AdAge this week looked at the “accelerating trend of multigenerational households” and what it might mean for marketing to Baby Boomers, their parents and their adult children. The evolution of multigenerational households already has fundamentally changed the nature of active adult communities (50+ age-qualified). If this trend continues, it will call into question the viability of age qualified communities as we know them today.
But first, some context and a walk down memory lane.
Today 49 million Americans — more than one in six people in the U.S. — live in households with three or more generations, according to the Pew Research Center. The percentage is even higher for age groups 25-to-34 and 65 and older, where one in five, or 20%, live in these extended families.
While much of the increase in multigenerational households can be attributed to the recession, there is also an increased appreciation for the value of family. I grew up with my grandmothers living with us for a combined 10 years. I know how much I benefited from their involvement in my life. From playing games … to hearing the same stories again and again … to having people who had the time and desire to focus all their energies on a child … to learning to be patient and help my elders … Growing up in a multigenerational household was a gift.
A Trend Already Impacting Age-Qualified Communities
Creating Results has marketed 52 active adult and age-qualified communities in 12 states over the course of 10+ years. At first the communities were marketed to empty nesters and the vast majority of people who lived in the community were in their 50-70s (Baby Boomers and Silent Generation). Gradually, we began to see parents moving in with their adult children. These moves were prior to the economic downturn and were motivated by a desire to be with family. (more…)
Last Friday, “Eat, Pray, Love” opened in movie theatres around the nation. It’s likely many a Baby Boomer woman was in the audience, marveling at the tale of self-discovery. Professionals marketing to Baby Boomers and 65+ seniors can discover a few insights into their own mature audiences by considering how we eat, pray and love.
Baby Boomer Spending on Food
* I really appreciate The Bundle’s infographics that illustrate household spending by age. Take a peek at their 2010 report and you’ll see that Baby Boomers (aged 50-65) and Silent Generation (65+) spend more on food and drink than the “coveted” 18-25 year olds – $6,992 and $5,211 respectively. 36-49 year olds are the tops in food and food and drink, averaging $7,487 in 2010 per household.
* Mature marketing expert Brent Green has called Baby Boomer men the “next marketing frontier,” noting that men are more apt to spend than save (even in a downturn) and more prone to buy national brands at the grocery store. (more…)
No, it’s not a joke. It was on the second green when I realized that our group represented four generations. What had caught my eye was watching an 89 year old member of the Greatest Generation bending down to fix the ball mark that the Boomer’s ball had made. The Boomer had walked past it, either oblivious to it, or perhaps thinking he would fix it at some point in the future. The GI took care of it and a few others while he was at it. The Boomer didn’t notice or express appreciation. This happened many more times during the day. At the end of the day, the course was in better condition because a member of the Greatest Generation had played there.
Creating Results studies different generations and segments to help companies connect with mature consumers, but we don’t often get to play with them. As the round continued, I noticed more behaviors that demonstrated typical generational characteristics, but I also saw that we were individuals rather than stereotypes. The Boomer easily regaled us with stories about his successful children and the state of his business and the impact of the recession. He shared a story about when he had come to play with the Silent and GI ten years ago. He had put his bag on a golf cart and planned to ride around the course. The Silent showed up and pulled his bag on a hand cart. The GI, then 79 years old, carried his bag and walked all 18 holes.
The Silent was, for the most part, silent. He asked questions, helped the others find their balls, and offered suggestions on playing the course. A course he had helped to design surrounded by conservation areas he had saved from development, but one would never have known that from his actions. The Silent had organized and funded the entire outing with the only objective being to have a good time with some people he respected and whose company he enjoyed.
The GI was frustrated with the quality of his game and complained at one point, “I need to practice more.” I asked how often he played and he said, “most everyday, but I need to practice more”. Despite his “under performance”, he cleaned our clocks.
For the Greater Good
The GI volunteered little information. But when asked direct questions about his experiences as a member of the 82nd Airborne in Normandy, the Battle of the Bulge, his life after the war, and his children arranging for him to return to Normandy for the 65th anniversary commemoration, he somewhat reluctantly shared stories that have stuck with me. Listening to him was humbling. I had no doubt in my mind that I had the honor to be in the presence of a member of the Greatest Generation.
After the war, the GI lived many lives, but through all of them was a theme of public service. He devoted much time to volunteering on town councils, creating affordable housing and assisting a multitude of charitable organizations. For longer than I have lived, he has organized his town’s 4th of July celebrations. That meant for years I had seen, and yet not seen, him march with the Veterans. I was inspired and yet disappointed when I reflected on my comparatively meager contributions to society.
My golf that day was horrible, but it was the best round I’ve ever had.
Continuing care retirement communities (CCRCs) and other businesses marketing to Baby Boomers and active adults frequently ask us about new technologies, or how much time and money to invest in social media/social engagement. Problem is, they often forget the power of an “old-school” marketing tool: personal recommendations or referrals.
Word of mouth/referrals are, indeed, powerful with all ages of consumers. As John Jantsch puts it in his description of his new book, “The Referral Engine:”
The power of glitzy advertising and elaborate marketing campaigns is on the wane; word- of-mouth referrals are what drive business today. People trust the recommendation of a friend, family member, colleague, or even stranger with similar tastes over anything thrust at them by a faceless company.
Effectiveness of Referrals in Health, Travel and Financial Services Industries
The reality is that there is no way you can “test drive” a holiday to Bali. There are no in-store samples when it comes to choosing healthcare or financial services. The statistics below show the importance of recommendations and word of mouth in those industries where product/service “demos” aren’t easily come by. (more…)
Americans are watching more video today than ever before. There were 135.9 million unique viewers in May 2010, per Nielsen. According to a Pew Internet Research study, online video viewing has nearly doubled since 2006 and is up 46% over last year alone. More people watch video on sites like YouTube than are active on social media sites or use Twitter.
And don’t feel sorry for your local cable TV provider, because television viewing increased 1.5% over the last year. It seems that no matter what size the screen, we are all becoming even more avid consumers of video.
For those marketing to Baby Boomers and 65+ seniors, here’s a quick overview of the types of online video and how they can help you meet your goals.
Types of Online Video
Daniel Sevitt, video expert and regular blogger on the EyeView Digital Blog breaks down online videos for businesses into three types: Viral Video, Conversion Video, and Educational Video. Each has a distinct place and purpose.
1. Viral Video is hosted off-site and shared as widely as possible (think YouTube). Multiple goals: Brand awareness. Hopefully bring traffic to your website.
This is a local commercial gone viral, and one of Advertising Age’s top picks for YouTube commercials of all time. The humor and honesty are great.
Keep in mind that no business can say “I’m making a viral video.” You can make a video and hope it goes viral. Also, there is a growing trend away from viral videos towards more practical applications in the business world. Eloqua’s Joe Chernov recently called this a “smarter and more sensible use of video.”
2. Conversion Video is on the homepage or landing page. Goal: Delivers a call to action that is focused on increasing conversion.
When the Complete Monty Python Collectors Edition was released on Amazon, free videos of entire sketches from the show were posted on the landing page, with the statement “We’re letting you see absolutely everything for free. So there! But we want something in return. None of your driveling, mindless comments. Instead, we want you to click on the links, buy our movies & TV shows and soften our pain and disgust at being ripped off all these years.”
Visitors spent more time on the page, ‘clicked through’ to more related products, and the video collection shot to #2 on Amazon’s best seller list.
3. Educational Video is not usually on your homepage. Multiple goals: establish trust and thought leadership; FAQ support; provide tutorials and walk-throughs for processes; increase brand loyalty.
One of our clients, HunterLab, uses educational video for “how to” content. But an educational video on your web site doesn’t have to be about what your company does for your clients, it can offer other resources that are helpful and relevant. For example, tips on how to properly tie a tie are found on a variety of websites – Brooks Brothers, Jobseekers Advice and more. While Brooks Brothers’ slide show is nice, the content might be more effective as a video like this one.
Growing Numbers of Older Online Video Viewers = A Marketing Tool for Today
41% of users age 50-64 are online video viewers; 27% of Internet users age 65+ watch video online. Both percentages are lower than younger market segments, but both show significant increases over 2008, when the 50-64 year old segment was at 34% and the 65+ segment was at just 19%.
When it is used well, video can tell a story, grab attention, and bring ideas to life in an emotionally powerful way, more fully engaging the web visitor. An engaged online visitor will spend more time on your website, giving you more chances to connect and ‘convert’ them to customers. eCommerce group Invodo lists some statistics on how video on web sites increases sales and decreases returns.
Whether your site features video will increasingly give visitors an idea of how modern and helpful it is. The early adopters of online video have already blazed the trail and taken the brunt of the upfront development costs. What do you think? Have they proven the marketing value of online video? Do you plan to incorporate video into your Boomer or senior marketing efforts?
AARP has released new research into the social networking/social media and technology use of Baby Boomers and 65+ seniors. The upshot: Americans over 50 are definitely not technophobic. And, social networking is on the rise, with 27% of Boomers/seniors using social media websites. Consistent with older consumers’ desires for connections offline, the report finds that they are most often connected to – and most often motivated to join social networks by – their family.
Highlights from AARP’s Social Media Research
* 47% of Boomers and seniors originally heard about social networking from a family member other than their spouse.
* 70 percent of 50+ers first heard about social media from a child or grandchild.
* 24% of Boomers and seniors who are active in social networks were introduced to it by friends.
* Women were more likely than men to be introduced by family members (60% to 29%).
* Among adults 50+ who use social media websites, 73 percent are connected to relatives other than children and grandchildren. 62% are connected to their children. 36 percent are connected to grandchildren.
* Facebook was most popular among AARP’s respondents – 23% of their 50+ social networkers used this site. LinkedIn was #3, with 4% and Twitter clocked in at #4, with 3% of respondents using or visiting the microblogging service. Interestingly (and most likely driven by grandchildren) 4% had MySpace accounts.
We note that 73% of the 1360 older adults contacted reported they do not use social networks at all.
For tips and more insights about social media marketing and Boomers and seniors, here are some related articles:
As advertisers fall over themselves to figure out social media marketing, one medium (television) continues to deliver large numbers of attractive consumers with money and time to spend (Baby Boomers and beyond). TV looks like a safe bet with great reach, AdAge noted this week.
“Reaching a broad audience is still important for advertisers of a wide variety of products, including cars, electronics, household products, restaurants and others,” said Jeff McCall, a professor of media studies at DePauw University. “The need for these products reaches across wide demos and broadcast television still brings those. And the older demos likely have a few more bucks to actually spend.”
Facts about Baby Boomers, Seniors and TV
* The median age of prime-time television viewers is now 51.
* Nielsen’s “Three-Screen” report for the fourth quarter of 2009 found that 35-49 year olds watch 35:40 minutes a week of traditional TV. 50-64 year olds (Baby Boomers) watch 42:38 minutes, and “seniors” age 65 or better watch 47:21 minutes.
* The average viewer watches 2,223 minutes of video in a week, and all but 1% of their video viewing is on a traditional television. (AdContrarian) As the Ad Contrarian puts it, “TV viewership is at its highest point ever andcontinues to grow.”
* Most viewers don’t leave the room or change channels during commercial breaks. (Council for Research Excellence) No reports on how many mute because of the ridiculously loud volume of TV ads …
* The median age of nightly TV news viewers across the “big three” (ABC, CBS, NBC) was 62.3 years in 2009. The median age of morning news viewers rose to 55.2 last year. (State of the Media)
Is advertising on broadcast TV part of your marketing mix? Why/why not?
I’m not saying Boomers themselves are slow. Baby Boomers and seniors live in Godin’s fast and specific world. (In fact, Godin is a boomer himself.) This cohort was adopting new technology at early ages during the rapid spread of television in the late 50s/early 60s. Seth’s Blog is delivered to me via email, which was itself invented by a Boomer.
That said, I believe most members of the Baby Boom and Silent Generation would agree that a fast-paced world does not mean everything in it has to be at the speed of a texting pre-teen.
Why? The world may be specific but studies show that as we age we look at things in context, we look for opportunities to stretch ourselves and our imaginations. It’s one of the reasons why retirement communities affiliated with universities are so popular. Lifelong learning is general.
Each week, I watch (or Tivo) the CBS News Sunday Morning program. Long form stories are the norm. I’m frequently exposed to topics I’d never thought of – like that guy who creates art out of bugs, or the explorer who found the lost city of Z in the Amazon.
It’s a welcome break from the fast and specific. And sorry to disagree, Seth, but I think that in our fast world, slow and general will definitely have its place.
The 2010 Del Webb Baby Boomer Survey was just released, and the nation’s largest builder of active adult (55+ age-qualified) communities concludes that Boomers are ready and willing to move upon retirement.
“According to the Del Webb survey, nearly a third of older Baby Boomers plan to move in retirement, with more than 50 percent planning to move to a different state, about 25 percent of them planning to move to a different city within the same state, and less than 20 percent of older Boomers planning to move within the same city.”
So, are we going to see a great movement of Boomers criss-crossing the country in the coming years? The definite answer is: It depends.
Creating Results has spent more than 15 years of marketing real estate to older, more affluent homebuyers, including a large number of premier active adult communities. What we have found is that – absent the high cost of living states and escape from urban areas – only a small percentage of people are willing to move more than 100 miles.
Most people don’t want to move at all and would prefer to age in place. In 2009, this desire helped turn active adult housing from a sweet spot into a question mark. Boomers and beyond stayed put.
National studies can provide insights into broad trends, but it is generally not helpful (and even potentially dangerous) to apply the findings to individual communities. Motivators vary significantly. It is important to conduct specific research to develop target markets profiles for each community.
We also caution people against making assumptions about grandchildren and children. For many Baby Boomers, this is a critical motivator. However, for others it’s just not that important.
We wonder what percentage of the respondents to the 2010 Del Webb study were single. In our experience, that is a growing market in which prospects often are not as concerned about proximity to grandchildren. In some of the active adult communities we market, 1/3 of the buyers are single and they complain that a focus on grandchildren makes them feel excluded. They are concerned that they won’t fit into the commuinity.
One Del Webb finding that we agree with entirely is the importance of access to health care. This seems like a no-brainer, but few builders have the courage to address this top level concern in their marketing materials. They are afraid that it takes away from the lifestyle message. We believe that proximity to quality health care serivce is part of the lifestyle message.
What do you think of the 2010 Del Webb Study? Share your thoughts below.
“One size communication does not fit all,” commented Kevin Baughen on this blog earlier this week. “None of us should be treating different audiences as if they are one homogeneous group.”
Kevin, a marketer based in Surrey, UK, was responding to the findings we shared about generations and their interaction/support of charities. And he was talking about the need to see that individual members of Gen X, the Baby Boom or the Silent Generation are truly individuals. Better to ask for and respect their individual preferences than assume that one way is the only way for everyone in a cohort. This is a philosophy that Creating Results shares.
But Kevin could easily have been talking about the members of different types of audiences, the regional and national groups I speak to on a regular basis.
For example, last week I made a presentation on “Social Media: Risk and Rewards” to the members of The Coalition for Human Services (CHS) in Prince William County, VA. (A copy of this presentation can be found on SlideShare.) The audience was made up of non-profit organizations and government agencies which serve area residents. I’ve talked about social media marketing with other audiences as well – entrepreneurs with early-stage start-ups, builders and developers, small businesses.
Each time I present this “Social Media 101” program, I find there is a wide range of ages represented. And a wide range of experience and comfort with social media. The CHS audience included:
• Betty Dean of Didlake, Inc., which connects people with disabilities to training and business opportunities. Didlake hasn’t established a corporate presence on any of the social networks, but they are working on it. In the mean time, they have been encouraging team members to post updates on fundraising via Facebook. Their last resulted 17% of web site traffic to come in through Facebook.
• Several folks who confessed they are afraid of setting up an account on Facebook because they believe (incorrectly) they’ll have to provide their social security number.
• And staffers from a senior center who worry that their clients will become victims of identity theft if they become active on social networks. (Personally, I see that as patronizing. Why would seniors suddenly begin to overshare online? In fact, studies have shown that elders are typically LESS likely to fall victim to online scams, because they are cautious.)
One size communication indeed does not fit all. But there are some common questions among all the audience members – no matter where they fall on a spectrum of social engagement. The first is ROI. Will this investment pay off? How will they measure success? What site will give me the best “return”?
To help people understand and sort through various options, Creating Results distributed two handouts. One is a Social Media Cheat Sheet that provides descriptions and data on popular Social Media websites. The second is a Social Media Survival Guide that lays out a five step program for becoming socially engaged. If you’d like copies, please email social [at] creatingresults.com.
Another frequent question is personal responsibility. At the CHS luncheon, we had a lively conversation about the blurry boundaries between your activities as an individual on the social Web and if or how you represent your organization.
Didlake isn’t the only group asking staff, volunteers or even donors to be “foot soldiers” in the battle for attention of social media users. When you’re depending on others to carry your message, how much control can you exert? Should you even try? Where is the boundary between your personal social media presence and your professional one? Please share your comments/thoughts below.
P.S. Many of the attendees asked for guidelines or help with social media policies. Public Relations expert Mark Ragantweeted this week about a new tool: http://socialmedia.policytool.net/. It is supposed to help generate policies that “respect the rights of your employees while protecting your brand online.” If you try it, let us know what you thought.
Creating Results is currently conducting two national surveys on Online Preferences and Social Media. Click on the buttons below to contribute to our surveys.
