Feature: Grey matters: promoting to the over-50s

In recent years, brands have increasingly recognised the benefits of using music, films, books and entertainment software as promotional items. But many promoters are still missing a golden opportunity by focusing their entertainment-led promotions on the youth market and ignoring their relevance to older generations.

The over-50s are an extremely responsive and diverse group of active consumers, with high disposable incomes and plenty of time in which to spend their money.

Many brand owners know the value of connecting with the over-50s and opening the door to a demographic which is now said to control 80 per cent of the UK’s wealth and 40 per cent (£260 billion) of total UK annual consumer spending. These consumers spend a lot of money on the same brands as younger people, and even more on holidays and cars. The average age for purchasing a Harley Davidson is now 59!

And there are more “grey” consumers than ever before.

The UK population is ageing at an unprecedented rate, with the over-50s now accounting for 42 per cent of the adult population and this figure is set to rise to over 50 per cent by 2030. Many of the UK’s 20 million over-50s still consider themselves to be “young” and, according to Datamonitor, they are often just as keen to be seen as “cool” as their children. After all, a large proportion of them are the post-war baby boomers of the 60s and 70s – the trail blazers of the consumer generation and youth culture. It is easy to see why home entertainment content has such resonance for this wealthy and growing market.

People aged 50 to 65 now spend twice as much on leisure and entertainment as the under-30s. They grew up during the golden age of British television and were part of the rise of pop music as a cultural phenomenon. According to official music industry statistics, the over-60s now spend as much on music as 12- to 19-year-olds, while 50- to 59-year-olds spend almost the same as 20- to 29-year-olds.

One of the most effective ways to tap into this market is to team up with entertainment companies that already communicate successfully with the over-50s through music, films, TV shows, entertainment software and books. Promoters can use these companies’ existing relationship with grey consumers – and the resonance of highly relevant content – to make their brand stand out.

A TGI study in 2006 showed that nearly three-quarters of the over-50s had DVD players and nearly 80 per cent had a mobile phone. Likewise, the rise of the “silver surfer” has been well documented – with nearly 60 per cent of over-50s now owning a PC or a laptop.

This means home entertainment content on CD, CD-ROM and DVD is a powerful promotional tool for tapping into the grey market. And compelling content can be sourced for in-pack and on-pack premiums and other partnership marketing opportunities.

The grey market is heavily segmented and actually covers a plethora of life stages. As a result, there are substantial attitudinal and behavioural differences between younger and older greys. Harnessing carefully targeted entertainment content can help brands to reach these different consumer groups.

The “new greys” (post-war baby boomers, aged between 50 and 60 and typically still working) tend to have more in common with people in their 30s and 40s than with the “recently retired” 60- to 74-year-olds. Both of these grey groups have had very different life experiences from “fourth-agers” in their late 70s or 80s.

Music, books, TV shows and films from different eras can be used to target consumers within the various sub-groups. For example, many classic TV dramas and sitcoms from the 60s and 70s have now been remastered and are available on DVD. If the right content is chosen, a brand can take advantage of the positive memories it invokes. Similarly, books and CD-ROMs about hobbies and special interests can be tailored to different consumers within the grey market.

Brand managers and agency execs in their 20s and 30s need to recognise that many people aged over 50 enjoy lives that are every bit as full and vigorous as theirs. After all, today’s “greys” include icons such as Lou Reed, David Bowie, Paul McCartney and Mick Jagger.

By this time next year, even Madonna will have joined the ranks of the over-50s. Maybe the term “grey market” needs a rethink.