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With an election looming, Dick Lumsden believes that the over 50s will have the deiding votes in who runs the country.
It may seem perverse, but despite the gloom and doom all around, Dick Lumsden believes the over 50s have the ability to kick start the economy.
Warning: This article contains optimistic content which may be offensive to those of a pessimistic nature.
At the risk of upsetting some people, I think we need to keep a sense of perspective here. Yes I know we are in a recession, that house prices have fallen, that jobs have been lost and that the value of our pensions and our savings has been cut
Graphically described as like a pig passing through a python...the population bulge of the post-war “baby boom” generation has moved on through life and is now firmly into its 50s and 60s.
Many are at the peak of their earning power, and have more disposable income than any other age group. Recent surveys show that they hold 60% of the country’s savings on deposit and are sitting on equity of more than £720 billion in their homes.
Notwithstanding the current financial climate, consumers who have moved north of 50 are still very active spenders and, having been brought up on a diet of clever advertising, constantly evolving communications channels and blessed with a desire to have fun, they are the perfect audience – or so you’d think.
But amazingly, just over 5% of the total UK advertising budget each year is spent on campaigns specifically aimed at the over 50s – and most of that is for products and services which are specifically geared towards an ageing population and wouldn’t appeal to younger consumers in any case.
Former journalist, corporate communicator and marketer Dick Lumsden – himself now 52 – is the head of the Senioragency business unit inside London agency DCH, which, as the name suggests, is geared solely at advertising and communicating to the over 50s.
He said: “Marketing to the over 50s is not about using models with grey hair and elasticated waist bands, it is about tapping into the mindset of a very large number of people who grew up to a changing soundtrack of rock and roll, heavy metal and punk.
“It is about identifying with those people in their 60s who are still active at sport, or talking to an audience that has embraced the internet and wholeheartedly thrown itself into the age of satellite TV.”
The sheer numbers of older consumers now make a compelling economic argument. Approximately 22 million people over the age of 50 – and rising every day as life expectancy continues to improve.
Lumsden said: “Between the ages of 50 and 65, many millions of people in this country are at the peak of their earning power, are relatively debt free and have become used to a lifestyle of eating well, holidaying regularly and enjoying life to the full.
“Over 65, while conspicuous consumption may drop as earnings drop, many, many consumers still enjoy the finer things in life and are still a worthy audience.
“Of course, it is unwise to over generalise, and we should not forget that there are a significant number of people for whom life isn’t so comfortable.”
Senioragency is one of only a few businesses which truly understands the older demographic and works with clients to develop creative campaigns which appeal to the audience and which, through well planned used of media channels, achieve great results.
Lumsden said: “We want to help our clients sell their products and services, but we want to do it in a way which treats the audience with the respect and understanding they deserve – and not using elasticated trousers.”
For further information on Senioragency, visit www.senioragency.co.uk
Britain’s High Streets are set to feel the latest effect of the global financial crisis – as the “grey pound” suffers an uncharacteristic squeeze.
As the country slides closer and closer to recession, the effects are now beginning to be felt by the man in the street and new research this week shows that even the normally robust 50+ consumer group is battening down the hatches.
There are now more than 21 million people over the age of 50 in the UK – a third of the population – they own 80% of the country’s wealth and have an annual disposable income estimated at £160 billion.
A nationwide YouGov survey, commissioned by Senioragency, specialists in marketing to the older consumers, shows growing concern and a readiness to cut back on spending in the next few months – pointing to a pretty lean Christmas at the tills.
In this first major poll of the senior market since the economic downturn, 82% are concerned about the oncoming recession and the state of the UK economy over the next couple of years.
Worryingly for already hard pressed retailers, 61% say they believe they will be directly affected by the recession and intend to curb their spending as a result. This compares with just 45% of the 18-24 age group.
The implications are clear – with a higher percentage of the biggest spending consumer group planning to cut back, the effects will be magnified right across the board.
However, while the 50+ group review their options and look likely to reduce their discretionary spending, just 40% of them are actually worried about making ends meet. This reflects the relatively low levels of mortgage and unsecured debt enjoyed by the older group. By contrast, 57% of the 35-44 age group are worried about making ends meet as they juggle household debt and raising families.
Dick Lumsden, Managing Director of Senioragency, said: “For the millions of over 50s who are still working, they are seeing the value of their pensions dropping and are worrying about job security and their long term future. Those who have retired are feeling the effects of inflation, so there is pressure all round on the amount this hugely influential consumer group is prepared to spend.
“Undoubtedly that will feed swiftly and directly through to the High Street as they cut back on non-essential purchases.
”For the less well off, the joint pressure of fuel, food and housing costs will affect everyday decisions such as where to shop, brand choice and the likely postponement of some clothing or household items.
“For others, fearing job security, and experiencing falling house and pension values, it will affect higher ticket items such as replacing the family car, holiday choice, or cutting back on eating out and entertainment.”
The Senioragency poll also showed that only just over one in ten thought the recession would be short lived (i.e. less than a year). More than 60% feel it more likely to affect them for between one and three years.
Lumsden said: “Some of these older consumers have lived through two or three recessions and have a very clear idea of what to expect. With many of them thinking this will be no short term dip, then brands and retailers will need to rethink their tactics if they are to remain competitive.
“As money becomes tight, choice becomes limited. Shops and products which offer added value, incentives or shrewd and targeted marketing will benefit. For others, there could be a deep and prolonged drop in custom.”
Britain’s cinema owners need to work harder to persuade older consumers away from their TVs and enjoy the big screen experience.
Senioragency managing director Dick Lumsden, speaking at the UK Cinema Industry annual conference at BAFTA in London’s Piccadilly, said the vast majority of seniors have turned away from the cinema in recent years and have been largely ignored in the marketing mix.
But he told delegates that they should consider the sector as a major revenue opportunity as we go through the current recession. Senior consumers – particularly those aged between 50 and 65 – have a proportionately higher disposable income than the younger age groups and, through sheer volume of numbers, could be the sector which fills empty seats during the economic downturn.
He said: “Traditionaly, the most active audience has been the 15-24 year old sector, and research shows that only five per cent of 55+ consumers are regular cinema goers.
“But there are now 21 million 50+ consumers in the UK – and many of them could be persuaded to visit the cinema more regularly if cinema owners address their concerns and reasons for not turning up.
“Our own research identifies a list of prejudices, including lack of time, lack of choice or preferring to watch movies on TV, cost, and the perception that the cinema ambience will be noisy, uncomfortable and unwelcoming.”
Lumsden said: “Some of these concerns are just plain wrong, and by addressing them directly through targeted marketing, the potential to increase the number and frequency of cinema visits is huge – unlike in the 15-24 age group where the desire is already there, but their visiting pattern is limited by a lack of disposable income.”
Celebrity endoresement cuts no ice with Britain’s older consumers, who clearly prefer substance over style.
A well known face fronting an advertising campaign is no longer a guarantee of success, with 46% of older consumers actively turned off, 39% ambivalent and just 11% more positive as a result.
The consumer poll, conducted by YouGov on behalf of Senioragency, the specialist 50+ marketing firm, also found that 51% believed the majority of today’s advertising was patronising and 64% believed most ads were trying too hard to entertain and not giving enough information.
YouGov polled 1,322 consumers aged between 50 and 70, and Dick Lumsden, Senioragency’s Managing Director said: “The senior consumer group is a tough audience. In sheer numbers they now form the biggest spending sector, and they have been fed on a diet of TV advertising almost all of their lives.
“They are, in the main, sophisticated consumers who know what they want and base their buying decisions on hard fact rather than celebrity endorsement. Humour and entertainment, it would seem, come secondary to product information.”
This would appear to be borne out by some of the other results. When given a list of male and female celebrities to identify as a role model, 43% of men and 54% of women chose no-one.
Of those who did make a choice, sixties icon, now M&S fashion model, Twiggy was top role model for women and Sir Richard Branson top among the men.
But while they may not want to see celebrities in advertising, the consumers polled do have their firm favourites when seen doing their day jobs. With the Christmas TV schedules almost upon us, the undimmed appeal of veteran stars David Jason and Dame Judi Dench saw them named as favourite male and female actors.
Every day in Britain, more than 1700 people reach the milestone of their 50th birthday.
As the huge population boom of the post-war years begins to near retirement age, and as advances in science and medicine increase our overall life expectancy... less people are dying and more of us are reaching our golden anniversary, writes Dick Lumsden.
The population of the UK is now over 61 million, and within the next 20 years, estimates are that almost half of us will be 50 or older. For the first time ever, there are now more pensioners in Britain than there are under 16s.
Government estimates say that almost 80% of the country’s wealth is in the hands of the 50+ and, despite the drop in property prices we have seen over the last year, this group is relatively debt free and still sitting on more than £750 billion of equity in their homes.
For a few years now we’ve heard a lot about the “grey pound” and the supposed spending power of the senior market...but if, like me, you won’t see your 50th birthday again, ask yourself this - when was the last time you watched a TV ad, or drove past an advertising billboard and genuinely felt that the message was being directed at you?
Despite the credit crunch, rising prices and our continuing slide into recession, estimates are that the over 50s spend something like £200 billion of disposable income every year – way more than the younger age groups. Yet less than 10% of the total advertising spend in the UK is aimed at us and most of that is on specialist products such as hearing aids or financial services with an age qualification.
Why is that? Why do big brands, retail chains, car makers, drinks companies and others choose to spend their money attracting the “younger” spender, when we have 80% of the country’s wealth burning a hole in our pockets?
Researchers have found, perhaps not surprisingly, that none of us over 50 actually feel our real age. Mentally, most people over the age of 50 feel – on average – 15 to 20 years younger. Physically, as the aches and pains increase, we admit to feeling a lot closer to our real age – but even then, we still don’t want to think of ourselves as “old.”
But is that a valid reason for the advertising industry relying so heavily on beautiful models, clearly in the full bloom of youth.
There are a few noble exceptions – Twiggy for Marks & Spencer and Andi McDowell for L’Oreal for instance – when advertisers have tapped into the thinking of the older buyers and used beautiful, vibrant models over 50 that we can identify more easily with.
But on the whole, we are persuaded to buy razors by fit young men bearing six packs; all cars appear to be driven by professional sportsmen and, as for holidays, you can forget it unless you can squeeze perfectly into a pair of Speedos and feel no shame bearing your torso in public.
Our own research tells us that the older consumer prefers advertising which is to the point, information rich and free from gimmicks, trick photography or annoying edits.
A bit of humour is ok, and the actors should portray us as we feel – not necessarily how we look.
Clearly, it is misleading to generalise – there is a world of difference between a senior manager in his 50s in the South East, and an unemployed miner in his 50s living in the Central lowlands of Scotland – at least ten years of life expectancy for a start.
But the weight of statistics can no longer be ignored. If brand managers want to tap into the disposable income available to the huge consumer base that is over 50 – particularly the 14.3 million of us active spenders between the ages of 50 and 70 - then they need to invest more money in advertising campaigns which show that they understand us.
In difficult economic times, we become more selective about what we spend and where we spend it, brands must work even harder now to persuade us to part with our cash.
Perhaps now that Madonna has reached the big 50, a few more of them will sit up and take notice. To paraphrase the mantra of specialist group SAGA – over 50 doesn’t mean over the hill.
It may seem perverse, but despite the gloom and doom all around, Dick Lumsden believes the over 50s have the ability to kick start the economy.
Warning: This article contains optimistic content which may be offensive to those of a pessimistic nature.
At the risk of upsetting some people, I think we need to keep a sense of perspective here. Yes I know we are in a recession, that house prices have fallen, that jobs have been lost and that the value of our pensions and our savings has been cut.
But it’s happened before and in all probability it will happen again. Just because Gordon Brown told us a few years ago that we had seen an end to “boom and bust” doesn’t mean we actually have.
Those of us who have a few years on the clock can remember sitting down to dinner by candlelight – not because we were hopeless romantics, but because there wasn’t enough power in the National Grid to keep us all going at once. We can remember rampant inflation, Britain being described as “the sick man of Europe” and unemployment levels almost twice as high as the current percentage of 6.1 – and that was when there were fewer people!
So forgive me if I appear uncaring, but contrary to what some people who should know better are telling us, it isn’t the end of the world and we need to break free from this state of collective paralysis and get on with the rest of our lives.
And I’ll go further. Those of us over the age of 50 should be setting the pace. We are more resilient, we know from experience that this will end sometime soon and, in so many ways, we have the keys to unlock the economic handcuffs.
Proportionately, as we get older and our major debts begin to reduce (mortgage being paid off, children leaving home) so our disposable income begins to rise in proportion.
More than the younger age groups, we buy things – and good things at that. We buy top of the range cars, we invest in better quality furniture and clothes, and we consume premium brand food and drink because after decades of hard work and effort we like to reward ourselves.
Now isn’t the time to change all that – we are more in control of our own destiny than they give us credit for – and the economy depends on the £200 billion a year we have at our disposal.
If we just hold our nerve we can save the car industry, we can kick-start the housing market and we can keep shops, cinemas, pubs and restaurants in business far better than any Whitehall intervention plan, simply by doing what we have always done.
I was contacted by a woman the other day who told me that, at the age of 59 she was fed up being pigeon-holed and told what she should and shouldn’t be doing because of her age and sex and the general sense of gloom and despondency.
She said: “In a few months time I will be going with my best friend to celebrate our 60th birthdays in a tent at Glastonbury, where we shall enjoy listening to some very loud music and no doubt behave very badly and drink far too much.”
Now that’s the spirit.
And in an effort to redress the balance in the face of some seemingly endless statistics telling us the bad news, I’ve dug out a few overlooked surveys in the past couple of weeks to give us all cause for optimism.
So I say, let’s shake off the gloom and all be a bit more optimistic. It’s our life, so let’s get on with living it and not be swayed by the pessimists who tell us things are going to get worse before they get better. Learn a lesson from the rabbits in the headlights!
This article first appeared in the East Anglian Daily Times, on Wednesday, February 4, 2009.
East Anglian Daily Times | 1st April 2009
As we teeter on the edge of a pensions black hole which threatens to engulf us all in a poverty-stricken old age, the European bureaucrats have thrown yet another spanner in the works, writes Dick Lumsden.
East Anglian Daily Times l 4th March 2009
The over-50s are the fastest-growing sector in the UK, but are largely ignored by advertisers and the media. But, as Dick Lumsden discovers, there are some people out there who want us, even if we don’t want them!
East Anglian Daily Times l 6th May 2009
Forget swine fever, Dick Lumsden believes we are facing a much bigger and longer lasting pandemic.
East Anglian Daily Times l 26th August 2009
Giving your brain a workout is supposed to be good for us. But is it really? Dick Lumsden has a view.
East Anglian Daily Times l 23rd September 2009
Britain is in danger of being turned into a nanny state with so many people telling us what to do. Dick Lumsden stands up for freedom of choice.
East Anglian Daily Times l 21st October 2009
Is the bottom falling out of the market for old men’s trousers? Dick Lumsden thinks so.
East Anglian Daily Times l 18th November 2009
In an ageing society, is living to a very old age really something to celebrate? Dick Lumsden thinks not.
East Anglian Daily Times l 16th December 2009
Buying Christmas gifts is like betting on the horses - a great feeling when you choose right, but a massive let down all round when you pick a donkey, says Dick Lumsden.