• by Jack Loechner , Staff Writer @mp_research, February 21, 2011

According to new Nielsen research, grandparent households spend 4.4% more per year than all other households, which equates to an extra spend of more than $300 a year. And, grandparent households represent a sizable target of 69.6 million, which will continue to grow another 11% between now and 2015.

Having multiple grandchildren does not translate to more spending, however. In fact, grandparents in the survey with only one grandchild actually spend two times more than grandparents with 2-10 grandkids. The exception is grandparents with more than 10 grandkids - they actually spend $79 less per year than non-grandparent households.

Grandparent Spending Comparisons (By Number of Grandkids)
Grandchildren	% of Households	HH Spending Difference(compared to non-grandparent HH)
1	18	+605
2-4	43	+287
5-10	30	+295
>10	9	-79
Source: The Nielsen Company, December 2010 Survey

Grandparents with one grandchild are likely younger and still working and may be more inclined to show their love with greater spending. Similarly, households with more grandkids are likely to be older and therefore have weaker spending power.

39% of grandparents in the Nielsen survey provide some kind of support to help their grandchildren. 23% buy clothing for their grandkids and one in five purchase food and beverages. Mom and dad benefit too, as grandparents help out with:

• Household and personal care purchases (16%)
• Education expenses (10%)
• Daycare costs (8%)
• Medical care/doctor visits (5%)

Grandparents shop more frequently than the average consumer on an all-outlet basis. Grandparents with just one grandchild over index considerably for spending on toys and sporting goods, and all things baby: baby food, disposable diapers and other basic necessities. And, of course, with a brag book full of photos.

Category Spending Index In Children Categories
	Spending Index
Category	Non-Grandkid Families	1	2-4	5-10	>10
Baby food	117	165	79	78	141
Disposable diapers	125	133	87	91	124
Photographic supplies	107	126	104	89	63
Toys & sporting goods	112	286	54	74	11
Baby needs	111	141	95	92	63
Source: The Nielsen Company, December 2010 Survey

Grandparent households spend more than average in a number of retail channels - especially those with greater gift-giving options. Supercenters, warehouse club outlets, dollar stores and convenience/gas chains all over index compared to non-grandparent households.

With fewer mouths to feed, it is no surprise that they spend less than average in the grocery channel.  However, the study showed how grandparents who see their grandchildren daily or several times per week (one-third of those surveyed) are bigger spenders, suggesting opportunities for grocers.

To reach grandparents, television is a good bet, says the report. Older populations watch more television than their younger counterparts. During fourth quarter 2010, Persons 65+ viewed over 46 hours of live television on a weekly basis (by far the most of any group). They also played back more than 90 minutes of recorded programming each week (the lowest of any group).

By comparison, Persons 35-44 viewed over 30 hours of live television and played back more than three hours of recorded programming (the most of any group). With most grandparents free from navigating work schedules and busy households, more time at home is driving some of this behavior.

Consumers aged 50+ are digitally savvy. In fact, in December 2010, Nielsen reports that consumers aged 50+ in the U.S. comprised 32% of the active Internet audience on average taking into account usage at both home and work locations. And older consumers spent nearly 62 hours online in that month.

Sending and receiving email is the most popular online activity, with 82% of grandparents finding this mode of communication fast and easy.

Mobile phone usage, while significantly lower for consumers aged 65+ compared to the younger set, it is rapidly catching up. On a monthly basis, they made 104 calls, but only sent or received 41 text messages. Perhaps the hand dexterity of older consumers may contribute to the minimal usage of short message service capabilities. The mobile behavior of the next generation of grandparents is clearly in the "texting" camp.

Today's older consumers are active, connected and big spenders. And, while this segment represents a disproportionate share of marketplace consumption, they are often overlooked in marketing plans.

For more information from Nielsen, please visit the NielsenWire here.