Time For A Change of Mind Radio Advertisers

[landtuna]

A story in today's Arizona Republic has the following quote:

"The typical U.S. household headed by a person age 65 or older has a net worth 47 times greater than a household headed by someone under 35, according to an analysis of census data released Monday."

If true, this is a shattering statistic for advertisers bent on attracting the "young" demo's. I, myself can attest to being in this situation with the premise that my children will never reach my economic level because the same opportunities just are not there in quantity as they were in my day.

In addition, the old adage that seniors can't or don't modify their buying habits seems not to be working as measured by myself and my peers either. It seems to be more a distinction of wealth in seniors versus age alone and advertisers need to reconsider their approach to reaching these people.

I am always trying new restaurants for example, in addition to bringing home new foods that are as far from meat and potatoes as can be. I just bought a new car. It was a brand I had not previously considered and never owned. Who says us seniors are locked into our buying habits?

Those seniors who are still in reasonable health seem not to have a problem leading an active (normal) lifestyle and they have the resources to actually do it. Unless my kids inherit what is left of my estate they most likely will never have the same opportunities and will spend their "golden years" working out of necessity.

The well known stereotype of a senior citizen sitting in a rocking chair on the front porch waiting for the grand kids to come over. None of my peers live that life style and radio is missing the boat if the only demo of importance to them is 25-54. Those of us over 60 still listen to Oldies, Classic Rock and Classic Country. We have the time to listen and we have the money to spend. It's time radio got the message.

http://www.azcentral.com/news/articles/2011/11/07/20111107wealth-gap1107.html

 

[RadioStarOne]

And now the other side of the coin as presented by Mr. David E and the rest of the gang!

 

[davideduardo]

And now the other side of the coin as presented by Mr. David E and the rest of the gang!

The whole income thing is irrelevant.

The issue is not buying power, it is buying. "Buying" as in cases moved, services ordered.

Until advertisers find that geezers will buy something where the marketing expenditures are less than the profit per sale, they will not address the senior audience.

Mass market providers of goods and services research constantly... daily in many cases. If there are changes worth noting, they will act. So far, they haven't.

And, in any case, radio can not influence the directives that larger advertisers give to their agencies about age targeting. Agencies buy what the client specifies, and radio can't change their mind. That's a useless activity on radio's part.

 

[semoochie]

Isn't it actually getting lower yet? Aren't we moving toward 25-49, as the primary demo?

 

[landtuna]

The whole income thing is irrelevant.

A minor point.....the article didn't quote "income" but rather "assets" (or net worth, however you want to state it).

The issue is not buying power, it is buying. "Buying" as in cases moved, services ordered.

That is the very point I am trying to make. Admittedly, all seniors are not wealthy but a good percentage are what I would call "comfortable" and those of us in that category tend to spend.

Until advertisers find that geezers will buy something where the marketing expenditures are less than the profit per sale, they will not address the senior audience.

I'm not a marketing guy but would think that the population of people over 60 has increased substantially in the past decade and will continue to climb until the Boomer generation passes. With that in mind the numbers seem like they are worth pursuing.

Mass market providers of goods and services research constantly... daily in many cases. If there are changes worth noting, they will act. So far, they haven't.

TV, as opposed to radio, seems to have gotten the message. Some of the full-signal stations and all of the LP's in my market have a considerable number of commercials directed at seniors (walk-in baths, stair-climbers, legacy music acts, travel, medical services etc.).

And, in any case, radio can not influence the directives that larger advertisers give to their agencies about age targeting. Agencies buy what the client specifies, and radio can't change their mind. That's a useless activity on radio's part.

Again, I'm not a marketing guy but would think that local commercials could address any demo the station thinks would provide revenue. National agency buys may be different. Is the sales staff even considering local ad buys directed at the older demo of their market?

 

[BRNout]

Advertising agencies are, in many ways, foolish. Having met a few of these folks, they don't seem to be the most well-studied, nor the most experienced professionals out there. What they tend to be is young, hungry and aggressive. That's fine, but it also leads to some serious tunnel-vision. If everyone in the office is younger than 35, it's pretty darn difficult to understand the following:

1) The "baby boomer" generation is a demographic anomaly. It represents a population bubble of sorts who were brought up during an economically and socially dynamic (and unique) period of American history. They cannot be characterized culturally in the same way as their parents were.

2) The "baby boomer" generation, thanks to that cultural change, do not behave in the same way as their Bing Crosby-listening parents did. They are more active and more apt to try new things. And to spend money freely.

3) Subsequent generations following the baby boomers are shrinking in relative size and in income.

4) As far as entertainment is concerned, this generation left such a huge mark that people younger than them still enjoy the music, movies, television shows and other media that this group created some 40+ years ago. This is starkly different from how things went with the "greatest generation" 20 years ago. So, a station like WCBS-FM or KRTH or WLS-FM has much more universal appeal than the old WNEW or similar MOYL stations ever did. That music never translated to boomers, nor to their kids.

As long as agencies continue to reside in their little mental boxes, boomers will be ignored/underserved and a hell of a lot of potential revenue will be left on the table. PPM already has proven part of my theory correct - other studies (if made) will confirm the rest. Anyone who ignores this will do so at their own professional peril.

 

[davideduardo]

Isn't it actually getting lower yet? Aren't we moving toward 25-49, as the primary demo?

18-49 was added to the PPM weekly breaks because of that... 18-49 has always been the prime demo for ethnic radio, and is becoming so in general market.

Advertisers who buy with ratings tend to be advertisers who understand their customer base and the ages which respond best for every ad dollar spent. And they stay away from 55+ or even 50+ as the ROI on advertising to those groups is ugly.

 

[davideduardo]

Advertising agencies are, in many ways, foolish. Having met a few of these folks, they don't seem to be the most well-studied, nor the most experienced professionals out there. What they tend to be is young, hungry and aggressive. That's fine, but it also leads to some serious tunnel-vision. If everyone in the office is younger than 35, ....

The ones that are not in the office but are off with the clients, the A/E's and management, are seasoned ad professionals, many with advanced degrees at the larger shops.

But an agency is hired by a client to do a specific job efficiently. So if the client is looking for men 21 to 44 (such as a beer would) you don't see agencies doing ads for 60-year-old men. And back at the shop, the media planners and buyers, who could be 18 or 80, follow the client dictate.

As long as agencies continue to reside in their little mental boxes, boomers will be ignored/underserved and a hell of a lot of potential revenue will be left on the table. PPM already has proven part of my theory correct - other studies (if made) will confirm the rest. Anyone who ignores this will do so at their own professional peril.

Agencies, as anyone knows, don't set the target for a client... the client does (even if the agency is part of such discussions). And in many cases, the target for advertising recognizes that older demos require so much more advertising to make a sale that there is no profit on the sale.

 

[davideduardo]

TV, as opposed to radio, seems to have gotten the message. Some of the full-signal stations and all of the LP's in my market have a considerable number of commercials directed at seniors (walk-in baths, stair-climbers, legacy music acts, travel, medical services etc.).

And if you call on any of those clients, you will find that a significant portion are PI advertisers... "Per Inquiry" means that TV stations, which have to fill about 20 minutes of spot time in every hour when running syndicated, network or otherwise prerecorded programming, run at no cost but are paid for based on actual calls or order.

And, whether cash or PI, they will tell you that they need "appetite appeal" which radio can not offer. The walk in baths must display the comfort, eye appeal and usage of the product, and they will tell you they have tried other media and it does not work for them. Even the Viagra - Calcium supplement range of products sells the walks on the beach and intimate moments or the frisking with the dog and playing with the grandkids, not the chemical reactions on the joints or on the...

Cruise lines are the classic case of appetite appeal.... the only difference between lines is the image of fun and attractive facilities and exotic destinations, all requiring visuals.

Trying to get radio to sell things that are best done on TV, in magazines and now online is not a good proposition as it takes time and resources away from efforts that will work.

 

[semoochie]

"18-49 has always been the prime demo for ethnic radio, and is becoming so in general market." So, it's 18-49, not 25-49 that's becoming the prime demo? That surprises me in that 18-24 isn't much for big ticket items but Coke and Pepsi should be happy. It should wreak havoc with News/Talk and Classic Hitsand make life very interesting for AC! I had originally thought that a 35-44 AC would cut into the younger half of the AC audience but if AC's entire target becomes 35-49, it changes the whole game.

 

[SirRoxalot]

Show me a radio station that really does well 18-49, and I'll show you a very small town. Reality is that you can get 18-34, or 35-49, but nobody dominates both in a market where there are other options.

 

[davideduardo]

Show me a radio station that really does well 18-49, and I'll show you a very small town. Reality is that you can get 18-34, or 35-49, but nobody dominates both in a market where there are other options.

Answer: KIIS is #1 in 18-35, 25-55 and a virtual tie for #1 in 25-49. Including LPFMs, the market has 109 signals.

Anyway, 18-49 in this context is a sales demo sought by advertisers, not a programming demo to determine appeal to listeners.

The truth is that even the "magical" 25-54 is simply a catch-all for nearly all the sales targets of different products. Men 25-44 or Hispanic Assimilated Females 18-49 or Adults 35-54 or even suburban college educated males 25-54 are more specific subsets, and ones that are frequently seen asked for on rate requests.

 

[landtuna]

Men 25-44 or Hispanic Assimilated Females 18-49 or Adults 35-54 or even suburban college educated males 25-54 are more specific subsets, and ones that are frequently seen asked for on rate requests.

What is an "Hispanic Assimilated Female"?

 

[davideduardo]

Men 25-44 or Hispanic Assimilated Females 18-49 or Adults 35-54 or even suburban college educated males 25-54 are more specific subsets, and ones that are frequently seen asked for on rate requests.

What is an "Hispanic Assimilated Female"?

English dominant. Does not use Spanish media... typically, third or beyond generation in women.

 

[landtuna]

Men 25-44 or Hispanic Assimilated Females 18-49 or Adults 35-54 or even suburban college educated males 25-54 are more specific subsets, and ones that are frequently seen asked for on rate requests.

What is an "Hispanic Assimilated Female"?

English dominant. Does not use Spanish media... typically, third or beyond generation in women.

Do they still cook enchiladas del pollo and have dark, sexy eyes? ;D

 

[borderblaster]

Wealthy or not, there's an age where people are buying their "stuff" (houses, furniture, baby stuff) and an age where most people have those things and aren't buying new for the most part. How many ads on an oldies radio station would it take to sell one luxury car or one cruise and is it less than the cost of the ads.

IMO, someone like Paul Harvey doing a live read could move those products for seniors. I'm not convinced about your average produced spot.

 

[davideduardo]

Men 25-44 or Hispanic Assimilated Females 18-49 or Adults 35-54 or even suburban college educated males 25-54 are more specific subsets, and ones that are frequently seen asked for on rate requests.

What is an "Hispanic Assimilated Female"?

English dominant. Does not use Spanish media... typically, third or beyond generation in women.

Do they still cook enchiladas del pollo and have dark, sexy eyes? ;D

Depends on where the heritage originates. They could be green eyed and make delightful paella.

 

[semoochie]

If someone is assimilated, how does that pertain to a specific group? It seems like it would just make them Americans. How is this different from fourth generation Irish or Swedish Americans?

 

[davideduardo]

If someone is assimilated, how does that pertain to a specific group? It seems like it would just make them Americans. How is this different from fourth generation Irish or Swedish Americans?

In the US, 4th generation Irish were born, mostly, from around the early 20th century into the post- W.W. I period. And there are not enough Swedish Americans anywhere to be a significant marketing group.

But there are 50 million Hispanics. And, for the most part, cultural traditions or influences reach through many generations and include food, music, brand preferences, style and many other things. For that reason, marketers find different subsets of this group to be a valuable and identifiable market.

"Assimilated" means "able to participate in a local society. It does not mean renouncing one's heritage, and marketers know this.

 

[semoochie]

I understand. I wasn't asking for anyone to renounce their heritage. I just didn't realize the cultural differences were that profound, beyond the second generation or so. My mother is quite fond of Perry Como but my grandkids probably don't even know who is was!