Think twice about using in-stream online ads

I have never been a great fan of in-stream video ads. Looking at this analysis I shouldn’t be surprised since neither are most others of my age group.

If this type of advertising is something that you are considering then it might be a good idea to read this article in eMarketer. Dick

Online use by older people

Thanks to Kim Walker for telling me about this article in BrandRepublic about Internet use by the 55+. The content is based on data provided by Carat’s Consumer Connection System (CCS).

There is no detail about the research methodology so I have no idea of its validity. Interestingly, if you have a look at the Carat web site it looks like it has been abandoned, with the first article, in the  'Leadership' section, dated 2008.

Too much of the analysis (like what are the most popular web sites) is reported for the age group 55-75 years. This is a massive age range. Like trying to make sense out of the age range 18-38.

I think I will stick with the data from Ofcom as my main source of online use by older people. Dick Stroud

Another daft name for older people

Anybody who reads this blog will know that I have a morbid fascination with daft names that are used to describe older people.

Another one has entered the list. Mappies - Mature, Affluent, Pioneering People.

If you want to read any more about it – and I cannot think why - then it appeared in an article in the Independent. Dick Stroud

Living longer and prospering? Maybe not.

This is a thoughtful paper from the Oxford Institute for Ageing.about how the UK should develop its pension system.

Since politicians never pay any attention to this type of analysis its only use is as a source of interesting numbers.

There is a lot in the report about the variation of age expectancy in the UK by socio-economic group/geography. Also, a lot of discussion about the importance of healthy life expectancy measures rather than the simple measure of time from birth to death.

I wonder about the extent that it accounts for the rise in obesity and all the problems that creates?

As you can see from the graph, the rise in healthy life expectancy is only going up at a snails pace. Dick Stroud

Seniors: The New “Social Gamers"

Michelle Kaplan is the co-founder of Winster.com. Many thanks for contributing this article to my blog.

It is always good to hear stories that demolish the stereotypes about older people and how they use, or don't use, technology.

This is what Michelle had to say.

When you hear the word “social gamer,” do you immediately picture a pimply-faced teenager wearing headsets in front of a computer? Well, you might want to think again after you hear what recent studies revealed.

The Pew Research Center’s Internet & American Life Project revealed that social networking sites nearly doubled in usage among people ages 50 and older since last year, and has grown 100% among people ages 65 and older. Surprisingly, usage among these older groups is growing at a faster pace than younger generations.

Even more surprising is that 46 percent of social gamers are at least 50 years old and dominated by women, according to the 2010 Popcap Social Gaming Research.

“This study establishes social games as a fast-growing and quickly maturing pastime for an enormous portion of the population,” said Robin Boyar of Thinktank Research. “With more than 80 percent of social gamers stating that playing social games strengthens their relationship with friends, family and colleagues, social gaming reinforces the core appeal of social networks.”

Seniors are paving the way for the next generation social gaming sites. They enjoy playing multi-player games in real-time, making new friends and winning prizes on sites like Winster.com.
Social media sites have been a long time favorite among the younger generations, but now senior citizens are taking a deep interest and companies are starting to take notice on the demand and coming up with niche sites specifically to address their social needs.

• Popularity of social games among seniors has taken off for a variety of reasons:
• Connecting with old and new friends
• Limited mobility restricts seniors from getting out for real life social interaction
• Games provide mental stimulation that improves health
• Social games offer real-time interaction for those seeking companionship to help overcome social isolation
• Cooperative games promote positive interaction that lead to feelings of happiness and long-lasting friendships
• Social Networking sites are designed so that everyone can easily create a profile and start connecting with others immediately
• Seniors are more likely to have access to high-speed Internet
• Bridges generational gap by providing a unique platform where parents, teenagers, grandparents, friends and neighbours regularly communicate
• Seniors with chronic disease are more likely to seek support online

For these reasons and more, social gaming sites will continue to gain rampant popularity among the fifty-plus population. Seniors are wired and embracing technology at full speed now more than ever.

Article written by Michelle Kaplan, co-founder of Winster.com, a social gaming site geared toward older adults who enjoy playing games, making friends and winning real prizes. Winster.com offers community, companionship, and positive social interaction.

Honda web site makes visitors happy

In the past I have used the results of the J D Power survey of car web sites to illustrate good design and content principles.

Honda does it again and comes top of the list.

Remember 50% of new cars are purchased by the 50+ so you can read into this result that Honda's site is working well with this age group.

The reason? It is simple. It anticipates the user's needs. It is user-centric and not an ego trip for either the supplier or the web designers. Pity more web sites don't follow Honda's lead. Dick Stroud

What's In Store for 2011? Insights Into the Post-Recession Consumer

Sit back, point your browser to this link and watch the webinar from Nielsen about what 2011 and beyond holds in store for us marketers.

Very, very interesting.

I have been crowing on about a future trend that I have called ultra-fragmentation of markets.

The start of Nielsen’s presentation and a theme that runs throughout the session is what they call Polarization of markets.

There has always been a spectrum of consumer income/wealth but what I (and Nielsen) are suggesting is that this is going to become more extreme – the bit in the middle is going to shrink/disappear.

If I am right then this will have massive implications for companies irrespective of the age groups they target.

The Nielsen webinar covers a lot of other good stuff, like the fact that women will control 12 of the 18 trillion of global spending. Forget if the numbers are correct. Undoubtedly the role of women as determiners of purchasing is increasing and increasing.

Go and make yourself a coffee and listen to the session. Dick Stroud

Why do adverts irritate me so much?

The inmyprime blog is well worth reading. The content is good and it is well written. I don’t always agree with the comments but it always makes me think.

The blog posting about the recent IPA (Institute of Practitioners in Advertising) 2010 Census of those working in media, advertising and marketing communications agencies tells us the following about the age of their employees:

5.3% were aged over 50

45.5% were aged 30

Average age is 33.7

I had a look back at my blog and found some earlier census data

In 2007, the percentage of media agency staff who are under 30 was 61.6% and the average age of all staff was 31.0 years.

This compares with the 2006 figures where the numbers were 60.6% and 31.2 years old respectively.

I guess we could write a headline to say that agencies are getting older! The writer of the blog goes on to say:

Granted, for all kinds of areas of activity, you don’t have to fall into a particular category to have some kind of empathy with the particular condition – but it does make you wonder. In such a self-reinforcing and self-congratulatory environment which areas and approaches do you think are going to be seen as the most attractive and most “sexy”, and also where can we get a few cheap laughs without stretching our brains too much?

The best generals, of course, recognise their own limitations and bring in relevant expertise when necessary. Let’s hope these young lions are doing this when it comes to really understanding a massive, growing and very important part of the economy.

As somebody who tries to breach the gap between the youthful agency and the realities of the older consumer the answer is: “more agencies realize they need advice but still too many base their perceptions on the basis of their parents and older relatives.”

This year I have worked with the young staff at a couple of agencies and they are as bright, perceptive and open to new ideas as the best of a generation ago.

Certainly youthful agencies will, unless specified differently, tend to be youth-centric. That’s a fact of life. It is up to their clients (who are often older) to dictate what they want. Too often they don’t. Dick Stroud

Marks and Spencer ads

I have just concluded an interview with Brent Green for his online radio show. I made mention of Marks and Spencer and their use of Twiggy in their award winning ad campaign.

There have been few ad campaigns in the UK where a teaser print ad campaign was run before the new TV ads were launched.

First started in 2005 the campaign is still running. Enjoy Dick Stroud

The newsletter from Immersion Active- worth subscribing

I have always been impressed with the marketing of the guys at Immersion Active and I really like their newsletter. I recommend subscribing.

The latest version has a couple of fascinating news items.

New Lives for ‘Dead’ Suburban Malls describes how old shopping malls (centres) are being converted into housing areas for older people. Sounds a brilliant idea.

Neighbours, an older couple (both in their 80s) are moving to live above a store in the local town shopping centre. It is close to the stores, safe, near to transport, lots of life etc etc. I think the concept has a lot to recommend it. Maybe it might translate into the UK housing environment.

MetLife has just published a report (Housing Trends Update for the 55+ Market Jan 2011). Lots of data, but the bottom line is that there is still a low uptake of 55+ specific housing and low but rapidly increasing rise in older people using reverse mortgages (equity release). Sounds about the same as in the UK. Dick Stroud

Population ageing and sovereign debt ranking now being linked

Ratings firm Standard & Poor's has downgraded Japan's sovereign debt rating by one notch to AA- from AA, saying that it expects the country's fiscal deficits to remain high and noting there is a lack of a "coherent strategy" by the government to tackle the issues. Beware US and most of Europe!

Among the other leading firms, Fitch Ratings said that it was maintaining its stable outlook on the basis that the current low interest rates would allow it to fund itself, although it noted that the longer-term pressures from an aging population could threaten funding stability.

This is the first time I have seen commentary about sovereign debt being linked with the aging population. I think we might hear more of this in the future. Dick Stroud

Why older people are less astute drivers

I am not sure that they are less ‘astute’ but there is no doubt that older people do have problems driving, especially at night.

This academic research has just been released explaining what is going on in the older head.

It would seem that the problem is not necessarily a result of a reduced ability to perceive moving objects, as one might suspect, but a heightened awareness of the backdrop against which these objects move. This creates too much information to be processed – a bit like when my old Windows PC would freeze (I am sure that is an analogy too far).

A research team working at the Harvard Medical School has isolated the cause of this phenomenon, and the surprising results could not only help train elderly people to be better drivers, but they could also help psychiatrists better understand abnormal brain processes in psychological conditions like depression and schizophrenia.

The paper detailing the research will be published in the Journal of Neuroscience at the end of January. Should be worth reading. Dick Stroud

Data meets Google result = joy

Just look at this amazing way to represent demographic data – US census data.

I just hope the authorities in the UK are looking at the same page.

This is how we should have access to geodemographic data. Just look at New York and see the way the city is fragmented into high and low income areas. Now if we could just add age to this dataset it would be fantastic. Dick Stroud

What a pile of unadulterated nonsense

To be honest when I first wrote this blog I didn’t use the word ‘nonsense’ I use a much nastier word.

I have moaned on a lot about the trend in Boomer-Bashing that has taken root in the chattering classes in the UK and the US.

I have just read a report, published all ages that gets my gold star for being the worst example of this genre that I have encountered for sometime. The following gives you a taste for the content it contains.

Aka the baby boomers, aged 50-70 with some younger. Characterized as having had it good for their whole lives, the baby boomers have seen good health and education as well as financial prosperity. Much of this has been based on rising house prices over the last 30 years, borrowing against their assets and then spending it all. The worldwide recession has led many to question where this ‘wealth’ has gone and whether it can be realized again. For many others, it has always been a case of wishful thinking.

Clearly the authors of this document are not the brightest sparks you are likely to encounter. Not surprisingly the report is a fact free zone that makes no attempt to justify this and other preposterous statements.

I am not going to go through all of the arguments again why it is insane to try and generalize the prosperity of a generation. A couple of minutes spent researching the subject shows how wrong the conclusion is and how the truth is that probably the majority of boomers are entering retirement totally unprepared financially.

I had a look to see who the founders of the outfit. I wasn't surprised to find they are a couple of ex-public sector employees who clearly think all boomers have been paid the high salaries and totally unaffordable pensions that they have been awarded. Dick Stroud

The stereotype still lives on

I was reading an interview in Computerworld with the head IT honcho from a US travel company. Much to my amazement I read this statement:

And with today's different generations -- baby boomers to Gen Y -- I think they're all reached so differently now. If it's the baby boomer who still wants to have the brochure and see that person's face, that's there, too.

Blimey, I hope they have a better way of designing their web site than building it around these old stereotypes. Dick Stroud

A big thank you to MetLife

MetLife keeps producing first rate research about older people, their wants, their needs, their hopes and their problems.

I have just discovered the quick facts document that it is now publishing. First rate.

If you want an insight into the older market then MetLife is a good starting point. Dick Stroud

McCann wins Saga Group ad account

Saga Group, the service company for the over-50s, has appointed McCann London to handle its £6m ad account.

Campaign's reporting of the win has statements about "Saga increasing its marketing activity in a bid to build a more dynamic brand and broaden its customer base."

I suspect that Saga's customer base grows older by the year. Not a good thing.

McCann's first work for Saga launches later this month and consists of a series of three television spots promoting insurance, cruises and holidays.

In addition to a new ad agency, Saga is having its web site redesigned. Not a day to soon.

It will be interesting to see what the hot shots at McCann come up with to make the brand sparkle. I will keep my eye open. Dick Stroud

Inflation is great for the young and bad for the old

The UK has a notional idea that inflation should be 2%. It long ago chucked that goal in the waste bin.

Yesterday we learnt that CPI annual inflation – the Government’s target measure – was 3.7% in December, up from 3.3% in November.

Like quoting ‘averages’ - it is pointless having one figure of ‘inflation’. As Age UK has been shouting – inflation for older people is much higher.

Sadly there is no appetite for tackling inflation that has the convenient result of burning debt, both for Government and individuals. If you have wealth, it has the opposite effect. Who has wealth in the UK?

Whilst the media keeps muttering on about the way older people are unfairly treated by being given bus passes and heating allowances they are strangely silent about the much greater inequality of allowing inflation rip. Dick Stroud

Factlets about demographics and the US car industry

Did you know that in the US, from 2007 to 2010, the average age of a new car buyer rose from 52 to 56?

Did you know that Lincoln's average buyer age went past 60 in that same time frame?

Did you know that Lincoln has hired "Mad Men" actor John Slatterly for its new car ads?

The marketing director of Lincoln said: “Fifty-somethings can relate to him, but he's also cool to people in their 40s." I have to take your word for that.

The article ends with this statement:

Overall, other car companies would be smart to do likewise and embrace the Baby Boom generation and realize their buying potential. There's no shame in letting this demographic define your brand if the strategy is executed well, especially when this dynamic and important group has the potential to make -- or break -- your company's profits.

Seems a reasonable conclusion. Dick Stroud

Rising number of over-65s work on

According to data from the Organisation for Economic Cooperation and Development, rising participation in the workforce by the 65-plus age group is a trend in most industrialised countries.

Data from the UK’s Office for National Statistics show that 8.5% of over-65s were in the workforce in the three months to October 2010, with a further 2.2% describing themselves as unemployed but looking for work.

Older workers have been entering the workforce in spite of recession and near record youth unemployment. While the number of retirees at work is rising, absolute numbers not only of 18 to 24-year-olds, but also those aged 25 to 49 are falling.

Maybe a driving factor behind the desire to keep working is the extension in the expected period of disability free living and the need to have the dosh to fund it.

According to a study from Oxford University’s Institute of Ageing and Club Vita, beyond 65 a British man can on average expect to live 10 years healthy and disability-free as of 2006 – up from 7.6 years in 1981. For a woman, comparable figures are 10.6 years and 8.5 years.

The bottom line for marketers is that you have more older people staying longer in the workforce earning and most importantly spending. Dick Stroud

The over-50s are bigger mobile social networkers than under 30s

According to an article in Marketing Week, over 50s are more likely to start using social networking sites on their mobiles than their younger counterparts this year, according to new research.

The research, from WPP-owned Kantar Media’s TGI MobiLens survey, found some interesting things.

The over 50s mobile social networking market is 85% more likely to have spent £2,500 or more on holidays in the last year and 64% more likely to have four or more credit or debit cards compared to all mobile-owning adults.

Around 400,000 British adults over 50 use social networking sites on the move, a 52% increase on last year, while the number of mobile social networkers under 30 rose by 48%.

Over 50s who access blogs, social networking or content sharing sites on their mobiles are also around three times more likely to earn £50,000 or more than other adult mobile-owners. They are also 45% more likely to be educated to degree level.

It doesn’t take a genius to see that the research company concluded that mobile is a key channel to target wealthy, educated over 50s.

In a separate study, YouGov found that 40-54 year-old women are almost as “apps-active” as their 18-24 year-old counterparts.

I am never that convinced by these research studies. The main message for marketers is that older, educated and wealthy consumers are not that much different in their use of technology from the average younger person. Dick Stroud

Mum and dad gets some help

At long last housebuilders and finance companies have got together to make the inevitable that bit easier to occur.

Bank mum and dad is already the default lender for the majority of first-time buyers. According to the Council of Mortgage Lenders, 84% of first-time buyers, under the age of 30, have financial assistance with their property purchase.

This week Barratt announced a deal with Hitachi Capital, the financial services group, that will allow parents to borrow up to £50,000 on behalf of their children to help them to get on to the housing ladder.

The scheme is called Helping Hands.

So how does the Barratt/Hitachi loan work? Buyers must secure a normal mortgage for the majority of the property price and have a 5% cash deposit. Hitachi Capital will then lend up to 15% (up to a maximum of £50,000) to the buyer’s parents or legal guardian to meet the rest of the cost. The loan is unsecured (meaning that the borrower does not have to back it up with assets like a property) and payable over a 12-year period, at a fixed-interest rate of 5.4%. There are no early repayment charges and unlimited overpayments are allowed at any time during the agreement.

I reckon this will be the first of many such financial products. Dick Stroud

The last baby boom story ever - I hope

This was the title of an article published by the BBC from Michael Goldfarb.

I really enjoyed it since I agreed with most of what he said.

The rush of wind you just felt going past your ear is my scream. There is only so much of this someone born in the middle of the boom can take.

I know the feeling, especially when it yet another rehash of all of the other nonsense that is talked about the subject and especially when it about middle class stereotypes of the generation.

Having just read a summary of a new book (We Never Had It So Good, by Orange Prize-winner Linda Grant) it looks like this long list of nonsense is about to get a tad longer.

Thanks Mr. Goldfarb, good to know I am not alone having these feelings. Dick Stroud

An exciting time in the electronics industry

The Consumer Electronic Show in Las Vegas appears to have had a lot of products that should be useful for the older consumer.

The guy who runs Eldergadget.com reckons that as electronic devices get touchscreens, simpler interfaces and other upgrades they become easier to use for people of all ages - "Walking around, it dawned on me how amazing this is for seniors," he says.

Here are a couple of the products that particularly caught his eye.

Fitness related. Panasonic and NordiTrac have teamed up with iFit to create a treadmill, powered by Google maps, that enables you to walk about anywhere in the world where Google has been doing its street photography. Neat - see the video.


Converging user interfaces. Some of the products on show at the exhibition illustrate how it might be possible to share a common interface for all of your household electronic products rather than have countless controllers, all of them with their own interfaces. Common controls for an iPhone, iPad, TV and computer are nearly there. All of the interfaces being touch, motion and voice driven. Cannot be more than a year or two away.

This is a good article. Well worth a read. Dick Stroud

When is a PC not a PC – when it is a tablet

Research analysts, IDC and Gartner, have downgraded their PC shipments projections. Why? Mainly because of a surge in purchases of Apple’s iPad and other tablet devices which are spreading to new markets.

Both consultancies also warned that the PC market would come under even more pressure as consumers turned to tablets, game consoles, smartphones and other devices rather than replace home and portable computers.

Neither company defined the iPad and the rival tablet computers as PCs.

The IDC analyst expects the number of tablets to reach 44 million in 2011. This compares to sales of 385 million PCs. So in 2011, tablets are estimate to be 11% of PC sales. That is amazing.

It would be fascinating to see the split of tablet sales by business/consumer and by age.

These numbers really drive home the importance of smart devise and in my view their importance to the older consumer. Dick Stroud

Why smart devices and apps are so important to older people

Apple’s success with its iPhone and iPad has been the consumer technology success story of 2010 and by the look of things will be going strong into 2011.

I have been musing for some time why I think the combination of smart devices and apps is particularly relevant to older consumers and the implications this has for marketers.

The Marketing Society asked me to combine these random thoughts into an article that is published in this month’s edition of Market Leader.

If you want a read you can have a peek at the copy on my web site. I would be interested to hear your comments (good and bad). Dick Stroud

Emotional intelligence peaks as we enter our 60s

US psychologists have found that older people have a hard time keeping a lid on their feelings, especially when viewing heartbreaking or disgusting scenes in movies and reality shows. But they're better than their younger counterparts at seeing the positive side of a stressful situation and empathizing with the less fortunate.

I always knew I was a big softie.

The press release doesn’t say a great deal about the research so I am not sure how the findings can have any practical marketing application.

When I have the time I will read the full research paper. Dick Stroud

Fracturing markets

Segmenting markets by income/expenditure is covered in marketing 101 textbooks. That doesn’t mean that it is something that marketers necessarily do, but it is basic stuff.

I don’t know what to call it, but I think we need to refine our thinking about income segmentation to reflect the reality of the chasm that is growing between the haves and the have nothings.

Yesterday I read a Grade 1 depressing article. The Daily Telegraph looked at what was happening in the US. Here are a few of the observations:

Luxury outlets saw an 8.1% rise from a year ago, but discount stores catering to America’s poorer half rose just 1.2%. Sales of Cadillac cars have jumped 35% and Porsche’s US sales are up 29%

Cartier and Louis Vuitton have helped boost the luxury goods stock index by almost 50pc since October. Yet Best Buy, Target, and Walmart have languished.

The numbers of people on food stamps have reached 43.2m, an all time-high of 14% of the population. 

The “labour participation rate” for working-age men over 20 dropped to 73.6%, the lowest the since the data series began in 1948.

“Corporate America is in a V-shaped recovery,” said Robert Reich, a former labour secretary. But most American workers are trapped in an L-shaped recovery.”

The situation is the same in the UK, it might even be worse. The combination of manufacturing moving to the East (soon to be joined by higher value tasks) – low levels of investment the rapid ramping down of public spending will leave large parts of the country with high percentages of economically inactive people.

In my view marketers will need to abandon large tracks of the UK as effectively being an economic desert. Of course this ‘flight’ from poor geographic areas has the effect of speeding up the process as it depletes the areas of support infrastructure. Despair breeds a self-fulfilling prophecy of doom.

As evidence of this flight there are widespread nursing home closures, in the US, over the past decade that has resulted in a 5% drop in available nursing home beds, with poor, urban neighborhoods hardest hit. In the UK, care companies are doing their level best attract private clients and to ditch the low fee clients paid for by local authorities.

Now mix the ‘age factor’ into this equation and you have a real marketing challenge. I am not offering any solutions but I am acutely aware that the structure of the market is undergoing a seismic change. Dick Stroud

It’s all in the interface

What is it about the iPad that is so great? Why do love using the trackpad with my iMac?

Why am I amazed and excited when I look at the computer interfaces in the films Minority Report and Iron Man 2?

It has taken me far too long to realize, something that I am sure others have know for ages, that the way we inter-relate with computers far more important that their processing power and fancy application software.

Whilst the computing power and sophistication of software has increased by a zillion percent most of us are still using the medieaval mouse and keyboard as to utilize its power.

If you get a chance have a look at this video (15 mins) to get a view of what is possible. Also, have a look the blogs Aging in place technology and Useit to get their take on the importance of the new Kinect interface.

I do hope interface designers are thinking about how these amazing new interfaces can help get the zillions of older people who are not using the Internet to go online. Dick Stroud

Big business in sick oldies

If you go into an up-market private London hospital you are likely to see the signs for both English speakers and those from the Middle East.

As the numbers of wealth older people grow I suspect you see the size of the font on these signs increases in size.

AARP writes about the way that European countries are preparing for the surge in demand from wealthy older people. 



Germany is currently seen as one of the best destinations for medical tourism for the older consumer.

While Germany can't compete with the cheap procedures offered by countries such as India and Thailand, it does offer some of the most advanced treatments in the world. 

The German authorities estimate that 40% of patients are looking for advanced technology, while only 9% are trying to find lower costs. 



The boomers will... be a source market for the global tourism industry for several decades and will have the biggest impact when the latter part of the group retires around 2024."



Switzerland is another country that has started to cater to wealthy boomer patients, especially those from GCC states and Russia, reports The International Medical Travel Journal. 

Next year the country is planning to expand the luxury role of its medical facilities to accommodate both foreign patients and their families.

And so the story goes on. It looks to me like the wealth older person will select their medical treatment from the best of the European country’s private medical facilities. The next tier down in wealth will access the facilities in the old East Europe and Far East. The vast bulk of older people will be at the mercy of the over-stretched domestic services.

Clearly there is going to be a hell of good market in premier health services for the growing number of sick older people. Dick Stroud

Debt and getting old don’t mix

The UK’s leading debt charity Consumer Credit Counseling Service (CCCS) has published a booklet to help those approaching retirement to sort out their debt problems.

The guide was produced in response to research showing that its clients aged 55 and over had, on average, higher debt levels but lower incomes than its other clients.

The average debt for a CCCS client over the age of 55 is £25,826 compared to £24,274 for clients overall, while their average annual income was £12,920, significantly lower than £17,316 for the average client.

The UK’s poor over-50s, the Have Nothings, have American cousins.

In December there was an article in The Street that identified two trends amongst some of the US’s retirees. One group is racking up debt at a pace they won't live long enough to pay off, and have few qualms about doing so. Other debt-heavy retirees feel forced to declare bankruptcy in growing numbers.

A recent survey commissioned by the nonprofit CESI Debt Solutions found that almost 40% of retirees are not worried about paying off their debts during their lifetimes.

The survey found that while 56% of retirees had outstanding debts when they left the work force, 96% refused to delay retirement because of the outstanding debt.

The article went on to list a litany of depressing facts about the debt problems of the debt-laden group of older Americans.

All of this is another symptom of the fragmentation of the older age groups into the Haves and the Have Nothings. A dismal prospect and a significant marketing challenge. Dick Stroud

Over ten million people to live to 100

Who the hell knows if this will happen but the great and the good of the DWP (UK Government Department) reckon that more than ten million people in the UK today can expect to live to see their 100th birthday – 17% of the population. Three million are currently aged under 16, 5.5 million are aged between 16 and 50, and 1.3 million are aged between 51 and 65. Around 875,000 are already aged over 65.

In 2066, there will be at least half a million people aged 100 or over.

This gives me some ideas about writing a new book 80-Plus Marketing. What this research doesn’t talk about is how the healthy life expectancy age is likely to change. If that remains where it is then we are going to have a lot of people spending the last two decades of their lives with poor health. Not something to look forward to.

The other thing that the research didn't mention is where all of these oldies will be living. The UK has massive differences in life expectancy related to social class.  We could have an ancient prosperous South and relative young poor North. Dick Stroud

"Your Guide to Better Living"

I am still catching up on the events of last year. In mid-December the New York Times Company announced the launch of Your Guide to Better Living, a free quarterly magazine and Web site: “ intended to help baby boomers and their families as they consider transitions in lifestyle.”

The premiere issue will be published on March 2011, and the companion Web site, www.BetterLiving. com will go live on the same date.

USA Today and CBS News are also having a crack at the same age group and have teamed up to create a "Senior Moment" series of stories and videos about Baby Boomers. The newspaper and network news organization say they are exploring "the aging of an iconic generation and the impact on the nation."

I was amused by the content of the Better Living mag. At least the photo was not taken on the beach, or if it was it is not clear from this image. Dick Stroud

Executives embrace the non-text Web

Forbes has done some research to understand manager’s attitudes towards receiving information in a non-text format (i.e. in a video stream).

You can read a summary of the document on eMarketer or if you want the original document you will need to register on the Forbes web site. If video is your thing then it is well worthwhile.


This is what Forbes had to say

A majority of the businesspeople surveyed by Forbes in October 2010 said they watched more online video than a year earlier. Nearly 60% of all respondents said they would watch video before reading text on the same webpage, and 22% said they generally liked watching video more than reading text for reviewing business information. Three-quarters of all executives said they watched work-related videos on business websites at least once a week, and more than half did the same on YouTube.

As you can see from the image, there was a considerable difference in the attitude of the respondents depending on their age.

But hold on a minute. In the methodology section it states that the number of people interviewed was 300. These are spread over three age groups. It doesn’t say how these were split by age group. Let’s say that the divided the sample equally (i.e. a hundred per age group) then these conclusions are based on 100 people aged 50-plus.

Now we know that there is a big difference in the way older people react to technology, from the age of 60-65 onward. So what we have is an average that will cover the tech savvy younger and less tech aware older old. This makes me think you should be careful in drawing too many conclusions from the results. Dick Stroud

When in doubt stick close to home

M&S Money has done some research into the intentions of the over-50s to either emigrate or spend their retirement on one continuous holiday.

It seems that ‘only' 10% of the UK's 50 to 70 year olds are actually considering upping and leaving Britain behind for good when they retire.

“Contrary to popular belief the majority (61%) of this age group has no desire to move overseas and prefers to holiday close to home or in an English speaking country… Their top five destinations are USA, France, Spain, Ireland and Italy. The only odd thing about this is that Australia isn't in the list.

I don’t find these conclusions that astounding. M&S makes great play of comparing its results to those of the Institute of Public Policy Research who in 2006 concluded that 8% of British pensioners were living abroad and made the the prediction that one in 20% of pensioners would retire overseas in 2050.

Surely nobody takes much notice of anybody or any organization that makes a prediction for 2050 – do they?

I reckon the figure of 10% looks about right. This still represents a massive hemorrhage of funds out of the UK. Just think that if 10% of older people sell their properties to live abroad what impact this would have on the housing market. Dick Stroud

LV= has a new TV advertisement targeting the over 50s

The Consumer Marketing and Brand Manager for LV=said: "It’s a more uplifting take on the nostalgia that we associate with this type of product. We get a lot of feedback on the reasons why our customers buy our over 50s product, and the new advertisement demonstrates so clearly that protecting families is at the heart of our business."

Mmmm. OK. Not really sure what to say about this ad. The only comment on YouTube said that it was “ a bit dull”. Don’t think I can better that. Dick Stroud

As Boomer Wrinkle

Somebody at the Economist must have said: “about time we did the age thing again” since it has another article, this time about the impact of Boomer Wrinklies. Sorry, the Economist is subscription only.

The Economist reckons that retiring Boomers will squeeze the economy from two directions. The article is written from the context of the US, but the same principles apply to Europe. The cost of the two main government funded services (Medicare and Social Security) will jump from 8.4% of GDP in 2010 to 11.2% by 2030. That may only be 2.8% but it represents a big pile of cash, especially since the US already has to borrow to pay the existing costs.

Meanwhile, as Boomers retire, the workforce will grow more slowly, as will the taxes to finance their benefits.

The Economist can rarely be accused of hyperbole but it reckons that:” The pensioner-worker imbalance and health-care inflation, which is driving up the bill for Medicare and Medicaid, will send the budget deficit into the stratosphere.”

Now this is all very interesting but what is the really the big unanswered question is how government policy will respond to these challenges and keep onside the 65+ voter, who will rise from 17% of the voting-age population to 26%. Now combine this with what looks like a definite trend for older people to vote Republican and you have an interesting combination.

Somehow I cannot see all of this leading to an improvement in intergenerational relations. Dick Stroud

Not every day do I get mentioned in the Huffington Post.

Thanks to Marc Middleton, the CEO of Bolder Media Group, I and some of my US chums make it into today’s edition.

In the article, Marc amusingly demolishes the nonsense that is still talked by many people in the media world about older consumers. Marc says

Not so long ago, NBC Universal called a press conference to report that its research revealed that the 55-to-64 demographic is as vibrant as younger demographics in ad spending. They even went so far as to say "54-65 is the new 18-34."

I guess you could say, “better late than never” but it is not exactly a state secret, as people like Chuck Nyren, Brent Green, Matt Thornhill plus half a dozen other people have been saying for at least the past 5 years.

It is an interesting and well-written article and well worth a read. My only gripe is the photo. Yet another member of the older generation mucking about on or near water. Dick Stroud

Baby boomers must do their bit for Britain's economy

This is a personal gripe so if you are not in the mood for me venting my ire then use your time constructively and make yourself a coffee.

The Guardian newspaper is best known for the poor quality of its spelling and for its leftish political stance. That said, the quality of the journalism is normally good, even if I disagree with a lot of what it publishes.

Today the paper contains yet another “Boomer Bashing” article that is poorly written and plainly wrong.

Because of the dire mess that the UK is in – primarily due to 13 years of incompetent Labour government – consumers are worried about the future. Not an unreasonable thing.

One reaction has been for many of them to reduce their debt levels and start to pay down their property mortgages – again not a unreasonable thing to do.

The clown who wrote today’s article comes to the bizarre conclusion that “Property owners and savers are behaving in a way that undermines the UK's recovery” and that “Baby boomers are at it again, making decision after decision to protect their wealth at the expense of the country's economic well being.”

This is clearly belly-aching on the part of the writer, but to make matters worse the fool hasn’t even bothered to get his facts correct.

There are totally unsubstantiated claims like:

“After a decade to 2007 when homeowners, the vast bulk of them baby boomers, had withdrawn equity from their homes to add a kitchen or conservatory, or simply underwrite living standards.” Really?

The economist Howard Archer of IHS Global Insight has calculated that the net injection of housing equity accounted for 2.4% of post-tax income in the third quarter of last year. In contrast, net housing equity withdrawal had been 6.0% of post-tax income in the fourth quarter of 2006. I am sure this is correct but where is the data that tells us the age profile of those involved?

Towards the end of the article there is perhaps the daftest of all the statements.

 “Not only is the vast majority of housing equity in the hands of boomers, they also own most of the pensions – another area of economic activity where the selfish desire to maximise returns has a profound effect on the younger generation.” There you are – you greedy Boomer b****tads, trying to maximize the value of your pension. How dare you take the crusts from the mouths of your grandchildren!

Come on you guys at the Guardian, at least get yourself a journalist with a faint grip on reality and who is not so bitter and twisted as to produce such twaddle. You can do better than this. Dick Stroud

Future gazing is difficult

The Marketing Society has published three lists of predictions created by The Futures Company. It is difficult to come up with 30 predictions so it is not surprising that some of them are statements of the obvious or the writer’s pet hates/desires.

These are the ones that interested/amused me.

Generational rumble. 
As over-50 Boomers confront diminished retirement prospects and under-30 Millennials face curtailed employment opportunities, both will demand a greater share of resources, attention, help and support. Neither will be willing or able to be overly generous about the hardships faced by the other, precipitating a contentious series of stand-offs and showdowns. I think that might be over-stating it a bit but there is no doubt that the generational conflict that is being whipped up by the media is creating real hassle.

Rich man, poor man…middle-man gone. 
The middle market in most developed countries will be squeezed as rich people spend again on elite luxuries and everyone else copes with continuing financial pressures by prioritizing and economizing.
This is an important one – the middle gets squeezed and squeezed. The implications of this apply to all ages but particularly the 30-50 year olds who are in the period of maximum spend.

Boomers shaken means Boomers stirred. 
In response to the volatility, angst and disappointment of the past few years, Boomers will grab at every opportunity they can afford to reward themselves. Reacting to excess and uncertainty, some Boomers will abruptly change their colors – growing more conservative, albeit with much thought, pain and regret. This sounds it written with real feeling – maybe the writer’s mum and dad have become Conservatives? Not something that should worry or is relevant to most marketers.

Boomers will reach out… 
Boomers will go downstream, reaching out to younger generations to create new opportunities relating to work, leisure, family.
…Only to be put out. Boomers will be stunned when younger generations vehemently resist these efforts. Again, this one sounds personal rather than an objective analysis of the behavior.

Finally Acting Their Age.
 Boomers will rethink aspects of age nullification and, as such, will appreciate more the value / comfort of age-appropriate behavior.
On the prowl for quiet
Boomers will put increasing value on cocoons that offer refuge from being subjected to hearing others’ incessant blather on the cell phones, from younger people murdering grammar, and from infants being dragged into inappropriate venues at inappropriate hour. I like this one – has the ring of being written by a grumpy old Boomer.

The first $100 smartphone is unlocked for American markets. 
Asian producers can already make a smartphone, which they can sell in Asian and African markets at a price point of around $100 or its equivalent. Absolutely right. There will be nothing other than smartphones - is there.

‘Brush TV’ prototype is introduced.
With the rise of touch screen enabled smart phones and tablets, it has become more common to see consumers mistakenly wiping or tapping their desktop computer monitor or laptop. Where consumer behavior goes, technology follows, so we may see the early development of ‘brush TV’. If this happens then there will be a market opportunity for TV screen cleaning products. I know what the writer means, as I have tried to poke my Kindle’s screen, forgetting it is not an iPad.

Thanks, The Futures Company and Marketing Society. Made interesting and amusing reading. Dick Stroud

Guest blog on the ILC web site

Many thanks to David Sinclair for giving me the opportunity to write some words for the ILC blog.

Having sat through more conferences than I care to remember, about older consumers and business, I thought it might be useful to give my take on why so many older people feel aggrieved and what companies might do about it.

I hope it adds a small morsel to pie of knowledge about 50-plus marketing. Dick Stroud

Baby Boomers Approach Age 65 – in good cheer

No sooner had I read the Pew report (previous post) than I came upon a report from AARP (Approaching 65: A Survey of Boomers Turning 65 Years Old) that appears to come to opposite conclusion. I quote:

AARP's survey of boomers turning 65 in 2011 finds this first wave of the boomer generation generally satisfied with their lives and optimistic about the next third of life.

Sure they have concerns about their financial security and health (who doesn’t) but overall they are in good spirits.

Pay your money take your choice about what conclusion you want to believe. Dick Stroud

Baby Boomers Approach Age 65 -- Glumly

For every article you read about Boomers storming into retirement with their only worries being how to spend their time and money you are going to read another detailing the pain an anguish of the poverty stricken old.

My favourite Pew Research Center
 published a report at the close of 2010 about Boomer sentiment. 

Pew found that Boomers, “Perched on the front stoop of old age” are “more downbeat than other age groups about the trajectory of their own lives and about the direction of the nation as a whole.”

Pew tried to discount the pessimism that is thinks is associated with “middle age” and concluded that Boomers are more than usually fed up with life.

The research found that 80% of Boomers say they are dissatisfied with the way things are going in the country today, compared with 60% of those aged 18 to 29,  69% of those aged 30 to 45 and 76% of those aged 65+ .

Let’s hope they cheer-up before 2012. Dick Stroud