"Geezer Power," this week’s cover story in Barron’s magazine, describes how "for years, 18-to-49-year-olds have been marketers’ darlings. But an historic shift in spending power will force a change…" and firms like Estee Lauder, Starwood, Walgreens, Whole Foods will benefit.
This article gives a comprehensive argument for marketers, and investors, to wake up and follow the money…all roads lead to Boomers.I would love to hear from folks, especially anyone unconvinced, why, with all the mounting evidence, media still "lives and dies based on its appeal to younger [age groups]?"
Barron’s has graciously made the article a free feature this week, so you can check it out without a subscription. Excerpts below:
"Every eight seconds, an American turns 50. Last year, the first boomers -- members of the generation born between 1946 and 1964 -- turned 60. That's likely to send consumer and investment dollars flooding to a number of companies…"
"It's something the advertising and marketing industries will have to come to grips with, something they're not too enthusiastic about. For decades, the hucksters of Madison Avenue, Hollywood, Television City, Radioland and even Detroit have mainly focused on 18-to-49-year-olds, while generally treating older people like crazy aunts and uncles who show up uninvited for Christmas dinner. The reality is that consumers aged 50-plus already spend more than $1.7 trillion on goods and services each year, including heavy outlays at restaurants, for gourmet cooking and for travel."
"The mighty AARP, which dropped the word "retired" from its name a few years ago and became simply an acronym, now has 38 million members -- and expects that number to hit 50 million in the next five years. "This is a pivotal moment," says Bill Novelli, 65, the group's Washington, D.C.-based chief. "All these boomers are coming into their mature years, and have more longevity than ever."
"That's apparently news to some people in the advertising, entertainment and media worlds… Says John Kottmann, director of strategic planning for McCann Erickson: "Twenty-five to 54 is still a very traditional market for many products. Media really lives and dies based on its appeal to 18-to-34-year-olds, and, increasingly, younger [age groups]." On average, a prime-time TV show that caters to a 35-to-49-year-old audience can get 30% more per advertising minute than one that caters to people 55 and above."
A sampling of companies that Barron's predicts will benefit from the graying of the boomer generation:
Sources: Citigroup; Merrill Lynch
That said, I'm excited about the launch of a new social networking site for Women http://www.wowowow.com. Check out the NY Times article and the site's founders, including Liz Smith, Lesley Stahl, Mary Wells and Joni Evans. With so many jumping on the social networking bandwagon for the sake of, well, jumping on the wagon, this venture may actually have some legs. If not at least some spunk, class and a great clutch of gals. 
