Openly Gray's take
Every week or so, the folks here at OG will share our perspectives and points of view on several topics related to the Gray Market opportunity.
The auto industry has a blind-spot.
Mark Twain said, "Age is an issue of mind over matter. If you don't mind, it doesn't matter." The trouble is that our industry does seem to mind, a lot. So here’s an example… Can you guess the average age of a new car buyer in the UK? Here’s a clue - spending by the over 50s is so high vs. younger age groups that they account for the majority (60%) of all new car sales. In fact. the average age of a new car buyer in the UK is 54. Yes, you read that right. The majority of new cars are bought by people in their fifties, sixties, and seventies. The average age of a new Ford buyer, for example, is 56. For Toyota, it’s 63! Even cheap, fun Fiats are bought by people whose average age is 49. (Source: Read Cars 2018). Here are the numbers: I found this quite an eye-opener, but what about all the car marketers out there? It goes to reason that knowing who's actually buying their cars should form the foundation of every car brand’s marketing and advertising approach. Yes, make the car look great, make the lifestyle aspirational, throw in the bendy road sequence, but connect with your key audience. It’s pretty basic really. And yet, this just isn’t happening. To demonstrate, I reviewed recent UK TV ads for these car brands - take a look at the screen grabs below, it’s astonishing. Not only do these brands ignore their primary audiences, they actively knuckle down on their obsession with youth. Believe me, these shots don’t do justice to the full crazy reality - skateboarders, clubbers, and sexualised twenty-somethings who real car buyers would never allow out of the house. I’m sorry to go on about this but in their obsession with the vibrancy and ‘appeal’ of youth, advertisers are making a terrible miscalculation. The over 50s are the most valuable generation in the history of marketing, yet they are almost completely ignored by advertisers - according to Havas Group, only 5% of advertising is even aimed at people over 50, and that can often appear inauthentic, patronizing and out of touch. This has a direct impact on brand choice. A staggering 79% of over 50s claim they feel patronised by advertisers, whilst an AARP survey found that 62% of over 50s (and 70% of women 50+) would consider switching to a brand they feel better represents people their age. So the folks with the money buying most of the stuff are not brand loyal and will readily drop brands that don’t speak to them…or actively choose brands that do. So what’s the answer? A great first step would be for agencies & marketing departments to ensure they are better represented themselves at all age levels. Can a 60 year old still create an aspirational impression? Of course. But first agencies need to understand that the over 50s do not spend all their time buying slippers and walk-in bathtubs. But nor do they all sit dreamily on yachts arm-in-arm thanking the Lord that they chose the right pension. Just get real! Age does not have to be an unsavoury thing, best avoided. Instead, agencies and marketers must open their minds to the huge untapped opportunities that older audiences offer. They might even sell more cars. ~ Simon Derungs
I'm a Baby Boomer,
and I'm Fine With
'OK Boomer'
I'm a Baby Boomer, and I'm not at all offended by the sudden rise of the phrase "OK, Boomer." Perhaps that's surprising. If you were to go by some of the media coverage, you might assume that my cohorts and I over the age of 55 are supposed to be uniformly offended by the idea that young people, particularly millennials, have a phrase to reject the condescension and judgment that some folks in our generation are quick to heap on them. Not this Boomer. In fact, just like many members of my generation (which is nearly 75 million strong), I feel a connection with millennials. What, you say? How is that possible? Aren't I supposed to be sitting on a rocking chair somewhere complaining about how "today's young people" are skipping school to do dastardly things like trying to save the planet? No. That's simply not what this time of life is like for me, nor for my friends. In fact, for the first time since my teens and 20s, we feel excited about the wide world of possibilities for what could lie ahead. I turned 60 this year, but I feel like I've entered a second coming of age—only this time with experience to help guide me and and money in the bank to help finance my choices. (And yes, I know that financial structures and the growth in inequality are among the many legitimate causes of concern that younger generations are rightfully focused on.) I do understand the concerns of my contemporaries who feel that their entire generation is being lumped together to receive collective blame for society's woes. Even before the "OK Boomer" phenomenon took off, we were already getting pummeled with a long series of headlines, such as "The Boomers Ruined Everything," (The Atlantic), "How the baby boomers broke America (Politico), and, perhaps most surprisingly, "How Baby Boomers Have Killed the Manhattan Power Lunch" (Vice). I'm not sure that last one is in and of itself such a loss to society, although the piece makes good points about "an economic system that has left both millennials and the broader workforce feeling broke, burned out, chained to their desks, and constantly behind." Over the years, I have at times heard people my age and older make disparaging remarks made about the younger generations, such as suggestions that they're not hard workers, don't understand how good they have it, are too addicted to technology, etc. Many of these are reminiscent of things older generations used to say about us when I was growing up—that we spent too much time listening to music, didn't understand the value of hard work, wanted too much to be handed to us, etc. To some extent, these complaints are part of the "I used to walk to school uphill both ways" vintage, part of the cycle of life. We need to hear each other and understand each other. Unfortunately, our culture is currently making that difficult—in no small part due to the proliferation of media images that make us Boomers look like old fuddy-duddies. A recent study from AARP shows just how bad this has gotten. People over 50 are rarely seen in ads, and when they are, the portrayals are often negative. The study found 28 percent of the depictions of people over 50 were negative, compared to only 4 percent of the depictions of younger people. Members of my generation are most often shown, for example, as incapable of using technology and dependent on younger people. It's no wonder that the image of us as out of touch with today's harsh realities remains so popular. In fact, the many, many entrepreneurs of the millennial generation would only benefit if they cast aside creaky ageist stereotypes and engage with boomers as potential customers, allies and partners— not opponents. The same is obviously true the other way around. The world is facing big challenges. We'll all do a better job of tackling them when we work together, across generational lines. So this Boomer says to his younger compatriots: OK indeed. Let's get to work. Vaughan Emsley writes about marketing to the Gray Market. The views expressed in this article are the author's own, and we agree.
Xennial Schmennial: Why Xennials are not a thing
About a half dozen years ago the internet began embracing the idea that there’s a generational cohort born from 1977 through 1983 that should be labeled “Xennials” (half-Generation X and half-Millennial). Today, there’s a subreddit dedicated to it. The problem is that Xennials are not a thing. Hey, there’s nothing wrong with a group of people at a certain stage of life trying to find common ground. In fact, someone in my Boomer generation tried the same thing some 20 years ago with the invention of Generation Jones, a group consisting of late-stage Boomers and early-stage Gen Xers. Jonathan Pontell posited that those born from 1954 through 1965 are neither fish nor fowl, but Jonesers. While clever, it’s not particularly accurate or even helpful. To start with, what makes a generation into a cohort are not the shared experiences they are having in their 40s, like the so-called Xennials. It’s what happened when they were coming of age, essentially during their teen-age years. Remember, generational distinctions are not psychological, but sociological. It isn’t who you are as a person, it’s what external forces shaped you — world events, politics, pop culture, societal trends, etc. On top of that, social scientists and demographers (those academics out there) will tell you that a generational cohort is 20 years in duration. It needs to be long enough for the oldest member to give birth to the youngest member, potentially. Every generation that lasts 18-20 years will then naturally have a front half and a back half. So for Boomers, for example, it is no wonder there are Bob Dylan Boomers and Bruce Springsteen Boomers — front half and back half. They aren’t two different generations, just two halves of one. The same is true for younger Gen Xers and older Millennials who are seemingly detached from the rest of their generation. Ultimately, each will have more in common with their generational brethren than with some invented micro-generation in the middle. What’s happening here is actually fascinating to us because it’s reflective of a larger cultural trend, the growth of pluralism. You see, America is moving from being a melting pot to a bento box — everyone is looking for a specific place where they belong. We live in a time when there are no longer majorities, but identities. That motivates people to seek their place, or their identity, so they can belong. In pluralistic societies, no identity is superior and all are welcome. It’s in that context that Xennials emerged. Those between 41 and 47 wanted to find their tribe. There’s nothing wrong with it, of course. It’s a new identity which they can call their own. Demographically-speaking, though, it’s just not really a thing. ~ Matt Thornhill
AND THAT IS HOW ITS DONE
Stay Thirsty My Friends
Without dating myself too much, let’s just say I remember Ronald Reagan’s inauguration. It was morning in America. A time that promised so much for so many. Yes, it was the Cold War (which seems to be having a comeback tour) but the excitement of a new administration, and the release of the hostages in Iran seemed to signal a new energy across the country. We were back in business. So why are companies and brands so afraid or turned off to the Gray Market? Why do they choose to direct all their marketing investment, or at least 95%, to the Gen Z and Millennial markets, rather than allocate even the smallest portion to those with 70% of the income and 80% of the wealth in this country? Marketers are taught to find the white space opportunity. To go where they have the best chance of successfully moving products, increasing revenue, and engaging new customers. But that theory seems to have gone by the wayside. Instead, we choose the easy, and perhaps more sexy, path of attracting consumers when they're young and believe they’ll stay with you throughout their lives. Please tell me if I’m wrong. Remember, “The Most Interesting Man in the World” campaign from what’s now Havas. This is a great example of how to reach across generations. Actor Jonathan Goldsmith played the role of the mountain-climbing, sports-car driving, smooth Bond-style lady magnet. And he did it in his 70s. As the man said, “Stay Thirsty My Friends.” ~ Lee Brody
Understanding the Deeper Drivers of Digital Media Usage Amongst 50+ Audiences
Analyses of media and channel consumption typically lack actionable insights. At Openly Gray, we dig down deeper to help brand owners understand what, how and most importantly why audiences over the age of 50 use digital media in different ways than younger people. Exploring the generational differences of media usage creates more powerful communication and stronger results. Contrary to the stereotypes, data from numerous sources shows that individuals over 50 are deeply engaged online, and their digital behavior reflects unique preferences. Platform Preferences: 50+ adults have grown up with technology and in the electronic media era which have both shaped their lives and worldviews. As a result, they tend to favor established platforms and sources over less familiar Johnny-come-lately platforms. Facebook remains the dominant social media channel for this demographic, offering a space for connecting with family and friends and engaging with community groups. You Tube is also very popular for more personal exploration and experiences that provides entertainment, information, and utility. And don’t forget e-mail, which can be very effective as well. Content Type and Consumption: Entering a stage of life marked by significant changes, 50+ audiences lean heavily on informative and long-form content that can help them navigate new needs and demands. They value detailed articles, video tutorials, and webinars for practical information or to address specific interests, such as health, finance, or travel. This contrasts with the quick, bite-sized content favored by younger audiences. When creating content for the 50+ market, consider producing in-depth guides, expert interviews, product reviews and how-to videos that provide real value. Digital Literacy and Engagement: 50+ audiences like to keep things simple and prefer straightforward, user-friendly interfaces. Ensuring that your digital marketing materials are easily navigable and not overly complex enhances engagement with the gray market. Additionally, consider incorporating traditional media, such as print or TV ads, alongside digital efforts to strengthen engagement and inclusion. Diving deeper into the WHY, Openly Gray believes there are critical needs and motivations that 50+ audiences display that can lead to highly effective engagement strategies. Goals and Preferences: 50+ folks are the ultimate “been there, done that” group and we see that this plays out in their digital media behavior. They tend to utilize digital media for information gathering, utility and productivity endeavors such as staying informed, managing finances, or finding health or interest-related content. They value tangible benefits that solve specific problems. Connection and community also play a very strong role for 50+ audiences who value social engagement and use digital media to maintain relationships with family and friends, as well as stay active with communities or groups with shared interests or experiences. Trust and Credibility: Having come of age when media and journalism were strongly trusted, 50+ adults place a high premium on confidence and trust. They are more likely to engage with content from established brands and sources that they perceive as credible. Testimonials, reviews, and expert opinions are significant in their decision-making process. Engagement and Interaction: 50+ audiences tend to be more goal-oriented and purposeful in their use of digital media, in contrast to younger people who utilize social media as an expression of individuality and self (especially social platforms), where dynamic experiences and continual feedback through likes/shares/comments and user-generated content play a larger role. Privacy and Security: 50+ adults are typically more cautious about sharing personal information online. They are more likely to be concerned about privacy and security issues and prefer platforms and services that prioritize data protection and offer clear privacy policies. The 50+ gray market has been vastly underserved by marketers and is crying out to be seen, heard and engaged. Understanding and activating against their unique digital media footprint can significantly impact the effectiveness of your marketing strategies. By focusing on the right platforms, delivering valuable content, and building trust, Openly Gray helps marketers successfully grow this dynamic demographic. As digital habits continue to evolve, staying informed and adaptable will ensure your campaigns remain relevant and impactful. L. John Baker is Partner / Media & Analytics for Openly Gray
