As the baby boomers slip into their 50s they look set to revolutionize the whole meaning of retirement—just as they have led other social revolutions throughout their lives. Baby boom heroes such as Bowie, Dylan, Jagger, Page and Plant are all heading toward the great performer’s lounge in the sky, and it’s hard to imagine them, or the fans who jostled to get front row at their concerts, slipping into their woolly slippers and leaving their false teeth to soak before tucking in for a late one at 9 pm.

Older consumers used to be categorized as a single group called “senior citizens.” Over time they have been labeled in a slightly more positive light: Silver Foxes, Third-agers or Third-mooners.

It’s perceptions not buzz words that need to change. Why is it marketers split the youth market into dozens of segments, yet turn around and treat millions of mature consumers as one? Success in this market doesn’t depend upon using the right vocabulary, but on developing a deeper understanding of the numerous parts that make up the older generation. This is no longer one single market that can be summarized by a single term. Today’s 50-year-olds are completely different from any other generation of 50-year-olds.

Worse still, marketers frequently make the mistake of lumping in the baby boomers with seniors in their marketing campaigns. There is a big distinction between marketing to what are termed “leading-edge” or “first wave” baby boomers in their 50s and 60s, and marketing to seniors. For example, leading-edge boomers are seeking financial independence, whereas seniors are more interested in physical independence. Failure to distinguish the difference is a death knell for any brand hoping to secure credibility with either group.

Isolating groups within this market is more difficult than analyzing younger categories because with age comes a more pronounced sense of individuality. This challenge is especially prevalent nowadays, where the rules on parenthood, employment and other social delineators have changed so dramatically during the last 50 years. Any disparity between the lively and the lackadaisical is colored by lifestyle choices characteristic of the last twenty years. Primarily and prominently, people are having children later and staying employed longer. It’s just as natural now to find over-50s raising first children in infancy as it is for them to be admiring grandchildren. There are those entering early retirement, those still working, those starting entirely new careers, and those becoming new parents.

Jane de Teliga, fashion and style editor of The Australian Women’s Weekly, believes the shift both in lifestyle and life expectancy has had an important impact on the way in which boomers prefer to be approached. “Life expectancy has changed radically in the last 30 years. Women are expected to last through to their 80s, so it’s perfectly reasonable to be looking forward to a career change at 50 or 60. They’ve done their stint in the corporate world and are branching out to do other things.”

One principal group emerging have been coined The Wild Elderly, a label they would, no doubt outwardly detest, and secretly like. Many of these over-50s are kid-free, financially independent and are more often than not, single. Baby boomers, freed from the shackles of former responsibilities such as family and work, are looking for the fun and freedom found in driving sports cars, sailing around the Mediterranean and backpacking throughout Europe.

Thirty-five year old sixty year olds

De Teliga feels the pain of the misunderstood boomer. “We’re physically, mentally and emotionally very different from the generation of 30 years ago…. Our outlook, what we see our lives being. We’re the product of the 60s. We invented cool, and we won’t let it go. What retailers have to understand is that the boomers are never going to be old in their own mind; they are always going to think of themselves as cool.” Recent surveys suggest that three in four over-50s feel no more than 75 percent of their chronological age.

Income also appears to bear little relevance in an environment where over-50s’ spending power is often determined more by return on assets rather than earned income.

So, if the over-50s are spending up big, why does the marketing business still behave as though the Justin Timberlake fan club occupies the commanding heights of commerce?

De Teliga believes our advertising industry is partly to blame. “A lot of the marketers and designers don’t target us because the majority of them are in their 20s and early 30s and don’t understand our generation. People are still imagining that baby boomers equal classics. We’re the first people of this age that aren’t obliged to dress like matrons.”

Philip Putnam, a creative director at Desire, points out that marketing to the over-50s will be recognized as a key industry trend for the first decade of the 21st century. The potential returns “from tapping into the wealthiest generation in the world” are clearly demonstrated in the US where dedicated 50+ marketing (e.g., Nordstrom, Harley Davidson) has been underway for a decade.

Putnam says, “I think [Australian] advertisers and media are behind. People are still trying to work out where they’re going with it. It’s going to explode.”

According to the ABS, people aged over 45 represented only 45 percent of spending in most categories in 1989, but this figure will grow to 55 percent by 2009. People aged 45 to 54 represented 20.5 percent of spending on recreation in 1989; this had grown to 25.6 percent by 1999. The figures are very similar for food, clothing, and many other categories. Meanwhile, boomers’ parents, the Silent Generation, are dying off, and inheritances with spell the largest intergenerational wealth transfer in history.

In addition, according to the National Centre for Social and Economic Modeling, more than 37 percent of the nation‘s wealth is held by the four million Australians born between 1946 and 1960, up from 33 percent in 1986. In contrast, the share of total wealth held by 25 to 39-year-olds declined from 27 percent to 19 percent over the same period. People aged 45 to 64 also represent 52 percent of total population growth. No wonder researchers postulate the product of Australia‘s first 15-years post-war prosperity was the wealthiest generation of the 20th century.

From misconception to no conception

One perception that contributes to the mass resistance to this generation is that their brand preferences are calcified, they have an already overstocked larder, wardrobe and garage, and little interest in the kind of spending that makes marketers merry. Marketers who back the theory that consumer choices are locked in by the age of 35 are ignoring the essential truth that people constantly change—whatever their age. As people age, the rationales behind decision-making and choices change as well.

Putnam is defensive of an agency’s role in marketing to this generation, arguing that change must come from the source. “Before the advertising community considers how to communicate with older audiences, it either needs something to sell to them, or a client brief that specifies over-50s as a new targeting opportunity.”

Take financial services as another example. Recent UK brand launches include Egg, Smile, IF and Cahoot. None of these are targeted to the over-50s, despite the fact they are potentially a very lucrative market. So is it surprising that without the development of desirable and relevant financial products and services, the over-50s don’t change their bank accounts or investment options? Roberts suggests that the leaders of our banks, supermarkets and drug companies would gain a huge competitive advantage by adding disruptive innovations to their local offers and models.

Understanding the “New Old”

Agencies that apply a “just add water” approach to boomer marketing are wasting their time. Segmenting this target market requires a unique approach; rather than defining them by age or income, marketers should segment them into a combination of physical, social and psychological factors. Secondly, ads that rely on the monolithic cultural stereotypes of the ‘60s generation (peace, love and happiness, with rock ‘n’ roll playing in the background) won’t necessarily win you favor. You need a marketing program that resonates with who these customers are now, not then.

They respond best to straight talk and reject over-promotion or spin, so avoid too much hype. It’s also smart to stay away from absolutism. By the time consumers reach this age group, their experience has taught them to see things in shades of grey rather than black-and-white, which makes conditional copy messages and narratives more appealing then a hard-sell approach.

According to a new study by Sweeney Research, only 23 percent of 45 to 54 year olds said advertising was in tune with their needs or entertaining to watch. Points of contention included images of smiling retirees strolling around retirement villages, young people used in ads, over-55s depicted as “old,” and ads that are perceived as speaking down to the elderly. An overwhelming majority (84%) of respondents (aged 45-54) said they were more likely to take notice of ads that showed situations they had experienced in real life. Ninety-nine percent said they appreciated ads that were humorous and light-hearted.

Baby boomers are not out to hijack the genuine culture of youth. Instead they are interested in a youthful way of life, the recognition that being young is a state of mind, and in a physical, turbo-charged approach that allows you to bend and stretch well past your 40th birthday.

The most successful advertising campaigns targeted at mature consumers focus on active and healthy lifestyles and introduce positive role models. Even the youth-obsessed cosmetic industry (Lancôme ditched Isabella Rossellini as its model because she was considered too old at 42) is getting better at portraying women over 50. Since such women make up over half the market for face cream in developed countries, it’s a wise move. In 2001 L’Oréal recruited the then 57-year-old French actress Catherine Deneuve to promote its hair care products (she refused to have her physical imperfections airbrushed out of the advertisements), and Estée Lauder looked to 54-year-old Karen Graham, its star model of the 1970s, as the face for a new cream for the mature market.

However it’s not all about image and communication. Products and services also need to suit older consumers. When food and beverage giant Danone decided to target older consumers with its new calcium-rich Talians mineral water, it made sure that customers would have no problems with the bottle. The label was designed to be clear and readable, while its larger and easy-grip cap is simpler for arthritic hands to open.

A similar approach was adapted by Japanese telecom company NTT DoCoMo. Once it had identified the older population as a promising growth market, the company launched a new mobile phone dubbed the Raku-Raku, or “easy-easy,” which has a panel with larger buttons and easier to read figures. In the two months following its launch, 200,000 units were sold. (A marketing and design decision based on simple facts: eyesight deteriorates at a median age of 43, and fingers become less nimble.)

To help young designers to understand older users’ (predominantly 65+) Ford has come up with “the third-age suit” to help its design engineers (most of whom are under 40) grasp the needs of aging drivers. The outfit adds about 30 years to the wearer’s age by stiffening the knees, elbows, ankles and wrists. It also adds material to the waist (a rotund stomach affects people’s ability to sit easily) and has gloves that reduce the sense of touch. Ford’s lucky designers also have to wear yellow-scratched goggles to find out what it’s like to have cataracts (an exhibit at the Sydney Biennale gave away cataract-simulating goggles; a shock to some younger visitors seen wandering around in them).

Such initiatives, however, remain the exception, not the rule. Most companies are only just waking up to the impact shifting demographics will have on consumption. While some fret about the old age demographic time bomb, others are investigating the possibility that the next wave of pensioners simply will not act like, well, pensioners, but more like teenagers. Those that choose to ignore the over-50 opportunity are ignoring a global redefinition of age, but more importantly, a looming social gerontocracy that will decide their survival in the marketplace.

Ideas to Action: How to get your share of 50+ cash

1. Fashion
   Instead of churning out the same matron lines every season, reconnect with the wants and desires of boomers, and how they project themselves. Nikki Parker, Creative Services Director for Desire, believes that when most fashion designers and retailers see 50-year-olds, they envision 80-year-olds who wear shapeless house dresses, support hose and thick soled shoes. “The fashion industry has to get a grip on the difference between the stereotype and the reality.”
2. Beverages
   Think young people have vitamin-enriched water on their must-have list? Think again. Maturing consumers, on the other hand, have been barraged with information about crippling arthritis and osteoporosis (among other deficiencies brought on by age) and the hip boomer wants Zimmermann clothes, not a Zimmerman walking frame. Vitamin and mineral levels are a relevant concern for aging consumers, so why not infuse water with calcium, iron, or soluble fiber?
3. Lifestyle Portrayal
   Add realism to lifestyle advertising targeting this active generation. Short of picturing 50+ men with their 20-year-old girlfriends (there’s a limit to just how “real” lifestyle portrayals should be), capturing their zest for health, fitness and youthful outlook is crucial in order to communicate with them effectively. The fact that most over-50s see themselves at 70 percent of their age is a tip.
4. Banking Innovation
   Why wait for Richard Branson to lay the next golden egg? Don’t assume brand loyalty comes with older age. Realize that they’ve seen and heard it all and have had to adapt to major societal changes over the years. They can easily switch—they hate their bank as much as anybody else. Tap into their dreams and ambitions; forget the stereotypes.

Paul Roberts is CEO and founder of Desire Brand Management in Sydney, Australia.