chapter  11
20 Pages

Age Branding

ByHarry R. Moody, Sanjay Sood

Age branding is the creation of brands that are targeted to older consumers, such as AARP or Sun City. Given the demographic shifts taking place in the United States, age branding is a strategy that will continue to grow in importance. In 2000, there were 35 million Americans age 65 or above, approximately 13% of the U.S. population. That number is expected to rise to 50 million by 2010 and 70 million in 2030, or 20% of the U.S. population (Federal Interagency Forum on Aging-Related Statistics, 2000). The trend is not limited to the United States but is evident in advanced industrialized countries of Europe and in Japan. Older people control 70% of the net worth of U.S. households at a level equal to $7 trillion. Moreover, market research suggests that the 55 to 65+ age group has twice the discretionary spending of the younger market, that young age group (18 to 49) that commands so much attention from advertisers (De Asis, 2006). Creating brands specifically designed with the older demographic in mind, what we will call age branding, will be a key to reaching this huge marketplace.