Marketing Forecast from Ad-ology

According to new research from Mintel, 45-54-year-olds (younger Baby Boomers and older Gen X respondents) will definitely be taking longer to recover from the economic climate of the past few years. For instance, 47% of that group (vs. 33% overall) say they “have only been spending money on necessities” for at least a year. This group is also greatly concerned about their retirement, with 39% saying they worry more about retirement now than they ever have. As a result, a full 44% of those aged 18-24 and 34% of those in the 35-44 age range say that they intend to permanently increase the amount of money they save (vs. 28% overall). According to Susan Menke, vice president and behavioral economist at Mintel, “Everyone is more concerned about having adequate funds to retire after this recession. Unlike the Baby Boomers, however, younger age groups are able to do something about it, which offers a potential opportunity for financial services firms.”

Consumers are showing more interest than ever in saving money. For the most part, they are funneling money into investments that are perceived as safe, especially after the financial debacle of the past few years. Brokerage houses would like to sell more of a specific kind of financial instrument to investors: options. The results of a new survey show that companies will need to significantly increase their marketing efforts to increase consumer awareness of this type of investment.

It’s too soon to know if Social Security will be around to provide a safety net to the youngest employees in the work force. But retirement planning experts see trouble on the horizon with respect to the fiscal planning taking place by members of the Gen Y demographic, those who are currently between the ages of 18-30. Financial advisors can start working now with employers to help guide employees to the right strategies for retirement saving.

One way to determine whether we’ve reached the end of a recession is to study consumer attitudes about money. Over the past year, I’ve blogged about how consumers are using less credit card debt. Another take on consumer attitude can be found in how people are investing. Q & A Research recently polled consumers on this topic and found reason for optimism. But there’s also concern regarding the outlook for full service brokerage houses.

Purchasing auto insurance online has become a well-established practice. Now that consumers have grown comfortable with that process, they are looking to make other insurance purchases online. A new comScore report shows that the property insurance industry may be the next sector poised to make big gains online as people look for an easy way to purchase coverage for their homes or apartments .

Despite security concerns, more consumers are using mobile banking services. These consumers represent a unique demographic niche that cuts across traditional age and income categories. Banks that target users of mobile banking services will enjoy strong profits from loyal customers and grow market share as acceptance of this service grows.