A reason why advertisers don't target 55+ audiences

[DavidEduardo]

We see posts often on Radio Discussions questioning why stations don't program to older listeners. Often, such posts are antagonistic towards radio stations who have nothing to do with how major advertisers plan campaigns.

So, today I saw an article with this headline:

"Just over half of Americans over the age of 65 are earning under $30,000 a year, and it shows how stark the retirement crisis is."

This is from MSN

And it says, in fair usage part:

• A new report from Senator Bernie Sanders signals a looming retirement crisis for Americans.
• Many older Americans are financially vulnerable, with over half living on incomes of $30,000 or less a year.

So when one of us who has a comfortable retirement income now or planned in the future, it's important to understand in a discussion of radio that there are solid reasons why advertisers won't buy on older-leaning stations. And with no ad budgets, no stations can survive with formats that play music from the 50's and 60's and even a lot of the 70's.

 

[tbolt909]

So, today I saw an article with this headline:

"Just over half of Americans over the age of 65 are earning under $30,000 a year, and it shows how stark the retirement crisis is."

This is from MSN

And it says, in fair usage part:

• A new report from Senator Bernie Sanders signals a looming retirement crisis for Americans.
• Many older Americans are financially vulnerable, with over half living on incomes of $30,000 or less a year.

So when one of us who has a comfortable retirement income now or planned in the future, it's important to understand in a discussion of radio that there are solid reasons why advertisers won't buy on older-leaning stations. And with no ad budgets, no stations can survive with formats that play music from the 50's and 60's and even a lot of the 70's.

It's nothing new that most advertisers do not target older demographics. Fewer younger people using Radio means advertisers won't buy Radio at all in the future.

High medical costs are likely the main reason that many retirees are financially struggling. There are also many people of working age who aren't participating in the labour force. That includes 20--30 somethings living in their parents basements. Everyone has different circumstances. Your point about seniors being in financial distress is a separate issue from what many advertisers covet...

 

[CTListener]

We see posts often on Radio Discussions questioning why stations don't program to older listeners. Often, such posts are antagonistic towards radio stations who have nothing to do with how major advertisers plan campaigns.

So, today I saw an article with this headline:

"Just over half of Americans over the age of 65 are earning under $30,000 a year, and it shows how stark the retirement crisis is."

This is from MSN

And it says, in fair usage part:

• A new report from Senator Bernie Sanders signals a looming retirement crisis for Americans.
• Many older Americans are financially vulnerable, with over half living on incomes of $30,000 or less a year.

So when one of us who has a comfortable retirement income now or planned in the future, it's important to understand in a discussion of radio that there are solid reasons why advertisers won't buy on older-leaning stations. And with no ad budgets, no stations can survive with formats that play music from the 50's and 60's and even a lot of the 70's.

Even with a Social Security income over $30,000 and a six-figure IRA to draw down from, older folks still have the constant threat of overwhelming medical costs looming every time they step out of bed or out of the house. What if I fall? What if I have a stroke? Heart attack? Auto accident? I'll be 70 in a little more than a year, and I meet those financial benchmarks, yet those concerns are what have me buying store brands at the supermarket, clothes at Walmart, and tickets to minor league or college sports. So it's not only the over 55s who have nothing saved that the advertisers consider useless.

Just curious: What was Bernie's proposed solution to this crisis?

 

[tbolt909]

Just curious: What was Bernie's proposed solution to this crisis?

I'm pretty sure Sanders was proposing Universal Health Care for all. The current system doesn't work (except for pharmaceutical companies that rake in obscene profits).
Anyone who has watched TV lately should see the flood of ads for every type of drug imaginable. The US doesn't try preventative care to keep people healthy. It's all about treating disease that likely could have been avoided.

Back to Radio. Many of the PBS--NPR donors are over 55.
They support the product. Commercial Radio treats older demos as lepers and that business model is no longer viable...

 

[michael hagerty]

Five weeks into retirement, I can tell you first-hand your outlook on what is and isn't a worthwhile use of your money, no matter how well-off you may be, changes. Because now you're looking at the long game: There's X in the retirement account, or coming once a month from Social Security and that's it. Am I gonna live 35 more years (every one likely to bring higher medical costs) or drop dead tomorrow?

You don't know.

And so you plan and budget and make choices just like you did when you were starting out. "Affordable" stops being relative.

Yeah, there are people who are SO wealthy, they'll never be able to spend the interest their retirement accounts and investments throw off. And you know what?

They're not the people whose purchase decisions are influenced by a broadcast ad.

 

[tbolt909]

Five weeks into retirement, I can tell you first-hand your outlook on what is and isn't a worthwhile use of your money, no matter how well-off you may be, changes. Because now you're looking at the long game: There's X in the retirement account, or coming once a month from Social Security and that's it. Am I gonna live 35 more years (every one likely to bring higher medical costs) or drop dead tomorrow?

You don't know.

And so you plan and budget and make choices just like you did when you were starting out. "Affordable" stops being relative.

Yeah, there are people who are SO wealthy, they'll never be able to spend the interest their retirement accounts and investments throw off. And you know what?

They're not the people whose purchase decisions are influenced by a broadcast ad.

And yet many are not ready for the grave. I have relatives who never had kids. They are still travelling and taking cruises in their late 80's. They spend money on dinners.

There's no "One size fits all" strategy. As you said, any of us could drop dead tomorrow. If you go back 50 or 60 years, businesses never expected to pay someone a pension for 30 to 40 years. People retired and lived maybe 5 to 10 years. There are many variables when it comes to aging...

 

[michael hagerty]

And yet many are not ready for the grave. I have relatives who never had kids. They are still travelling and taking cruises in their late 80's. They spend money on dinners.

Right. Now, were they influenced to take those trips and cruises and buy those dinners by an ad on the radio?

 

[tbolt909]

Right. Now, were they influenced to take those trips and cruises and buy those dinners by an ad on the radio?

I don't know, but it's possible. I do know they are receptive to advertising from AAA. AAA offers travel ideas to its members. Since Radio has fewer formats aimed at older demos, it stands to reason that they are no longer listening...

 

[Plate Blocker]

I read some interesting thoughts here. I joined the hallowed ranks of Medicare 2 years ago, and frankly, it's the best insurance plan I've ever had to date....including top of the line Blue Cross when I owned a firm with a number of employees. That may change, but so far, my plan is wonderful for a guy that is not super healthy....with the Medicare deduction and the two supplemental plans, I'm paying mid $300 a month. Ten dollars a day for great health care is reasonable, and I doubt 'universal health care' would do it better, or even the same, for less money.

Lots of sweeping statements; I get that it's an election year, but like everything else, especially on bulletin boards, think about what you are reading.

 

[Mikey Radio]

Something else to consider in addition to all that was mentioned above is that many older people are seen by advertisers as being more "set in their ways" and less likely to be swayed away from their chosen brands by ads. Younger people may have more discretionary income, may be more open to considering other ideas and products, and those in their 20s setting out on their own or starting a family may view the products their parents often used as "old" and are happy to consider using something new and different - and that makes them attractive to advertisers.

I see my parents as a good example. I guarantee that if I went to their home right now, while packaging and branding of certain products may have changed over the years, they're likely using the same laundry detergent, personal care and grocery products they've been using for decades. When I was growing up, when considering new car purchases they'd go with the best deal and they didn't really care about brand or dealership. Once in her late 50s, my mom found a particular dealer who treated her like royalty. If her check engine light came on, her battery died or her tire was low on air, they'd bump another customer to get her in that very day. They knew she upgraded every 3 or 4 years so they took care of her. Once that happened, she's never wavered from that brand or dealership.

 

[Mark Roberts]

Five weeks into retirement, I can tell you first-hand your outlook on what is and isn't a worthwhile use of your money, no matter how well-off you may be, changes. Because now you're looking at the long game: There's X in the retirement account, or coming once a month from Social Security and that's it. Am I gonna live 35 more years (every one likely to bring higher medical costs) or drop dead tomorrow?

You don't know.

And so you plan and budget and make choices just like you did when you were starting out. "Affordable" stops being relative.

Yep. No more impulse purchases, not that there were many to start with. Everything involving a substantial expenditure is considered twice, if not three times.

That's true even though I've been as successful in my second career as I wasn't in my radio career. (If I had to do it over again, I would've reconsidered that first career choice.) I got in on the ground floor of a field that continues to expand to this day. At a longtime employer, simply because I paid attention to what was going on around me, I learned how to invest. But now I have to think about insurance premiums, and IRMAA, and estimated tax payments, and ensuring that the money will last, along with ordinary daily expenses. There's a mental shift involved and it takes time.

I was pretty impervious to advertising anyway, but now, I'm even more so.

The trend is probably going to be stronger in younger generations. Pensions are mostly gone. Student loan payments are burdensome, which in turn makes it harder to save and invest. Real-estate costs continue to go up. Those folks have a steeper hill to climb.

I'm really not sure who advertising is reaching these days but I think it's harder to move the needle on consumer behavior than ever before.

 

[tall_guy1]

Yep. No more impulse purchases, not that there were many to start with. Everything involving a substantial expenditure is considered twice, if not three times.

That's true even though I've been as successful in my second career as I wasn't in my radio career. (If I had to do it over again, I would've reconsidered that first career choice.) I got in on the ground floor of a field that continues to expand to this day. At a longtime employer, simply because I paid attention to what was going on around me, I learned how to invest. But now I have to think about insurance premiums, and IRMAA, and estimated tax payments, and ensuring that the money will last, along with ordinary daily expenses. There's a mental shift involved and it takes time.

I was pretty impervious to advertising anyway, but now, I'm even more so.

The trend is probably going to be stronger in younger generations. Pensions are mostly gone. Student loan payments are burdensome, which in turn makes it harder to save and invest. Real-estate costs continue to go up. Those folks have a steeper hill to climb.

I'm really not sure who advertising is reaching these days but I think it's harder to move the needle on consumer behavior than ever before.

As a warehouse worker I "penny pinch," though I am sure my peers who are better off may be the kind of spenders advertisers want. Had terrible insomnia last year from changing shifts, so medical appointments for stuff like Ambien cost money as well.

 

[kwthom]

<...>
I'm really not sure who advertising is reaching these days but I think it's harder to move the needle on consumer behavior than ever before.

Well, we're not them.

 

[AbrahamJSimpson]

My in-laws have a very comfortable retirement thus far. My own mother had next to nothing. The one thing they had in common, besides knowing I’m the greatest thing since sliced bread, was that advertising was wasted on them. The in-laws because they’re frugal, to put it mildly. My mom because…well, you don’t spend what you don’t have. Either way, a waste of ad dollars.

Gen X is well documented as being SOL in retirement. Of course there are exceptions. And some may get inheritances from frugal Boomer parents. But the shift to 401Ks from more common pensions, being saddled in many cases with elder care costs (🙋) and salaries that have not nearly kept pace with rising costs…we’re royally (bleep)ed. Sorry advertisers.

 

[tbolt909]

The Consensus seems to be -- Advertising is ineffective on all demographics. Guess they've been wasting money for decades.😑

When people go to You Tube, they hit SKIP AD as soon as possible. Advertising is essentially -- Throw a lot of Chum into the water and hope for a bite...

 

[AbrahamJSimpson]

It's not ineffective on all demos. There are various challenges and there are ways to refocus spending to better align with goals than broadcast.

 

[tall_guy1]

Couldn't stuff like Cracker Barrel target them? I never see anyone under 55 there.😅 Thank you, thank you, I'll be here all night!

 

[Mikey Radio]

The Consensus seems to be -- Advertising is ineffective on all demographics. Guess they've been wasting money for decades.😑

When people go to You Tube, they hit SKIP AD as soon as possible. Advertising is essentially -- Throw a lot of Chum into the water and hope for a bite...

Not necessarily. Maybe compare ad placement and spend to programming a radio station; If an advertiser just throws random dollars on random forms of advertising without doing much research or knowing/understanding their target demo or audience, then yes, it is as you describe..But if a company knows who is most likely to consume or use their product and they use their ad dollars wisely to target and motivate them to buy, then advertising can be very effective and offer them a significant return on what they spent.

 

[tbolt909]

Not necessarily. Maybe compare ad placement and spend to programming a radio station; If an advertiser just throws random dollars on random forms of advertising without doing much research or knowing/understanding their target demo or audience, then yes, it is as you describe..But if a company knows who is most likely to consume or use their product and they use their ad dollars wisely to target and motivate them to buy, then advertising can be very effective and offer them a significant return on what they spent.

If I Google "Tires", I will immediately start seeing Pop Up ads for tires on any website I visit. That is the modern ad algorithm these days.

8 minute stop sets on Radio stations are likely not very effective. Some stations no longer bother with separation. I've heard car dealership ads back to back. If that was my money, I wouldn't be happy with that presentation...

 

[michael hagerty]

Couldn't stuff like Cracker Barrel target them? I never see anyone under 55 there.😅 Thank you, thank you, I'll be here all night!

The only restaurant where the name describes the decor and the clientele.