Tech Marketers' Next Opportunity: Boomers

Increasingly savvy baby boomers--who are 100 million strong in the U.S. and control billions in disposable income--could be the target for tech marketers during the next few years, according to a joint study by TNS Compete and the Consumer Electronics Association (CEA).

These consumers have become more comfortable with searching online, buying from Web sites, and purchasing high-definition televisions (HD TVs), fancy smartphones and near-pocket-size PC computers, states the study, "Greying Gadgets: How Older Americans Shop for and Use Consumer Electronics."

Boomer consumers ages 50 and older are as likely to own--or plan to purchase--a HDTV, as those ages 49 and younger. And 80% of 60-somethings used a cell phone in the past week--a rate nearly similar to those ages 18 to 34. About 71% of 60-somethings and 52% of 70-somethings used a search engine in the past week, compared with 77% of those ages 18-34.

Older consumers are just as tech-savvy as those ages 18-49. "We tend to treat seniors with kid gloves because we think they need an entirely different experience, but that's really not the case," said Elaine Warner, director, consumer technologies, TNS Compete, Boston. "They are just as likely to buy an HDTV in the next year as those who are younger."

Warner hopes to use the findings from the November study of about 3,135 U.S. adults to help retailers plan targeted marketing and advertising campaigns. "They can tailor marketing campaigns and Web site enhancements to get older shoppers to purchase devices online, which are lower-cost channels that offer higher margins," she said. "For OEMs, the study can help manufacturers understand the types of features on electronics that prevent older consumers from making purchases."

After all, many consumers ages 50 or older lived their 20s with mainframes and larger PC computers, and the introduction of cell phones that moved from car glove boxes and trunks into ladies' large handbags or men's briefcases.

Boomers also have become more comfortable researching information through search engines and making purchasing online. While the Internet has become a more important part of everyday life, the study reveals that older Americans still more frequently turn toward people in stores for help. In fact, 63% said they asked a salesperson for information, compared with 47% of those ages 18-49.

The study reveals that 80% of consumers ages 35-49 heavily integrate search engines into daily life, compared with 77% for both ages 18-34, and 50-59. Search engines are also popular for those in their 60s and 70s, with 71% and 52% using search to research information on products and services, respectively.

While consumers ages 50 and above feel comfortable researching information about electronics online, many report a higher level of frustration with complex technologies--with 60% saying a product with too many features was the main reason for becoming frustrated with technology, compared to 39% of consumers ages 18-49.

Despite the fact that consumers ages 50 and above are drawn to HDTVs, cell phone and search engines, those ages 49 and younger tend to associate more closely with social networks, video games and portable MP3 players.

Not surprisingly, the study reveals that 57% of consumers ages 18-34 watch video online, compared with 46% for those ages 35 to 49; 36% for those in their 50s; 30% for 60-somethings and 24% for 70-somethings.

3 comments about "Tech Marketers' Next Opportunity: Boomers".
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  1. Lisa Phillips from Freelance, January 9, 2009 at 9:07 a.m.

    100 million boomers? That's about one-third of the US population. The Census Bureau counts only 76.8 million people in the baby boomer age range -- currently between ages 45 and 63.

  2. Arthur Koff from RetiredBrains.com, January 9, 2009 at 9:42 a.m.

    This article mirrors our results as the traffic from boomers and seniors to the RetiredBrains.com suite of sites has increased ten fold over the past couple of years.

    More and more older Americans are going on line for both information and to purchase goods and services.

    In addition, our traffic tends to be better educated with correspondingly higher incomes than the average older American. Surprisingly it is slightly more female than male and not surprisingly the state providing the most traffic is CA followed by NY, TX, PA, FL & IL.

    We anticipate the traffic will continue to increase substantially over the coming year(s) as more and more older Americans become comfortable with using the Net. However we have found that the tiles and banners and particularly pop-ups are not as effective as informational paragraphs with corresponding links.

  3. Chuck Nyren from Advertising to Baby Boomers, January 9, 2009 at 12:08 p.m.

    Nothing much new here. I've been writing about and saying this for six years - in my book, blog, in media interviews, during consulting and speaking engagements. Here's a pull quote on the cover of my book, published in early 2005:

    It will be the Baby Boomers who will be the first to pick and choose, to ignore or be seduced by leading-edge technology marketing. There’s a simple reason for this. We have the money to buy this stuff. Experts say we’ll continue to have the money for at least the next twenty years. Write us off at your own peril.

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