Baby boomers today are happier, fitter, wealthier and more willing to spend their hard-earned cash than just about any other demographic. A lot of them listen to talkback radio – twenty-something media buyers don't. Their clients are missing out on a massive opportunity, warns to Macquarie Radio Network.
Of course, MRN would say that. Its core audience is baby boomers. But chairman Russell Tate is annoyed. Direct advertising revenue for its Sydney stations is around 33% – twice the amount spent by media agencies.
"Age is certainly a part of it," Tate told AdNews. "Look around media buying agencies – you haven't got too many people in there over 40, let alone 50. It's a lot of young people who listen to young radio stations, who probably never read a print newspaper."
Marketing departments are the same story, he said. "There are not too many [clients] where even the boss is a typical listener to this radio station. They're all bright people, they sort of understand the issue, but I still see briefs saying target audience 25 to 39.
"There is still this psychological barrier, where they feel – and obviously all budgets are limited – but that when in doubt you have to go younger. Clearly there's an imbalance [in radio spend] and without question that imbalance is largely a result of lack of understanding based on outdated stereotypes."
So MRN is on a mission to educate the market. In mid-2013, it commissioned Woolcott Research to undertake a major study into the lifestyles of older Australians. The findings, while in line with what was expected, provide a tangible platform for the sales pitch, and MRN is putting the hard word on anyone who will listen.
"Obviously I've got a vested interest in that our audience for 2GB and 2CH are clearly 45-plus," Tate said. "But I don't think it's a surprise to anybody that the marketing value of today's over-50s is massively greater than it has ever been. I'm not sure marketers have kept up with that."
The study found, among other things, that older Australians actively seek change, are more positive about the future, place a high priority on staying fit and healthy and keeping up with fashion, and importantly, are far more likely than young people to want to try new products.
"We see a huge number of clients that are not giving this age group anywhere near the credence it deserves – not just for its spending ability but for its sheer numbers. When you sit down and talk to them they all get it, but it doesn't translate to where marketing dollars are being spent."
The report compared various age groups to the 45 to 69 demographic, and to the 18 to 45 demographic, and "the only real surprise was the extent of some of the differences", Tate said. "They're happier than young people, they're more optimistic about the future. There's a lot of rubbish stereotypes around older Australians, and those have been pretty much blown away."
While radio is the "original social media", as Tate and MRN sales bosses are wont to say, the older demographic are active users of new media as well. MRN has around 80,000 "hardcore listeners" signed up to its newsletter, 2GB's podcasting numbers are "higher than any other station”, and Twitter and Facebook numbers are increasing.
But as the current crop of baby boomers dies off, will the younger demographics naturally gravitate towards talkback, or will they be different once again? Tate isn't sure. "It's a great question and we think about this a lot. When do people start getting interested in news talk radio as they get older?
"It just happens to be at a certain point in our lives when we start to think and act a little differently, in our early 30s or 40s. Your job becomes more important, you start to think about super, tax, the kids are growing up and you're sending them to private school. It's just a point where you say, 'I figure I should listen to less Triple M and start reading The Australian.'"
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