When I was hired to serve as general manager of the Double O
Radio properties the stations were in precipitous decline. I spent weeks developing a strategic plan to
turn the stations around. My proposal
was not what I really wanted to do. I
wanted to go head to head with the CHR (Top 40) station, however, I knew
corporate was tired and not prepared to go into battle. It would take a young
aggressive program director and full staff plus, it would not immediately solve
the revenue problem. The plan? Go grey!
Having experience with older demos I know what makes them
tick! I know their “sweet spot.” If we developed stations around a 45+ demo we would make
money. Ratings? Not so much. Ratings and
revenue do not always go hand in hand.
Why older demos? That’s where the
money is! According to McKinsey
Consulting over 50% of all consumer spending are by people over the age of
50. Yet most advertising agencies target
adults 18-34. Marketers drool over this
demo and spend millions trying to reach them with TV, Radio, Facebook, Twitter,
etc. This makes sense if its 1980.
Now, 33 years later, the baby boomers make the largest group of
consumers with the most money to spend.
-
People 50+ earn $3.4 trillion annually compared
to $1 trillion adults 18-34
-
People 50+ generate 50% of all disposable income
(In a down economy that can mean life or
death to your business)
-
People 50+ buy 60% of all packaged goods and
over half of all new cars
Research by AARP shows a majority of consumers over 55 feels
that marketing either portrays them negatively or ignores them altogether. Why?
Because ads are created by those 25 years younger.
We developed two radio stations that catered to the older
demo. The listeners became loyal to the stations and loyal to our
advertisers. In a short time everything
turned around with the stations making a profit for the first time in seven
years. In today’s economy those 50+ have
the money to buy your product or service. Love on them and you’ll see there is Gold in that Grey!
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