• by Mark Bradbury , Columnist, October 18, 2010

Ah, the holidays. Sleigh bells are ringing. Snow is glistening. Fourth-quarter marketing plans are hung by the chimney with care. It's the most wonderful time of the year, no?

For some, perhaps.

In the economic climate of the 2010 holiday season, however, the visions dancing through the heads of many retailers may not be of sugarplums.

So, how can they keep their holidays merry and bright?

The key lies in the purchase power of Baby Boomer and older consumers, as hard evidence continues to suggest that they are the backbone of American consumerism.

Exhibit A: J.D. Power & Associates recently revealed that consumers 50+ comprise 62.5% of annual new vehicle sales, up from 50% just two years ago. That's a 25% increase in share.

During that same period, 50+ share of the adult population grew from 41% to 42%, an increase of just 2.6%. In other words, 50+ share of new vehicle sales grew at nearly 10 times what could have reasonably been expected based on population growth.

Now, these numbers may be a bit misleading. In truth, consumers 50+ are not buying more new cars than they did two years ago. They've just cut back less than their younger counterparts. A lot less. In fact, 71% of the decline in new auto sales over the past two years can be chalked up to decreased spending among younger consumers.

This is just one indication that 18-49 year-olds are more vulnerable to the effects of a struggling economy, but there are certainly others.

According to recent MRI data, over the past two years, 50+ share of spending was up in the following categories:

Credit Card Expenditures +15%
Home Furnishings +12%
Home Improvements +11%
Foreign Vacations +10%
Health & Beauty Aids +9%

Additionally, the U.S. government's annual survey of consumer expenditures, released earlier this month, shows that households headed by people under age 50 cut annual spending by nearly twice as much as those headed by people over 50 ($1,735 vs. $998). The most noteworthy change can be seen in entertainment spending, which people under age 50 cut back by 8.6%, while those over 50 made no cuts at all.

Not all categories have been affected, but when it comes to purchases beyond the essentials, such as food and clothing, 50+ consumers continue to prove that they're the most reliable spenders during tough economic times.

Which brings us back to the impending holiday crunch.

While many marketers have not yet grasped the value of this booming demographic, the smart ones will realize that 50+ is the gift that keeps on giving.

And for those marketers who fear that they're behind in their "holiday shopping," there's good news on the digital front. Most Boomers (76%) are online, as are 61% of adults 50+. What's more, the median household incomes for online Boomers ($84,700) and adults 50+ ($74,500) are significantly higher than the U.S. norm ($60,200).

With fourth-quarter digital opportunities still available, there's ample time to focus on 50+, and make sure you're not left out in the cold.