This is the view of CarsGuide Media following the publication of its latest research into car buying demographic groups which suggests that auto marketers are casting their nets in the wrong seas by concentrating on Millennials and Generation X at the expense of Boomers.

The research lists compelling data of why the Boomers deserve special focus in auto marketing budgets – especially as the over-65 age category is the fastest-growing proportion of the Australian population and scheduled to double by 2050.

The director of commercial partnerships at CarsGuide Media, Shannon Fitzpatrick, told GoAutoNews Premium that the Boomers were financially comfortable and are free to take part in just about any lifestyle activity they choose. They are the biggest spenders in auto, health, travel and entertainment.

Shannon Fitzpatrick

Mr Fitzpatrick said that 39 per cent of Boomers were still in paid work and half of the younger Boomers were still working full time, many in senior positions and these days 60 per cent more of that age group are working compared with 16 years ago.

“They are the biggest spenders. They represent 25 per cent of the population but account for 46 per cent of the spending and control half Australia’s private wealth,” he said.

“What surprised me was how decisive Boomers are in relation to buying cars. One in five (21 per cent) of those surveyed only take four weeks to research and buy their cars and 86 per cent of Boomers actually paid cash for their last vehicle.”

Mr Fitzpatrick said that the average price paid by Boomers for new cars was $40,650 and that one in four will pay more than $50,000 for their next car. 

“Another thing that was surprising to us was the influence the Boomers have over the following generations when the kids come to buy their cars with 43 per cent of first car buyers getting financial assistance from the bank of mum and dad. 

“That is a startling statistic for marketers and shows that the Boomers are a really valuable segment because, aimed at correctly, they can actually influence well beyond their own segment.”

Mr Fitzpatrick said that there was a tendency for marketers to focus on families in their advertising because SUVs make up such a large and lucrative section of the market but they left just 4.7 per cent of creative content actually containing Boomers within their commercials.

He said that social media was not the right place for marketing to Boomers in spite of 93 per cent having access to the internet and 78 per cent using their phone to browse but only 6 per cent of Boomers use social media to research a car to buy.

“I would say that targeting Boomers across social media is probably not the right strategy if you’re looking at targeting people that are on the car-buying journey. And the reason for that is they may be using social media to connect with their friends or to show pictures of their family activities or whatever, but they’re not actually using social media to do their research. 

“They have a Facebook account, but they’re not engaging with that around their car buying research, they’re just using it, as the name says, as social media,” he said.

Summary

Boomers are a powerful target audience:

• 85 per cent of surveyed Boomers described their financial situation as ‘very good’, ‘good’ or ‘comfortable’
• 75 per cent of Boomers own their home outright
• 48 per cent of Boomers are empty nesters with more cash at their disposal than ever before
• They are redefining retirement as two in five (40 per cent) still do some paid work with half (48 per cent) of younger Boomers (aged 55-65) still working full time

The opportunity for the auto industry to reach Boomers

• Despite accounting for two thirds of new car sales in Australia, Boomers are not prominent in advertising activity
• On average, Boomers spend $40,645 on a new car and nearly one in four (24 per cent) will pay over $50,000 for their next car
• More than four in five (86 per cent) Boomers buy new cars with cash, while only 14 per cent choose a finance arrangement or loan
• Boomers are decisive buyers, one in five (21 per cent) buyers take less than a month to buy a new vehicle
• 97 per cent of this audience are confident when it comes time to buy a new car. They have done it before and are excited to do it again, 44 per cent of this audience feel that they know a fair amount about cars
• 64 per cent of 55–64-year-olds are willing to buy a new car, key considerations are reliability and not having to worry about it breaking down (78 per cent)
• In fact, Boomers also buy cars for others. Two in five (43 per cent) first time car buyers are influenced by and financially assisted by the Bank of Mum and Dad
• Boomers are open to new brands: half (50 per cent) say the next model they buy will be a new brand meaning they represent a lot of opportunity for challenger brands and conquest marketing

How to reach Boomers

• Content is king. Boomers embrace new types of content, 40 per cent think that watching videos is important. This presents an opportunity for brands to reevaluate and innovate how they communicate with this audience
• Unlike Generation X (35 – 54 years), Boomers are not swayed by advertising. In fact, Boomers’ rarely discover a brand through advertising in traditional media (9 per cent) and online advertising (3 per cent)
• Only 6 per cent of Boomers use social media for research. The preference is to seek out verified, impartial content
• They buy differently, with the majority of Boomers (92 per cent) still preferring to visit dealerships and most (75 per cent) do a lot of research – with most of them visiting car review sites (82 per cent).

By John Mellor