Assumptions make an Ass of U and Me

No one wants to be an ass. But it seems many in marketing are making assumptions about target audiences, and costly assumptions at that. 

If you’re still focusing on age, gender and location for targeting, you are most definitely missing out on rich connections with your audiences. I’m a 42 year old woman from Lancashire, which tells you precisely zero about my wants, needs, attitude or buying behaviour.  

I’ve become rather disengaged with brands of late. I’m not accurately represented and there’s little that’s speaking my language. Or is it that brands are simply ignoring me and my peers in favour of Millenials and Gen Z? 

No one likes being ignored, do they? So we did some digging at Jam , to see the extent to which the over 40s in particular are represented in marketing. Spoiler alert - we’re poorly represented. We’ve published our findings in a handy white paper here. 

But why Gen X is unrepresented makes no sense, especially when almost half (47%) of people over 50 in the UK control over £6 trillion of spending power(1). I’m gonna say that again for the marketers at the back: SIX TRILLION POUNDS. Yet, this age group is continuously overlooked and features in just 12% of UK advertising(1). For the love of marketing, why!? Do you not want a slice of that £6 trillion pie?  

It turns out this lucrative, yet untapped audience is being overlooked due to a lack of sufficient segmentation and preconceived ideas of who they really are. When the reality is that if marketers conducted robust audience data, and insights into attitudes and behaviours, they could unlock new opportunities for phenomenal growth.

The data driven approach

It’s easy to relay your own experiences and opinions when it comes to defining an audience, but the first rule of marketing is that you are not the customer (thanks, Mr Ritson). And old school demographics - location, age and gender - will no longer cut it. Well, not if you don’t want to throw your ad budget into a wind tunnel and hope something sticks. Audiences are multifaceted and cannot be defined by such basic categories.

An audiences’ attitudes, interests and behaviours are much more powerful for brands to understand and use to create an engaged following. In 2023, audiences are too complex to be stereotyped and too diverse to be second-guessed.

Our research found that in recent years, marketing spend targeting Millennials has increased by over 50%, compared to 26% for Gen X (43-58) consumers(2). The 40+ demographic has been pushed aside in favour of the Millennials and Gen Z, so much so that we’ve dubbed poor Gen X as the ‘forgotten middle’. But not only are there more people over 50 than ever before, this demographic accounts for 79% of the total household wealth in Great Britain and 87% of net financial wealth by household(3). This generation has money and they are not afraid to spend it! 

Brands have been choosing to market to other demographics, buying into myths and misconceptions leading them to believe that the over 40s have nothing to offer them as customers. 

One major misconception plaguing the over 50s in particular is the myth that they are all digitally illiterate. Research has found that Baby Boomers, also now known as Baby Zoomers, are more tech savvy post lockdown, with 65% of over 50s using technology more than they ever have(4). 

Brands have also been guilty of assuming that those over 55 prefer to stay loyal to brands and hate change. In fact, more than half (52%) of this group indicated that they are open to switching brands and trying new things. Moreover, in some sub-segments, large majorities report that they frequently switch(5). 

When these myths, assumptions and misconceptions fuel the marketing strategies used to target this audience, they can disengage consumers who may feel negatively stereotyped and misrepresented.

This shows the huge gap between how brands view the 40+ audience and who that audience actually is. An all too common problem brands have when developing a marketing strategy.

By understanding your audience at every level, from how they view themselves, their attitudes, behaviours and the values they hold, brands can position themselves to create more meaningful connections with their consumers.

In our report we have taken an in depth look at the ‘over 40s’ audience, their interests, behaviours and spending habits to unlock key insights to help inform your marketing research and strategies.

Our report was created on the back of a truly enlightening round table debate, attended by leading figures in the financial service sector, including brands such as NatWest, KPMG and Staysure to name a few. So when you read through it, you’ll see many references to the financial service industry. But no matter the industry in which you work, I hope our insights will help reframe your thinking when it comes to targeting this wealthy audience, who are ready and willing to spend. 

Download our white paper here.

References

1  Mullen Lowe

2 Marketing Charts

3 Campaign Live

4 Hodge Bank

5 Forbes