Understanding the50+ market

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No portion of these materials is tobe used or disseminated by any
method without the expressed
written consent of the presenter(s)and the German Institute forJapanese Studies (DIJ).

Gill Walker, MA, AAMI (CPM)Over 18 years advertising experience insenior roles
2003 completed a Masters of Advertising atRMIT, studied ageism in Australianadvertising researching over 3,500 ads
Guest lecturer - RMIT Masters of Advertising
Regularly quoted in The Australian,AD News, B&T & Marketing magazines“I was delighted to review Gill’s thesis and I urge moremarketers to understand the issues and opportunities ofthis dynamic and influential audience”
Dr John Hewson, Director of Macquarie Graduate
School of Management

Our client experienceToday’s presentation will focus onGeneral population trends and thespending power of boomers and seniors inAustralia

Findings from the thesis ‘Ageism
Ageism inAustralian Advertising’ and The Evergreen
Report©



Examples of best practiceQuestionsOur key networks
Senior Reference Panel

Evergreen’s Senior Reference Panel

Rhonda Parker – Federal Commissioner Aged Care
Sue Hendy - CEO, COTA (Council on the Ageing)
Arnold Bates – President, ARPA (Over 50’s Assoc)

FoundingFdimemberb off IMMN
(International Mature Marketing Network)

Foreseechange – Charlie Nelson
Economic forecaster
www.prophetsprofit.com.au

Millennium Direct – Kevin Lavery
Creative Director
Largest UK agency for mature advertising
www millenniumdirect co uk
www.millenniumdirect.co.uk

General population trends and the spending
power of boomers and seniors in AustraliaIn 2008 people 50+ represent morethan 30% of Australian population
Proportion of population
50+65+% of all ppeople

60504030
201001971

1981

1991

2001

2011

2021

years

Source: ABS data, projections, foreseechange2031

In 2008 people 50+ make up over 40%of the Australian adult population
Proportion of adults
50+65+60%of 188+50
40
30
20
100
1971

1981

1991

2001

2011

2021

years

Source: ABS data, projections foreseechange

2031

Subtracting debts from assets, people
aged 55
55-64
64 are the wealthiest
Mean net worth per adult
400,000
350,000
Aus dollars

300,000
250,000
200,000,150,000
100,000
50 00050,000015-24

25-34

35-44

45-55

55-64

averageae age age ofo referencee e e ce person
pe soSource: ABS Household Expenditure Survey 2003/04, projections foreseechange65+As a distribution of wealth, 48% is heldby people aged over 55% of total household net worth
30
25%

20
15
10
50
15-24
15
24

25-34
25
34

35-44
35
44

45-55
45
55

55-64
55
64

Source: ABS Household Expenditure Survey 2003/04, projections foreseechange

65+Australian Bureau of Statistics
Following analysis based on most recent
ABS Household Expenditure Survey of7000 households

Data reported by age of reference person
th person withtheith highest
hi h t iincome

Forecasts by Charlie Nelson, economist &statistician
 Over 30 years working in forecasting &market analysis -automotive, financial,retail,etail telecommunication,telecomm nication food & media
 Won Market Research Society ofAustralia's
u a a Awarda d ofo Merit 198798

Household income
Household income = salary & wages

Disposable = sum leftover after
income tax and consumer debt interest

Discretionaryy = disposablepless mortgage
g g orrent payments interest & rates

Total household income peaks at 45-54
but discretionary income peaks at 55-64
55 64
Average income per person
source: ABS Household Expenditure Survey 2003/04
mean gross household income

mean discretionary household income

600
500
400

$ per week

300
200
100
015-24

25-34

35-44

45-54

55-64

age off household reference
fpersonSource: ABS Household Expenditure Survey 2003/04, projections foreseechange

65 and overDiscretionary spend per household highest at
45-54
4554 however per person highest at 5555-6464
Mean discretionary income
source: ABS Household Expenditure Survey 2003/04
per householdper person

35-4445-54

1200
1000
800

$ per week600400
200015-2425-3455-64

age of reference person
Source: ABS Household Expenditure Survey 2003/04, projections foreseechange

65 and over

Growth in discretionary spending on
good & services peaks at 5555-64
64
Growth in spending on goods & services (excludes housing)source: ABS Household Expenditure Survey, projections foreseechange

2003/04 to 2008/09

3025% of total sppending growth20151050
Under 25

25 to 34

35 to 44

45 to 54

55 to 64

age of reference person

Source: ABS Household Expenditure Survey 2003/04, projections foreseechange

65 & overFood & beverages – peaks at ages 45-54
Growth in spending on food & non-alcoholic beverages
source: ABS Household Expenditure Surveys, foreseechange
2003/04 to 2008/09
25% of totall spending growth20151050Under 25

25 to 34

35 to 44

45 to 54

55 to 64

age of reference person

Source: ABS Household Expenditure Survey 2003/04, projections foreseechange

65 & overBreakfast cereals – peaks at ages 65+
Growth in spending on breakfast cereal
source: ABS Household Expenditure Surveys, foreseechange
2003/04 to 2008/09
30

25% of totall spending growth20151050Under 2525 to 34

35 to 44

45 to 54

55 to 64

age of reference person

Source: ABS Household Expenditure Survey 2003/04, projections foreseechange

65 & overOverseas holidays – peaks at ages 55-64
Growth in spending on overseas holidays
source: ABS Household Expenditure Surveys, foreseechange
2003/04 to 2008/09
3025% of totall spending growth20151050Under 25

25 to 34

35 to 44

45 to 54

55 to 64

age of reference person

Source: ABS Household Expenditure Survey 2003/04, projections foreseechange

65 & overAustralian holidays –peaks at ages 45-54
Growth in spending on Australian holidays
source: ABS Household Exp
penditure Surveys,y , foreseechangeg2003/04 to 2008/09
30% of total spendin
ng growth2520151050
Under 25

25 to 34

35 to 44

45 to 54

55 to 64

age of reference peson

Source: ABS Household Expenditure Survey 2003/04, projections foreseechange

65 & overWe’ve hit a milestone2008 is a milestone; this year 45+
represent 50% of all adults and still
growing!

From 2001 to 2011: Under 50s to grow by 2%
 Over 50s to grow by 32%

The discretionary spending power ofAustralians aged 45+ is predicted to be$218 billion by 2008/2009 - 31% morethan adults under 45!

Source: ABS data, projections foreseechange

Changing needs and Maslow’s hierarchy

Selfactualization
EsteemGrowthneeds

Love & belonging
Safety & security
Basic physiologicalPrimary
needsdMarketing quandaryMarketers have traditionally been driven
by materialistic and narcissistic valuesWhat happens as people start to self
actualize and tend to “wantwant less stuff”
stuff



So you don’t market the stuff you market
the “experience”
pthat the stuff can makepossibleForget share of wallet, it’s about share ofthe heart!

The Evergreen Report ©

Women over 50
Their perspectives on life andpo t a al in advertising
portrayal
ad e tising

Background

Joint research projectPe pe ti e Research
Perspective
Re eh andnd Evergreen
E e g een
Marketing & Advertising
Eight focus groups: women in 50’s, 60’s
and 7070’ss
Diverse range of backgrounds
The Aim: to understand in more depth Their priorities
 How they feel about their lives
 How they see themselves depicted in the media To provide useful insights tocommunity and business2008 The Evergreen ReportPrime Time Women, Marti Barletta

It’s a fact women make or influence
over 80% of all consumer purchasedecisions.

The opportunity to market to thefemale segment runs deeper than the
supermarket checkout.

2008 The Evergreen Report

in life
Main prioritiesPriorities
in life arefocused on• Health and well-being• Relationships• Financial security (for some)26

2008 The Evergreen ReportHealth andwell-being
Healthand well-being“If you haven’t got your health,
you’ve gotyg nothing.”g27



60’s and 70’s rank health and wellbeing high on their priority listMotivations: To enjoy life to thefullest and not become a burden toothershMulti-faceted, includes the mind andemotional well-being
well being as well as thebody

2008 The Evergreen ReportRelationships“If I didn’t have friends,I don’td ’ knowkwhath I’d ddo.””“My grandchildren are thejoy of my life.”• More time to foster relationships
p and akey part of emotional well-being
p with ppeers and with• Relationships
younger generations important2008 The Evergreen ReportFinancial security
Financial security• Especially important to those not yet
retired or on limited income•“I haven’t got a lot of super”• Lower priority for long term retired &self funded

29

2008 The Evergreen Report

Their attitude to life is positiveMy life is great. I enjoy it.”“The end of my life is much better
than the beginning…”

Life is full and enjoyable with fewerstresses and worries
More time for ‘me’, to spend with family
andd ffriends,i d on hobbies,
h bbi
travell andd
physical activities
Indulge in life’s simple pleasures

30

2008 The Evergreen ReportIn fact positive & accepting of ageing“Turning 50 was utterly liberating.”“You are freer to make up your own mind.”“I don’t worry what other people think
any more.”
Positives:• More self acceptance and self like
• More control & more self confidence• Freedom from not being so• concerned what others think

31

2008 The Evergreen Report

Developed
definition
beautyDevelopednewnew
definition
ofofbeauty“It’s not about being young and naturally
flawless.”“It’s more what’s inside you that you prizenow.”

Important to feel attractive, but it’s notabout trying to be young again
B i
Being
physicallyh i ll attractiveiiin a real,
l not
artificial, way and having an attractive
personality
Most importantly,
importantly about the inner beauty
that comes from self acceptance and self
confidence





32

2008 The Evergreen ReportProud of achievements“My greatest achievements are my kids,
plus settling into a new country andhelping teenagers (in my work)for 30 years.”Wide range off life
f experiences, some good,some bad. Hardships have been overcome
and learned from
Many past achievements to be proud of
Still future goals and achievements to lookforward to33“I still want to paint a masterpiece.”

2008 The Evergreen ReportChallenging irritating stereotypes“My mother never went for a lattein the afternoon.
afternoon ”• Different from mother’s generation• Young at heart
heart, more opportunities tohave fun and be a little self indulgent• Like the idea of flouting some of theu es about ageing
age g anda d surprisingsu p s g otherot e‘rules’generations
Once I rode a bike to Sydney:“Oncemy mother said: How could you?
You are the mother of two children!”

34

2008 The Evergreen ReportAd Example – Good & bad stereotypes

2003 Ageism in Australian Advertising, G Walker

In the media women are invisible“I never see pictures of women like me.”• Feel invisible• Rarely see images in the media they canidentify
df withh• Lack of images that represent thediverse range of women ( older ages,body size/shape and experience)• Feel retailers and marketers are nolonger interested in them
• Often feel ignored in retail environment

37

Show me some respect!
Show me some respect!
• “We are amazing, but no-one wants toknow you when you are over 70.
70 ”• Adverts skip the 50’s and 60’s;• we are in no man’s land.”• Believe media and advertisers rarely
show older women as valued membersof society• Few positive images• Virtually no images in positions ofpower/authority• Very sensitive to anything apparently
condescending or stereotypical38

Observation

Women were often used to generate
empathy for age-related illness,illness inparticular menopause

Whereas the older male models were used
to add credibility and expertise with astrong link to a profession – such as
cooking, motor racing or a ‘white coat’endorsement.
dt

2003 Ageism in Australian Advertising, G Walker

Desire for images rooted in reality“It’s not about being young andnaturallyll flflawless”
l”• Want to see realistic yet attractive, andnaturall llooking
kwomen• In positive situations• In control & confidentAd example – use of ‘aspirational’ talentReject sexualization of women“I came of age in the 60s – objectificationof women angers me and women of
today are acquiescing to it.”• Think sexual exploitation of women inadvertising and the media is increasing,to the detriment of all women• Dislike seeing nudity in advertising thatis sexualized or with unrealistic imagesof women42

Protective of younger generations“It’s important if you are raising girls.
I don’t
don t want them to think thatbeing attractive to men is theonly important thing.”• Are older women ‘jealous’ of youngerwomen?
• No! Strong sense of sisterhood across allages and a desire to protect the young• Enjoy images of inclusion; multigenerations of women having a goodtime together

43Evergreen’s top tips for the 50+ audience
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Women as hero (if audience are women)
A ti e andActivend ffullll lives
li eBeing positive about their age
Challenge stereotypes
CConsider
id physicalh i l realismli
Portray confidenceIntergenerational imagery
Lif ’ simple
Life’sil pleasureslConsider use of humour
Focus on the solution
C dCondescension
iRecognizing wisdom
Music that conveys vitality

Insert Air New Zealand advert

Examples
pof best ppracticeSentinel Lifetime Loan ‘Not for sale’
Problem
Older people often
forced to give up theirhomes to afford to live
Strategic insightPeople aged 65+ want
to stay put – not leave
Creative focus
Tap into their desire forindependence
Result
80% market share

Talk Radio Network ‘Why aren’t you’
ProblemMarketers and media
planners not interestedin 50+ audience
Strategic insight
50+ consumers havethe money – theylisten to TRN radio
Creative focus
Make marketers who‘getget it’
it be the heroes
ResultPositive results fromsales team –significant increased
revenueBrentwood Village ‘ Botanical oasis’
Problem
Retirement living notunderstood - this resort
is a hidden gem
Strategic insight
The audience lovegardening - without thework - the resort isnestled in 56 acres ofnative bush
Creative focus
Live at a botanical oasis
that’s thriving with life –but keep it a secret
ResultEnquiry rate doubledSo to summariseThe 50+ age group in Australia is the mostfinancially influential

Market experiences, not just products



The Evergreen Report uncovered the powerof women as influencers and consumers

Great campaigns founded in deeper
understanding of the audience, work best

Questions

Questions