Unlocking the Spending Power of Boomers
Americans are a diverse group, and their spending reflects it beautifully. Look at the picture above and the chart below and you will discover that Boomers spend the lowest of overall per capita, but they rival Millennials in their entertainment spending. Yet when you casually observe advertising in any format, digital or print, you rarely see a senior enjoying themselves on an adventure tour, or on an expensive trip to a theme park. Doesn’t make sense!
The percentage of global population by demographic cohort and estimated spending shows a similar situation:
| Generation | Share of population (2024) | Global spending (2024) |
| Gen Alpha | 19.5% | 10.6% |
| Gen Z | 24.6% | 17.1% |
| Millennials | 22.9% | 22.5% |
| Gen X | 18.3% | 23.5% |
| Baby Boomers | 12.1% | 20.8% |
| Greatest and Silent Generation | 2.6% | 5.5% |
Understanding these percentages assists in understanding the social and economic impacts that each generation has on our industry.
When comparing the population percentages with spending percentages, the following observations can be made:
- Baby Boomers: Although they make up 12.1% of the population, their spending represents 20.8%, highlighting their substantial economic influence.
- Millennials: Represent 22.5% of the population and their spending is almost the same.
- Gen X: Consist of 18.3% of the population but account for 23.5% of spending. This generation shows a higher spending power relative to their population size.
These comparisons reveal that while some generations may have a smaller population size, their economic impact through spending can be disproportionately large, reflecting their purchasing power and consumption patterns.
Boomers, despite being the lowest in overall per capita spending, rival Millennials in entertainment expenditures. They enjoy expensive vacations, gifts for family, and trips abroad, highlighting their substantial economic influence in the entertainment sector.
How often do you see an ad for anyone over 65 doing anything but taking drugs? But they have money and spend money on expensive vacations, gifts for their family, and trips abroad.
If you are concerned about your return on investment and you are in the entertainment field, why aren’t you pitching to this group? Just common sense, don’t you agree?
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