The United States stands as a beacon for businesses worldwide, offering an unparalleled consumer market that’s ripe with opportunity. With its insatiable appetite for goods and services, tapping into the U.S. market can turn any venture into a thriving enterprise. However, there’s a crucial oversight in current marketing strategies that could unlock even greater potential.

The United States has the strongest economy in the world, with a GDP of $28.5 trillion dollars as of Q1 2024 according to Investopedia. Outpacing the second largest economy, China, by a staggering $10 trillion. The economic landscape of the U.S. is dominant across various sectors, but the area we dominate most is consumer spending. In the United States, money moves fast, People spend money just as fast as they earn it, occasionally faster. Despite the U.S. being only 4% of the worlds population, it accounts for 30% of all consumer spending in the entire world. Citizens spend an average of $16 trillion a year on consumer goods. These are all factors that make the United States a dream market for any business. 

There is so much economic activity in the U.S that obtaining even a tiny fraction of the market is enough to build a successful multi-million dollar business. This allows for success in any venture, even in very niche areas like pickle ball or artisanal cheeses. One market that sticks out above all others in the consumer spending realm is food and beverages, this accounts for $151 billion of spending according to Forbes.

Convenience is a major factor that drives consumer behavior, and people are willing to spend more if it enhances their convenience. This trend was exacerbated by the pandemic, as people confined to their homes increasingly turned to online retailers like Amazon and services like Instacart for groceries. Many broke college students are willing to spend their last 20$ Doordashing 5$ worth of Taco Bell. This demonstrates that consumers prioritize convenience to the extent that they are willing to pay a premium for it, underscoring its critical role in consumer spending habits.

Markets also change drastically based on their location.  Laura Rocha Co-founder and CEO of Dathic uses the U.S. Latino market as an example in her Forbes article. If a business located in California (Specifically L.A.) caters to their large Latino population, and they wanted to expand, it makes sense to expand into a similar area with a large Latino presence. They might choose to expand into Florida’s Miami-Dade county which is predominantly Latino as well. It seems like a logical and easy place to expand your business, but the Latino populations differ greatly in terms of language, heritage, culture, income, purchasing behaviors, and in many other nuanced area’s. 

Understanding the nuances of your market will lead to more sales by getting advertisements into the hands of the people who will actually buy your product. Marketers often use the Broad-Based Marketing Strategy which works as follows: They launch a campaign that targets a wide audience, without heavy segmentation. Then they Collect data on who is engaging with their content, clicking on ads, and making purchases by looking for patterns in demographics, behaviors, and preferences. Then Developing tailored messages and campaigns that cater specifically to those demographics. This method focuses marketing efforts and resources on the most promising segments, improving ROI.

While Broad-Based Marketing is simple, effective, and has worked for decades, a concerning trend has emerged. More recently, one significant group has been increasingly excluded from initial targeting efforts: Boomers. Marketing has been steadily shifting to cater to the younger generation, leaving older generations behind. This is a critical mistake! Gen Z only accounts for 3-4% of consumer spending, meanwhile baby boomers account for 30% of all consumer spending in the United States. 

Why are marketers ignoring Baby Boomers if they make up such a large portion of consumer spending? There are a few factors to consider. As shiny new marketing platforms emerge, marketers often abandon older ones. TV commercials, a legacy medium, now receive only a fraction of the views they once did. They are relatively expensive and reach at most 1-10 million viewers. In contrast, an advertisement in a Mr. Beast YouTube video can garner well over 100-300 million views. Social media sites like YouTube, Instagram, and TikTok are also less expensive, making it seem like a no-brainer to choose these platforms to get ads in front of as many people as possible for the lowest cost. However, Baby Boomers do not use these platforms. Your grandma is not scrolling through TikTok; the typical Boomer social media user is primarily on Facebook and little else. 

Ageism is another reality we must confront. A prominent example is the “OK Boomer” meme, which has gained popularity over the past few years. This meme is more than just a joke; it reflects a growing dismissive attitude toward the elderly in our country. The meme frames Boomers as a generation out of touch and shuts down any dialogue between Boomers and younger generations. This is ironic because while the meme suggests Boomers are resistant to change and won’t listen, it simultaneously excludes the voices of those with wisdom and experience that come with age. These jokes and sentiments are not harmless; they perpetuate harmful stereotypes and normalize ageism. This also pushes a now common belief that the older generation tends not to try new products, sticking to brands they know, and that people who try new products skew younger, but that’s just not true.

Jeff Weiss the CEO of Age of Majority, a marketing consultancy stated in an article by Market Watch: “companies allocate an estimated 22% of their marketing resources to targeting Gen Z, he said…Companies don’t know where the money is” 

While marketing with legacy strategies is not as glamorous as going viral on TikTok or Instagram, it is very effective with older generations. In terms of social media, options that reach Boomers are primarily limited to Facebook and YouTube. Facebook is already a powerhouse for reaching Boomers, and YouTube is becoming increasingly popular with this demographic, especially for news-related content. Many Baby Boomers are getting their news from YouTube instead of cable. Other platforms heavily skew toward younger generations.

How else can you target Boomers with your marketing? Traditional media still ranks supreme for this age group, so consider TV commercials and print media, including mail advertisements. Email marketing is also a popular method to reach an older consumer audience. Additionally, local marketing can be very effective; while it may get in front of fewer eyes, it often leaves a larger impact. Strategies such as posting signs, using flyers, and door-to-door marketing are all great ways to engage with Boomers. Using peer-to-peer recommendations is also a solid way to gain business, so make sure to have some business cards handy. 

On top of marketing to Boomers, making your business more accessible to them can lead to increased customer satisfaction and repeat business. This can be achieved by making websites easier to navigate and more accessible for mobile users. Excellent customer support is crucial for older consumers; while outsourcing customer service to places like India might be a cheap and popular option, it is not ideal for Boomers. They often need assistance from someone with a thorough understanding of products or services, rather than someone halfway across the world reading off a script. 

Other strategies to attract Boomer business include building a loyalty program to encourage brand loyalty. Lastly, no matter how wealthy a Boomer is, they always appreciate a good bargain, so offering a discount or a nice bundle is a great way to get Boomers through the door.

the United States’ robust economy and substantial consumer spending make it a prime market for businesses. However, a critical oversight is the exclusion of Baby Boomers, who account for 30% of all consumer spending. While marketers often focus on trendy platforms like TikTok and Instagram, they risk alienating this significant demographic. To effectively reach Boomers, businesses should employ a balanced strategy that includes both modern and traditional marketing methods, such as utilizing Facebook and YouTube, TV and print media, and providing excellent customer support. Recognizing the value of Boomers and adapting marketing efforts to meet their preferences is essential for sustained growth and success in the diverse U.S. market.

References

Gina Bento GINA BENTO “Understanding the U.S. Consumer Market.” Research FDI. https://researchfdi.com/resources/articles/understanding-the-us-consumer-market/

Laura Rocha – Powering a Personal Wealth Movement. “Playing to Win in the U.S. Market.” Forbes. https://www.forbes.com/sites/forbeseq/2023/08/18/playing-to-win-in-the-us-market/

Nicole Narea “Consumer Spending, Economy, Inflation, and Interest Rates.” Vox. https://www.vox.com/money/24159281/consumer-spending-economy-inflation-interest-rates

Jessica Hall “Boomers Make Up 30% of Consumer Spending, So Why Do Advertisers Ignore Them?” MarketWatch. https://www.marketwatch.com/story/boomers-make-up-30-of-consumer-spending-so-why-do-advertisers-ignore-them-6c74a878