Does Advertising Ignore Older Consumers
In early 2002, a battle was waged between two of the major television networks, CBS and ABC, over The Late Show with David Letterman. ABC was trying to lure Letterman's show away from CBS to replace Nightline, the news show hosted by Ted Koppel, which it had been airing in the late-night time slot for 22 years. The battle was being fought mainly because Letterman is more popular among younger viewers between the key ages of 18 to 32 and brings in $100 million more in advertising revenue each year than Nightline. Observers argued that the tug-of-war over Letterman is just another example of advertisers' obsession with younger consumers. While aging baby boomers may argue they are more active, more fit, more adventurous, and more experimental than their predecessors, they are still of less interest to advertisers than younger consumers.
It has often been argued that people who work in advertising are different from the typical consumers who represent the target markets for their clients' products and services. Some say advertising may better reflect those who work in the industry than the consuming public, as it is really about the people who create it, not about the consumers who actually buy the products being advertised. A study conducted a few years ago on ageism in advertising considered potential problems that might arise because of age differences between agency personnel and older consumers. The study found that professionals who work in advertising agencies are much younger than the U.S. adult population. Nearly 40 percent of ad agency professional staff are between the ages of 30 and 39, while only 20 percent of all adults are in their 30s.
The youth bias is particularly evident in the creative departments. Agency employment drops like a rock after age 40, particularly among those involved in creating the ads. As a result, agencies rarely have creative professionals with a true understanding of life after age 40, not to mention life after 50 or 60. Richard Lee, a principal of High-Yield Marketing, the company that conducted the study, notes: "Most young agency staff, reflective of their life phase, are fixated on creating advertising that is hip, cool, impressive to their peers, and award-winning. This is more fulfilling than creating advertising for people with dated tastes who wouldn't know Smashing Pumpkins if they stepped on them."
Advertisers who are unable to connect with older consumers may be squandering opportunities to reach a valuable market. While nearly 40 percent of American adults are 50 or older and they control more than 50 percent of the U.S.'s discretionary income, they receive only 10 percent of the advertising messages. Many observers wonder why advertisers remain focused on consumers in their teens, 20s, and early 30s when spending power is becoming progressively more concentrated among those age 50 and older. Some point to the conventional wisdom in marketing and advertising that brand loyalties and consumer preferences form early and once formed, stay pretty much the same. Older people are stereotyped as unlikely to change brands and try something new.
Another reason for the youth bias stems from the problem of advertisers' not wanting to have their brands perceived as being for older consumers for fear of damaging their image among younger people. As the senior vice president of Zenith Media notes: "For a lot of brands we work with, it's sexier to advertise to the younger consumers who are trendier, much more fashion forward, very social and very in the public eye. With marketing dollars so limited and precious, you want to bet on the future."
Of course, not everyone in the advertising industry agrees with the findings of the ageism study. One agency executive calls the conclusions ridiculous, noting that "we have people of every age segment here." There are, of course, examples of excellent advertising targeted at mature consumers, and new media are being introduced to reach the over-50 crowd.
Many believe, however, that the youth bias in advertising is still a major problem. They note that the best hope for the demise of the primary focus on youth in advertising is the marketing people who are growing and maturing themselves. Some feel that it has finally dawned on advertisers that they ought to follow the green, which is quickly going gray, and that older consumers are more hip. As one ad executive noted: "Sixty-year-olds don't think like they did in the last generation. Sixty-year-olds in the last generation wore plaid pants."
Sources: Hillary Chura, "Boomers Hope to Break Age-Old Ad Myth," Advertising Age, May 13,2002, p. 16; Richard Lee,"The Youth Bias in Advertising," American Demographics, January 1997, pp. 47-50.
Advertisers spend millions of dollars every year to understand the frames of reference of the target markets who receive their messages. They also spend much time and money pretesting messages to make sure consumers understand and decode them in the manner the advertiser intended.
Continue reading here: Identifying the Target Audience
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