Marketing Forecast from Ad-ology

While social media use has grown dramatically across all age groups, older users have been especially enthusiastic over the past year about embracing new networking tools. Social networking use among internet users ages 50 and older nearly doubled-from 22% in April 2009 to 42% in May 2010. As social media becomes an even more integral part of the marketing landscape, marketers are realizing the importance of a social strategy. Social media allows marketers to plan their social activities on a long-term basis rather than focus on one-off experiments. And as marketers continue to invest in social media, its share of marketing budgets is expected to rise. In fact, a recent survey by King Fish Media find that 75% of the companies surveyed with a social strategy said they plan to increase their investment in the next year.

AAA has projected the number of Americans traveling this Labor Day holiday weekend will increase 9.9% from 2009, with approximately 34.4 million travelers taking a trip at least 50 miles away from home. Last year, 31.3 million Americans traveled during the Labor Day holiday. The 2010 Labor Day holiday travel period is defined as Thursday, September 2 to Monday, September 6. Trips by automobile are expected to increase in popularity with 91% of travelers, or 31.4 million people, reaching their destination by driving. Median spending is expected to be $697 this Labor Day, nearly $50 more than last year when median spending was estimated at $650. Dining (63%); shopping (47%) and visiting with friends and relatives (43%) were named as the three top primary activities by travelers this Labor Day weekend.

For decades, marketers of cosmetics and skin care solutions positioned their products for mature women as being suitable for the 40+ age group. As Baby Boomers aged, marketers began talking to women in the 50+ age group. And as female Baby Boomers have indicated a continued interest in spending money to look their best, more marketers are seeing a niche for women in the next decade – 60+.

On September 12, 2010, Grandparents Day will reach its 31th anniversary. Like Mother’s Day and Father’s Day, it’s a time for family celebration, and a chance to honor the important role grandparents play in children’s lives. Today, an increasing number of grandparents have assumed daily responsibility for their grandchildren. According to AARP, 4.5 million children are being raised in households headed by grandparents. Today, approximately 2.6 million grandparents are responsible for most of the basic needs (i.e., food, shelter, clothing) of one or more of the grandchildren who lived with them in 2008. These grandparents represented about 41% of all grandparents whose grandchildren lived with them. Of these caregivers, 1.6 million were grandmothers, and 983,000 were grandfathers.

America’s twenty-somethings, known as the Millennial generation or generation Y, are connected, confident, and tend to live in the moment when it comes to making food choices, reports The NPD Group. According to recent NPD food market research, Millennials are more likely to say their food choices at main meals are motivated by cravings, cost control, and minimal preparation time. In addition, Millennials are much more likely than consumers in other age groups to use frozen entrees or other food items that are portable and do not require preparation. Millennials are coping with their economic challenges by making use of low-priced retailers.

Small TVs got a boost last June when the government mandate to switch to digital broadcasting took effect, but a year later, amidst a stronger economy, sales of smaller TVs have slowed as consumers are exploring bigger screens and advanced features, according to leading market research company The NPD Group. Sales of 19″ to 37″ flat-panel TVs in the U.S. were down 21% year-over-year in June according to NPD’s Retail Tracking Service. As prices continue to drop and consumer interest turns to connected televisions, LED backlighting, and 3D – features that are more likely to be prominent in larger sets – consumers are trading up for larger TV screens.