• by Michael Shields , November 24, 2004

Jim Fishman, publisher of AARP The Magazine, relates a story about how a few years ago, an executive at Anheuser-Busch noticed that nearly 30 percent of its consumers are over 50. Despite the company's long-standing dedication to the young male drinker, the executive insisted that they run ads in AARP--for Michelob Ultra, of all brands, which sells a healthy, low-carb lifestyle.

"They have been there ever since," said Fishman.

Fishman's story illustrates one of AARP's strengths as well as its toughest challenges. The magazine can offer advertisers who want to be known as youth-friendly brands a walled garden to target their 50-and-over consumers--one that younger consumers won't penetrate.

"There is little chance that anyone who is under 50 will see this magazine," said Fishman. Which is something that is obviously important to Anheuser-Busch. "They would screw up their marketing to young kids," he said.

Yet that story also reveals the continued aversion many brands maintain against being perceived as "for older people." For example, while the auto world has increased its commitment to the magazine, Fishman believes there is a great opportunity being missed.

"The median age of new car buyers is over 50," he said. "We aren't getting as much as we should. They don't want to be seen marketing to these people."

Despite the slow-moving recognition of the buying power of the 50-plus market, it has been a terrific year for AARP. Ad pages are up by 13 percent for the year, with revenue climbing 24 percent.

And baby boomers (people born between 1946 and 1964) represent a larger and more potent target than ever. The number of households headed by people ages 55 to 74 is expected to grow to nearly 31 million in the next several years, according to San Diego-based market research firm Claritas. Six million of those households are predicted to earn annual incomes of $100,000 or more.

Plus, old just isn't that old anymore, as the vision of tottering old ladies carrying walkers fades. "A lot of these people are going to live until 100," Fishman said. "You've got to fill that time somehow."

Yet this was an opportunity that the magazine might have missed. Two years ago, the organization took a calculated risk, fusing the venerable but dated Modern Maturity magazine and the two-year-old boomer-aimed title My Generation to form a single magazine, AARP The Magazine.

These days, the magazine publishes three distinct editions; all have a consistent cover, headline, and overall look. The editors start with the edition aimed at readers in their 50s, then build out an edition for readers in their 60s, and one for readers 70 and over. The content for these editions differs by roughly 25 percent.

The differences between each issue are largely in the health and financial content. "In your 50s you are still building wealth, while in your 70s you are trying to protect it," Fishman said. The different additions also allow advertisers to be more selective in targeting and messaging.

Despite the risk of re-branding the magazine, the result has been a growing readership. The latest study from Mediamark Research has the magazine's audience at 26.5 million readers, and subscriptions were up 14 percent through June, according to the Audit Bureau of Circulations. Readers appear to be responding to a more modern-looking cover design, with hipper subjects like Anthony Hopkins and Kevin Spacey.

Fishman believes that even better days are ahead. "That boom that will eventually come hasn't happened yet," he said.