
Household Goods
Toiletries
boomers are consistently less brand loyal than other age groups
Source: Kantar Worldpanel consumer survey, 2017, A45-64 12
target the spenders with
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target the spenders withT V r e a c h e s 8 8 % o f b o o m e r s d a i l y
Boomers watch a lot of TV
• boomers spend 30 hours a week watching TV
• that’s 53% more time than they spend on the Internet
Sources: Television: Numeris PPM, Total Canada, Total TV, A50-64, Mo-Su 2a-2a, Fall 2018 (weeks 3-16, Sept 10 to December 16, 2018) | Internet, Radio, Daily Newspaper, Magazine: Numeris RTS, Canada, A50-64, Fall 2018
8881 79
46
2529.6
19.4 18.3
1.9 0.5
TV Internet Radio Newspaper Magazine
Daily Reach %
Average Weekly Hours
14
51% 51%
42%
20% 21%
7%
13%10% 9%
6%9%
21%
4% 4% 4%4%1%
5%
Most Engaging Most Influential Most Trustworthy
Adults 50-64
TV
Internet
Radio
Newspaper
Magazines
OOH
target the spenders witht e l e v i s i o n i s a g r e a t w a y t o d e l i v e r y o u r m e s s a g e - T V a d s a r e r a t e d t h e m o s t e n g a g i n ga n d i n f l u e n t i a l f o r m o f a d v e r t i s i n g
Source: Nlogic OmniVu | National | Dec 2016 (trustworthy) | March 2018 (Engaging/Influential)
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in summary:• Boomers earn $472B per year - $176B more than millennials -
with an average annual income 69% greater than millennials
• Boomers spend significantly more than millennials in a number of key categories, including groceries, vehicles, home improvements and travel
• Boomers watch a lot of TV: 30 hours per week (53% more than time spent online)
• Boomers find advertising on TV the most engaging and influential
b o o m e r s s p e n d t h e m o s t m o n e y – r e a c h t h e m w i t h t e l e v i s i o n
target the spenders with
“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.”
-Nielsen Report: “Marketing’s Most Valuable Generation”
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