Marketing Sherpa (link valid until March 31, http://www.marketingsherpa.com/article.php?ident=31137&pop=no)   produced an interesting field study on effective advertising tactics to target specific demographic; specifically this test was to determine layout and imagery selections that were most appealing to older audiences, and within that demographic, if lifestyle (empty-nesters, etc.) and income level had any effect on preference. 

Within retail financial services, demographic-based advertising, specifically the age-based, is usually tied to life-event marketing and is a key strategy to drive specific product messaging, since key life events can trigger the need for specific financial products and services:

“There are few marketing techniques that can capture such a high level of consumer (self-) interest at a point of time as with life event-based marketing.  Typically purchase decisions associated with life events represent a degree of complexity and unfamiliar decisions and those brands that can wrap their messages in with helpful advice stand to win the heart and wallet of the consumer.” - Laurence Hickey, Senior Strategist at Organic.

Event	Participant/ Age	Financial Product/Service
Graduation	Graduate/Young Adult       Parent/40+	Deposit and savings accounts, credit products, student loans, insurance (auto, rental)   Student loan, insurance, home/equity-based loan
Marriage	20-30 something       Parent/40+	Deposit and savings accounts, credit products, home loan, personal lending, insurance (shelter, jewelry)   Investment planning, estate planning/trust
New baby	Parents/20-30 something   Grandparents/40+	Education savings, investment planning, insurance, home loan   Education savings, investment planning
Divorce	Mid-to-senior	Deposit and savings accounts, credit products, home loan, investment planning
New job/moving	Self/Mid-career, 30-40	Home loan, retirement planning, roll-over account
Retirement	Self/End-of-career, 60+	Insurance, wealth management, estate planning/trust, home loan
Death/inheritance	40+	Investment planning, home loan,  personal lending

Within the United States, one key demographic remains to be the Baby Boomer, those 78 million Americans born between 1946 and 1964.  While research indicates those consumers are usually entrenched with their primary banking provider, identified as the institution that holds their checking relationship.  However the share of wallet for firms offering wealth management, investment products, and insurance remain up-for-grabs.  This is due, in large part, to the transfer to wealth occurring in this segment as the Baby Boomers shift their investment strategy from wealth “accumulation” to “distribution.”  In a research report, Tiburon Research and Analysis Group quantified the significant redeployment of wealth as Baby Boomers reach retirement age:

 

  $17.1 trillion of investable assets

 + $7.5 trillion in retirement plan assets

 + $5.5 trillion more as boomers sell their stock options, small businesses, homes ____________

  > $30 trillion on the move

 

Source:  Tiburon Research and Analysis, 2005

 

The Marketing Sherpa survey polled 414 mature consumers (those older than 40 years-old) from September to December 2008 to measure effectiveness of color, composition, and imagery in print advertising.  Their findings, “Though there were some overarching similarities in mature consumers’ preferences, the differences in preference between segments, especially by age and gender, were very interesting.”

Marketing Sherpa's 5 Tips for Motivating Mature Consumers

Tip #1. Use single image ads, not collage-style ads

Table One:  Single Image Ads vs. Collage by Age Group


Single-image ads were more effective at motivating mature consumers than collage-style ads. 66% of survey respondents said they preferred seeing a single image as opposed to a collage of images.

Survey respondents with the highest level of education – master’s recipients (74%) and doctorate recipients (79%) – found single-image ads more appealing.

All age groups preferred single-image ads, especially the 55- to 64-year-old group (71%).

Takeaway: If the goal is to motivate mature, well-educated consumers then single-image ads are the way to go.

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Tip #2. Vibrant ads outperform subdued ads

Table Two:  Vibrant Ads vs. Subdued by Family Ties


Advertisements with bright colors and expressive models were more appealing to mature consumers than subdued advertisements featuring muted colors and static models. 65% of survey respondents chose vibrant ads to subdued ads.

Respondents with adult-age children at home (78%) responded especially well to the vibrant ads.

What’s interesting is that 74% of women preferred the vibrant ad, whereas 56% of men preferred the subdued ad.

In addition:
- 53% of age group 75 plus preferred the subdued ad
- 52% of survey respondents with household incomes of more than $200,000 per year preferred the subdued ad

Takeaway: It’s very important to pay attention to the preferences of segments within a demographic. Although most mature consumers prefer vibrant ads, if the target is men, 75-years-old or older who have annual household incomes of more than $200,000, it’s better to use a subdued ad.

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Tip #3. Lifestyle images preferred to product images

Table Three:  Lifestyle Images vs. Product by Family Ties


The preference for lifestyle images was consistent across all age groups, income, education levels, and family situations. 59% of survey respondents preferred lifestyle images to product images.

Other stats:
-71% of caregivers preferred lifestyle images
- 64% of associate or bachelor’s degree holders preferred lifestyle images
- 61% of survey respondents with $200,ooo plus household incomes per year preferred lifestyle images

Takeaways: The higher the education level, the lower the preference for lifestyle images. Those with doctorates or PhDs (54%) preferred product images to lifestyle images.

Similarly, there was a significant discrepancy between how much caregivers (71%) preferred lifestyle images to how much empty nesters (57%) preferred lifestyle images.

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Tip #4. Posed shots attract the wealthy/older generations


Table Four:  Candid Shots vs. Posed by Annual Household Income


Only 51% of mature consumers preferred candid shots to posed shots. That’s a very small margin between those who preferred candid shots and those who preferred posed shots.

Takeaway: The decision to shoot a posed versus a candid shot should really depend on whom an ad is targeting:
- Older consumers (75 plus) preferred posed shots (55%)
- Younger consumers (40- to 54) preferred candid shots (57%)
- More wealthy consumers who had annual household incomes of $101,000 or more preferred posed shots (52% to 58%)
- Less wealthy consumers who had less than $101,000 annual household incomes preferred candid shots (47% to 59%)

In conclusion, the higher the income and the older the person, the more they preferred posed shots. The lower the income and the younger the person, the more they preferred candid shots.

Most of the men surveyed preferred the candid image, which went against the hypothesis concluding that men normally prefer order and structure.

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Tip #5. Older consumers prefer identifiable images

Table Five: Identifiable Images vs. Cropped by Age Group

Overall, 65% of mature consumers preferred to see identifiable people in photos as opposed to cropped images that didn’t show a person’s face.

Takeaway: The older the consumers, the more they prefer to see the face of the subject in the photo.

- 54% of 40- to 54-year-olds preferred cropped photos
- 76% of 75-year-olds plus preferred identifiable photos

Sherpa’s Summary:  All of the survey results show that it is important to know whom an advertisement is targeting before designing an ad.  The more that is known about the age, gender, income level, education level, hobbies and interests of the target audience, the better the chance of creating an ad that resonates with those consumers.

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The research also indicates that within the Baby Boomer segment, ad layouts that use single image and vibrant colors performed better, and the positive response to posed or candid photography was negligible, however, respondents preferred to see the subject’s face.   

 

As an Internet marketer, I’m curious if these findings will apply to online formats, as well as print media, since traditional, mass media advertising budgets are shifting toward the use of online tools and the Internet adoption rate and comfort level is ever increasing within the Baby Boomer segment.

 

According to one advertising forecast, the interactive segment (mobile, Internet Yellow Pages, local search, online verticals and classifieds, voice search, e-mail marketing and other interactive revenues generated by traditional media players) will grow from $14 billion in 2008 to $32.1 billion in 2013. The traditional segment (newspapers, direct mail, television, radio, print Yellow Pages, non-digital out of home, cable TV and magazines) will decrease from $141.3 billion in 2008 to $112.4 billion in 2013.  (Source:  Forecast, 2008-2013, by BIA Advisory Services and its Kelsey Group.)

 

The Baby Boomer generation continues to adopt and embrace technology as witnessed by the popularity of Facebook.  According to the site insidefacebook.com, the fastest-growing user group is women age 55+, which has increased more than 175% since last fall, and men 55+ have increased almost 138% during the same time period.  Within financial services, Forrester Research’s annual technology surveys continue to show the age segments of 40-54, 55-64, and 65+ years increasing in both the numbers of consumers researching, and applying for, financial products online. 

 

While secondary research is valuable, your product launch plans should include project-specific primary research, but this Marketing Sherpa report gives some good visual guidelines.  In the future, I hope Marketing Sherpa has more online research on the docket to help Internet marketers attract the key Baby Boomer demographic with the testing and documentation of best practices in online imagery and layout.