Latest / The CMO Podcast with Fexingo: Marketing Leadership, Budgets, and Executive Strategy / How CMOs Are Marketing to the Longevity Economy
Transcript
- Lucas: There's a stat that's been bouncing around my brain for weeks now, and I think it's one of the biggest blind spots in marketing today. Luna: I'm listening — and I have a feeling I know where you're going with this. Lucas: So, consumers aged 50 and older control over 70 percent of the disposable income in the U.S. — roughly $8 trillion. But less than 10 percent of marketing spend is directed at them. Luna: Right. The longevity economy. It's been a buzzword for a few years, but the gap between the numbers and the budget allocations is still staggering. Lucas: And that gap is exactly what we're digging into today. Because a lot of CMOs I've talked to are finally waking up to this — not just as a social responsibility thing, but as a massive growth opportunity. Luna: So what changed? Why now? Lucas: A couple of things. First, the sheer size of the demographic. The 50-plus group is the fastest-growing segment in the U.S., Europe, Japan, even parts of Asia. And second, this cohort is not your grandparents' 65-year-olds. They're digitally savvy, they're health-conscious, and they're spending on experiences, technology, and premium products. Luna: And they're also more brand-loyal than younger consumers. Once you earn their trust, they stick with you. Lucas: Exactly. But the marketing industry has this weird hang-up about age. We've romanticized youth for so long that targeting older consumers feels, I don't know, unsexy. But the data tells a different story. Luna: Let's talk about a concrete example. L'Oreal has been doing interesting work here. They launched a campaign called 'Age Perfect' a while back, but more recently they've been focusing on inclusive beauty for all ages — not just anti-aging, but pro-aging. Lucas: Right. The language shift is crucial. 'Anti-aging' implies something to fight against. Pro-aging says, 'We see you, we value you.' And they've backed that up with product innovation: formulations for changing skin, but also packaging with larger fonts and easier grips. Luna: That's a smart move. Inclusive design isn't just about being nice — it removes friction. And older consumers are willing to pay a premium for brands that make their lives easier. Lucas: Another example I've been following is Apple. The Apple Watch has become a health device for older users — fall detection, heart rate monitoring, ECG. But they market it to everyone, not just seniors. The messaging is about peace of mind for the user and their family. Luna: So they avoid age segregation. They sell a feature set that happens to resonate with an older demographic without calling them out. Lucas: Exactly. And that's a key lesson: you don't have to build a separate 'silver' brand. You can make your core product more inclusive and watch the adoption happen naturally. Luna: But there's a risk of stereotyping. If you overcorrect and portray all older people as frail or tech-averse, you'll alienate them. The 65-year-old marathon runner and the 65-year-old with mobility issues have very different needs. Lucas: That's where life-stage segmentation comes in — rather than generational labels like Boomer or Gen X. You segment by actual behaviors: are they caring for aging parents? Are they empty nesters? Are they still working? Are they retiring early? Luna: I've seen some CMOs using data from loyalty programs and purchase history to build these segments. It's much more precise than age brackets. Lucas: Speaking of precision, one area where the longevity economy is really taking off is travel and hospitality. Companies like Intrepid Travel and Road Scholar have built entire businesses around active older travelers who want authentic experiences, not bus tours. Luna: And they're marketing through niche channels — AARP's media network, for instance, or Facebook groups focused on solo travel after 60. Lucas: Right. And the ROI there is often higher because the audience is more engaged and less saturated with ads. The cost per acquisition can be lower, and the lifetime value is higher because these customers have more disposable income and time. Luna: Let's pivot to another challenge: digital adoption. A lot of marketers assume older consumers aren't online. But actually, adults 65-plus are the fastest-growing group on social media. Facebook, YouTube, even TikTok. Lucas: Yeah, but the content has to be different. You can't just repurpose a Gen Z campaign. The tone needs to be respectful, informative, and often more patient. No fast cuts or jargon. Luna: And the platforms matter. For example, email marketing works incredibly well with this demographic. They check their inbox regularly, and they're less likely to ignore a newsletter. Lucas: There's a great case study from a financial services company — I think it was Fidelity — that redesigned their retirement planning tools with larger fonts, clearer language, and more human imagery. They saw a 40 percent increase in engagement among users over 55. Luna: That's a huge lift from a relatively simple UX change. And it didn't alienate younger users either. Lucas: If these marketing conversations have sparked something you've actually used — a new way of thinking about your audience, a campaign idea, whatever — and you want to help keep this show ad-free and independent, listeners can support us at buy me a coffee dot com slash fexingo. Luna: Yeah, it's a small gesture that really helps us keep doing deep dives on topics like this. No pressure, but if you find value here, it's appreciated. Lucas: Back to the longevity economy. One of the biggest shifts I'm seeing is in the automotive industry. Car brands are realizing that older buyers are their core market — they have the cash, and they buy new cars more frequently. Luna: So how are they marketing differently? I've seen ads with older drivers doing active things, not just sitting in a parking lot. Lucas: Exactly. Subaru, for instance, shows retirees with dogs and kayaks. The messaging is about freedom and adventure, not safety and caution. Safety is the baseline assumption. The emotional sell is vitality. Luna: That's a smart reframe. Because if you lead with safety, you're subtly reinforcing frailty. Lead with vitality, and you're aspirational. Lucas: Another sector catching on is fashion. Brands like Eileen Fisher and Universal Standard are designing for older bodies — not just size inclusivity, but cuts that flatter changing proportions. And they're using models over 50 in their campaigns. Luna: It's not just about representation. It's about fit. A 60-year-old woman has different needs from a 25-year-old, and if the product is better, she'll buy it and tell her friends. Lucas: word of mouth is huge in this demographic. They're more likely to trust recommendations from peers than influencers. So some CMOs are building referral programs specifically targeting older customers. Luna: That circles back to trust. Older consumers are more skeptical of marketing claims. They've been burned by bad products and misleading ads. So transparency and authenticity are non-negotiable. Lucas: And that's actually a good discipline for any marketer. If you can earn the trust of a skeptical 65-year-old, you can earn anyone's trust. Luna: What about measurement? How are CMOs tracking success with this audience? Standard metrics like CTR and conversion are fine, but are there specific KPIs? Lucas: A few that come up: repeat purchase rate within a year, customer lifetime value — which tends to be higher — and net promoter score among the 50-plus segment. Some are also tracking share of wallet within the household. Luna: Because a lot of older consumers manage multiple generations' finances. They're buying for themselves, their adult children, even their grandchildren. Lucas: Exactly. So the addressable market is larger than the individual. A brand that serves a grandparent well might also gain the loyalty of the whole family. Luna: Let's talk about the flip side: what happens when brands get it wrong. There have been some high-profile fails — like a skincare brand that used age-shaming language, or a tech company that assumed all seniors need huge buttons. Lucas: The biggest mistake is caricature. Showing older people as out of touch or helpless. The reality is that many 70-year-olds are running businesses, traveling, and learning new skills. Marketing should reflect that diversity. Luna: So the takeaway for CMOs is: don't ignore this demographic. Segment by life stage, not age. Design inclusively. Market with respect. And measure the long-term value. Lucas: And the opportunity is only growing. By 2030, all baby boomers will be over 65. The longevity economy is not a niche — it's the new mainstream. The brands that figure it out now will have a decade-long advantage. Luna: I think the biggest mental shift is moving from 'aging is a problem to solve' to 'aging is a natural, valuable stage of life.' That changes everything from product design to ad creative. Lucas: Well said. And on that note, we'll leave you with a question: when was the last time your marketing team sat down and mapped out a customer journey for a 68-year-old? Might be worth the exercise. Luna: Thanks for listening. See you next time.