Author: Annette Malave, SVP/Insights, RAB
When it comes to consumer groups, most businesses focus on reaching millennials or the upcoming Generation Z. While these groups may be seen as influencers as well as future retail and services consumers, businesses may be missing an affluent and powerful consumer group – baby boomers.
Defined as people born between 1946 to 1964, baby boomers had been the largest generational group in the U.S until that 2019 Census data. Baby boomers continue to be a driving force in consumer spending and the economy – representing over 50% of all wealth in the U.S.
According to data from the Federal Reserve, Boomers had over $71 trillion in wealth as of the first quarter of 2022 – the most current data available. That is the highest next to Gen X with $42 trillion. When you look at consumer credit in terms of liabilities, Boomers had the second lowest at $.97 trillion – compared to a high of $1.46 trillion among Gen X and $1.82 trillion among millennials.
Boomers represent a wealth of opportunity for various businesses. They are 10% more likely than the U.S. population of remodel a kitchen or bathroom, 14% more likely to change their auto insurance, 54% more likely to become a grandparent and 70% more likely to retire from full-time work. When it comes to dining out, boomers are foodies. Ninety-two percent of boomers have visited any restaurant in the past six months – based on MRI-Simmons data.
Reaching this underserved and wealthy consumer is simple. Use radio. According to Nielsen data, radio reaches 86% of adults 55 and older – which comprises a sizable portion of the boomer generation.
Radio listening boomers have unique perspectives on how they shop and why they buy. Relaxation matters and that is one reason baby boomers shop. Four in ten view shopping as a great way to relax. Noting what is important to them can influence addressing them via broadcast radio. Seventy-one percent purchase based on quality and not price and 61% will buy those brands that reflect their style.
While these qualities and important to how and why they purchase goods or services, what matters most is trust. To be able to gain this generations attention to spend their money with a particular company, you must first have their trust. Trust matters to this cohort. Eighty percent of baby boomers who are radio listeners, will purchase a product from a trusted company even if the product is more expensive.
AM/FM radio has incredible reach among baby boomers. There is one other feature about radio that makes it a medium that advertisers should include as part of their communications plan. Baby boomers trust radio. They are 20% more likely than the U.S. population to say that radio the medium they trust most and when it comes to baby boomers who listen to AM/FM radio, that number spikes to 31%.
Broadcast radio is a top reach and medium trusted by an underserved and wealthy consumer group – baby boomers. Using radio and targeting baby boomers is a powerful combination for any company’s business growth.