Australians over the age of 50 are being largely ignored by brands despite having the highest levels of wealth and disposable income and outspending millennials in most categories according to new research.
The WPP AUNZ report called Secrets & Lies – Ageless and Booming – also reveals that 94% of the over 50s dislike the way organisations and marketers communicate with them.
WPP AUNZ chief strategy officer and futurist Rose Herceg says the new study shows the ‘ageless’ outlook of Australians over 50 is poorly understood by marketers who often misfire with the demographic.
“More than a quarter of all Australians are over 50, they have 46% of our disposable income, and 50% of our private wealth and yet it’s almost impossible to find organisations and brands that understand this high value audience,” Herceg says.
“This is all the more startling when you consider the unrivalled opportunity that lies in their enormous purchasing power.
“It appears that marketing has an ageing blind spot – and as a result, many may be missing out on a significant new target. As an industry, we need to deconstruct every outdated idea about people over 50.
"We need to realise that they’re connected, they’re calling their own shots and they don’t like being labelled. To ignore them is folly - and misrepresenting them with bland imagery or assuming they are winding their lives down risks rejection. That could be a very expensive communications mistake to make in what is a highly challenging, and ever-changing marketplace.”
Herceg says that contrary to popular belief, the over 50s are not slowing down, disconnecting or opting out.
The over 50s spend about $40 billion more than millennials and Generation X each year on consumer goods purchased online and they spend an average of 27 hours online each week.
The report also identifies that despite this incredible purchasing power, as an industry, less than 5% of the briefs received from marketers specifically target the over 50s.
“It appears that most brands and marketers fail to understand that the over 50s audience is a new kind of mass consumer, just as interested in ‘new’ as everyone else," Herceg says.
"So instead of continuing to ignore them, we need to get smarter and start targeting them with the vibrant and optimistic messaging that reflects their outlook on life. We need to engage them with the rigour and vigour they deserve.”
The new research also shows that despite what many may assume, the over 50s are not blindly loyal, with 89% of the over 50s open to trying new brands, while a further 79% having moved on from brands that are no longer fulfilling or meaningful.
“Those of us in the marketing industry have so far failed to fully appreciate and embrace this audience. But there’s still plenty of time. We are urging a rethink across the industry," Herceg says.
"After all, those organisations and brands that accurately relate to, and connect with, this audience will win their attention and gain a bigger share of wallet in an otherwise shrinking Australian market.”
Ageless & Booming is the third and latest research report in a series called Secrets & Lies, which analyses the difference between what Australians say and what they think or do.
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