While Millennials and Gen Z may dominate advertisers' attention, there may be ad money left on the table when it comes to Baby Boomers, according to Radio Advertising Bureau's Senior VP Insights Annette Malave.
“While these [two] groups may be seen as influencers as well as future retail and services consumers, businesses may be missing an affluent and powerful consumer group,” Malave says about Boomers in RAB's “Radio Matters” blog. “Baby Boomers continue to be a driving force in consumer spending and the economy [and] represent a wealth of opportunity for various businesses.”
The numbers back up Malave's claims. The generational group defined as those born between 1946 to 1964 still represents more than half of all wealth in the U.S., with more than $71 trillion as of the first quarter of 2022, according to the Federal Reserve. Not only does GenX's $42 trillion not come close, neither GenX nor Millennials can touch Boomers' $0.97 trillion low for consumer credit in terms of liabilities.
RAB's blog cites research showing Boomers over-index with key advertiser categories: they're 10% more likely than the U.S. population to remodel a kitchen or bathroom and 14% more likely to change their auto insurance. And based on MRI-Simmons data, 92% have visited any restaurant in the past six months. Additionally, four in ten see shopping as a great way to relax, with 71% purchasing based on quality vs. price, and 61% buying brands that reflect their style.
“Noting what is important to them can influence addressing them via broadcast radio,” says Malave, pointing out that the medium reaches 86% of adults 55 and older, according to Nielsen. How to reach them with advertising? “To gain this generation's attention, to [get them to] spend their money with a particular company, you must first have their trust. 80% of Baby Boomers who are radio listeners will purchase a product from a trusted company, even if the product is more expensive.”
As it stands, radio has already earned that trust. According to RAB, Boomers are 20% more likely than the U.S. population to say that radio is the medium they trust the most, and when it comes to Baby Boomers who listen to AM/FM radio, that number moves up to 31%.
“Broadcast radio is a top-reach medium trusted by an underserved and wealthy consumer group,” Malave says. “Using radio and targeting Baby Boomers is a powerful combination for any company’s business growth.”