Baby boomers spend a lot of money if not the most and they also watch the most ads on YouTube, but why aren’t advertisers cashing in on this?
Just about every month a new research firm publishes new studies that explain how tech, music and other industries can better cater to their millenials customer base. For instance, Eventbrite published a report on how to make sure that your music festival appeals to this age group. Barron’s also published a study demonstrating how millennials actively “[disrupt] the music business.”
However, there isn’t a lot of noise when it comes to baby boomers and yet a new study revealed that they make up nearly a quarter of YouTube’s total monthly users and still watchtower most ads.
Strike Social carried out the study dubbed YouTube’s Generational Divide, which analysed the impact the video sharing platform had on its US viewers. According to the social media research firm, the video platform reached 81% of all Americans last year and a huge majority of the ads were aimed at millenials. In order to find out YouTube’s total visitors by generation, Strike Social analyzed data from ComScore and Google’s targeting tools. They found that 39% of millennials (aged 18-34) watch YouTube. Generation Xers (aged 35-54) and Baby Boomers (aged 55 and over) make up 37% and 24% of the platform’s total visitors, respectively.
Each generation reacts differently to video ads. Advertisers however allocate huge chunks of the ad budget to target millenials and Gen Xers. The study found millennials and Gen Xers received more budget than Baby Boomers did (156% and 137% more, respectively). Millennials generated on average a $0.045 CPV and had a 28.3% VR. Gen Xers and Baby Boomers tied with a slightly higher CPV of $0.046. However, Baby Boomers have a higher view rate than their younger counterparts, 31.2% to Generation Xers’ 28.5%.
Strike Social explained why advertisers should pay attention to these statistics.
“Baby Boomers (and older) account for 48% of consumer expenses per year. In contrast, Gen X is responsible for only 34% of consumer expenses, while millennials account for 19%, according to the U.S. Bureau of Labor Statistics. And yet YouTube ad spend doesn’t reflect these major differences in purchasing power at all.”