Oftentimes, radio executives and managers consider format opportunities by audience size, rather than the spending power of demographics.
Perhaps instead of trying to determine where meters are placed, it might be smarter to consider where money will end up.
Following that logic, a recent MetLife study suggests that boomers have a strong chance of inheriting money in their lifetimes, and for some, this could lead to a better retirement with more spending opportunities.
Data from “Inheritance and Wealth Transfer to Baby Boomers” suggests that those who fall in that age category will receive a median amount of $64,000 in inheritance over their lifetimes. It totals out to $8.4 trillion, of which more than a quarter has already been received.
Sure, there are lots of variables in play here – life expectancy of the inheritors, the estate total and its investment, etc. And high wealth households have a much greater likelihood of receiving larger shares of dollars. Not to mention ad agency myopia about 25-54 targets, while radio continues to play along with those edicts. At a time when brands and consumer products should be looking for any available infusion of sales, the Boomers could hold that key – once again.
This windfall has implications for radio formats that are already well-centered on Baby Boomer demographics, including Classic Rock/Hits, as well as many Public Radio operations (many of which are already crafting appeals to take advantage of wealth that will be in play – think Joan Kroc (pictured) and her sizable gift to NPR back in 2003).
Yes, meters matter. But so does money – and along with it, a segment of the population that stands a great chance of receiving family inheritances in the coming year.
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Money has ALWAYS been the bottom line. Reach budget and corporate doesn’t care about the ratings. To bring IN money ya gotta go where it is and this makes perfect sense. Watch how restaurants are catering to baby boomers NOW. Everyone gonna be after that chunk of change.
Danny, you’d think that with all those dollars out there (and more and more research that says that 55+ or at least 35-64 is a fertile target audience), radio and the advertising industry would be able to follow these golden bread crumbs. Yet, while other industries are figuring it out, it is still a struggle in ours. Thanks for taking the time to comment.