Baby boomers as an untapped advertising market

¶ … Boomers

Context of the Problem

Baby Boomers, an Untapped Advertising Market

Currently, the majority of businesses, as in the past, do not appear to recognize the value of advertising to the Baby boomer generation. "It's absolutely unbelievable," Dave Carpenter (2004), an Associated Press writer, cites Ken Dychtwald, gerontologist, president of the Age Wave think tank in San Francisco, to state. Even though Baby Boomers, age 50 and over, "control $7 trillion, or 70%, of all U.S. wealth, bring in $2 trillion in annual income and account for 50% of all discretionary spending" (¶ 4), businesses only aim for approximately 5% of advertising dollars. "Companies are not paying any attention whatsoever to people over 50" (¶ 4-6), Dychtwald purports.

As Baby Boomers, also referred to Boomers during this study, enter their retirement phase in life, some individuals, younger and older, in society learn and treasure a number of "truths" relating to being in this age group. Some younger and older individuals, albeit, marginalize "the old," "...as the unimaginable other, taking up resources through their increasing dependence," Trish Carroll (2007, p. i) reports in:

Curious conceptions: learning to be old." Baby Boomers, contrary to the erroneous concept some individuals hold that this group does not comprise a valuable resource, does in fact, constitute the fastest growing, as well as the wealthiest consumer group not only in the U.S., but in the world. Leslie M. Harris, and Michelle Edelman (2006) point out in their book: After Sixty: Marketing to Baby Boomers Reaching Their Big Transition Years, that within the next two years, Boomers: "will outspend their younger counterparts by 2 to 1 on goods and services" (p. 2). In another contemporary book, Dick Stroud (2007), author of the 50-Plus Market: Why the Future Is Age Neutral When it Comes to Marketing and Branding Strategies, stresses the fact that Boomers compose a vital consumer group that merits major consideration. The advertising industry, however, has not historically taped into this particular, profitable market. The 2001 Consumer Expenditure Survey revealed that older consumers, which include Boomers in the U.S., constitute: "the primary purchasers of transportation, health care, housing, goods, pensions, and personal insurance" (Harris and Edelman, 2006, p. 169). Stroud (2007) notes that despite the facts that would suggest the opposite would prove more profitable, advertisers allocate 80% of their advertising budgets toward younger groups, particularly 18- to 34-year-olds, while they only allot 5% (worldwide) of their ad budgets for targeting older consumers. The myriad of misconnections with Boomers via advertising, in turn, constitutes a contemporary challenge for U.S. businesses to change.

Significance of the Study

Being born at the end of the Boomer age, the heart of this researcher feels a unique drawing to this particular group of individuals known as the Baby Boomers. As this researcher desires to one day own a business, and possesses the ability to help others feel better about their selves; along with knowing how to encourage potential customers to buy a product, this study which will enhance learning about the boomer group, will simultaneously provides a bump up above the competition. In addition, particularly in an economy as challenging as the one which businesses face today, understanding how that too frequently in the past, businesses attacked rather than attracted this group with their advertisements, could help a business or creative succeed in its developing more effective TV commercials

This researcher's personal survey of advertisements on TV, trying to sell products today confirm the contention that future years will include a myriad of marketing created and "thrown" at consumers for all the wrong reasons. Ads routinely try to sell consumers a barrage of prescription drugs; diapers; denture cream. This researcher is not interested in buying prescription drugs; nor interested in purchasing diapers; does not yet need to buy denture cream, and is definitely not considering financing a time share in Boca. A large number of ads, however, routinely try to market these items to TV viewers, without consideration of the viewing generations' wants and needs.

In learning more about boomers' wants and needs, along with exploring factors contributing to advertisements, this researcher questions if perhaps, the undertaking of this particular subject simultaneously evolves from the desire to learn more about himself personally. Boomers possess the greatest purchasing power and constitute the group of people this researcher desires to target. If one day, this researcher reaches the goal of owning a business, the insight into which group/s possess the most purchasing potential would prove to be a valuable asset.

This researcher worked for this particular group a number of years' experience, specifically in the service industry, and has attained a significant amount of education in business and finance. In addition, as this researcher possesses a personality which aims to please the consumer, consequently becoming a winner in the business world appears not only plausible, but probable. As an alternative option, should the opportunity for this researcher to own a business not materialize, advancement in current employment as a Marketing Manager for Verizon Wireless serves as a backup plan. VZW, a company that understands customer motivation, as well as understands advertising, offers this researcher the opportunity for a future which also gives access to success in the business arena. As the future appears one day at a time, this researcher realizes that along with an abundance of information to learn, the challenge exists to relate personal skills to the marketing field. Marketing excites this researcher; beckoning to get up and get going in the morning. Being given an opportunity to understand what makes a product sell, what people need in order to purchase a product or service, along with exploring numbers behind the decisions also intrigue this researcher and peak his interest.

The bottom line: This researcher knows without doubt that he is good businessman who loves the challenge/s inherent in selling. This researcher also recognizes and admits that the more help and knowledge one can attain in marketing a business - the better. In the past, this researcher has learned from personal experience what contributes to failing to convince someone to buy something. Through this DPR, this researcher intends to learn how to more effectively target and market to Boomers. In turn, learning how to most effectively market to this frequently overlooked consumer group through TV commercials, this researcher plans to later invest the knowledge gained from this study into practice. Ultimately, this study will contribute not only to this researcher, but to readers, particularly businesses, and others in the advertising industry businesses becoming not merely better educated in what contributes to making a sale in a TV commercial, but potentially creators of some of the best, most effective TV commercials. In addition to potentially enhancing businesses' understanding regarding how they may more effectively market to Boomers, results of this DPR may also benefit businesses' bottom lines, as it helps stimulate consideration of the group predicted to become an even more relevant consumer group in the near future. This researcher projects that expected benefits/results from this study's presentation of vital