Lucky you – it’s time for another Potty Posting! This time, we follow up on #8 from our 10 Trends for 2010 and take a deeper look into the concept of Radical Demography.
As always, a PDF version is available for sharing and perusal right here: Totally Radical Demography.
But, if you’d prefer a text-only version of the Posting, just continue right on reading.
TOTALLY RADICAL DEMOGRAPHY
Like, totally.
While we’ve been tracking all of our 10 Trends for 2010 throughout the year, the recent Census got us re-stoked about the eighth trend on our list: Radical Demography. As a refresher, Radical Demography warned us to look beyond the same stories we’ve been hearing for years: explosive Hispanic population growth, aging Boomers, Gen X-headed families. Now, we’re talking about social shifts that are so dramatic that they’re worthy of such an 80s-tastic phrase as “radical,” if not “most excellent.” Taken individually, these changes provide important clues about how to better target and message to often-ignored niches. But, as a whole, these righteous shifts have given the bogus concept of the “average consumer” a facial disgracial (in English: it’s now totallyless than a quarter of all households. We’re not mental; this is the world of outdated). By the time the Census results come out next year, the traditional family (a married couple with children) is expected to account for Radical Demography. Let’s take a look at four emerging (or re-emerging) household types and how the most bitchin’ marketers are targeting them.
SINGLE, READY TO MINGLE: Does a “singles cruise” bring to mind a scene of mass debauchery (perhaps an “excellent adventure”), or a sign of savvy marketers reading the demographic tea leaves? Well, probably both. But the fact that Norwegian Cruise Lines is offering single-occupancy rooms for the first time in their 43-year history shows a recognition of the startling spending power of the single consumer, who now accounts for 35% of all US spending. With Americans delaying marriage longer and divorce rates still hovering high, the rise in singledom isn’t especially surprising. Over a quarter of Americans currently live alone (27% in 2007 versus 17% in 1970), and married couples only accounted for 60% of home purchases in 2009 (compared to 81% in 1985). By the way, 21% of those unmarried home purchases were made by single women (meaning only 10% by single men), which may explain why Home Depot’s now (wisely) offering “Do-It-Herself Workshops.” But, when other marketers (especially in food and CPG categories) don’t address this population, they’re really doing it themselves, like singleedition.com’s recipes-for-one and kitchen gadgets for solo cooks.
SH*T MY DAD SAYS, IN THE NEXT ROOM: Even before the Great Recession forced youngsters to move back home (most heinous!), we were already witnessing a longer-term resurgence of multi-generational households. 2008 saw a record number (16.1%) of Americans living in households with multiple generations of adults, and there are plenty of explanations: the rising share of immigrant families (especially Hispanics and Asians, although many African-American families are also in this boat), the rising age of marriage, and Medicare cuts. Regardless of the cause, the effect is multiple generations having input on household decisions. With each cohort responding to dramatically different purchase drivers, these families may require simultaneously messaging to a number of household members in independent ways.
DINKS AREN’T JUST SPACEBALLS CHARACTERS: Although it sounds like an insult, “DINK” is just short for “Dual Income, No Kids” households. In 2007, married couples with kids made up a smaller percentage of US households than married couples without kids (22.5% vs. 28.3%). Throw in the aforementioned single folks (without kids) and childless cohabitators and you’ll realize that the majority of US households now lack those grody little weasels. As we asked in our original 10 Trends, how much of your marketing is based on the assumption that you’re talking to parents? When you’re talking to Gen Xers (and even some older Gen Yers/Millennials) who don’t have kids, their priorities, their interests, and their disposable income will all be greatly impacted if they’re not subject to the iron grip of Hannah Montana.
MORE ELYSE KEATONS, FEWER PEGGY BUNDYS: What’s your idea of a breadwinning head of the household? Is he a cranky middle manager like Jack Arnold? Is he generously affluent like Phillip Drummond? Is he even a “he”? PSYCH! With women increasingly outlearning and outearning their husbands, many households are reversing traditional gender roles. Our creative briefs frequently refer to the multi-dimensional mom who’s bodaciously juggling kids, work, household chores, and her own interests, but how much does that description change if we add “And, she’s the primary source of household income”? Suddenly, she’s not the overstretched “supermom” who needs a break and a pat on the back; instead, she’s driven, focused on the big picture, and, while perhaps short on time, knows exactly what she wants from marketers. We could even say she’s most triumphant.
Obviously, these are different folks (with diff’rent strokes), so we’re not saying you should be targeting all of these household types at once. In fact, we’re saying the opposite: divvying up your demographics can take your targeting to the max! When your target is Jessica the Gen Xer, ask whether your campaign also resonates with her intentionally-childless friend and her neighbor whose father has moved in. You may find your marketing taking a radically different approach.
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