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"Koeppel Direct's media buying expertise has played an integral role in making my company successful. Koeppel generated so much business for our company, occasionally we have to limit their media buys, in order to handle all of the new business." | |
| - R. Gregg Marketer of Senior Products |
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MEDIA BUYING DIRECT RESPONSE TELEVISION (DRTV) ARTICLE ...... |
Boom Times
By: David Lustig
Published: 09/07 ERA
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If success in the real estate business is underscored by "location, location,
location," for DR marketing it should be "homework, homework, homework." If you don't do your homework,
you may find yourself marketing denture adhesive cream to teenagers and automotive performance
accessories to octogenarians. In short, it's imperative that you know you target market intimately.
Four our purposes, the target market is the baby boomer generation, which includes anyone born between
1946 (right after World War II) and 1964. More baby boomers went on to college after graduating high
school than previous generations and more strove to entire white-collar career fields. According to
many experts, baby boomers tend to be more materialistic than prior generations. Boomers represent a
high-water mark in the birth rate in the United States after World War II, and remain a potent
financial force today.
Figuring Out The Marketing Medium
So, which marketing medium is most effective when targeting baby boomers?
"Boomers were brought up consuming traditional offline media such as TV, radio and print." Says Peter
Koeppel, founder and president of Koeppel Direct of Dallas, "so we have successfully utilized all these
mediums in targeting boomers."
"However, we have found television to be the most effective form of media for reaching boomers. Over
the last five to seven years, online has become an effective medium as their usage of the Internet
continues to grow."
John McNamara, CEO of Halogen Response Media, with offices in New York, Chicago and Toronto, Ontario,
agrees that television is very effective. "We're talking about a demographic that's known as 'The TV
Generation' they grew up with television and trust it," he says. "They're also used to making purchases
off it and receptive to direct response marketing, such as infomercials."
A Clinician's Perspective
"Baby boomers like to spend money," says Melissa Safer, a marriage and family therist in Woodland
Hills, Calif. At 54, she is in the first part of the boomer generation, "We're the generation that was
first exposed to television, computers and billboards, advertising to us items that in some cases we
didn't even know we needed!
"That marketing is working too. We're a generation that is interested in impressing ourselves and
others," Safer adds. While admitting that she hates much of current advertising and dismisses it as an
irritant, those spots that are most effective in communicating the benefits of their products hold her
attention and keep her away from the remote.
"Anything that people can identify with a human emotion is a winner," she says. Safer cites the current
Target television advertising as an example.
"It's effective advertising. They change them frequently, they are intelligently done and they force
you to watch. Their advertising people have figured out a way to expose the public for just enough
time to absorb the visual images. I never change the channel on them."
Misunderstanding Boomers
"The biggest misconception about this generation is they are not Internet savvy" says McNamara.
"But the fact of the matter is that they certainly are. We're talking about a group that uses the
Internet constantly for information on finances, medical issues and travel planning, to name just a few
categories. They're just as well-wired as everyone else. What this means is that, as boomers move
forward and become seniors, everyone following them will also be internet savvy. I think that opens up a
lot of opportunities for the future of internet marketing." Says Koeppel, "Many marketers focus almost
exclusively on the 18 to 49 audience segment. However, this is often a mistake, since the spending
power of the boomers is considerable.
"There are 78 million boomers and they have a combined spending power of more than $1 trillion a year.
And boomers don't view themselves as being old. They have a youthful out-look on life. Many of them
may be in their 50's, but they feel they are in their 30's And they are anything but a homogeneous
group: Some may be retiring, some starting a new career or hobby, some may have remarried and are
starting new families."
A View From Another Boomer
Baby boomer Mike Martin, vice president of corporate communications for international producer and
marketer of beverage alcohol headquartered in New York, agrees.
"Television is an excellent way to reach boomers," he says, "but the market is now fragmented all over
the place. Twenty to 30 years ago, the most effective marketing dollars were spent on a few broadcast
television networks.
"But with cable programming and satellite programming, while audience numbers for hit shows can still
be large in numbers, they are not as concentrated as they used to be. We're on the Internet; we're
everywhere," he continues. "Marketers really have to do their homework because many of us are quite
savvy to the Internet. Not only that it's there, but how to use it to our advantage. People are
going for information more and more, and with boomers, they have more disposable income than previous
generations, with a large percentage picking up spending habits from television and the
Internet.
Social Networking and Mobile Marketing
If boomers are regularly using the Internet, social networking and mobile marketing should apply to
them, too, right? Perhaps surprisingly, most agree the answer is no.
"Social networking and mobile marketing are primarily targeted at a younger audience right now,"
explains Koeppel, "so I would not recommend utilizing these venues - at least at this time - for
reaching baby boomers."
"Only 20 percent of people 55 and over express interest in using current social networking sites,"
says McNamara, citing a 2006 survey by JupiterResearch, "compared with 75 percent of 18 to 24 year
olds."
Understand The Boomer Mentality
"It's a huge market with significant buying power," says Koeppel, "so it's definitely an audience that
smart marketers need to continue pursuing. However, it's important to understand boomers prior to
trying to market to them.
"For example, boomers aren't obsessed with looking young, so ads targeting them don't need to feature
people in their 20's," Koeppel explains. "They are comfortable with aging, but they still want to
look and be healthy. If marketers trying to appeal to boomers don't understand their mindset, then
they likely will not be successful at penetrating this market and building a business within this
niche."
McNamara contends, "with $1.1 trillion in spending power, this is definitely a market with lots of
discretionary income. They have a high annual household income and spend money on their kids." He adds
that the group spends 11 percent more than average on pets, toys and other goods for
children."
Boomers Can Be Impulsive
Safer considers her generation to be somewhat impulsive, one that likes to spend money, especially on
high-end items. "Our generation seems to have more outdoor kitchens, telephones all over the house
and wide-slice toasters," she says. "I have a toaster oven and a bagel toaster! And we all seemed to
be convinced that we need gigantic refrigerators and without the latest gadgets and somehow, they
managed to survive."
Martin says boomers, in comparison to other generations, tend to exhibit less brand loyalty. "Our
parents tended to stick to their Chevy and never touched a Ford, or visa versa," he says. "Now, baby
boomers are also driving Toyotas and Hondas and cannot be counted on to automatically stay with the
brand."
Where To Look For Success
If the baby boomer demographic is so complex and fragmented, is it worth the effort to chase the
market? The statistics speak for themselves. "It's important to know that baby boomers represent more
than 27 percent of the U.S. population and make up 46 million households," says Koeppel. "Boomers were
born between 1946 and 1964, and half are 50 or over. Many started turning 60 this year. Since the
average life expectancy is now 77, many boomers look at 50 as a time to restart their lives."
Which then begs the question: What catagories are the most successful for targeting boomers?
"With younger boomers, you'll find they're looking for more investments for things like their children's
tuition," says McNamara. "In fact, younger boomers don't seem as concerned with the future, and spend
about 10 percent less than average on life and other personal insurance.
"With the older boomers, categories like health care, insurance, financial services and travel are
really going to appeal to them. They've got all this disposable income and as they age, health and
finances become more of a concern. They rely on these services to feel a sense of security for
themselves and their families."
"They also like to keep up with the latest advances in electronics, so they will buy products like the
iPhone to stay on the cutting edge," adds Koeppel. "However they don't always have the technological
background that their kids have, since they didn't grow up with computers. Businesses need to be
aware of this and consider providing services to tailor to the baby boomer's technological needs."
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