Tom Goodwin’s Post

Where the money is

Everyone talks about the boomer wealth transfer, but it looks like we still have $20trn from the silent generation to get into GenX's hand's first. As boomers retire and take their investment capital with them (exchanging it for bonds and t-bills coincidentally just as interest rates are higher again), the building Millennials and GenZ'ers don't have the capital to build the new brands at the scale X'ers and Millennial's did. Another round of encouragement to get off pure capitalism all together and find new sources of lower-capital, consumer-inclusive value growth, like the co-creation systems of prosumerism.

This is kind of misleading because … 1. Net Worth vs. Disposable Income: While it’s true that Baby Boomers possess significant net worth, much of this is tied up in homes and retirement savings. These are forms of discretionary income, not readily accessible for everyday spending. Therefore, they don’t translate into high levels of disposable income. 2. Prime Spending Demographics: The prime spending years are typically in one’s early 40s, where individuals are buying larger homes, funding their children’s education, going on family vacations, and purchasing multiple cars. This age group, primarily Gen Xers and older Millennials, has the highest spending capacity and is more susceptible to marketing influences. Additionally, Boomers are more likely to retain their assets due to increased life expectancy and rising medical costs, which require them to keep more resources available for future medical expenses. 3. Spending Constraints of Boomers: Despite their high net worth, Boomers are less likely to liquidate their fixed assets or retirement funds for discretionary spending. Their actual spending power is relatively low because they are more focused on preserving their wealth for retirement. 4. Future Wealth Transfer: The most significant factor for future spending is the anticipated wealth transfer from Boomers to Gen Xers, Millennials, and even Gen Z. This wealth transfer will shift spending power to younger generations, who will then drive market demand. So, while Boomers hold substantial wealth, their impact on current consumer spending is limited. Marketers should focus on Gen Xers and Millennials, who are in their peak spending years, and consider the impending wealth transfer that will further enhance the spending power of these younger generations.

Such a great data point and so many thoughts on it - some related to marketing but mostly related to being an Australian Millennial. I'm from Perth, where the market is up 22% YoY, and where (don't quote me on this one) ~65% of private school fees are paid for by grandparents. Inevitably, the question of "how are young people affording to buy homes and continuing to live?" comes up in every dinner conversation. For those who won't inherit wealth or property, does the inequality gap continue to widen with things like negative gearing, which fortunes those who already have enough wealth to build a property portfolio? And when the Boomers hold the wealth but are exiting the workforce and therefore, contributing less and less towards tax, is it already-stretched young people who will shoulder the burden of contributing to tax, not the blue chip companies making billions in profits? Thanks for sharing Andy Wilson and Tom Goodwin

An interesting graph to think about where priority lies when targeting consumers. Is it important to prioritize those you have wealth, or target younger tastemakers to build brand loyalty? By creating distinct consumer profiles, we can craft targeted marketing messages that resonate with each segment, maximizing impact. Segmenting the audience and tailoring marketing per segment is key to reaching the right people with the right message at the right time. Think of your audience as a diverse group of friends. You wouldn't talk to them all the same way, so why treat your customers any differently? Segmentation allows for personalized communication. SOAR MEDIA Agency #audiencesegmentation #consumertargeting #genzmarketing #masscommunication #brandloyalty

What is your target group - think again

In an industry where understanding market potential and opportunity , aligned with a product, service or solution is the name of the game, its curious that marketers continue to ignore one of the most dynamic and largest audiences in history. Research shows that ageism and ageist views are oftentimes the root cause of this. #agepowerfully #longevity economy #opportunity #newgeneration

Insigthful post by Tom Goodwin on the fact that old money is routinely ignored in marketing. I am still amazed but not surprised that we continue to ignore one of the basic elements in marketing and sales 👉 BUYING POWER! If you haven't done it yet, my advice is to FOLLOW THE MONEY! Segment your customers based on buying power and include it as an prioritized factor in the definition of your target group(s). Also, remember that the buying power of your primary target group might lie elsewhere. A common example is young people, where the ones with the fat wallet are often parents and/or grandparents. Old money talks!💰 #marketing #buyingpower #growth

Have you ever felt like your smartphone is listening in on your conversations about needing a new car or fretting over a home mortgage, only to later seen an ad about the very thing? If you've ever wondered if it's just a coincidence or the real deal, the good folks at Cox Communications are saying the quiet part out loud: welcome to "Active Listening," a feature straight out of a #tech dystopia where your casual conversations are monetizable data points. Yes, the days of joking about our phones eavesdropping on us in violation of #privacy are over. CMG's new tech claims it can target ads based on the real-time banter captured through devices. The Orwellian overtones are hard to miss. It's like having a marketer hidden under your couch, taking notes. This “marketing technique fit for the future” raises not just eyebrows but serious legal and #ethics questions. Sure, we often agree to terms and conditions without a second thought, but did we really sign up to be listened to this closely? If you value privacy (and sanity), it might behoove you take a closer look at those T's and C's. While CMG assures us that all is legal and above board, one can't help but wonder about the fine line between marketing #innovation and privacy invasion. Are we ready to trade our chatter for more personalized ads? For me, the ROI here isn't just about impressive returns; it's also about retaining a sense of personal space and agency in a digital world that's becoming increasingly intrusive. So, next time you discuss your private worries, remember, your smart device might just be taking notes for CMG.

When you hit the pain points of your customers, expect some backlash. But guess what? That means your advertising is hitting home. Our student brand learned this the hard way. They shelved a successful angle due to negative comments, and sales tanked. Why? Because... 1️⃣ Negativity speaks louder: For every negative comment, there are likely 10 positive perspectives left unsaid. 2️⃣ Comments boost visibility: Facebook's algorithm loves engagement, even if it's not all sunshine and rainbows. More comments = more reach. 3️⃣ Sales over feedback: Ultimately, sales drive success, not comments. By embracing the hate, this brand turned losses into profits in no time. Remember, you can't please everyone, but you can win where it counts.