47 BABY BOOMER CONSUMERS

47.1 Profile The oldest of the Baby Boomers born in 1946 and 2.8 million in number turned 65 in 2011; the youngest Boomers born in 1964 turned 47. Census 2010 counted 76.94 million Americans born between 1946 and 1964, representing 24.9% of the population. The Baby Boomer population, by age in 2011, is distributed as follows:
Fem ale M ale Both

Age 46-to-50: Age 51-to-55: Age 56-to-60: Age 61-to-65:

9.20 million 11.36 million 10.14 million 8.74 million

8.97 million 10.93 million 9.52 million 8.08 million

18.16 million 22.30 million 19.66 million 16.82 million

47.2 Spending Power It is estimated that Baby Boomers, designated as the wealthiest generation in history, have $2 trillion in net worth, including investments and inheritance. The recent wave of job losses has hit working Baby Boomers particularly hard. Thought the unemployment rate for older workers is lower than the overall average, once they become unemployed older workers find it harder to land a job, and they tend to remain out of work longer than younger workers, according to the Bureau of Labor Statistics (www.bls.gov). Among those Boomers at or near retirement age, many have decided to continue working most in order to shore up their shrunken retirement accounts. _________________________________________________________________

Americas Baby Boomers face a problem that could weigh on the economy for years to come: The longer it takes for the economy to recover, the less money theyll have to spend in retirement.
The Wall Street Journal, 8/16/10 _________________________________________________________________

CONSUM ER BEHAVIOR 2012

242

While the Great Recession has affected the finances of Baby Boomers, the impact on their children and grandchildren has been even greater. According to a July 2011 study by Age Wave (www.agewave.com), 70% of those ages 55 and older expect to provide financial assistance to adult children; 50% expect to provide assistance to other family members. _________________________________________________________________

If financial turmoil and longer lifespans hadnt complicated retirement planning enough, aging Boomers now are worrying about having enough money in their later years to handle their families needs, too.
USA Today, 7/12/11 _________________________________________________________________

47.3 Generational Characteristics AARP (www.aarp.org) provides the following insight into Baby Boomer households: Contrary to popular perception, few Baby Boomers are downsizing. Only 6% expect to be living in a smaller home within five years. Thirty-seven percent (37%) of Baby Boomers have a child age 18 or younger living in the household. Over five million Baby Boomer parents have recently had an adult child move back into the home, partially due to the rise of adultolescents whove boomeranged back into the parental household. Four million Baby Boomers have a parent living with them. Eighty-two percent (82%) of Boomers use the Internet, engaging in activities such as instant messaging, downloading music or movies, financial transactions, and online gaming. Just 11% of Baby Boomers plan to stop working altogether when they reach retirement age. According the Pew Research Centers Social & Demographic Trends Project (www.pewsocialtrends.org), 52% of Baby Boomers say they are considering delaying retirement because of the recession. The Nielsen Company (www.nielsen.com) provides the following facts about Boomers:

CONSUM ER BEHAVIOR 2012

243

They dominate 1,023 out of 1,083 consumer packaged goods categories. They watch the most video among demographic group: 9:34 hours per day. They comprise a of all TV viewers, online users, and social media users. They watch time-shift TV more than 18-to-24 year olds (2:32 vs. 1:32). _________________________________________________________________

Boomers should be as desirable for marketers as Millennials and Gen-Xers for years to come; they are the largest single group of consumers, and a valuable target audience. As the U.S. continues to age, reaching this group will continue to be critical for advertisers.
Pat McDonough, Senior Vice President Insights, Analysis and Policy The Nielsen Company, 7/19/10 _________________________________________________________________

According to Nielsen, while Baby Boomers account for 38.5% of spending on consumer packaged goods, less than 5% of advertising spending targets them.

47.4 Media Activities According to eMarketer (www.emarketer.com), 51 million Baby Boomers, or 75% of those ages 46-to-64, used the Internet in 2010, an increase from 70% who did so two years prior. The Cable & Telecommunications Association for Marketing (www.ctam.org) reports the following activities among online Baby Boomers: Use email: 93% Read news: 73% Shop online: 71% Gather information: 67% Pay bills: 66% Watch videos online: 30% According to the Pew Internet & American Life Project (www.pewinternet.org), 47% of online Baby Boomers used social networks in 2010, 20% do so daily. Mobile Access, a report by the Pew Internet & American Life Project reports mobile activities in 2010 by Baby Boomers as follows:

CONSUM ER BEHAVIOR 2012

244

Own a cellphone: Take pictures by cellphone: Send/receive text messages: Access the Internet via mobile device:

82% 67% 57% 18%

According to Forrester Research, Baby Boomers spend more money on technology monthly telecom fees, gadget, and device spending than any other demographic. _________________________________________________________________

Its actually a myth that Baby Boomers arent into technology. They represent 25% of the population, but they consume 40% (in total dollars spent) of technology.
Patricia McDonough, Senior V.P. The Nielsen Company Advertising Age, 10/11/10 _________________________________________________________________

Boomers also spend more for online purchases. During a three-month period in 2010, Boomers averaged $650 in online shopping compared with $581 for Gen Xers and $429 for Millennials, according to Forrester Research.

47.5 Market Resources Digital Lives of Boomers: Reaching Them Online, eMarketer, March 2011. (www.emarketer.com/Reports/All/Emarketer_2000772.aspx) Older Adults and Social Media, Pew Internet & American Life Project, August 2010. (www.pewinternet.org/Reports/2010/Older-Adults-and-Social-Media.aspx) The Baby Boom: Americans Born 1946 to 1964, 6th Edition, New Strategist, July 2009. (www.newstrategist.com/store/index.cfm/product/26_14/baby-boom-americans-born1946-to-1964-6th-ed.cfm) Why Marketers Cant Afford to Ignore Baby Boomers, Nielsen, July 2010. (http://blog.nielsen.com/nielsenwire/consumer/why-marketers-can%E2%80%99t-affordto-ignore-baby-boomers/)

CONSUM ER BEHAVIOR 2012

245

Copyright of Consumer Behavior is the property of Richard K. Miller & Associates and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.