Generation Wealth Nov 14

Notas do Editor

1. Hi everyone. Great to see you, thanks for coming along. Introduce Immediate attendees We are here this morning to share Generation Wealth – new research we have partnered with Enders Analysis and YouGov to produce – research that examines and profiles the importance of a section of the UK population, a section traditionally ignored by marketers, under-represented in media targeting, and yet, as we will show you today, absolutely essential to brand success. Firstly I am just going to spend a couple of minutes providing some context for the project – how it came about, and how we approached it.
2. As I’m sure you know Immediate Media was created in November 2011, when we merged BBC Magazines, with the digital platform business, Magicalia and specialist publisher Origin. The business was historically known and traded on its vertical expertise but when we consolidated our brands into a single business some significant similarities emerged from an audience perspective.   A large cohort of mature ABC1 readers feature prominently across many of our titles, we expected this from the obvious brands BBC Gardeners’ World and Radio Times but we also discovered that this also applies to many others that you might not, like our parenting digital brand MadeforMums.com, BBC Top Gear and Lonely Planet.   We now reach 8.2 million magazine readers, 22 million unique users on our digital brands and 80,000 digital magazine readers every month and this research allows us to develop a horizontal proposition to complement our vertical expertise.     As the project developed we made a number of discoveries that seem to fly in the face of current thinking. Whilst it is unlikely come as a shock to many that a mature ABC1 audience is getting bigger and more economically important we were surprised to discover that they are the first truly multi-media generation, consuming content across multiple platforms like no other demographic.   We also discovered that despite the widely held view that their brand preferences have been set by this stage in their lives it actually turns out that they are one of the most fickle segments of all representing a real opportunity for marketers who can communicate effectively to them.   So those are just a couple of tasters in terms of what's to come in the following presentations. I hope you find them stimulating and useful, if we have time at the end of the session we’ll run some Q&A but for now it’s my great pleasure to hand over to xxx who will run you through the research findings  
3. So what did we do? As a starting point YouGov conducted eight in-depth interviews with experts from their ThinkTank panel. The experts included journalists, sociologists, marketers, and members of the House of Lords. The interviews explored the wider themes of the research and provided a framework for the later work. Enders Analysis then conducted a detailed review of socio-demographic and media consumption data to uncover trends driving societal change in the UK, and how this is challenging many long-held assumptions about marketing to over 40s. Based on this work, we then used TGI data to define Generation Wealth and see how lifestyle attitudes, aspirations and behaviours differ within the group. Using TGI lifestyle statements we conducted a segmentation of Generation Wealth. Segment profiles were then shared with YouGov who undertook additional qualitative research to better understand the segments through ethnographic interviewing and media tasks.
4. What was interesting to see as we conducted the research was how we had tapped into wider societal issues, and how often the themes that we were exploring cropped up in media – as you can see from some of these headlines.
5. This quote is from People Magazine in 1974 when MJ was 31, and as you can see Mick Jagger felt very differently about life post-40 to how he feels now. He clearly didn’t expect to be headlining Glastonbury in 2013! The point of the quote is that we are seeing a fundamental change in what it means to be middle-aged. It’s no longer the end of one kind of lifestyle and the beginning of another, more boring one. People now continue to rock out into their 40s/50s/60s and beyond. And here’s why….
6. The UK is unique and different from any other country in Europe. In the next 30 years, the UK will be the largest country in Europe, overtaking the population of France in 2030 and Germany in 2041. About half of the increase in population is predicted to come from natural growth and half from immigration. There are two important things to note here: Firstly, this trend is critical to powering our the economic recovery which is beginning to take shape, and other crucial point is where we are seeing this growth….
7. The UK age balance has reached a tipping point. For the first time this year the average age will pass 40. That’s more than 32 million people aged 40 plus. Over the next 20 years, this group will expand by more than 6 million! In contrast, the number of 15-44 year olds is essentially static. So all the population growth is in the top end. So let’s visualise the generational shifts over the last 30 years and looking ahead 10.
8. 30 years ago the pre-war generation were in charge. A generation defined by that experience of living through the war. They were instilled with values of duty, respecting authority, and make do and mend. They’ve now been supplanted by people who were young in the 60s and 70s. The first teenagers, an age of rebellion – and in many ways the first consumers. But while they’ve taken their place, they haven’t taken on their attitudes. In economic terms, they’re even more central than the old guard. They have all the money.
9. And this group is Generation Wealth. What’s really different about these 45-65 year olds?
10. They are still in the mindsets of the 60s and 70s. They haven’t stopped doing the things they love: they are absorbed in culture, they love going on holiday, and interestingly they keep up to date with technology, more than the identical age cohort anywhere else in Europe and, amazingly, they keep up more than the rest of the population! They are at the forefront of adoption curves across the nation. Not only are they rich, engaged and active, they are also sharp as a knife.    
11. There’s this idea that consumers sort out their brand preferences when they’re young, and these preferences become more and more entrenched as they age. You wish…   As we see here, young families are the most entrenched. In more or less every FMCG category, Generation Wealth are the most willing to try different and multiple brands.   They are discerning consumers, strongly influenced by reviews sites and WOM, and with a wide portfolio of brands. Consequently it is essential that brands engage in a constant conversation with this group.  
12. Even in stickier sectors with multi-year contracts, such as phone, broadband and TV services, Generation Wealth will shop around. Nearly half of this generation have switched suppliers, as this data from Ofcom shows. Now let’s look at just how much wealth the over-45s have…..    
13. They account for 81% of total assets, 70% of disposable income and 61% of consumer expenditure. They, quite simply, dominate wealth, income and consumer spending in the UK. The reason for this are: Employment rates of their group are higher than they have ever been, and they are an enterprising bunch, owning or continuing to set up businesses that expand their wealth They have also profited from the property boom. Many of them bought in the 80s and now have substantial equity in their property. In addition to their overall spending power, the gap between their shares of income and expenditure may also be an opportunity for marketers
14. Here we show the shift in consumer expenditure towards mature age groups. Between 2002 and 2012, according to ONS statistics, total consumer spending rose from £514 billion to £672 billion. That is an increase of £158billion. Of the increase, over £100 billion came from over-50s households. £100 billion! That’s two thirds of the total increase. As a result over-50s share of total consumer spending increased, from 43% to 48%, whilst the share of spend by younger households shrank. This is an important shift as for the previous couple of decades it has been the 30-49 year old group who have been the highest spending.  
15. Way over half of all growth in consumer spending in the last ten years came from mature ABC1 households. More than half. That’s £73 billion in additional spending by over 50s ABC1 households! Where are they spending this money?  
16. They like to experience everything they do to the full and so their expenditure on all leisure activities has sharply risen over the last decade In face one of the defining features of this group is that they have turned everything into a leisure activity. Food and drink isn’t about survival anymore it is about the rise of foodyism, wonderful wine, wine clubs. Transport isn’t just about moving from A to B – it’s about incredible rail journeys, long-haul flights, and when it comes to recreation and the arts this group are the foundation of the cultural space in the Uk – they buy more theatre tickets, more ballet tickets, more music tickets, more books, more newspapers and magazines. They buy more everything. They also value copyright material and are willing to pay for it, as opposed to younger generations who are increasingly non-payers. And as a result we see growth across all categories – leisure, food and drink, travel, cars.   And they also spend an increasing amount on media and tech      
17. Whilst spending on telecoms, recreation and media by younger households has fallen in real terms, it has risen sharply amongst over-50s households. So what media influences the spending decisions of these people who account for 61% of consumer expenditure in the UK?
18. Well - everything! They are avid internet users, magazine and newspaper readers. They use all digital media, all social media, and apps. As the first generation to be using tech in the jobs in the 80s and 90s, they have kept up the digital habit. s And…
19. They spend more time consuming high quality print and TV. They spend more time reading high quality magazines and newspapers. And that figure of 49 minutes of print reading is quite phenomenal due to the nature of reading. It has a quality of immersion and engagement that few other media can offer – a time of quiet engagement and focus. You can’t multitask when you are reading, and this is significant for advertisers. The use of brand media is also significant for advertisers as they benefit from a halo affect – reflecting the trust and resonance of the media brand. So as you can see, they are in fact not just Generation Wealth, they are also Generation Multimedia. They have adapted to and embraced a digital age, but at the same time they grew up with ‘traditional’ media and have a strong relationship which endures, and as a result they are truly multi media compared to younger generations.
20. They number 9.1 million in total. That is almost one in five of the UK adult population. And as we have seen that proportion is forecast to increase. 9.1 million consumers who have worked hard, put aside a pile of cash (quite a chunky pile of cash in many cases), for many of them their children have left home, and they are in a new stage of their life very focused on themselves and how to get the most out of life.
21. Once we had established the significance of GW, we then had a deeper look to understand the differences amongst the group – as 9 million people are clearly not one homogenous group. Based on TGi lifestyle statements, GW broke down into 7 clear segments which I will take you through briefly. Whilst there are clear differences between the segments, differences of attitude and lifestyle, - depending on which brand you are representing, there is one or two (or more) segments with a potentially powerful connection.
22. Before I go through each of the segments, just to visually get a sense of them we have plotted them against two axes. On the vertical axis we are looking at how open and engaged and even enthusiastic the segment is with advertising, segments that score highly on this axis are those who state that they notice advertising, enjoy advertising and pay attention to advertising. On the horizonal axis we are looking at how engaged and influential the segment is with brands – their level of consumer activity, how much they talk about brands and how far they see themselves as early adopters. Quiet Achievers – there are 1.1 million of them, and they account for 13% of Generation Wealth. This group are most likely retired or working part-time. They over-index on university degree, and are the segment most likely to describe themselves as comfortably well off. They are happy with their life, and not aspiring for greater status. Their children have generally left home and they are enjoying their hard earned money in an unpretentious way. Their media usage is average though they do tend towards the quality press. They are slightly less tech savvy than some of the other segments, with a more traditional approach. They are quite active, with a skew towards outdoors activities and sports. They are financially very savvy, taking an active interest in investments and planning for (and looking forward to) their retirement. Finance is one of their areas of influence along with pharma, motors, DIY and gardening. They also have an ethical and green focus to their lives, although interestingly this doesn’t seem to stretch to their choice of car – they definitely reward themselves for their hard work with a nice motor – with luxury car brands like Lexus & Jaguar over-indexing. Happy Homebodies – 1.1 million. 13% of Gen Wealth. A more traditional middle England segment, likely to be retired or working part-time. Occupations skew to the civil service or arts related roles. Their media usage is average across the board. Preference for popular press – mainly Mirror, Sun and Express. They have a more cautious approach to their life, and spending, and have little interest in being leaders to their peers which results in little WOM influence. They are homebodies at heart, with a small worldview – very much focused on family, their pets, and their local community and choose to spend their spare time at home. Surburban Comfort – 1.6 million; 18% of Gen Wealth. For this segment, close relationships are vital, whether they be with family or friends. Most of the segment is married with only a very small proportion single and/or without children. Well educated and likely to still be in full time work, this segment are younger and less financially savvy that other segments. Media usage is average across most channels, but this group do enjoy reading the newspaper to keep up with the latest gossip. And also demonstrate high magazine readership. Their reading is across print and digital editions. They are also keen TV and film downloaders, demonstrating how tech has infiltrated their lives even with their largely mainstream choices of entertainment, brands and media. Their areas of influence include HH products, toiletries and cosmetics, films, computers, gaming and TV and audio equipment. Convenience Families – 1.1 million; 12% of Gen Wealth. This segment is the slightly more male, working full-time (and the main income earner) and also most likely to have children at home. In terms of media they favour local newspapers over national ones, and read magazines based around their hobbies - food, angling, classic car titles. They have very internet and app usage. Financially this group has the lowest income, and been most affected by the recession. This may be a result of their children still living at home. Having said that they still earn more than the national average, and as their children move out of home will see more of their income freed up and at their disposal. Influence categories – HH products, alcohol, music, film and arts. With full-time jobs and children still at home, their lives are exceptionally busy - spent earning money, and spending time with family and friends.
23. The next three categories we are going to look at in more detail – they are three the most accessible and engaged with media and advertising, and the most active, consumers with a powerful advocacy role. We commissioned YouGov to do some detailed ethnographic interviewing around these segments so have some video content to show you. So the first one is Fit & Financially Astute. 1.4 million; 16% of Gen Wealth. A predominantly male segment, half of them working full time. Likely to be self-employed or senior management. This segment are all about keeping as fit and active as possible and they want to stay young and healthy. They are into their technology – and often the early adopters when it comes to new devices and tech. Buying premium tech brands – particularly in entertainment and household electrical can be a real obsession. They have strong influence across a great range of categories. They favour brands which are well-designed and functional – they are more ‘what can this do for me?’ than ‘what does this say about me?’ Lets meet a couple….
24. They picked Michel Roux Jr as their icon. They are often the chef of the household and they love fine dining and they have a competitive edge – making them natural contenders for Masterchef. So lets meet a couple of them…..
25. They are quite a serious bunch and this is reflected in their media choices. Newspapers tend to be quality press, TV is science, news and boxsets, and magazines are cultured and information focused. They are heavy internet users but not as a source of entertainment, and are social media users. They are digitally savvy – reading digital editions of newspapers and magazines, and downloading music. All in all their media usage can be described as information gathering and this informs their attitude to advertising too. Slightly resistant to traditional advertising – advertorials which incorporate reviews, product placement, and emphasise messages around functionality and benefit are more likely to engage them. Here they are discussing media choices
26. Contented Consumers – 1.6 million; 18% of Gen Wealth. Contented consumers are predominantly female and majority are retired or working part time. Happy and optimistic about their lives, this love to shop – and are enthusiastic about shopping for fashion and beauty Attitudinally they are active and creative and have a positive and enthusiastic outlook on life. They don’t see themselves as grey grannies and love to shop on the high street for cosmetics and clothes – Mary Portas, Liz Earle. They are adventurous with fashion but like to live within their means so they prefer to spend savings rather than spend on credit and they use vouchers and discounts when they can.
27. They love Kirsty Allsop = they are definitely into property and interior design, there also overindex on craft hobbies so like her vintagey craft angle, and they like her personal style. Lets meet Susan and Dorothy…..
28. Contented Consumers are big media consumers – based around their hobbies, and entertainment. They tend to be Daily Mail readers, and particularly love the weekend supplements. Their TV viewing is fairly mainstream – consisting of soaps and big reality shows, with a dose of daytime viewing added in too. They are big magazine readers and their reading is largely based around their hobbies with food, gardening, interiors, and craft magazines doing well along with Radio Times. Their internet usage is average, and whilst there are beginning to use apps more most of their media reading is still print based. This segment is very open to advertising, especially print media. Magazine advertising works alongside editorial to guide their purchasing. They love a bargain so ads which incorporate samples, offers or promotions work well. Let’s take a look….
29. Fearless & Fashionable – 1.3 million; 15% of Gen Wealth. This is the youngest segment and the most forward looking. Split between men and women they are savvy and want the best in both fashion and technology. They are more likely to live in London and the SE, and will probably work in media, marketing or sales. They have a FEARLESS attitude to life – 80% say they are ready to embrace new challenges and have a keen sense of adventure. More than half try to keep young looking; Their fearless attitude plays out in their lifestyle… – their ideal holiday is definitely not a cruise – it is somewhere exotic and challenging, where no one they know has been. They love advertising, they are the most likely to be swayed to make purchases on a whim – if they want something they have got to have it no matter how much it costs. They are big shoppers! They use all the latest tech, and are big social media users – it fuels their busy, social lives. They are big on quality products, and have huge influencing power across all categories. If they like something (or worse, don’t) then you will definitely know about it.
30. Key icons for this group are Jude law – for his style, confidence and his young attitude to life Karen Brady is admired for being stylish, confident, business savvy and defying stereotypes, a woman in the world of football. Lets meet Beth and Melvin
31. Play video
32. This segment are huge media consumers – just reading about them is exhausting. The are strong newspaper readers tending towards quality press – esp Times and the Guardian. They watch quite a bit of TV but with a heavy BBC bias. Their viewing is a good mix of high brow with some guilty pleasures thrown in. From Newsnight to Mad Max to Embarrasing Bodies. They are big magazine readers with a metropolitan, affluent focus – fashion titles, film and listings magazines, and health and fitness titles. Their internet usage is average with some app usage. Their hugely aspirational focus informs their media consumption, and how to engage with them. They love advertising, especially magazine advertising, but the ads need to reflect their lifestyle back to them – or the lifestyle they aspire to more accurately. Glossy, high quality ads. Definitely turned off by ads aimed at old people – don’t recognise themselves in them at all. Here they are talking about their media
33. Play video
34. So how should brands engage with Gen Wealth – let’s see what we learnt. This generation is often overlooked by marketing – and they know it. They don’t identify themselves as old and don’t want to be treated differently. This generation are active consumers and likely to remain so throughout their lives. Attitudes and lifestyle need to be the lead focus – not age. It’s a myth that older consumers are entrenched in their brand choices They are discerning consumers, and more likely to swap brand than younger age groups. Brands that get it right focus on values that appeal to this generation – personalisation, great service, reliability, beautiful design, aspirational values; Marketers should ensure that advertising does not ghettoize the generation by using age neutral advertising that works across generations. And the final video has some comments about their wealth and purchasing…
35. Finish off with a quote from our expert interviews about age neutral marketing
36. So now just a couple of slides to touch on how Immediate Media is so powerfully placed to deliver Gen Wealth to advertisers. Thinking back to that 9.1 million Gen Wealth we can see here that Immediate Media reach a third of them – 3 million GW – across our print and digital properties. This is more than any other magazine publisher in the UK, and more than any of the quality press by a significant margin. 13% more than IPC . 18% more than Telegraph (print and online). 23% more than The Guardian. 27% more than Heart. And almost twice as many as The Times.
37. And as you can see from this slide, Immediate Media reaches a significant proportion of each of the seven segments. Our reach is spread quite evenly across the segments, reaching approximately one third of each one. Once again for the majority of the segments we are the most effective publisher to reach them.
38. • Generation Wealth appreciate good coffee! Firm favourites include Costa Coffee and Café Direct – they are more likely to visit Costa coffee (Index 131) and have a Costa Coffee Club Card (Index 134). They are also more likely to buy Coffee Direct Instant Coffee (Index 249) and Coffee Direct Fresh Ground Coffee (Index 199)• Generation Wealth are extremely charitable with their money and are 20% more likely to have made a donation to charity in the last 12 months, donating an average of £87.50 each - that’s £22 more than the GB national average. They are also 61% more likely to have donated money Oxfam (Index 161)• Generation Wealth are financially astute and 49% more likely to use a price comparison website (Index 149)• When it comes insurance and mortgages - they are 52% more likely to have insurance with Aviva (Index 152) and mortgages with the Royal Bank of Scotland (Index 194) and Natwest (Index 175)• Toyota performs well when it comes to car brands – Generation Wealth are 52% more likely to own a Toyota (Index 152) and also more likely to be considering purchasing a Toyota (Index 130)• In terms of home décor, Dunelm Mill performs well as a retailer – they are 49% more likely to have been to Dunelm Mill in the last 3 months (Index 149)
39. • Generation Wealth appreciate good coffee! Firm favourites include Costa Coffee and Café Direct – they are more likely to visit Costa coffee (Index 131) and have a Costa Coffee Club Card (Index 134). They are also more likely to buy Coffee Direct Instant Coffee (Index 249) and Coffee Direct Fresh Ground Coffee (Index 199)• Generation Wealth are extremely charitable with their money and are 20% more likely to have made a donation to charity in the last 12 months, donating an average of £87.50 each - that’s £22 more than the GB national average. They are also 61% more likely to have donated money Oxfam (Index 161)• Generation Wealth are financially astute and 49% more likely to use a price comparison website (Index 149)• When it comes insurance and mortgages - they are 52% more likely to have insurance with Aviva (Index 152) and mortgages with the Royal Bank of Scotland (Index 194) and Natwest (Index 175)• Toyota performs well when it comes to car brands – Generation Wealth are 52% more likely to own a Toyota (Index 152) and also more likely to be considering purchasing a Toyota (Index 130)• In terms of home décor, Dunelm Mill performs well as a retailer – they are 49% more likely to have been to Dunelm Mill in the last 3 months (Index 149)