Brands in Australia are not spending enough time and attention on those who have the most money to spend – consumers aged 50 years and over – according to a new report by WPP AUNZ.
Of all the marketing briefs received during the past 12 months, the agency estimates that only 2% of them focus on targeting the over-50s.
But the study, Secrets and Lies: Ageless and Booming, based on research among 2,500 Australians aged 50 to 79, shows their numbers are growing and they are embracing life with ambition, purpose, and money in their pockets.
“More than a quarter of all Australians are over 50, they have 46% of our disposable income, and 50% of our private wealth,” said Rose Herceg, chief strategy officer and futurist with WPP AUNZ, “and yet it’s almost impossible to find organisations and brands that understand this high-value audience.
“This is even more startling when you consider the unrivalled opportunity that lies in their enormous purchasing power.”
Nielsen data shows that this group buys 64% of all cars, 55% of all travel and 50% of all alcohol. And this tribe will only get bigger: between now and 2050, the number of people aged 65-84 is expected to more than double.
Over-50s Australians outspend millennials in entertainment, auto, health, travel and almost every other category, but 94% dislike the way brands, organisations and marketers communicate with them:
• 79% have moved on from brands that are no longer fulfilling or meaningful
• 89% are open to trying new brands
• 77% have moved on from people who are no longer fulfilling or meaningful
• 73% agree they neither dress nor look like stereotypical age representations
They also spend an average of 27 hours per week online – that’s two hours longer than Millennials and Generation X. And they’re bringing their purchasing power online, with 77% regularly researching and buying products this way.
The report also offered some action points for marketers:
• Get forensic: Ensure you understand the consumer behaviour, purchasing habits and intentions of the over-50s audience in your sector.
• Invent: Consider new business models, new products and brand repositioning to connect with this audience and unlock new revenue streams.
• Connect for real: Reflect the optimism and vibrancy of the over-50s audience in communications – this age group is gearing up not slowing down.
• Recognise the change: What role can your brand or organisation play for an audience reshaping their lives and revaluating old relationships?
• Differentiate between 50 & 80: A 50-year-old may still be raising kids and paying off a mortgage; an 80-year-old is more likely to be managing complex health issues and dealing with a new living situation.
• Model diversity: Look at your own business, department or agency and ensure your diversity and inclusion initiatives and hiring policies embrace the value, skills, expertise and voices of the over-50s.
Sourced from WPP AUNZ