the new American consumer

As described by an article in Ad Age, the American consumer is undergoing some major changes. The population as a whole is older, whiter, and more affluent – but with notable trends within the other demographics.

Some fast facts:

49.5

average age of the head of household

80%

growth in the next half decade among the 55+ set

2x

rate of increase in spending by 55- to 64-year olds as compared to all households

1/3

number of under-30 households with no landline (vs under 10% of older households)

2

oldest states (Maine and Vermont) who are also the least diverse

25

million teens ages 12 to 17

The older consumer tends to be more risk averse and brand loyal but has far more disposable income. They still have landlines (unlike the younger, more mobile consumer) and use caller ID to screen incoming calls, making research more difficult. As an advertising research project for class last year showed me, even a college student surveying for a final paper has a hard time getting even 15 completed questionnaires. The consumer segments are also becoming more differentiated, with a wider gap between ages and socioeconomic statuses. Markets are becoming more regionalized, with obvious variations in the make up of gender, age, race, and family status depending on the area of the country. Inter-state migration and immigration to the South and West have increased their populations.

For a far more indepth analysis of consumer trends, read the Ad Age article “The Changing Face of the U.S. Consumer”)

Watercooler convos influence purchases

According to a study by BIGresearch, 95.6% of consumers share advice on purchases with coworkers, and 92.9% ask for their peers’ opinions pre-purchase. These consumers tend to research products online before buying, and they are constantly sharing this information with each other. Casual conversation between coworkers is an effective way to increase discussion of a particular brand. Almost 70% of “at-work consumers” socialize with coworkers during breaks, and just over 40% talk to friends and family during the day. Targeting these consumers can lead to positive word-of-mouth within and outside the office.

(Source: MediaPost “Study: Workplace Peers Influences Shopping Habits”)

See also Center for Media Research “Advertise To Workers At Work To Influence Purchase”

summer travel

American Express has the greatest share-of-voice of travel advertisers, according to The Media Trust Company.

Rankings, including SOV:

• American Express 5.43%
• Best Buy with 4.40%
• MasterCard 3.83%
• Vonage 3.63%
• Best Western 3.51%
• Subaru 2.76%
• AT&T Wireless 2.75%
• United Airlines 2.72%
• Marriot 2.63%
• AT&T 2.36%

By industry:

• Car rental: CarRental.com, 45.57%
• Hotel: Best Western 25.22%
• Airline: United Airlines 42.27%
• Credit card: American Express 46.53%

(Source: Center for Media Research “Leading Advertisers to Start-of-Summer Travelers”)

widgets

According to comScore, nearly 148 million U.S. consumers, or 81% of Web users, viewed widgets in November of last year. Widget ads, meanwhile, are expected to boost social network advertising by 70% to $1.6 billion in 2008, according to a recent projection by eMarketer.

(Coming To A Social Network Near You: Self-Service Widgets by Gavin O’Malley)

Since the dawn of time, a key issue for advertisers has been how to put their message in front of consumers in an interesting and unobtrusive way that will still be noticed. Generally, consumers don’t like being forced to receive advertising information they do not seek out themselves.

Enter the widget. This application allows an advertiser to stay right in front of their target without being obnoxious. Often in fact, internet users will actively seek out widgets to streamline their online experience (they are becoming extremely common in social networking sites, for example).

At their WWDC on Monday, Apple unveiled its App Store and the new applications being developed. EBay, for example, created an application to allow users to more easily manage their account. Consumers will want the widget for ease of use, but it will also help eBay. (See future post about how Apple and the iPhone will rule the world.) Widgets are an amazing way to appeal to certain consumers while helping them at the same time.