By Josh Frith, Managing Director, The Dubs
It is pretty clear that most online marketing campaigns target 16 to 35 year olds. They are the cool, hip and happening age group. They spend more money on brands, on consumer goods, and are tech savvy. Right?
Wrong. They may think they are cool, hip and happening – as do marketers – but with the ageing population, the group with increased spending power are the over 55s.
Since 1999, the number of Australians aged between 55 and 64 years has risen by 47%. Over 55s make up 21% of Australia’s population and control 39% of the nation’s wealth. According to Access Economics, their spending is predicted to grow by 61% in the next decade.
As with the cool kids, this aged group is reading fewer newspapers and magazines and listening to less commercial radio.
So if they are reading less newsprint where are they sourcing their information from? You guessed it. The internet. This age group is fast becoming hard to ignore for marketers – and in particular online marketers.
No longer can marketers think this group isn’t tech savvy and suspicious of the internet. In general they like to use the internet as a source of information before purchasing and actively engage in with content.
Many often actually have the time to read through content such as blogs, make comments and participate in forums. For example, they may not be You Tube addicts like their younger counterparts, but they do watch online video.
Online video is often thought to be consumed solely by a younger age demographic, but as Trendstream US stats prove, 65% of the 55-64 year age bracket consumed video content online. According to Cisco by 2013, the sum of all forms of video (TV, VoD, Internet video, and P2P) will exceed 90% of global consumer IP traffic.
To prove this case, The Dubs undertook research for AMP Capital Investors and found that the over 55s did in fact watch video through the online channel. They are the wealthiest demographic in Australia and are actively looking for investment options. Although predominate consumption is still with the 18-24 year old audience, the over-55 age group is consuming more and more video online, especially content that is professionally produced.
There will be over 5.5 million people retiring over the next 15 years in Australia. If marketers start to realize the cool kids are actually the ones with the cash – and the time – they will see the over 55s can generate a lot of online revenue.
Online marketers – and their clients – need to start thinking about how to engage with this demographic and treat them with the respect their bulging wallets deserve.