Research published by Ofcom (the UK regulator) and recently corroborated by Hitwise shows that surfers over the age of 50 now account for almost 30% of all time spent on the internet. Hitwise's analysis of online visits to shopping and classifieds categories from the 4 weeks ending November 3rd shows that over 55's represent 22.5% of traffic.
This is thought provoking stuff - and furthermore, according to Hitwise Silver Surfers' share of traffic is growing at the expense of all other demographics, especially the 25-34 age group. We can probably put this down to the impact of the latter phases of broadband roll out now beginning to bring the older demographics into play.
Given the cultural and behavioural transformation we are projecting in the digital media economy, understanding shifts in demographics is a key issue. The chart alongside taken from UK government actuarial data shows the projected growth of each demographic over the next 20 years. The over 65s are projected to grow by 45% whereas the under 25 group is projected to remain unchanged. This has a profound effect on long term digital media strategies, especially given the increased affluence and disposable income of this demographic.
In the UK Guardian newspaper recently and article titled "Download dads lead the iPod generation" cited evidence from leading UK download music providers that the typical user of paid music download services is a 34 year old male. Much older than is everyone thinks.
The impact of this on eCommerce and on brand strategies for maximising return on communications spend is huge. A recent article from eMarketer re-enforces this point.
"To focus on younger demographics at the exclusion of boomers and over-60s, as some marketers have done, is to miss a potentially huge opportunity to tap into a large, vibrant, diverse and fast-growing segment of the US Internet population."
The eMarketer report shows that the number of internet users above 62 or from the Baby Boomer generation will increase from 75m in 2006 to almost 90m in 2011 - ie 20%. Faster growth than any other segment.
More critically, those over 62 represent 20% of disposable income, while the baby boomer generation represent around 50%. Those under the age of 25 represent just 2% of disposable income.
The C-generation may dominate the digital media economy 20 years from now, but for brands looking at a 5 year planning horizon, the answer is obvious - isn't it?
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