NEW YORK, Jan. 26, 2021 /PRNewswire/ -- VAB's Audience
Migration in Context: Leveraging Population Shifts to Unlock
$4 Trillion in Buying Power
released today, highlights a significant disconnect between the
realities of population dynamics with how advertisers are buying
their TV schedules. The findings are the result of an extensive
analysis of population trends, TV viewership data and consumer
expenditures.
- There is a significant disconnect between changes in the
population and the way advertisers buy TV
The Adult 50+
population has doubled in size over the last 40 years and now
comprises 36% of the total population. As a result, the median age
of the linear TV viewer has increased by 30% during that same time
period to a median age of 39. The combination of an aging
population and cord cutting means that 61% of TV ad impressions are
delivered against adults 55+ yet many advertisers are holding on to
legacy buying demos of 18-49 or 25-54, ignoring a significant
number of consumers.
- Over the next decade, multicultural audiences will account
for 78% of the total adult 50+ growth
By 2030, 10
million more multicultural people will have aged into the adult 50+
population. As a result, they are projected to comprise 32% of the
total Adults 50+ population.
- Adults 55+ account for 41% of annual total U.S.
expenditures
Adults 55+ collectively spend more on consumer
goods & services than any other demographic segment. In 2019,
they represented 41% of total U.S. expenditures, as compared with
15% from adults 25-34 or 20% from adults 35-44. They collectively
spent $208 billion in vehicle
purchases, representing 36% of category spend. Collectively, they
spend $259 billion on food at home,
representing 42% of category spend. Yet 77% of 50-somethings say
they feel largely ignored by advertisers.
- Getting beyond the demo – the success of an audience-first
approach
Data-centric, outcomes-obsessed Direct-to-Consumer
brands have adopted a buying strategy that targets by behaviors vs.
demographics and adults 50+ have been flocking to these brands.
During April – September 2020, the
website traffic of adults 50+ to Warby
Parker, Carvanna and Wayfair increased by 35%, 89%, and 30%,
respectively.
QUOTE: Danielle DeLauro,
executive vice president, VAB: "Audience Migration in
Context is an eye-opening look at the significant revenue
opportunity not realized by brands who are limiting themselves by
purchasing TV based on traditional age and sex demographics. These
findings underscore how important it is for brands to adopt an
audience-first buying approach so that they can reach all potential
customers and maximize outcomes."
VAB utilized data from third-party measurement services such as
Nielsen, along with publicly available data from the U.S. Bureau of
Labor Statistics.
About VAB
VAB is an insights-driven organization that
inspires marketers to reimagine their media strategies resulting in
smarter, more educated decisions. VAB develops unique market
insights and answers questions from a marketer's perspective,
tackling the toughest issues with fresh thinking and supporting
data.
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SOURCE VAB