Many companies rely on Generation Z for their revenue. However, another generation is financially much more interesting: Boomers have larger financial reserves and account for more than half of the spending in Germany.
In the areas of economy and consumption, many companies focus on Generation Z. Yet, Boomers are much more important for the domestic economy but are often underestimated. While 90% of the advertising budget is used to attract trendy 25-year-olds, only 10% of the budget is utilized to persuade the more affluent Boomers.
Generation Z is a good option for the economy. Because Gen Z does not save but focuses on “Doomspending”: pushing credit cards to the limit and spending money recklessly. However, Boomers have significantly more financial resources, which the economy often fails to reach since it overly focuses on young people.
Boomers spend more money but are underestimated by the economy
A study by PricewaterhouseCooper indicates that Boomers, on average, spend the most money in everyday life. People aged 55 to 75 mostly shop in physical stores, but 62% also shop online once or multiple times a month.
However, the purchasing power is much more important: Households with individuals aged 55 and older account for more than half (54 percent) of all private consumption expenditures. Generation Z, in comparison, spends significantly less.
Experts see the problem primarily in the fact that many companies and the advertising industry still prefer to target young customers. Nils Giese, the managing director of the Frankfurt communications agency Edelman, stated to the Tagesschau:
If we just look at the facts: Only five to ten percent of global marketing budgets are focused on the so-called baby boomers, even though this target group represents more than half of private consumption. This is, of course, a very large discrepancy.
However, the study by PwC emphasizes that Boomers do not simply spend money but are also considered a very frugal generation overall. Boomers value preserving and passing on their wealth, but are also willing to invest long-term.
At the same time, more and more Boomers are returning to the workforce because they have financial worries. Not everyone is equally wealthy and financially well-off.
Generation Z and the so-called Boomer generation differ significantly from each other, particularly when it comes to the purchase and consumption of certain goods. This is evident in the direct comparison of the generations. We present to you items that are used or purchased daily by “Boomers,” which, however, hardly play a role for Generation Z: 6 items that Boomers spend money on every year that Generation Z would not do today
