A milestone in marketing stupidity has been reached. According to a September report by the U.S. Bureau of Labor, a majority of consumer spending (51%) is now done by people over 50. These people are the target for 10% of marketing activity. On the other hand, marketers spend five times as much money marketing to Millennials, the moronic obsession of every marketer on the planet.
However, as an economist I dont buy the non-rational explanation offered:
There is no logic to the advertising industry's disregard for people over 50. It is marketing by selfie-stick - narcissism disguised as strategy.
Remember these are averages, and how much to spend on marketing is an extent decision, where the marginal effect of advertising is relevant. It could be that the marginal benefit to advertising to young people is higher (they buy more in response to ads) or that the marginal cost of reaching them is lower, e.g., because they spend more time online.
For cigarettes, I know that new smokers switch more frequently between brands while established smokers are more loyal to a particular brand. This may indicate more susceptibility to brand advertising, which rationally explain the high level of advertising aimed at young smokers.
I don't know what the answer is. Would love those with more experience to weigh in.
HT: High Lantern Group