• by Jeff Weiss , Columnist, November 22, 2017

What would you do if you discovered that your brand may be leaving millions of dollars of revenue on the table by ignoring the age 55+ market? 

This question motivated the launch of our new consultancy and defining research study (which has been summarized in a whitepaper) weighing the assumptions and practices of 202 marketing professionals against the attitudes and behavior of more than 1,200 American adults.

Truth is, we weren’t surprised to find that marketers underestimate the revenue opportunity with mature consumers. What surprised us is the magnitude of these missed opportunities and the extent to which marketers' own societal biases become barriers to pursuing this market. 

Magnifying the proliferation of ageism in marketing is the fact that younger marketers are more likely than their older colleagues to adhere to age-related biases and stereotypes. This fact should not be dismissed, as young marketers have significant decision-making power over ad dollars. Our study found marketers under age 35 (28%) were twice as likely as those 55+ (14%) to report having North America-wide sales and marketing decision authority.

Here are four key barriers that hold marketers back from effectively engaging the age 55+ market, and the truth behind related ageist myths stereotypes:  

1. Marketers underestimate the spending power of consumers 55+ and over-estimate the spending of millennials. Nearly 9 in 10 (86%) marketers overestimate how much consumers under the age of 35 spend and nearly three quarters (72%) underestimate how much consumers 55 and older spend. Nielsen data tells us that, despite representing more than 40% of all consumer spending, consumers 50+ are the target of only 10% of U.S. ad spending.

2. Marketers perceive that older consumers won’t try new things or are too brand loyal. Nine in 10 (92%) marketers believe consumers 50+ are less likely to switch brands, yet on average, more than half (52%) of consumers 55+ vs. 61% of consumers under 55 are open to switching brands the next time they shop.

3. Marketers fret that targeting older consumers will alienate younger consumers. We found 50% of marketers believe consumers under 35 will feel alienated if their brand targets older consumers, yet two-thirds (65%) of consumers say that seeing someone much older in an ad would not change their likelihood to purchase.

4. Marketers default to a youth-size-fits-all approach, assuming that millennial-oriented marketing will appeal to consumers 55+ and that younger consumers set the trends for older consumers. The reality is older consumers aren’t looking for inspiration from the younger set. Fewer than half of Americans (48%) agree that people over 50 aspire to be younger or to stay young. There’s a good chance millennial-oriented marketing is missing the mark with mature consumers, given 73% of consumers 55+ feel marketers are not engaging them effectively.

Despite the extent to which marketers don’t understand older consumers this is not to say they are oblivious to the value of the aging consumer market. Four out of five marketers (84%) report wanting to target consumers 50+ more effectively than they do today. The issue is that marketers continue to operate under false assumptions and to under-invest in this fast-growing segment.

The bottom line? Mature consumers are spending and waiting for a reason to choose your brand. Given the potential return for brands who can identify and capitalize on products, services and experiences to better serve the active ager, making the effort to better understand the mature consumer is an investment with nothing but upside.