How to market to older Australians — an untapped market

Key points:

• Semrush has provided a quick list of top tips to target senior demographics when producing and delivering marketing campaigns

• Previous research found that marketers collectively estimated that Millennials were responsible for 38 percent of all consumer spending when, in fact, they accounted for only 18 percent of spending

• Seniors are not a homogenous group and think differently about social issues, and needs, along with having vastly different desires, depending on their employment status, retirement status, household income, family and friends

Despite the untapped potential for marketing teams across Australia, brands still seem to be targeting generations with less cash, according to researchers from the Royal Melbourne University of Technology.

Experts have expressed that businesses could benefit from being more inclusive towards older people in their marketing.

Associate Professor Foula Kopanidis expressed that ageism could be a barrier to building better marketing tactics for Australian businesses.

“In Australia, there are 5.6 million Baby Boomers commanding a substantial 21.5 percent slice of the national population,” she explained.

“With an average accumulated net worth of $381,100 per person, they own more than half of Australia’s national wealth — and they like to spend it.

“Baby Boomers should be the prime target market for brands, yet many ignore the great potential of this consumer, with only 5 percent of advertising expenditure in Australia spent on this demographic.

“Brands reduce this consumer group down to a specific stereotype, one that does not want to engage in the eclectic mix of lifestyles and hobbies that would otherwise be attributed to the younger generations.”

The Assoc/Prof in marketing claimed that marketing efforts did not account for the diversity of Australia’s ageing population and how people age differently, with varied interests and different day-to-day lives.

“In fact, Baby Boomers show diversity — not only in attitudes, but also in lifestyle choices and they don’t always stick to the same path with their brand preferences. They resist cultural stereotypes associated with ageing and strongly reject ageist labels and caricatures,” she continued.

“They also often engage in online shopping, with at least 70 percent making one purchase from Amazon monthly and engaging with TikTok, Snapchat, Reddit, YouTube and Facebook. 

“If brands want to bring in big business as younger generations tighten their purse strings, they must pay attention to the Baby Boomer market and truly understand what their purchasing habits and goals are — not assume.

“They should also look at their whole customer experience and whether it’s inclusive of this demographic — such as website design, font size and customer service options.

“Some brands, such as Bonds, have reaped the rewards of paying attention to Baby Boomers in their marketing.”

The Bonds clothing brand has directed its efforts toward appealing to younger demographics without isolating or excluding its long-time customers to open up a consumer base and avoid neglecting those familiar with the brand.

“As a well-loved brand, it knows how to take advantage of being inclusive of their target market — something many more brands can learn and benefit from,” concluded Kopanidis.

This sentiment was backed by Dr Bernardo Figueiredo, an associate professor in marketing.

“The pervasive ageism in Australia, particularly in the realm of technology, stems from stereotypical assumptions that older individuals lack the capability or interest to engage with digital innovations, leading to their neglect in market targeting strategies,” he said.

“The stigma around older Australians and technology not only marginalises a significant demographic but also overlooks their growing proficiency and interest in digital platforms. 

“Addressing ageism in technology requires a paradigm shift in how businesses perceive and cater to the older population, recognising them as a viable and valuable market segment. 

“Incorporating older individuals in co-design, user experience design and product testing can lead to more inclusive technologies that better cater to a diverse age range, ultimately expanding market reach and relevance. 

“Businesses stand to benefit significantly by tapping into the ‘silver economy,’ as older consumers often possess more disposable income and brand loyalty compared to younger demographics. 

“There need to be more strategic marketing campaigns that positively represent older individuals interacting with technology to help dispel ageist myths and attract this demographic to new tech products and services.”

Dr Figueiredo concluded that there was potential for brand growth and marketing success in addressing viable untapped markets, in relation to older Australians and their spending habits.

“Play — and digital play — is a significant, but often underestimated area, of market growth.”

For more information about marketing to older Aussies, please check out previous coverage of how to appeal to seniors.

How do you feel about age-related spending patterns versus modern advertising? Are campaigns directed at the wrong groups? Let the team at Talking Aged Care know your thoughts and subscribe to the newsletter for more information, news and industry updates.

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