Older buyers fed up with youth ads
By Michael McCarthy
USA Today
NEW YORK — Call it mature mojo.
The growing ranks of Americans 50 and older don't think they're old and aren't inclined to act like it.
Johnny Cash, William Shatner and Defense Secretary Donald Rumsfeld embody a new "elder cool," says Modern Maturity magazine.
Pro golf's 50 and older Senior Tour is becoming the Champions Tour because "Nobody considers themselves seniors anymore," says PGA Tour chief Tim Finchem.
Folks 50 and older are being hailed as the new yuppies — about one-third of the U.S. population but controlling three-fourths of the wealth. They wield $1.7 trillion in annual buying power, according to mature-consumer consultants Age Wave Impact. They have a stranglehold on certain industries: 80 percent of luxury travel purchases, 48 percent of luxury auto sales, 77 percent of prescription drug sales and 61 percent of over-the-counter drug sales.
And their numbers are poised to explode: One of the 77 million baby boomers reaches the big five-oh every seven seconds, according to Age Wave. The 50-plus group already is 79 million strong — 28 percent of the U.S. population. By 2020, it will be 36 percent, the Census Bureau says.
So why does Madison Avenue largely ignore these consumers? For ad pros, the 18-to-49 age group has been the Holy Grail since the 1950s. Consumers drop off their radar at 50 because of decades-old assumptions about spending habits and brand loyalties. As evidence mounts that these stereotypes are no longer true — if they ever were — the $245 billion ad industry still gears only 10 percent of ads toward 50-plus consumers. And those consumers' frustration is mounting.
Kathleen DeMott, a 52-year-old teacher from Torrance, Calif., feels "ignored" by Madison Avenue. "The only times they target us are for medical things. I don't know why they target younger groups so much. Maybe it's easier to write ads for them?"
Beverly Calvert, owner of Calvert's Restaurant in Augusta, Ga., who just turned 50, says, "All you see is teeny-bopper models, although I know some darn good-looking 50- and 60-year-olds. I look at marketing like politics: It's all a little tainted."
Calvert's not alone. Three of four mature consumers are dissatisfied with marketing aimed at them, according to the Center for Mature Consumer Studies. People ages 55 to 64 are more likely to be offended by ads and less likely to enjoy them.
When the ad industry isn't ignoring them, it angers them. Take the TV spot created by Cliff Freeman and Partners, New York that showed an elderly woman at a Midas repair shop. Impressed by Midas' "lifetime guarantee" that will keep her car good as new, she rips open her blouse and asks: "So what can you do with these?" Consumers were irate, and Midas hastily pulled the ad.
"You're talking about a huge amount of people with money — and the time to spend it," says Sen. John Breaux, D-La., chairman of the Special Committee on Aging, who recently held hearings on ageism in ads, entertainment and media. "But they're insulted by most of the ads."
Beyond insults, this attitude by marketers has serious implications for consumers and pop culture.
Depicting mature consumers as "greedy geezers" or old coots in mass media poses health risks for the elderly and could even shorten life spans. Older consumers with "positive" perceptions of aging live seven years longer than those constantly exposed to negative images, according to the results of a 20-year study presented at the Senate hearings. "Extolling youthfulness while demeaning the old helps to generate images that, as our research suggests, may have devastating consequences," testified Becca Levy, an epidemiologist at Yale University.
The relentless pursuit of the 18-to-49 group (and often just 18-to-34) by ad agency media buyers motivates ad-selling media companies to gear most TV shows and even movies (as promotion partners and product placement rise in importance) to appeal to that audience. Meanwhile, an older audience with leisure time to enjoy finds little to watch. Consumers 65 and older make up 13 percent of the population but account for only 2 percent of the characters on prime-time TV.
So why does the ad business seem to be wearing blinders?
For one thing, Madison Avenue is mostly staffed by twentysomethings, cell phones to their ears.
"They've never walked in the shoes of older consumers, so they don't understand the target," says Robert Snyder, senior partner of the Mature Market Group of agency J. Walter Thompson Worldwide, who testified at the Senate hearings. "So what happens? They write condescending or insulting copy."
The answer, Snyder says, is for companies and agencies to create "ageless" marketing that reaches across age lines, such as recent campaigns from Harley-Davidson and Gap. Breaux suggests that agencies hire more 50-plus workers to get their viewpoint.
But marketers and ad agencies "are" going after mature consumers, "We just don't want to talk about it," says Cheryl Berman, chief creative officer of Leo Burnett, at the American Association of Advertising Agencies Creative Conference in San Francisco last week. The fear is that the products will be seen as too old. "We'll see more of this secret targeting," she says.
The biggest hurdle for Madison Avenue is its belief in five key assumptions about mature consumers — some dating to the days of "I Love Lucy" — despite mounting research to the contrary:
• Myth 1: Mature consumers are brand loyal. This is the single-biggest myth, experts say. Consumers 45 and older are just as likely as younger consumers to experiment with or switch brands, according to a study by AARP and RoperASW.
"Marketers who abandon this stereotype will find themselves rewarded," says Jim Fishman, publisher at AARP Publications.
• Myth 2: Mature consumers care only about price. Consumers 45 and up are more likely to buy higher-priced brands and less likely to change brands just to get a cheaper price than people younger than 45, says Stephen Frost, research director of AARP Publications. "These consumers are not eating cat food on limited budgets."
More than 60 percent of them say "quality" is the most important factor in choosing a brand. Take John Bohl, 73, a retired teacher from Brooklyn, N.Y. He just dropped more than $20,000 for a new Toyota RAV4 without blinking — but not before careful research. "I read Consumer Reports," he says.
• Myth 3: Mature consumers don't shop the Web. The image of technophobic fogies dies hard. The numbers tell a different story: Roughly half of 50-plus consumers own personal computers, and 70 percent have Internet access, according to the Senate committee. About 92 percent of those PC owners have shopped online; 78 percent have made purchases.
• Myth 4: Mature consumers think alike. AARP says marketers must speak to at least three groups: leading-edge boomers, 45 to 56, still in their peak earning years; the gap generation, 57 to 65, who are planning work and lifestyle changes; and consumers 66 and up, entering retirement years.
• Myth 5: Marketers can reach mature consumers as "spillover" by advertising to younger consumers. Marketing is becoming so segmented that mature consumers need their own messages, Frost says. "Very soon, the 45-plus market will represent half the population, and the traditional target of consumers aged 25 to 44 years old will shrink."
Ad agency executives counter that there's good reason to focus on youth. Scott Gilbert, of ad agency Saatchi & Saatchi, Los Angeles, says older consumers want to see young faces in ads.
"People don't want to see who they really are. They want to see who they want to be," says Gilbert, citing studies that indicate consumers mentally picture themselves 15 years younger or more.
The ad business also sees younger consumers as long-term investments, says Monica Karo, managing director of OMD West in Los Angeles, which buys advertising for Nissan. "Eighteen-to-34-year-olds are living on their own for the first time, buying a house for the first time and making a lot of brand choices for the first time. Marketers want to bring them in young and keep them for many years."
Rick Boyko, chief creative officer at Ogilvy & Mather, wants to know what products are supposed to be aimed at mature consumers outside of health, financial services, luxury autos and travel. "We have the disposable dollars. But as hard as it is to admit, we don't set the trends anymore," says Boyko, 54, about his generation.
Turning the ad industry is like turning a ship, but some marketers are already taking the lead.
Shatner, the 71-year-old actor of "Star Trek" fame and endorser for Priceline.com, is the last pitchman. "Bill put us on the map," says Brett Keller, chief marketing officer of the travel service.
In beauty care, L'Oreal is using fiftysomething model Dayle Haddon to pitch its new Age Perfect line of skin-care products for women ages 50 to 70.
And Toyota is getting strong reaction to new ads with Sir Edmund Hillary, the 83-year-old conqueror of Mount Everest. "He's the real deal," Gilbert says.
Mature consumers are also moving targets because their own definition of "old age" keeps changing. On average, mature consumers now consider "old age" to start at 72, not 65, according to research by RoperASW.
The "spillover" strategy is a pretty smart move when going after mature consumers who are young at heart. DeMott recently dropped $1,200 on an iMac because it "looks young and modern looking." Her daughter teases her about dressing like a kid.
"I'm 52, but I still feel young," DeMott says. "I have a hard time believing I'm that old."
• • •
One size won't fit every older buyer
• Portraits for ages 45 to 61
Status Seekers. Conspicuous consumers who want it all, even if it means cutting ethical corners. They lust for a Porsche and have little interest in religion. But they are always a paycheck from disaster.
Anxious Achievers. Money is their shield against a dangerous and unpredictable world. They worry about national security, not diversity and social justice. You can find them watching Fox News.
Woeful Worriers. They watch late-night TV alone and wonder where it all went wrong. Worried about health and finances, they see life as a struggle they're destined to lose. Infomercials in the wee hours can reach them, but they are slow to spend.
Intense Individualists. Self-reliant achievers who set their own course. Have little loyalty to others. Key stats: 30 percent read newspaper business sections, more than any other group.
Happy Helpers. Upbeat and positive, they focus more on being great parents and grandparents and less on health, finances or trappings of wealth. Listen to soft rock and religious radio.
Educated Aficionados. Upscale, educated and traveled, but passionate about social justice. They support fine arts, not the military. They read in-flight and gourmet magazines and listen to jazz.
Modern Moralists. They put good works ahead of good times and attend church. Listen to country music and religious radio.
Low-energy Loners. Primarily unmarried or divorced males. This low-income group believes they had a shot at life — but blew it. Isolated, depressed and angry. Big consumers of drive-through fast food and TV dinners.
Aloof Affluents. They take care of No. 1. Natural supervisors and workaholics who respect no authority but their own. Quick to accuse others of hypocrisy. Flattery is best approach.
• The portraits for ages 62-plus
True-blue Believers. Think suburbia, Buicks and freshly pressed suits. Fulfilled and happy, they don't have anything to prove, and appeals to status won't work.
Hearth and Homemakers. Into old Toyota Camrys and Family Circle magazine. Family and friends are their lives. They respect authority — a key to reaching them.
Woeful Worriers. Children of the Great Depression who have never recovered. They clip coupons and turn the heat down.
In-charge Intellectuals. Consumers of luxury goods, they write articles, not just read them. More into photography than family photos. A natural target for retirement plans and the new thing.
Liberal Loners. Like causes; hate people. Fit "bleeding heart" stereotype, but mostly help selves. Think old Volvos, megavitamins and dozens of unfinished projects.
Fiscal Conservatives: The mortgage is paid, the Lincoln's outside. They have money, but are careful shoppers. They'll buy value, but don't try to snow them.
Intense Individualists: Modern American pioneers who are into Ford pickups, gardening and hunting dogs. They like products peddling "adventure" themes.
Active Achievers. Believe they'll never grow "old." Have cash and seek excitement. Think senior-rights activists, Rolex watches, Christmas in Aruba and a subscription to Business Week.
Sources: Mature Market Group, Seniors Research Group
