The Harris Poll about the state of American waistlines

In the previous blog posting I talked about ‘heavyweight’ papers. In this post I will talk about heavyweight people.

The Harris Poll gives lots of stats about the state of American waistlines. Not good is the bottom line.

The chart suggests that 27% of baby boomers reckon their weight has given them health issues. I suggest that is blissful ignorance of the problems their weight problem is creating.

If I were a supplier of diabetes drugs I would be encouraged by these findings. If I was a public health worker I would be frantic. Dick Stroud

Two detailed papers about global population ageing

These are two heavy weight papers about the implications of the ageing population. I mean heavyweight, both in terms of the number of pages and the depth of analysis.

There is no way I can attempt to summarise the contents, but understanding the global impacts of the ageing population is what you are about then download these documents. The first of them “The implications of Population Aging for Economic Growth” is co-authored by David Bloom, a Harvard academic I met last year. Believe me he really does know what he is talking about.

The second paper - Megatrend «Global Demographic Change»: Tackling Business and Society Challenges in 2030 and beyond - is made up of a series of papers. Certainly if you want to know what is happening in Asia Pacific then this is a must read.

Last year I attended the WDA Forum, the source of these papers. To be honest I was not that impressed. It looks like things have improved this year. Dick Stroud

So what is the Boomeranger generation buying?

Last June I wrote about the the Luminosity Boomerang Consumer Study.

The company has published the second part of its study about the purchasing habits of the Boomerang generation - young adults living at home.

The first part of the study was about segmenting the generation. The second part gives some insights into how living at home with mum and dad affects their purchasing.

The results of the study revealed that Boomerangers are more independent shoppers than previously suspected and for most everyday items, and even identity purchases, Boomerangers are more value-conscious than brand-centric. Long live own-label seems to be the purchasing cry of the Boomerangers - not surprisingly since they strapped for cash. Dick Stroud

China gets to grips with its ageing population

I first read about this issue a couple of months ago. This morning I read that Aging in Place Technology Watch has picked up on the subject and quoted a very interesting article with more details.

I quote:

As authorities combat a growing aging problem, legislators have proposed an amendment to the 1996 law protecting elderly rights that would make it mandatory for children to visit their aging parents “often" — though just how "often" that is has yet to be determined.
The legislation states that "supporters" of seniors — including sons, daughters and those legally obligated — will be made to “pay medical expenses for the elderly suffering from illnesses and provide them with nursing care.”

Just imagine trying to introduce similar legislation in the West.

What it does show is the pressure that China is under to find ways of ameliorating the issues of its ageing population. Unlike the West it has a few more levers of control that it can manipulate.

I suspect that we would prefer to decry/ridicule the measure yet provide no workable alternatives and just hope the state will sort the problem out which it won't. Dick Stroud

Gray-Tech or maybe Grey-Tech on the rise

This is something of a hotchpotch and simplistic article of quotes and examples of how the oldies are getting the hang of this technology stuff. A bit patronizing and not that well constructed but it has some interesting quotes. 

I was particularly taken by this section from Mary Furlong – one of the originals in the US boomer marketing industry.

Apple's iPad is a good example of a mainstream product with huge potential for seniors - "The iPad is the top product for all people 50-plus" - "The user interface is so easy. And for anyone with vision issues, the text size can be changed quite easily."

Older consumers are finding the iPad much easier to use than a personal computer” – “The iPad's touch-screen display and big icons beat using a computer mouse and having to find and click or double-click PC programs. Plus, a tablet can sit on your lap”

"What's so magical about the iPad is that you can be 90 and find nine applications to use, or be a child and find a bunch of applications."

“Baby boomers are comfortable using technology because they've used it in the workplace” I couldn’t agree more.

I like the photos. I like it that Mary agrees with my analysis.

Don't forget that I have another blog that focuses on smart devices and apps. Dick Stroud

Never Say Die by Susan Jacoby

I have ordered the book,"Never Say Die" by Susan Jacoby, and really look forward to reading it.

There is an excerpt from the book in the New York Times.

There is a considerable amount of truth in the assertion that many old people today — if they are in sound financial shape, if they are in reasonably good health, and if they possess functioning brains — can explore an array of possibilities that did not exist even a generation ago. “If ” is the most important word in the preceding sentence.

I really like her style of writing and what she is saying. Dick Stroud

Mega trends that affect the 50-plus

It is easy to get distracted by the deluge of news and research about the 50-plus that results in you missing the big picture developments that will shape their retirements.

Firstly, research from the US that illustrates how only consumers in the top 20% have experienced any real increase in their incomes over the past years. Just look how well those in the top 1% of income have done. The fragmentation of consumers into rich and ‘poor’ is another factor affecting the fragmentation of older people into the haves and the have-nothings.

Secondly, the increasing discrepancy in the pension provisions of those employed in the public and private sector.

Having just spent a couple of weeks in the US I am aware of the ‘debate’, if that is the right word, going on about the need to reduce the difference between public and private conditions of employment. Understandably, those in the public sector want to hold onto and extend what they have, those in the private sector look on enviously and get increasingly frustrated as their conditions of employment (and retirement) are eroded.

I have just been reading a paper that was produced in 2009 by PwC called The Tortoise and the Hare, a modern fable. This looked at the financial outcomes for two individuals of similar background and job type. One was employed by the government (the tortoise) the other in the private sector (the hare). Look at the results - a  bit of a difference in the post retirement spending expectations.

Let’s put our marketing hats on for a minute. The positive take from this analysis is that retired public sector employees are becoming an important market sector – certainly in terms of their spending power.

I think we have reached a point where retired public sector employees are worthy of being targeted - how you do that is another thing. Anybody like to suggest what lifestyle characteristics result from a lifetime spent in the employment of the Government? Dick Stroud

Why Apple is a Baby-Boomer Stock

I totally agree with the conclusions of this article  that Apple products are and will continue to be popular with older people. I don’t agree with the rationale for reaching this conclusion.

The author is basically saying that older people buy Apple products because the want to be ‘hip’ and this gives them an easy way of achieving this goal. Here are some of the quotes:

Apple's products have a near monopoly over the technology buying senior citizen demographic.

Although many are shy about getting their feet wet with technology, many like the idea of technology and realize the practical usefulness of it. The iPhone is the perfect opportunity for the baby boomer generation to stay hip and current.

I think this is being both patronizing to older people and to Apple.

The reason why so many people use all of the Apple products is that they are brilliant products. The reason they use the iPhone is the same as why it is the most successful of all the smart devices. When it was launched and even now it is the best.

What a strange argument that buying the best of breed product is in someway strange.

What the author totally misses out on is the way that Apple, especially with the iPad, has made the connection between the user and the application that much easier. That much enjoyable and that much more fun.

Right conclusion – wrong reasons. Dick Stroud

The nest-egg myth

It is always nice when you read something that supports your arguments.

Today, in the Los Angeles Times there is an article by Susan Jacoby, the author of "Never Say Die: The Myth and Marketing of the New Old Age." This is a book I will be buying.

A few quotes from the article.

Nearly half of today's older Americans receive no income from assets such as stocks and savings accounts.

As the debate over the federal deficit heats up, Americans are going to hear a great deal about "greedy geezers" who are supposedly bankrupting the nation with Social Security and Medicare.

The myth underlying these attacks is that most old people don't need their entitlements — that they are affluent pickpockets fleecing younger Americans.

This image of prosperous geezers and crones is just not accurate.

No generation stands to lose more from this fantasy than baby boomers, whose oldest members turn 65 this year. Because of financial losses in what will surely be known to history as the Crash of 2008, many boomers — especially older ones with less time to recover — may enter retirement in a worse financial position than their parents.

Only half of working Americans — the wealthier half with employers that match contributions — even have tax-sheltered retirement accounts. The average value of these accounts, by the way, was only about $45,500 before the crash — hardly a lavish retirement nest egg for boomers expected to live beyond 85 in unprecedented numbers.

The frequently repeated statistic that 75% of all assets are owned by people over 65 is utterly misleading, because those assets are held in a minority of very rich hands. Nearly half of older Americans receive no income — none — from assets such as stocks and savings accounts. Of those who do, half receive less than $2,000 a year.

Ms Jacoby describes a situation that is very similar in the UK. Sorry to keep on going on about this subject but the ultra-fragmentation of older people into the haves and the have-nothings will be a defining feature of the coming decades.

I just wish the media would realize that there are two possible answers to the question: “What does the future hold for the ageing population”. For one group, the smaller of the two, life will be OK, probably very good. For the majority it will be horrid. Dick Stroud

All consuming baby boomers are the country's biggest polluters

So claims an article in today’s Sunday Times (you are only going to be able to read this if you have a subscription).

The above chart and the claim are taken from a 120 page report “Demographic change and the environment”.

How weird that this is the only ‘fact’ that is selected to be promoted about this report. I guess you should never let a chance go by to do a bit more boomer bashing.

We learn from the article that Tony Juniper, the environmental adviser to the Prince of Wales and former head of Friends of the Earth, said his contemporaries needed to learn to consume fewer material goods, take a smaller number of flights and even eat less meat because rearing animals leads to land clearance, the creation of large amounts of methane gas and mass grain production.

What a pile sanctimonious hogwash.

Let’s dig a bit into these claims and the learned Mr Juniper – nearly forgot – he has no qualifications in statistics or climatology. What do we find? Well the research behind these claims originated back in 2007 and then had a work-over in 2010. The shame is that as far as I can see it is fatally flawed.

At the time when it was originally published I wrote about the methodology and highlighted its limitations. This hacked off the research authors but they never responded to my criticisms. The same happened when it reappeared - still no answers.

You do have to wonder what is going in this country when such dubious research is allowed to become the key claim of a Royal Commission report.

Pity Mr Juniper didn’t dig a bit deeper before making these claims.

If there are answers to my criticisms of the research then I would be delighted to publish them, otherwise I will stick to my original criticism that this is shoddy research that doesn't improve the more times it is repeated. Dick Stroud

Everything you could want to know about older American

In one free, government funded report, all you could want to know about the health of older Americans. Dick Stroud

Liquid crystal glasses

I read this article and thought: “that looks like the future to me”.

What an amazing technology that enables your glasses to be adapted to your requirements.

Sure the price is expensive right now but when mass produced it could be like the way that smartphones have taken over the mobile market. Definitely a technology to watch. Dick Stroud

They die young Up-North

It is a depressing fact that the further north you go in the UK the earlier you are to die. Well that is not exactly true, what I should say is the average life expectancy decreases. Socio-economic group determines what age you die and there are more of the low groups the further north you travel.

If you want chapter and verse on this subject then this report will answer all of your questions. The bottom line is that inequalities in all cause mortality in the north-south divide were severe and persistent over the four decades from 1965 to 2008. Males were affected more than females, and the variation across age groups was substantial. The increase in this inequality from 2000 to 2008 was notable and occurred despite the public policy emphasis in England over this period on reducing inequalities in health.

The chart shows the boundaries of government office regions in north and south of England showing life expectancy of both sexes (males/females) at birth, 2006-8. Dick Stroud

Facebook demographics

This is the best collection of Facebook demographics I have seen and it up to date (Jan 2011). A big thank you to the person that collected the data and displayed it in such an attractive and meaningful way. Dick Stroud

Employment of 50-plus newsletter

This is a first rate newsletter that contains all of the important data about employment trends of the older workers in the UK. Dick Stroud

Tales of woe from the UK and the US

As you will see from the video from Saga – all is not well with the financial position of the UK’s over-50s (well a large group of them). I quote...

"People sometimes portray the older generation as the lucky ones with fewer problems than others," said Dr Ros Altmann, director-general of Saga, which provides services for the over-50s.
"But the evidence does not support this view. Some are fine, but the majority are struggling and the worst affected are just short of retirement.

"Their pensions will not deliver the income they were expecting, their savings income has evaporated and more are losing their jobs. "Once out of work they find it hard to get back in. In short, their lives may never recover, but their plight has so far been ignored by policymakers."

OK, that's what is happening in the UK - now for the US. Reading today’s Wall Street Journal paints a similar picture for older people in the US. I quote..


The 401(k) generation is beginning to retire, and it isn't a pretty sight.
The retirement savings plans that many baby boomers thought would see them through old age are falling short in many cases.

The median household headed by a person aged 60 to 62 with a 401(k) account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement, according to data compiled by the Federal Reserve and analyzed by the Center for Retirement Research.

Most 401(k) participants appear to have insufficient savings. Data from other sources also show big gaps between savings and what people need, and the financial crisis has made things worse.

What we are seeing is the ultra-fragmentation of the older market into the haves and the have nothings.

Why is it so difficult for our politicians to see what is happening, instead they keep up this mindless nonsense about the wealthy baby boomers. Dick Stroud

Survey Shows Simplicity=Age-Friendly

An excellent blog posting by Kim Walker about some fascinating research from Siegel + Gale a strategic branding firm, about the effect of 'Simplicity' over brand preference and value.

As 'Simplicity' is one of the essentials of being 'Age-Friendly', Kim was intrigued to see how the perceptions changed between the USA, UK, Germany, China, India and Dubai & Saudi Arabia.

The above is one of the charts from his blog that shows the factors that older people believe contribute to ‘simplicity’ and complexity in their lives. Dick Stroud

Age and educational attainment impact on Web use

Another small research sample from USA Today/Gallup poll conducted at the end of Jan 2011, with 1,487 U.S. adult came up with the above chart.

Obviously the trends are true but I wouldn’t want to put too much faith in the absolute numbers. The age differences are as you would expect but you should pay more attention to the difference in Google and Facebook use resulting from educational attainment. Dick Stroud

Over-50s own more e-readers than their kids

More people aged over 55 own e-readers than the younger generation, according to a new study on digital reading habits.

Data from a research company OnePoll suggests that 6% of readers in the over-55 category–equivalent to 500,000 people–own a digital device to consume literature in comparison to just 5% of those aged 18–24.

Another 18% of the over-55's surveyed said they plan to invest in an e-reader in the next 12 months.

The survey covered 2,000 people aged 50-plus.

Hmmm. As much as I instinctively agree with the results I would like to see the data from the e-book reader manufacturers. Also, with this size of survey I cannot believe you can be confident of a 1% difference. Dick Stroud

BMW staffs a car plant with the over-50s

Now this is interesting. Nothing to do with marketing but maybe a sign of the future of employment.

BMW has decided to invest a large sum of money on retaining its older workers by equipping an entire production line that will be operated by over-50s.

The new £18m plant has been designed to include ergonomic back supports for workers, enhance lighting to ease the strain on older eyes, and mobile tool trolleys that mean workers don't have to strain themselves reaching for equipment.

The workers will all be based on the line that deals with the chassis and drive components, and also features stools in the places where they might have once stood for hours and a 'relaxation room' in place of the toilet. Even the speed of the product line is being slowed down.

How refreshing to see that a company is taking a proactive step to adapting its workplace to the ageing workforce. If this had happened in the UK there would be an uproar that the company was depriving young people of employment.

Maybe this reflects the fact that the Germans have such higher rates of productivity than us Brits. Dick Stroud

‘Facts’ about the travel of the over-50s

Liverpool and Victoria has published some research giving lots of nice factlets about the importance of the older traveller. Here are some for your collection

The over-50s travel market is booming as older holidaymakers now account for over half of overseas holiday spend (51%) and 43% of all UK tourism spend.

More than a third of all holidays now taken by the over-50s

Over 50s spend £17.6 billion a year on travel – spending 67% more on trips abroad than holidaymakers under 50

Buying online is the most popular method of booking holidays with over half (54% or 18.6 million holidaymakers) over 50, buying via the Web, compared to just 16% buying from a travel agent.

I have no idea about the accuracy of these findings but they seem to be in keeping with other research about the importance of the older traveller. Dick Stroud

Where do older Americans live

Metlife's monthly QuickFacts newsletter is a good round-up of the interesting articles published about older people. The above chart shows where Americans over the age of 55+ live. As you can see, only 3% live in age-qualified housing. The 21% who live in 'other' 55+ communities is a confusing since this is housing areas where the majority of people are older. How the hell you work that out I don't know.

There is no doubt that MetLife is head and shoulders above other financial institutions in the way it covers the older market. Dick Stroud

Don’t lock your documents

Allianz Life has done, what looks like, some reasonable research about the financial status of older Americans.

For reasons best known to themselves the company has locked all of the research documentation that they encourage you to download from their web site so that it is impossible to copy any of the text. What a daft thing to do.

Cripes, it is not as if it is a national secret. If you are interested you can read about the research here and download a white paper here.

If anybody from Allianz is reading this blog have a word with your marketing department and tell them that they should be encouraging people like me to talk about the positive aspects of your company rather than criticise its 1990s attitude to content. Dick Stroud

Baby boomers 'must pay for their own elderly care'

The post-war baby boom generation “has done pretty well for itself” and should be prepared to use its property wealth to pay for care in old age, a government adviser has said.

These are the words of Norman Reginald Warner, a Labour member of the House of Lords.

So what gives Norman the right to make such pronouncements?

Well, Lord Warner is drafting plans to reform the elderly care system.

In his rush to be seen to “a man of the people” Mr Cameron (the UK Prime Minister) has used an assortment of the has-beens from the last Labour government to ‘advise’ him about the touchy-feely subjects like ‘care’.

Rather than look around to find people who might know something about the subject and are not laden down with years of accumulated socialist prejudices and systemic failure he has elevated Norman as the man to decided how the “rich baby boomers” should be forced to sell their properties.

A little bit of digging finds that this guy spent his lifetime working (if that is an appropriate word to apply) in and around the public sector. This means he faces his retirement with an index linked, final salary pension that the poor saps in the private sector are forced to fund.

The care for older people in the UK deserves better than putting Norman in charge of this subject. Anybody who has been associated with the past 13 years of Labour failure is the very last person who should be running this project.

This is the man who was at the centre of a government that resulted in damning headlines about the systematic way the NHS fails the old.

This is the man who was responsible for this type of bureaucratic gobbledygook that is supposed to protect the old and vulnerable and abysmally fails.

Apologises, for the rant but our politicians and their publicly funded hangers-on really do drive you crazy. Apologises, to my friends who work in the public sector and do a good job – they know more than most about the inefficiencies and failings of the system.

The funding and running of public health in the UK needs root and branch changes, not the tinkering and social engineering that will result for the Normans of this world.  Dick Stroud

U.S. Grandparents spend more

Yet more research from Nielsen. This time it a look at how grandparents spend their dosh.

The research reveals that grandparent households spend 4.4% more per year than all other households, which equates to an extra spend of more than $300 a year. Interestingly, having multiple grandchildren does not translate to more spending. 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.

The explanation offered by Nielsen is that 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.
Maybe, maybe not. Dick Stroud

Saga Quarterly Report - download it

I have to admit that I am normally a bit rude about Saga – probably unfairly.

The organization has just published the first of a quarterly report that looks at the wellbeing of the over-50s.

It is an excellent report. Nicely presented and provides a lot of food for thought.

If you are interested in the UK’s over-50s and how they are faring during these difficult times then it is a must download.

Of course there is nothing that new in the findings – why should there be – but it does add more evidence of the trends that we are seeing emerging.

Trend 1 – ultra fragmentation of the haves and the have nothings.
Trend 2 – the age cohort who are approaching retirement are having a tough time of things, as are the older-old. The group in the middle (60-70) is not doing so badly.

Of course these are very broad-brush trends but that is what is happening the UK. Any marketer worth their salt can see what this means to how they evolve their segmentation.

Well-done Saga. Dick Stroud

Forrester Research - old news but worth knowing

Forrester surveyed 43,000 consumers in the U.S. and Canada to get a read on technology use.

The conclusion: The technology gap between Generation Y (18 to 30 year olds) and Gen X (31 to 44) is widening (at least in terms of the use of mobile) compared to baby boomers and seniors. Mobile adoption has soared. Among Gen Y and X, 23% own a smartphone compared to 17% of the overall population.

Meanwhile, 85% of Gen Y sends or receives text messages and 27% of that generation access social networks on mobile devices. In addition, 37% of Gen Y accesses the mobile Internet. The picture for Gen X has some nuance, but offers a similar picture.

Now this is all very interesting but Forrester, like most analysts ignore the fact that maybe older people can do the more complex applications on their mobile but choose not to. This then becomes an issue of preferences rather than technology adoption. There is subtle but important difference. Dick Stroud

Wells Fargo’s Beyond Today

The tag line to this web site is “Financial Perspectives for Life”. Not an unreasonable thing for a finance company to be providing.

I have looked around this site a few times and whilst it is nicely constructed it seems to lack a central core. Also, I got the feeling that all too quickly the advice being given resulted in the conclusion that you should contact your financial adviser. Dick Stroud

Another very useful report from Nielsen

Nielsen have been issuing some very useful research . This document gives an interesting take on some of the global issues of ageing (ability to retire, online presence and a few other topics).

Some interesting quotes.

Population aging is not a short-term trend or even a medium-term one...it is a permanent trend.

Of all the countries in the world, only Niger in Saharan Africa will not see an increase in its median age over the next 10 years – it will start to rise after 2020.

As most countries will continue to age well into the second half of the 21st century, population aging is a permanent trend and marketers will need new models to reach aging consumers.

Understanding this new marketplace (the ageing population) will be essential for brands that will grow in the 21st century.

Demographers, sociologists, and marketers will need to develop new models and new ways of thinking to understand the shifts we see today and will continue to see for decades to come. Aging is here to stay.

The report doesn’t tell us anything we didn’t know but it gives some interesting country comparisons and adds further market stats. Definitely worth downloading. Dick Stroud

The rich keep working - women do retirement better than men

“The “vast” majority of Baby Boomers intend to live a more active retirement lifestyle than their parents”

This is what Bank of America said in its latest Merrill Lynch Affluent Insights Quarterly, a survey examining the values, financial priorities and concerns of affluent Americans.

This survey confirms a couple of themes that I have talked about over the past 12 months or so. Firstly, the people who least need to continue doing stuff during their ‘retirement’ do and that older women have a different take on ‘retirement’ than men.

Here are some stats from the research.

70% of these affluent Baby Boomers, those with investable assets in excess of $250,000, plan to keep working, at least part-time, as a means of remaining active and engaged during this stage in life. Other ways in which Baby Boomers look forward to staying active during their retirement years include:

• Pursuing additional professional success (32%)
• Continuing their education (26%)
• Learning a new trade (24%)
• Starting or furthering their own business (20%)

These are some gender disparities

• 86% of women plan to spend time traveling, compared to 66% of men
• 74% of women plan to enjoy a hobby, compared to 60% of men
• 64% of women plan to be more involved in their community, compared to 43% of men
• 62% of women plan to dedicate more time to philanthropic endeavors, compared to 41% of men
• 24% of men plan to start or further their own business, compared to 14% of women

This makes you wonder what these wealthy guys are going to do once they stop working! Dick Stroud

What does Newcastle have in common with Cincinnati – ageing

Good luck to both these universities - Newcastle - Cincinnati - that are focusing on being centres of excellence about ageing. I reckon this is a good strategy. Dick Stroud

Obituaries on your local TV channel - what a fascinating idea

I have to be honest I am not a great reader of the Obits columns, however, I know a lot of people who are.

I while back I was contacted by the lady who started Directobits.tv to tell me about her company. Check out the web site.

This is the crux of the proposition.

With the help of your local Funeral Director and participating TV station, families place an obituary on your local TV News and it is broadcast that very same day. Daily obit notices are broadcast during a dedicated obituary news segment. Notices air several times each day and for two or three consecutive days (depending on the market).

Because of the cultural differences and the lack of local TV channels I don’t think this model will work in the UK but it might well be successful in the US. Anyway, I wish the venture good fortune.

It is always great to read about people thinking outside the box, especially about products and services applicable to older people. Dick Stroud

Launch of The Daily - no paper - no Web - just for the iPad

Thanks to Chuck for reminding me about the launch of News Corp’s The Daily for the iPad.

Unfortunately, I cannot access the publication in the UK which is a bit weird for a global publication.

From looking at the video it does appear to be a radically new way of delivering content.

This guy reckons he has found a way to read the application by logging into a US iTunes account. I think I will wait until it is available on iTunes UK.

Like all things iPad, it will be interesting to see the demographics of the readership. Considering that the 50-plus are huge consumers of news I would expect them to be a significant group of customers.  Dick Stroud

Reado.com – this is a very neat application

I was reading Mary Furlong’s excellent newsletter that contains an interview with the founder of a company called reado.com. Just go and look at the web site to see how it works but essentially it enables grandparents to link up to their grandchildren (or parents come to that) and read them a book online with all the goodies of a Skype type interface.

Brilliant idea. Dick Stroud

Online banking and the over-50s

A survey published in the Banking Times reckons that 70% of the over-55′s are currently using the internet to manage their finances. Almost half are also logging on to source pension schemes, independent financial advice and stocks and shares.

“Experts believe the shift may have been encouraged by better interest rates, product ranges and general convenience online.”

No, I don’t think so. Maybe , just maybe 70% of the over-55s who are using the Internet do their banking online but for sure, 70% of the 55+ are not even online, let alone doing their banking.

I assume that the Banking Times got the press release wrong. The research was done by an outfit call OnePoll. Dick Stroud

A recap of the year in digital Media

Want to know what is happening in digital America, Download this report from ComScore. The only thing of real interest to do with the 50-plus is the increase in their share of social media. But then we all knew that anyway. Dick Stroud

Valentine’s Day spending among 50+ Americans

A very thoughtful lady from American Express sent me the following data from the American Express Spending & Saving Tracker research that was conducted during mid Jan 2011.

You can access tracker results from here

More than half (55%) of the 50+ plan to spend on Valentine’s Day, with the average spend at $180…I hope my wife is not going to read this blog posting!

The majority of those 50+ plan to either purchase a gift (41%) or go out to dinner (37%)

However, of those 50+ who are married or have a significant other, 48% are not planning to give gifts (compared to 40% of general population)

For those who are giving gifts, they plan to spend $86 on average (compared to $135 of general population)

I really don’t know what words of wisdom to add to this data. I do suspect, and this is based on a very small sample of data, that older Americans are more generous with their Valentine Day giving than the Brits. Dick Stroud

Who uses what electronics?

As usual, Pew Internet has produced a very useful research report about how the use of electronics devices (a better word than gadgets) changes across the generations.

A couple of the charts that most interested me are reproduced above.

I thought the chart and this commentary about iPad like devices was illuminating.

As of September 2010, 4% of American adults own a tablet computer such as an iPad. Though education and household income are high predictors for owning a tablet computer, as with e-book readers, they are also more popular with adults age 56 and under (who are significantly more likely to own a tablet computer than adults age 66 and older).

I cannot wait until we get 24 months of data to analyse to see what is really happening with the sale of iPads. Dick Stroud

Do I detect a hint of cynicism in Laurie Orlov’s latest blog posting

As I said in my last few blog postings, there has been a lot of media commentary about the ageing/aging population and the business opportunities it presents.

The latest posting in the Aging in Place Technology blog (by Laurie Orlov) contains her amusing and barbed commentary about the subject. I think she is being a tad harsh but only a tad.

Always a good read. Dick Stroud

Who won the best ad of Super Bowl?

This links tells you what the Twitter reaction was to the ads.

This link lets you watch them all.

This is what Hulu thought were the winners and losers.

Overall Most Liked Ads

1. Volkswagen: The Force

2. Bridgestone: Carma

3. Volkswagen: Black Beetle
 


Most Viewed Ads

1. Doritos: Pug Attack

2. Volkswagen: The Force

3. Bud Light: Hack Job



Overall Most Liked Ads by Women
1. Volkswagen: The Force

2. Bridgestone: Carma

3. NFL: Super Bowl Celebration
 


Overall Most Liked Ads by Men

1. Bridgestone: Carma
2. 
2. Volkswagen: The Force
3. Paramount: Captain America: The First Avenger


Looks to me as if the VW ad won the day. An age neutral ad? Dick Stroud

Another good article about the business of ageing

Cripes, in the last few days there has been a lot of thoughtful artilces about the business of ageing. To be honest, most of them contain a lot of the same stuff but each has revealed some new ideas/developments.

This article has a lot about Joe Coughlin’s work at AgeLab – always interesting to read -  but also has some stuff about a couple of other US developments that I have never heard about before and that sound really exciting.

Well written, easy to read/scan and worth a couple of minutes of your time. Dick Stroud

What is the Global Coalition on Aging and why is it different from other age groups?

I am just going to use the words taken from the organisation’s Web site to answer these questions. They are well written.

The Global Coalition on Aging is driven by the optimism brought about by the longevity revolution. Until now, we've been asking the wrong questions. Rather than, "How do we afford higher health and welfare costs," it should be, "What are the opportunities? How should we plan differently? How do we preserve and transfer knowledge? Can we enhance workforce and productivity?" Our member companies bring a unique and diverse range of expertise that will allow us to address aging issues from a more comprehensive and global perspective

The Global Coalition on Aging aims to reshape how global leaders approach and prepare for the 21st century's profound shift in population aging. The Coalition uniquely brings together global corporations across industry sectors with common strategic interests in aging populations, a comprehensive and systemic understanding of aging, and an optimistic view of its impact. Through research, public policy analysis, advocacy and communication, the Coalition will advance innovative solutions and work to ensure global aging is a path for fiscally sustainable economic growth, social value creation and wealth enhancement.

The Coalition will operate along four pillars of health and wellness, education and work, financial planning and security, and technology and innovation to promote basic reforms to address the 21st century's age-driven demographic realities.

If the organization does what it says then I think it will be a positive contribution to the ageing business. In case you haven’t guessed, the logos are those of the founder members. Dick Stroud

What does the ageing population mean to Chicago?

This is a fascinating and reasonably detailed look at what happens as your citizens age.

I have my doubts about some of the conclusions. It seems to me that the author assumes that the behavior of the cohort who will be 65+ in a decade is going to mirror the behavior of today’s 65+. That's a dangerous assumption.

The article has lots of talk about retirement. In 2021 I think the word retirement will mean nothing like it does today. "Retirement - wasn't that when people stopped working - how weird"

Sure, the physiological ageing conditions will still be relevant but if you want to forecast the future you cannot just take today’s situation and extrapolate it forward. The one thing for certain is the future isn’t going to look like that. Dick Stroud

Nestle is playing in the big league of health additives

Did you know that Nestlé has launched Nestlé Health Science SA, a company based in Lausanne set up to develop a scientific base for personalized health science and nutrition. It will develop and launch specialist food-based products to help prevent and treat conditions such as Alzheimer's disease, diabetes and heart disease. Swiss scientists say it will be possible for food-based products to reduce the symptoms of diseases and treat them, though some are skeptical conditions such as diabetes can be totally prevented.

The line between food and disease prevention is closing fast. Soon it will not be good enough to eat a healthy diet but one with the right balance of disease prevention additives.

This market will be zillions of dollars.

Just to give you a taste of what is happening (excuse the pun). Nestlé has recently acquired a U.K.-based pharmaceutical start-up testing a chewing gum to help kidney-disease sufferers.

I would think there will be plenty more of these acquisitions since the Health Science subsidiary has over half a billion dollars to invest.

Using the company’s words it seeks to make a "quantum leap" in a sector that Nestlé has been trying to crack at least since the late 1980s. Dick Stroud

Stocks With An Exposure To Baby Boomer Retirement

If the older consumer is so important you would think that companies that are exposed to the ageing of the population would do rather well. And you would be right.

J.P. Morgan has an “Aging Population Index” made up of 16 shares and it has outperformed the S&P 500 Index in six of the past eight years.

Why the hell haven’t I been investing in the damn thing. Why haven't you been investing in the index?

Here are the companies and how they have performed. Makes you think.

Interesting that the two worst performers are in the fickle fashion industry. Stay out of fashion unless you really know what you are doing.

The rest of the stocks are in far more predictable industries (Finance, Hotels, Healthcare, Holidays)  Dick Stroud

The following ad is featured in the previous video

What is he advertising?

I showed a friend a still from this ad and asked her what she thought he was promoting. Beer she said. Nope, something we don’t normally talk about. Click to find out. Dick Stroud

Some interesting examples of age-adapted products

Do watch this video from the Wall Street Journal since it contains some interesting examples of age-adapted and age-neutral marketing. You will not be able to read the article, unless you have a subscription.

Here are some examples

ADT Security Services is training its staff to better communicate with boomers who are enquiring about medical-alert alarms. Of course it is just as likely that they will be enquiring about the products for their parents as themselves.

Ocean Spray Cranberries has now targeted the health-conscious older consumer as its primary consumer base.

There is an interesting example of a company that is gradually increasing the font size on its packaging, lowering store shelves to make them more accessible and avoiding yellows and blues in packaging—two colors that don't appear as sharply distinct to older eyes.

The one that really interested me was the ad for Kimberly-Clark Depend brand, widely considered adult diapers in the past, has had a makeover in a new TV ad: "Looks and fits like underwear. Protects like nothing else."

Bathroom-fixture maker Kohler Co has abandoned the term “grab bar" and introduced the "Belay" shower handrail—named for the rock-climbing technique, which blends subtly into the wall of a tiled shower.

And so on and so on. These examples alone are not going to shake the foundations of Corporate America but they do provide a guide to how the future might work out. Dick Stroud

The saddest product endorsement you will ever see

Apple couldn’t want more glowing praise for the iPad than this video clip from Gabrielle Giffords, the Arizona senator whose shooting shocked the world.

Very sad watching this knowing what was to befall the poor lady. I do hope she makes the best recovery possible. She looks a genuine person. Dick Stroud

Not the best time to be young

A couple of months back I wrote an article for the Marketing Society about the issue of youth unemployment and the impact that has on their marketing attractiveness or lack of it.

Business Week has its leading article this week about the same subject. It neatly incorporates the problems in Egypt and how it is all of the fault of the boomers. What it doesn’t do is offer any real analysis of the cause of the problem, let alone the solution.

Is this a temporary dip or the way things will be for ever more?

The one area where there will a big demand is to look after the oldies. Somehow I get the feeling that this is not the sort of employment that is at the top of the list.

Like the previous blog posting, this is heavy stuff but it vital that we understand what is happening since it will govern how us marketers exploit the new world order. Dick Stroud

Thirty-four percent of Americans have no retirement savings

Think about that for a couple of seconds - 34% of Americans don't have any retirement savings.

Now think about this - 27% have no personal savings. Just 18 months ago those numbers were moderately lower, at 30% and 22% respectively.

These are some of the results of The Harris Poll, surveyed online in November 2010.

A couple of more things. 25% of Baby Boomers have no retirement savings nor do 22% of the 65+.

As I have been saying for the past 6 months, lots, probably the majority, of the older consumer are broke and have not way or the time to repair their wealth.

In the UK there was an interesting report of some research conducted by Santander Savings showing that those who took out mortgages between 2000 and 2010 will have an average ‘savings window’ of just 10 years. This compares with people who first bought properties in the 1960s who had an average savings window of 21 years.

Conclusion - people who have recently taken out mortgages, or are yet to do so, will find it far harder to save for retirement than previous generations.

Whether or not you are interested in the older market it must be clear to you that we are now witnessing a staggering disruption to the wealth accumulation process.

This is not something that will get better in a few months time. This is the new reality.

Martin Wolf (Financial Times) wrote a terrific article this week titled: “How the crisis catapulted us into the future.” This is the essence of what he said:

Every well-informed person knew that ageing would generate a fiscal squeeze in high-income countries as spending rose and growth slowed. The crisis has brought this forward by a decade. According to the IMF, general government net debt of the Group of Seven high-income countries will jump from 52 per cent of GDP in 2007 to 90 per cent in 2015. This does not mean hyperinflation or default. But managing public finances will govern politics for the foreseeable future. It will be a miserable experience.

Mix into the equation that we are experiencing an accelerated movement of economic activity from West to East (that is longhand for job creation) and it means that we have a completely new playing field upon which we execute our marketing games. The trouble is so far nobody seems to know the rules. Dick Stroud

The wonders of Skype and Web radio

I am sitting in my rural cottage in Wiltshire; Brent Green is in Denver, Colorado and the radio producers in a couple of other locations in the US. One hour later, thanks to the wonders of Skype, and some excellent editing of my ramblings, we have an hour-long radio interview about the older market in the UK.

Would you like to hear the results?

No problem. You can listen to the podcast from my web site or from the radio station pwrnradio.com.

Two other things.

Firstly, if you haven’t already bought Brent’s book, Generation Reinvention: How Boomers Today Are Changing Business, Marketing, Aging and the Future, you should. Brent has been observing, speaking and consulting about the Boomer market for much longer than me and "knows his stuff".

Secondly, the power of Web radio has to be experienced to be understood. Have a look at the pwrnradio.com web site to see the range of people and organizations who are using this media. We have been very slow in the UK to realize the power of this form of communications.

Enjoy my dulcet tones. Dick Stroud

Millward Brown digital predictions for 2011

I like Millward Brown reports. There is nothing radically that new in their predictions for 2011 but it is worth a quick read.

Because of my interest in Web video (quick plug for my web video production company InTwoFocus and my Web video blog) it was good to see that the expectations for video advertising are a continuing move in the upward direction.


Millward Brown think the most interesting development in 2011 will be the roll out of Google’s TrueView advertising format, which puts users in control and allows them to skip ads they don’t find relevant.

Because of Google’s presence in the web video world this must be something worth monitoring. Interesting times. Dick Stroud