Notes and Thoughts on Grocery 2.0

You’ve heard of the Baby Boomer generation; those 78.2 million people born between 1946 and 1964. You’ve heard that they’re affluent, have $3 trillion in disposable income and switch brands just as readily as younger generations (according to a 2002 AARP study). Baby Boomers have become marketing magnets, attracting advertisers who for years ignored them. Like the coveted Generation Y (18-24) demographic, marketers vie for Boomers’ attention constantly, especially through emerging media and technology, which both groups have embraced. But while both groups play a key economic role, both because of their size and available income, marketers who target the young and Boomers solely, leave out a huge portion of our country’s population; one which cannot be ignored.

Born between 1965 and 1981, Generation X consists of the 83.8 million Americans in the 25-to-44-year-old bracket living their peak years of product and service consumption.

According to a recent report by eMarketer, Generation Xers have embraced technology to a greater degree than Baby Boomers. They go online for information on everything from parenting to consumer products and to shop, bank and network with peers. In 2007, the Pew Internet & American Life Project estimated that a full 90% of Generation Xers used the Internet, which is only one percentage point less than Generation Y.

“Generation X fervently embraces electronic media. Computers, PDAs and mobile phones are ingrained into all aspects of Generation Xers’ lives. They eagerly embrace new gadgets and applications as replacements for existing ones,” says eMarketer.

Since most Generation Xers are still earning full salaries, they have disposable income. According to Javelin Strategy and Research, Generation X’s total income was $3.67 trillion in 2007. That figure is projected to grow to $4.2 trillion in 2017. Because of this, Anderson Analytics places Generation Xers as the second most important marketing demographic, right after Baby Boomers.

The problem for advertisers has been that Generation X’s media usage is fragmented. They embrace a wider range of lifestyles than previous generations and are more immune to traditional advertising. The silver lining? According to eMarketer, “by embracing the growing forms of pinpointed electronic media that Gen X reveres, marketers stand a greater chance of increasing their visibility among this elusive, hard-to-reach generation.” The same goes for Boomers. With 91%, 90% and 79% of Generation Y, Generation X and Baby Boomers online, shouldn’t you be too?

Rachel