Tag Archives: Senior Citizens

You’re Not Talking to Me

DAKRSkVkQwumvq7Zd9aTUwI sat on a webinar the other day and when it ended the first thought that crossed my mind was, they’re not talking to me. Their demographics in the study capped at 55-years of age. Really? No one over 55 matters to radio or to radio advertisers?

65+ People

Then I read this World Economic Forum article that was headlined, “For the first time ever there are more people over 65 than under 5.” Think about that for a moment. Economists point out there’s widespread consequences for productivity, inflation and global growth by this demographics shift, to which I would add, consider the impact on ad supported media.

65+ People are Renters

While millennials are buying homes – if they aren’t weighed down with student loan debt and minimum wage level jobs – seniors are becoming renters. People 65+ are empty nesters and find they simply don’t need a McMansion and all the work/expense that goes into living in one. I know that’s certainly been the case for me when I sold my home in 2003. I have been a renter since. Renting is much more economical than owning.

Market Watch reports that Americans will find they will need to spend nearly $9,400 in “hidden costs” to own and care for a median-priced home, based on the latest analysis from Zillow.

Millennials Abandon Brick & Mortar Stores

Tethered to their smartphones and comfortable with buying online, those millennials aren’t necessarily the best customers for their advertisers that radio might have thought.

Millennials are the largest generation in American history, and their shopping habits are worlds away from those of their parents. Thanks to the rapid pace of digitalization and new shopper-friendly tools, like browser extensions and voice assistants, retailers must be ready to embrace significant change.

PR Newswire, March 19, 2019

Only 18-months ago, research indicated that millennials were still going to brick & mortar stores, but that’s changed dramatically, and in a very short time. You can download the full report HERE.

$164.55 a Day

Jessica Dickler reporting on CNBC writes, “Between housing, food, cellphone bills and other expenses, Americans shell out $164.55, on average, in a given day.” Punching that number into my calculator, I quickly saw that’s over $60,000/year, but averages are funny things and you can be sure ‘your mileage may vary.’

Putting that number aside for a moment, we find that the bulk of that money is spent on housing. That fabled ‘American Dream’ can be a boat anchor on the pocketbook.

While seniors are moving from being home owners to renters, you might be surprised to learn how similar the senior household expenses are to the average household according to the Bureau of Labor Statistics.

Item

Food
Furniture
Major Appliances
Small Appliances
Household Textiles
Apparel
Transportation
New Vehicles
Old Vehicles
Health Care
Drugs
Entertainment
Insurance
Other ExpensesTotal
Senior Household

$13,432
​$401
​$196
​$88
​$113
​$1,640
​$7,781
​$2,052
​$1,611
​$2,416
​$467
​$2,060
​$4,055
​$4,093$40,817
Avg.  Household

$14,403
$460
​$200
​$81
​$108
​$1,870
$8,354​
​$2,055
​$1,904
​$1,758
​$266
​$2,142
​$4,505
​$3,956​$42,631

Source: Advertising Age’s American Demographics, based on Bureau of Labor Statistics’ Consumer Expenditure survey. (1) Includes social security contribution (excludes health insurance, which is classified as health-care expense).

Not all that different, is it.

And far from that other analysis of the average adult spending over $60,000 a year. So why aren’t more radio companies focusing at least one of their radio signals on seniors?

Retirement Epiphany

All my life, the focus was on planning for and saving for retirement. I’d like to say I did everything right, but the reality is far from that.

The great wealth destroyers are divorce, moving and changing jobs.

In my personal life, I’ve gone through two divorces. As the radio industry was dramatically changed by the Telcom Act of 1996, I would spend a decade moving around the country about every two years. That communications act also found me changing companies with just about every move too.

The final chapter of my working life, as a university professor of broadcasting, gave me seven years of stability and an opportunity to save as much as I could for retirement.

Now I’m retired. The goal is no longer to save for retirement, but to spend in retirement. My wife and I are in good health and taking zero medications, which affords us the opportunity to spend on our new found passion of traveling. Spoiling the grandkids, eating out, and redecorating are also high on our list of things to do. I’m sure we’re not alone.

The irony is, the radio media seem to ignore us. And they do so at their peril.

We’re retired, not dead.

25 Comments

Filed under Education, Mentor, Radio, Sales

Radio – America’s #1 Mass Reach Medium

radio-reaches-245-million-americans-2015-2This was certainly true in the first golden age of radio, that period of time from its birth in 1920 through the mass takeover of television in the 1950s. Once TV came along, radio had to reinvent itself.

 

That reinvention came in the form of Rock ‘N’ Roll, the transistor radio and the car radio. Radio was portable, TV was not. TV took over the living room, but radio took over every other place.

 

In my life, I’ve lived through every new form of technology that was going to be the death of radio. The 8-track tape, the cassette tape, the CB radio, the CD player, the CD changer, the cell phone, the MP3 player, and most recently, the World Wide Web, Internet streaming and wireless broadband.

 

So you might be surprised to learn that at the 2015 annual meeting of the Association of National Advertisers Masters of Marketing Conference in Orlando, Florida attendees learned that when it comes to adults 18+, RADIO reaches 93% of them every week. That’s more than TV, more than smart phones, more than PCs and more than tablets.

8

I remember when I got my first GM position. It was a daytime radio station that featured Al Ham’s “Music of YOUR Life” format, big band music for those not familiar with the programming. Yes, my audience was old. But only according to the calendar, but not the way they thought about themselves. Nampa and his corvette

It was always a tough putt with new advertisers, getting across this concept that you are as young as you think. So I wasn’t surprised to learn that one of the sessions talked about “APT.” APT was all about the “Age People Think” not demographics.

 

I’m not sure that lumping people by demographics was ever a sound marketing idea, but like a lot of bad ideas (buying radio on a Cost Per Point basis) in advertising, people do what’s always been done and ignore if it’s a sound way to place advertising.

 

A lot of my radio stations over my career have focused on an older demo. When Ken Dychtwald’s book “Age Wave” came out in 1990, I read it with enthusiasm. Dychtwald told of the massive population and cultural shifts that would be taking place because of the Baby Boom Generation. He put forward how the boomers would shift the epicenter of consumer activity from a focus on youth to the needs, challenges, and aspirations of maturing consumers. Those predictions are playing out today.

 

So again, I wasn’t surprised to read that at the ANA gathering attendees were told that old people were a growth market. In light of the trillion dollars in student loan debt, the millennials are cash challenged in a way that the Boomers are not.

 

I grew up in a Chevy family. Remember those days of yore? Chevy families and Ford families competing for bragging rights as to which drove the better cars?

 

Many marketers would have you believe that we are now stuck in a rut with our product choices and only the young are pliable enough to be swayed to try or change brands. So let’s see how that plays out in my family. I have two older brothers; one drives a Honda and the other a Toyota. How about our kids? Well we have a BMW, Mercedes Benz, Hyundai and Honda. In my case, I drove a Hyundai for the past eight years before switching to a Honda Accord; so much for that concept that once you are stuck in a brand, you stay there for life. Even my toothpaste is not the brand I grew up using.

 

Everything has changed about the world with the exception the way marketing is created and advertising is bought.

 

One of the big changes is that RADIO is back! It’s the massive reach medium that advertisers seek to expose their products and services on, except that they don’t know it.

 

Radio needs to use some frequency and repetition to get the word out.

 

Willie Sutton said he robbed banks because that’s where the money was.

 

If you’re an advertiser, you need to advertise where the people are and that’s today’s RADIO.

1 Comment

Filed under Education, Mentor, Radio, Sales, Uncategorized