Marketers leaving Trillions of dollars on the table by their relentless pursuit of Millennials
October 12, 2017
• New research says marketers are missing the elephant in the room
• “For brands that better understand and serve the mature consumer, it is an investment with a huge upside”
Marketers' societal biases and age-related stereotypes are contributing to a significant overestimating of Millennial spending power and an underestimating of the value of consumers 55 and older, according to research by brand consultancy Age of Majority and released Thursday at the International Council on Active Aging conference in Orlando.
The study weighed the assumptions and practices of 202 marketing professionals against the attitudes and behavior of more than 1,200 American adults.
The bottom line for marketers is that undervaluing the 55 plus market could be leading them to miss out on a combined trillions of dollars of lost revenue, considering the disproportionately small marketing spend being directed against the 55 plus demographic vs. their actual spending power, says Age of Majority.
Among the findings is that nearly nine in 10 (86 percent) marketers overestimate how much consumers under the age of 35 spend and nearly three quarters (72 percent) underestimate how much consumers 55 and older spend.
Colin Milner, CEO of the International Council on Active Aging, says the research paints a picture of an industry that has yet to embrace the multi-trillion-dollar market.
"Most marketers fail to target these vibrant consumers and there has been little change made in their efforts to do so over the past 15 years," says Mr. Milner. "The AoM research is a call to action for marketing and business to embrace a more inclusive innovation and communications model."
Jeff Weiss, President and CEO of Age of Majority, who presented research highlights to delegates at the ICAA conference, says the findings suggest marketers are interested in pursuing the 55 plus consumer demographic, yet they continue to operate under false assumptions, including the idea that older consumers spend less, are unwilling to consider new brands, or are disengaged with technology, which the research contradicts.
"We launched Age of Majority with a mission to help brands evaluate what they are doing for mature consumers against the misperceptions and stereotypes that are holding them back from reaching this fast-growing segment," says Mr. Weiss. "Given the potential size of the prize for brands that better understand and serve the mature consumer, it is an investment with a huge upside."
In August 2017, online surveys were conducted among 1,284 randomly selected American adults and 202 U.S. brand-side marketing and sales decision-makers. The margin of error is +/- 2.5 percent, 19 times out of 20; discrepancies in or between totals are due to rounding. The poll was conducted by Blink Insights, and paid for by Age of Majority.