They Just Might Be Catching On!
Submitted by Kat Philips on Mon, 2012-09-10 13:32
Don’t get too excited yet, but it appears that some commentators are starting to embrace what we’ve known for some time.
And that is: the sweet spot demographic for the Yellow Pages is also the sweet spot demographic for many advertisers!
I recently read with great interest an article by Jonathan Alcorn of Bloomberg News in which he addresses the derision aimed at the CBS television network because of its “older viewer base”. As it turns out, that’s good news for CBS.
Here’s part of what Mr. Alcorn wrote:
“The last of the U.S. Baby Boomers turn 48 this year, moving into the sweet spot for luxury cars, financial services and pharmaceuticals, three of CBS's largest ad categories.
The shift is forcing marketers to reconsider how they target the $12.7 billion that researcher Kantar Media says they spent on prime-time network TV ads last year. As Boomers -- people born between 1946 and 1964 -- leave the 18-to-49-year-old group that has long dominated TV advertising, companies are focusing more on older consumers.
‘While we enjoy winning in all the categories, 18-to-49 is not the end-all it's made out to be,’ Nina Tassler, CBS's head of entertainment. ….
Marketers have long viewed younger consumers as more open to new products and less likely to have established loyalties. Time and economics are changing that. Most Americans don't set up households until after college, according to Pat McDonough, senior VP of insights, analysis and policy at Nielsen, which reports the audience ratings used to set advertising rates. And more people in their 50s are willing to try new products, she said.
‘Realistically, most 18-year-olds aren't determining what laundry detergent they'll use,’ Ms. McDonough said. ….
The perception that 50 is "ancient" is changing, according to Peter Gardiner, national media buyer at Deutsch, a unit of New York-based Interpublic Group of Cos. that lists Microsoft and Johnson and Johnson & Johnson as clients. Most have grown children, are in their peak earnings years and are still a decade or more from retirement, he said.
‘It's not that the younger demographic is less important,’ said Mr. Gardiner, who notes half his clients have begun to target 25-to-54-year-olds in recent years. ‘It's that the older audience is becoming more important.’
The buying power of older viewers has also grown, said David Poltrack, CBS's chief research officer, while 18-to-24- year-olds have been hit hard by the slow recovery.
The 45-to-64-year-old age group was least affected by the recession, according to Census data. The group's 2010 median annual income of $60,700 was 2.1% less than before the recession. Those under age 25 suffered a 9.7% decline, to $24,140. ….
CBS says four of its top five advertising categories by revenue target viewers ages 25 to 54, including luxury cars, pharmaceuticals and financial services like banks, credit card companies and insurers.
‘This demo, when you look at 25 to 54, is the cornerstone of what luxury marketers are looking for today,’ said Loren Angelo, general manager of Audi Brand Marketing.
Investors see a difference too. CBS Corp., controlled by 89-year-old billionaire Sumner Redstone, has a 59% higher price-earnings ratio than Viacom, Redstone's other major media holding, which targets younger viewers with networks such as Nickelodeon and MTV. ….
CBS still sells a "substantial" number of commercials targeted at younger viewers, said Jo Ann Ross, who oversees ad sales. The network airs 11 of the most-watched programs in the 18-49 demographic, more than any other broadcast network, according to Nielsen data.
Nonetheless, ‘we always end up with more being spent on adults 25 to 54 in prime time,’ Ms. Ross said.”
Many of the positive points Mr, Alcorn makes in his article provide a direct corollary to the Yellow Pages value story. We’ve long known what CBS is just now recognizing, the “older audience” is our sweet spot, and that sweet spot is expanding.
The fact is that the people with the most money, those who are least impacted by the slow economy, those still experiencing significant life events, are precisely the people who use the Yellow Pages the most. Advertisers must understand this reality.
Make sure your salespeople see this. The media are different, but the truth is the same.
By Larry Angove