Advertisers have long been accused of neglecting this market to focus on the young, and increasingly impoverished, 16- to 34-year-old age group. Many businesses are now adjusting their ranges in light of the downturn, launching products aimed at the lucrative 'grey' market. However, exclusive research con-ducted by McCann Erickson reveals that advertising continues to alienate older consumers, and those over 30 remain invisible to advertisers.
From silver surfers to 'skiers' (spending kids' inheritance), marketers are reminded that age is no longer a defining trait and segmentations are outdated. However, there are very clear and real differences among those in their 50s, 60s and 70s, which have implications for the way marketers should reach out to these potential consumers.
'Despite recognition that over-50s shouldn't be targeted as one homogenous group, many brands continue to communicate in a one-size-fits-all approach,' says Jacqui Power, planning director at McCann Erickson Birmingham. 'It is turning consumers away from brands, rather than engaging them.'
Finding the right approach
In some cases, by actively marketing their products and services to the over-50s brands are alienating their potential customers. McCann Erickson's research revealed that 50- to 60-year-olds felt resentful, verging on anger, toward brands that targeted them based on their age. This was particularly acute among ABC1 consumers, who said they would actively discount a piece of communication if it primarily targeted them by their age.
While the over-65s were more comfortable with age signifiers in advertising, it was a key turn-off for the younger end of the market, which clearly believes age does not define who they are.
The older generation has benefited greatly from the property boom, while younger consumers face up to the spectre of mounting debt. Although there are clear reasons behind marketers' increased willingness to focus on the over-50s, many brands are going about this in the wrong way. Flick through most national newspaper supplements and the chances are you will see an ad for a product aimed at the over-50s that features either June Whitfield or an older woman in a swimming costume in a bath. This counterproductive approach was summed up by 60-year-old Stephanie, who is quoted in McCann Erickson's report as saying, 'They put June Whitfield's face on it and think we are daft enough to believe she uses the product herself.'
Over-50s do not subscribe to the cult of celebrity. While 30% of 16- to 24-year-olds said they would buy a product a celebrity has endorsed, just 8% of those in their 50s and 60s agreed. The over-70s were slightly more influenced by endorsements, with 13% saying they might buy a product carrying a celebrity endorsement. Many interviewees, however, said they would rather see 'real' people advertising clothes and beauty products and experts or professionals selling health, home electrical goods and financial products.
The 50- to 59-year-old age group, or 'Fed-up 50s', as it is sometimes dubbed, is a cynical demographic, and one of the hardest to reach; 56% said they disagreed that companies are fair to consumers. More than a third said they found advertising intrusive - a sentiment that grows stronger with age.
While the rising divorce rate in this age group suggests that those within it are in a state of flux, those in their 60s appear more satisfied. Within this latter group, 72% agreed they had enough money to live comfortably. However, the decade is a sensitive time for many people, as they struggle with the reality of retirement and 'feeling old'.
The research also suggested that brands need to reappraise their media strategy when attempting to connect with the over-50s. This age group is the least trusting of media - just 13% said they trusted the press, 36% the internet, and 48% TV. Radio is the most-trusted medium at 63%.
Older consumers are also less likely to respond to direct mail. When it comes to reaching them via their letter boxes, 60% of over-50s said they found the amount of mail that comes through their door each day 'annoying'. Telemarketing is another channel with limited appeal. Of those in their 50s, 10% said they would respond positively to the tactic; meanwhile, only 5% of those in their 60s, and 3% of those in their 70s agreed.
For over-60s, the 'personal touch' was cited as most important in their dealings with companies - a factor that rises with age. Computerised telephone systems were universally hated, signalling a lack of personal service.
Good customer service is required by all age groups, but it is particularly important to the over-50s. Not only will this group not stand for poor customer service, but 56% would actively take their custom elsewhere if on the receiving end of shoddy treatment.
The research also revealed older consumers' attitudes to some of the most high-profile TV ads of the past year. The much-hyped Cadbury 'Gorilla' ad drew a mixed response from the group, which could not see the link with chocolate, while an ad for Shreddies 'Knitted by Nanas' was seen as patronising. On the other hand, Lloyds TSB's 'For the journey' and Marks & Spencer's 'Picnic' ad featuring Twiggy proved popular.
Brands attempting to jump on the grey bandwagon must therefore think carefully and exercise caution and sensitivity, particularly when addressing the younger end of the market.
While age is no longer the determining factor in segmenting audiences, it remains an important tool for marketers. One 72-year-old may be in frail health, but another recently ran for the US presidency. The over-50s, meanwhile, are the fastest-growing users of social networking sites, and will share their brand experiences online.
The rewards are high for marketers who manage to embrace the different shades of grey, but those who don't may end up red-faced.