Are Meta’s Problems as Bad As They Seem for Advertisers?

Are Meta’s Problems as Bad As They Seem for Advertisers?

Facebook Instagram Meta

Just when you think things couldn’t possibly get worse for Meta, along comes another disastrous earnings announcement. On October 26, Meta, the parent of Facebook and Instagram, announced third-quarter earnings characterized by declining revenue and profits.

Quarterly revenue was $27.7 billion, down more than 4 percent from a year ago, after Meta posted a 1 percent decrease last quarter. Advertising revenue came in at $27.2 billion, down nearly 4 percent year-over-year (although that figure beat analysts’ estimates of $26.9 billion). Since advertising represents 98.2 percent of the company’s total revenue, the revenue drop is especially worrisome for Meta.

So, what’s causing the meltdown?

Weakening Demand

The biggest factor: diminishing demand for ad products caused by market uncertainty. In a call with investors, CFO Dave Wehner cited “weak advertising demand, which we believe continues to be impacted by the uncertain and volatile macroeconomic landscape.” CEO Mark Zuckerberg added that “. . . it’s not clear that the economy has stabilized yet so we’re planning our budget somewhat more conservatively.” As a result, Meta predicted that ad revenues will be $30 billion to $32.5 billion for the fourth quarter, below analysts’ expectations of $32.2 billion. (That level would represent another decline from a year ago, when total revenue was $33.67 billion.)

The TikTok Factor

The company, like Google, also faces rising competition from TikTok, whose popular short-form videos have generated a sharp increase in advertising revenue. According to Statista, TikTok generated $4 billion in advertising revenue in 2021, a figure that is expected to double by 2024 and triple by 2026. Digiday reported recently that ad agencies are shifting content creation from Instagram and YouTube to TikTok. In April, Insider Intelligence predicted that TikTok’s ad revenue will grow 184 percent to nearly $6 billion in 2023 (that amount tops Twitter and Snap combined).

To fight TikTok, Meta has given priority to the development and growth of Reels, its short-form video format on Facebook and Instagram. Meta is now seeing 140 billion Reels plays across Facebook and Instagram each day, which is a 50 percent increase from six months ago, according to Zuckerberg.

But Reels doesn’t monetize as effectively as the company’s other types of content. So, as Meta pivots toward showing more short-form video, Meta is taking a quarterly revenue headwind of more than $500 million, Zuckerberg told investors. Meta expects to get to a more neutral place with this shift within the next 12 to 18 months.

“As Reels grows, we’re displacing revenue from higher-monetized surfaces,” Zuckerberg told investors. “That’s clearly the right thing to do.”

The Apple Factor

Meta continues to grapple with the fall-out of Apple’s privacy controls, known as App Tracking Transparency (ATT). Meta said its average ad price decreased 18 percent on the year, as it adjusts to Apple’s changes that make it harder for Meta to track users and serve them personalized advertising. In the same quarter last year, the average price per ad climbed 22 percent.

But Meta also said that the blow to ad revenue caused by ATT is diminishing. Per CFO Dave Wehner, “Consistent with our expectations, the headwind to year-over-year growth from Apple’s ATT changes diminished in Q3 as we lapped the first full quarter post the launch of iOS14.5.”

But Apple isn’t done punishing Meta. Apple recently changed its App Store terms to take a portion of social-media advertising revenue. The policy change requires users and advertisers to make an in-app purchase when they pay to boost posts in apps like TikTok and Meta’s Instagram. Apple takes a commission of as much as 30 percent on in-app purchases, meaning a company like Meta would lose a portion of its ad revenue to the iPhone maker.

The company also faced stiff criticism from investors over its continued push into the metaverse, which has cost the company billions of dollars. Although the company’s metaverse investments technically do not affect its ad revenue – they’re more of a drain on profits than anything else – they have raised concerns that Meta is taking its eye off its core social media growth engine in the web 2.0 world.

The Good News

But on the bright side, Meta reported that:

  • Daily Active Users (DAUs) for the quarter were: 1.98 billion versus 1.98 billion expected, according to StreetAccount. That was up from 1.97 billion three months ago. 
  • Monthly Active Users (MAUs): 2.96 billion versus 2.94 billion expected, according to StreetAccount

Meta said Instagram now claims more than 2 billion monthly active users, while WhatsApp’s user base has surpassed 2 billion daily active users, with North America being the messaging app’s fastest-growing region.

What This Means for Advertisers

So, what does all this mean for advertisers? Well, now might be an opportune time to advertise on Meta, with its user base being strong and average ad prices decreasing. The company is rolling out new ad products to improve the monetization of Reels, and a new “Performance 5” framework, which is a set of five data-proven tactics that can help to improve advertising performance on Meta platforms amid tighter privacy controls. For instance, broad targeting consists of an automated targeting approach that reportedly produces better results for Facebook and Instagram ads than more refined, more niche audience approaches.

Meta, like its competitors, faces some difficult times amid economic uncertainty. But businesses that are taking the long view with their advertising efforts may turn out to be the winners so long as they don’t push the brakes on their online advertising efforts.

Contact True Interactive

To succeed with social media advertising, contact True Interactive. We have extensive experience helping businesses succeed on social media.

Why Google’s Predictive Audiences Feature Matters to Advertisers

Why Google’s Predictive Audiences Feature Matters to Advertisers

Analytics

Google Analytics 4 (GA4) is more than an upgrade to Universal Analytics (UA). GA4 is a whole new analytics solution available now. Businesses should switch from from Universal Analytics (UA) to GA4 now in order to capitalize on GA4’s many features such as Predictive Audiences in Google Ads campaigns. Predictive Audiences relies on artificial intelligence (AI) to drive better results than currently possible with UA.

What Is Predictive Audiences?

Predictive Audiences makes it possible to classify users who are likely to perform an action in the near future based on a predictive metric. For example, a business might build an audience for “likely 7-day purchasers” that includes users who are likely to make a purchase in the next 7 days; or “likely 7-day churning users” for purchasing users who are not likely to visit your website in the next 7 days, just to cite two examples.

Audience data

Predictive Audiences are automatically shared with any Google Ads accounts you have linked to your property.

AI is not new to Google Analytics. UA properties have Smart Lists, which are audiences Google automatically builds using machine learning. However, Smart Lists are much more limited than the new Predictive Audiences available in GA4. Whereas Smart Lists are not customizable by advertisers, Predictive Audiences can be built with custom traffic/activity filters, as well as a membership duration that is anywhere between 1 and 540 days.

What Are Some Applications of Predictive Audiences?

With Predictive Audiences, an advertiser can improve marketing campaigns to target users before they take an action, potentially increasing conversions. For instance:

  • As remarketing audiences. A shopper who is considering your product but not ready to become a customer is a hot lead. For example, someone who has added a product to a shopping cart but has not yet made a purchase might be ready to buy, but they also might be checking out the competition. It’s important that the merchant act on those leads – to strike while the iron is hot. GA4 uses machine learning to find deep patterns of behavior that are unique to your property and show that a user is likely to convert. A persuasive follow-up from you via a well-crafted remarketing campaign can provide that last nudge they need to complete the process.
  • In re-engagement campaigns. Shoppers who are likely to churn are signaling a waning interest in your business. But they have also previously demonstrated engagement with your business. Why give up on them? Predictive Audiences makes it possible to approach them again with reminders of the value you offer in terms of product variety, quality, and price, or convenient shipping and return options.

Analytics

Why Does Predictive Audiences Matter?

Predictive Audiences illustrates how Google is using machine learning to understand future actions of a user. This gives marketers more ways to reach potential customers and increase revenue. When a machine teaches itself with minimal programming needed, it can ingest vast sets of consumer data and use it to determine things such as the best times to send emails or to run an ad. Proponents say machine learning can identify the clients or customers that would be most receptive to given messages.

Google continues to invest in machine learning to make marketing more effective. However, we caution against simply automating advertising. Human judgment is needed to ensure that a marketing campaign is adaptable and flexible as the behavior of users changes.

How Does an Advertiser Get Started with Predictive Analytics?

Availability of Predictive Audiences depends on the underlying predictive metrics being eligible for use by meeting all prerequisites. If you have exported Predictive Audiences to linked product accounts, those audiences will not accumulate new users if the property becomes ineligible for the predictive metric and new predictions are not generated. Google shares more insight on how to use suggested audience templates to create your own audiences with conditions based on those predictions.

Getting started with Predictive Analytics is but one of many steps an advertiser will need take in order to make the transition to GA4. Don’t wait until July 2023 to get ready. Only by acting now will an advertiser prepare itself to capitalize on the new features available in GA4.

True Interactive can help you do that. Read more about GA4 in this blog post.

Contact True Interactive

To succeed with online advertising, contact True Interactive. We design and develop successful marketing and advertising campaigns and know how to track results, including the use of Google. Read about some of our client work here.

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Google Enhanced Conversions for Web: Advertiser Q&A

Google Enhanced Conversions for Web: Advertiser Q&A

Google

Google continues to evolve its advertising products for a privacy-first world. One important way is to move businesses to more aggregated measurement solutions as the availability of individual level identifiers decreases with the value of third-party cookies eroding. One such tool that has capture more interest in the market is Enhanced Conversions for Web. This is a conversion tracking feature that enables more accurate conversion measurement by increasing observable data – and, according to Google, improving overall quality of conversion modeling. Enhanced Conversions for Web allows businesses to capture customer data that advertisers collect on their conversion page (e.g., email addresses) and then match it against Google logged-in data. The raw data (e.g., an email address in plain-text format) is captured“as is” on the website, and then automatically hashed by Google as it is sent to Google’s server. Following are answers to commonly asked questions about Enhanced Conversions for Web.

What exactly are Enhanced Conversions for Web?

Enhanced Conversions for Web are not a replacement to the standard online (gtag-based) Google Ads conversions, but are rather a complementary feature that improves the accuracy of conversion measurement.

Enhanced Conversions for Web is basically a setting under the online conversion that enables your website to send hashed first-party, user-provided data directly to Google Ads when a user converts in the form of email addresses, phone numbers, first names, last names, and street addresses. Although email addresses are preferred and often suffice, an advertiser can choose to send more information to Google to improve the matching rate. Google then uses the hashed user data to match your customers to Google accounts, which were signed in to when they engaged with one of your ads.

Why does True Interactive recommend enabling Enhanced Conversions for Web?

As the industry starts to move away from cookies, advertising platforms/providers like Google are already developing new privacy-focused conversion measurement methods that do not use browser cookies.

Today, standard online conversion tracking relies on the web browser/cookies, where the Google Click ID (GCLID) is stored upon arrival to your website right after someone clicks a Google ad. Once a specific conversion action is completed and the conversion tag is triggered on the website, the GCLID is sent to Google so that Google can attribute the conversion to the appropriate ad campaign, keyword, creative, audience, etc.

The Enhanced Conversions for Web feature helps Google match the conversion to its corresponding ad campaign, keyword, creative, audience, etc., by providing more keys (such as email addresses) in the event that the GCLID is missing.

This not only provides advertisers with better visibility into campaign ROI by recovering conversions that otherwise would not have been measured, but it also helps drive better performance by giving the Google algorithm (auto-bidding strategies) more data points to optimize ad delivery.

How does a business enable Enhanced Conversions for Web?

There are a few steps to implementing Enhanced Conversion tracking, all of which True Interactive can assist you with:

  1. Identify the online conversion(s) for which the Enhanced Conversions feature needs to be activated.
  1. Enable the Enhanced Conversions setting inside your Google Ads account.
  1. Depending on the current Google Ads tag implementation, advise on how to enable the Enhanced Conversions feature by editing the conversion tag on the site (if the tags have been deployed manually on the website), updating the conversion tag in GTM, or setting it up via the Enhanced Conversions API.

Note that Enhanced Conversions will only work for conversion types where customer data is present – such as subscriptions, sign-ups and purchases. One or more of the following pieces of customer data must be available:

  • Email address (preferred)
  • Name and home address (street address, city, state/region and postcode)
  • Phone number (must be provided in addition to one of the other two pieces of information above)

Enhanced Conversions for Web underscores a larger point: it’s essential that businesses understand how a privacy-first world is affecting the way they manage their advertising and marketing. For more insight on Enhanced Conversions for Web, please consult this post from Google. And to stay on top of advertising, including developments with consumer privacy, follow our blog.

Contact True Interactive

To succeed with online advertising in a privacy-centric world, contact True Interactive. Read about some of our client work here.

Google Analytics 4: Advertiser Q&A

Google Analytics 4: Advertiser Q&A

Google

If you use Google Analytics, by now you are probably aware that a new version known as Google Analytics 4 is coming. By July 2023, Google Analytics 4 will replace the current version of the popular web analytics service, known as Universal Analytics (UA). This news has sent shock waves throughout an ad tech world that has grown dependent on UA to track and report website traffic. Here are some questions you may have – and some answers:

What exactly is happening to Google Analytics?

UA – the current version of Google Analytics — is going away. UA will stop processing hits in July 2023. That’s because Google is replacing UA with Google Analytics 4 (GA4). If you want to continue using Google to track and report website traffic, you’ll need to transition to GA4. Google actually began to introduce GA4 in 2020, as noted in this blog post. But in July 2023, Google is making GA4 mandatory, as Google said in March 2022. While standard UA properties will stop working July 2023, Universal Analytics 360 properties will receive an additional three months of new hit processing, meaning these will stop working come October 1, 2023. (Author’s note: Google has since revised its timeline. Google now gives 360 properties an additional full year, making the new deadline July 1, 2024.)

Why is Google Replacing Universal Analytics with Google Analytics 4?

Google says that GA4 is coming for three primary reasons:

  • Provide more user-centric data. UA is built on a session-based data model that is 15 years old. Google built UA to measure independent sessions, or groups of user interactions within a given time frame on a desktop device. This measurement approach has become obsolete. GA4 does not measure goals by user, only by session. For instance, if someone watches four videos in one session, the interaction can only count as one conversion. By collecting user data as events, GA4 seeks to provide businesses with more accurate insight into user activity.
  • Work across platforms. UA was built for a desktop experience. GA4 is designed to work across platforms, including mobile. According to Google, GA4 provides a complete view of the customer lifecycle with an event-based measurement model that isn’t fragmented by platform or organized into independent sessions. Google cites the example of UK-based fitness apparel and accessories brand Gymshark, which is already using an iteration of GA4 to measure user activity across its website and app. This allows the Gymshark team to better understand how users move through the purchase funnel. Google says that as a result, Gymshark has reduced user drop off by 9 percent, increased product page clickthroughs by 5 percent, and cut down their own time spent on user journey analysis by 30 percent.
  • Transition to a privacy-centric world. Google is under tremendous pressure to adapt to a world in which user privacy is a much bigger priority than it used to be when UA was introduced. GA4 does that. For instance, GA4 4 will also no longer store internet protocol (IP) addresses. GA4 also offers a workaround for when users reject cookies. UA works by setting cookies on a user’s browser when visiting your website. But more people are opting out of sharing their data via cookies. So, UA cannot report on all the people who visit a website. GA4 will rely on a technique known as conversion modeling to provide results in a cookie-less world. Conversion modeling uses machine learning (a form of artificial intelligence) to enable accurate measurement while only reporting on aggregated and anonymized data. GA4 will still collect data from first-party cookies, but conversion modeling makes it possible for GA4 to continue collecting user data when cookies are rejected by users.

In short, Google is changing website tracking and reporting to adapt to a more privacy-centric world in which people use multiple devices to interact with brands.

How does Google Analytics 4 differ from Universal Analytics?

GA4 is a replacement, not an update. It’s a completely new way of tracking and reporting website traffic. The key difference is the adoption of more user-centric data as discussed above. This post from the Google Help Center explains in more detail how the more user-centric data model differs from Universal Analytics. Don’t read it until you’ve had your morning coffee.

There are many other differences too numerous to describe here. For instance, with GA4, you can choose to retain data for two months or 14 months. And GA4 offers custom reporting templates (whereas UA favored the use of pre-built reports).

What will happen to Universal Analytics?

UA will go away. It will not be possible to track and report website traffic with UA as of July 2023 for standard accounts, and October 2023 for UA 360 accounts.

After UA properties stop processing new hits, all previously processed data will remain accessible for at least six months. In the coming months, Google will provide a future date for when existing Universal Analytics properties will no longer be available. After that date, users will no longer be able to see UA reports in the Google Analytics interface or access UA data via the API.

What should I do to prepare for Google Analytics 4?

If you rely on a marketing and advertising agency to manage GA4, it’s highly likely that they are managing the transition for you. Just the same, contact them to understand how they are going to make the transition and how your website tracking and reporting will change. True Interactive uses UA in our client work. We’re doing all the heavy lifting for our clients by transitioning them to GA4.

If you manage GA4 yourself, it’s important to start your transition now. Don’t wait until 2023. For example, right now you’ll need to start building historical data so that you can do a year-over-year analysis in 2023.

In addition, we recommend downloading historic data from your UA account and storing it for future reference before Google shuts off access to it via both the web interface and its reporting API as mentioned above.

Make no mistake: the learning curve is steep. You’ll need to understand how GA4 conducts event reports, conversion reports, and many other details. We recommend that businesses review resources such as:

It’s going to take an effort from an integrated team to pull this off. You’ll need to make this effort a high priority managed with a project timeline to get it right.

Contact True Interactive

To succeed with online advertising, contact True Interactive. We design and develop successful marketing and advertising campaigns and know how to track results, including the use of Google. Read about some of our client work here.

What Does the Redesigned Instagram Content Feed Mean to Brands?

What Does the Redesigned Instagram Content Feed Mean to Brands?

Instagram

Instagram is giving more power to the people. Meta, Instagram’s parent, has announced that the social networking service will now give users two new ways to view their feeds: “Following” and “Favorites” (the standard “Home” experience, based on by the Instagram algorithm, is still an option too). Let’s take a closer look at these alternatives and what the development means for brands.

Following vs. Favorites vs. Home

So, what are these options, exactly? Essentially, Instagram wants to give users more control over what they see. For context, let’s review the experience Instagram users are accustomed to getting: the Home experience. This is an algorithm-based feed by which Instagram presents content that Instagram thinks users will be most interested in, based on their viewing habits. Notably, the Home experience is not purely chronological—it’s grounded first and foremost in user interests.

Instagram’s hunch is that the Home experience will remain the preferred go-to for users, so they’ve made it the default. As an Instagram spokesperson explained to CNET, “people have a better experience on Instagram with a ranked feed, so we won’t be defaulting people into a chronological feed.”

But now, based on a March 23 announcement from Meta, users also have the choice of a chronological experience with the Following and Favorites options:

  • The Following option presents a steady feed of posts from all the people one follows.
  • Favorites gives users the ability to further curate what they see by allowing them to designate up to 50 accounts they want to view higher in their feeds.

Users can make changes to their Favorites list at any time (people are not notified when they are added or removed).

Both Following and Favorites show posts in chronological order, making it easy to catch up on recent posts.

How Might Brands Adapt?

According to Ad Age, the chronological feed (for both Following and Favorites) may prove advantageous to advertisers and facilitate more real-time marketing opportunities. Amber Gallihar Boyes, director analyst at research firm Gartner, notes, “On the brand and creator side, there is an excitement and optimism about [the new structure]. I’ve seen creators just really feeling beaten down by lack of reach on Instagram and this gives them some element of control because they can make sure they’re connecting with their most loyal fans and followers.”

Live situations already lend themselves to Instagram, but the chronological feed, by creating a sense of immediacy, could prove especially beneficial to marketers during events like the Oscars or the Super Bowl.

“If you play it right [as a brand] you can almost . . . give people the experience that ‘if you’re not there when it happens, you’re missing out,’” Shawn Francis, head of creative at social media marketing company We Are Social, explains. He adds that it behooves brands or creators to ask “what content can you put out that makes people say, ‘I have to follow this brand in real-time.’”

In other words? Brands can lean into that FOMO.

They can also lobby to be on the coveted Favorites list: some creators are even putting out tutorials to teach fans how to add to their Favorites feed, presumably with the hope that their brand name will place high on the list when it’s created.

But achieving Favorites status is no slam dunk. “With 50 spots, people will be selective,” Nicholas Stoeckle, executive director of strategy and innovation at advertising and production company PPK, points out.

Competitive as it is, the Favorites list will certainly give brands a clearer sense of who their most loyal fans are, based on whether the brand makes it into a given Favorites section. Brands and creators will also get the opportunity to experiment with different posting times, to see if there are “sweet spots” for them in the chronological feed.

Contact True Interactive

Social media platforms are constantly evolving to meet users’ needs, and Instagram’s recent announcement is just one example. Trying to stay abreast of —and to leverage — these changes? Contact us. We can help.

How to Market to Gen X

How to Market to Gen X

Advertising Branding

Generation X is often overlooked as businesses focus on the surging Millennial and Gen Z populations. Moreover, squeezed as it is between two massive generations — Boomers and Millennials — Gen X has sometimes been mistakenly viewed as being small in size, ergo less powerful. But Gen X still comprises a large segment of the population, and Gen Xers possess spending power. What sets them apart from other generations, and how should brands market to them online?

Who Is Gen X?

The fourth-largest U.S. generation behind Millennials, Baby Boomers, and Gen Z, Gen X encompasses Americans born between the mid-1960s and 1980. And Gen X is projected to surpass Baby Boomers in size by 2028.

What Are Some Notable Characteristics of Gen X?

Gen Xers have a reputation for being hard to pin down. This is perhaps because there’s a split in the generation, with older Gen Xers possessing some of the characteristics of their Baby Boomer forebears (digitally savvy, but not born into digital the way subsequent generations have been), and younger members of Gen X displaying Millennial tendencies (their mobile usage is similar to Millennials, for example). Moreover, this is a generation that prides itself on individuality — which can make it challenging for brands hoping to hone in on a “type.” But common denominators still exist across the generation, namely:

  • Reliance on digital. Even after seeing a television commercial or print ad, Gen Xers tend to turn to the internet to perform further research. And they love social media; a whopping 95 percent of this generation engages with Facebook.
  • Brand loyalty. Small Biz Technology notes that Gen Xers are likely to spend more on brands that “give back.” And according to eMarketer, when Gen Xers develop an affinity for a product, they are willing to pay a premium.

How Should Brands Market to Gen X?

What is the best way for brands to reach out to Gen X? We recommend that you:

  • Understand where they live online — and meet them there. As noted above, Facebook is popular with Gen X. So is YouTube. Paid advertising works, of course. But brands might also create content that draw Gen Xers in with educational information or even nostalgia  — because every generation loves a little throwback. In the case of Gen X, there’s a rich vein to mine: the 1970s, with all the possibilities that era represents in terms of pop culture, music, fashion, and more.
  • Offer rewards, coupons, and loyalty programs. This is a generation that remembers the Great Recession, and doesn’t have faith that Social Security will be around when they retire. And as noted earlier, they shoulder some debt. Reach out with opportunities to save, and this generation will listen.
  • Do good. As noted above, Gen X responds to brands that demonstrate a commitment to society or the environment.
  • Understand that for Gen Xers, status is less important. This is a generational feature that Ford Motor Company figured out years ago. As far back as 2016, Omar Odeh, a Ford Explorer marketing manager, observed to Forbes, “[Gen Xers are] less likely to have to put their wealth on status. They don’t necessarily have to buy that premium brand. They will look at value for money and performance.”
  • Think mobile. According to eMarketer, 88.5 percent of this generation use smartphones. Reach out to this group through mobile devices, and make sure your website is mobile-friendly.
  • Keep communications short and to the point. Immersed in raising kids and building careers, this generation puts a value on time — and has little patience for perceived time-wasters.
  • Give them some love. According to Big Commerce, 54 percent of Gen Xers “are frustrated that brands constantly ignore them.”

Contact True Interactive

How can your brand resonate with Gen X, that most elusive of generations? Contact us. We can help.

Photo by Eric Nopanen on Unsplash

Why Advertisers Love Baby Boomers

Why Advertisers Love Baby Boomers

Advertising

Baby Boomers are hot! While Millennials and Gen Z continue to capture love from marketers, brands are also reaching out to the Boomer audience. This post will take a closer look at why:

Baby Boomers Defined

Baby Boomers are the generation sandwiched between the so-called Silent Generation and Generation X. Roughly defined as the cohort born from 1946 to 1964 during the post-World War II baby boom, Boomers were shaped by post-WW II optimism, the cold war, and the seismic changes wrought by 1960s counterculture.

Boomers make up a large segment of the U.S. population. In fact, they are right behind Millennials in terms of size; according to 2019 stats published by Statista Research Department early this year, just under 70 million Baby Boomers live in the United States, compared to about 72 million Millennials. Furthermore, as Forbes points out, the Baby Boomer generation, at 40 percent market share, make up the largest piece of the consumer pie.

And they’ve got money to spend.

Why Boomers Matter to Brands

Craig Millon, the chief client officer of IPG’s Jack Morton Worldwide, reminds brands that while younger generations are a worthy target audience, the importance of Boomers should not be underestimated.

“A lot of people spent an insane amount of time focused on Millennials,” Millon says. “Boomers are an incredibly good, loyal, and wealthy segment of our population that probably do not get as much attention as they used to.”

And yet the Baby Boomer generation continues to manifest the values that have characterized them all along: this cohort is defined by a tendency to be hard workers who have spent wisely and saved. Many are still working full- or part-time, which means that their choices continue to have a powerful impact on the economy. In fact, Boomers “make up the only population group experiencing growth in the workforce.” As a relatively health-conscious generation, Baby Boomers are also poised to take advantage of advanced medical technology to live healthier and longer. As Forbes has noted, “Unlike their parents, who desired to relax during retirement, the baby boomer generation wants to get out and do all the things they’ve always dreamed of doing.”

How does this manifest in a world moving beyond pandemic-era lockdowns? The headline is this: Boomers are motivated to spend. Business Insider describes a generation that’s been vaccinated, is resuming travel, and with no young children at home, is eager to spend the money they saved during the past year. Research from ad EGC Group shows that Boomers are increasing their spend levels by 10-to-15 percent in 2021. And brands from Mercedes-Benz to candles maker Glasshouse Fragrances are taking note, increasing their outreach to this group by 30 to 40 percent.

Of course some advertisers might still be reluctant to divert precious resources to the Boomer cohort. Their logic — that resources need to go to reaching younger generations — is not uncommon. And yet marketing to Boomers can be a win/win. Baby Boomers not only have the spending power, they also stand to share their brand experiences with children and grandchildren.

“Give the boomer a reason to love your brand,” Steven Seghers, CEO of Hooray Agency, says. “The boomer generation brings other generations with them.”

Tips for Marketing to Baby Boomers

 How does a brand connect with the Baby Boomer audience? Some recommendations:

  • While Boomers are more tech-savvy than they are sometimes given credit for, make sure that your digital outreach addresses Boomer needs. Many Boomers wear glasses and have a harder time reading small text, for example. On your website, pay attention to font size, visual contrast, and button sizes, all of which an inform the usability of your site.
  • Finally, don’t jettison phone support options. Live chat is a popular support tool for Gen X, Millennials, and Gen Z , but many Boomers still prefer interactions where they can express themselves verbally — and go hear another human voice. Prominently displaying a phone number on your site (and including a link that can easily work on mobile so that users can make their call with one click) speaks volumes about your dedication to an easy, reliable consumer experience.

Contact True Interactive

Interested in making inroads with the powerful Boomer demographic? Contact us. We can help.

Photo by Marcus Aurelius from Pexels