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When you think of grandparents, you may conjure up images of gray-haired men and women living in retirement homes and giving their grandkids nickels to buy ice cream cones. Wake up! Today’s grandparents are baby boomers—the people who redefined every stage of life and are set to do the same with grandparenting.
A Grand Market
Estimates for the number of grandparents in the United States range from around 39 million to 80 million, depending on which survey you look at. About 4,000 people become grandparents every day, according to Judi Awsumb, executive vice president of GRAND Media, which publishes GRAND magazine. The typical grandparent is a baby boomer between the ages of 45 and 65 (though 65 is a bit beyond the baby boomer generation); the average age of a first-time grandparent is 47; and the average grandparent has six grandkids.
Grandparents are an affluent market. “Statistically, baby boomers have 77 percent of the nation’s wealth, and they will inherit more than any other previous generation,” says Awsumb. “The Depression-era parents they came from tended to be more conservative and to save.”
Today’s grandparents are redefining this stage of their lives. “They’re more involved with their grandchildren, and they seem to be enjoying it in a way previous generations have not, I think because they have more money and more time,” says Awsumb. In fact, grandparents spend a whopping $30 billion each year on their grandkids, and the amount a grandparent spends on a grandchild increases as the grandchild gets older, possibly because older grandkids are going to college, buying houses and doing other things that require a lot of money, points out Amy Goyer, national coordinator of the AARP Foundation’s Grandparenting Program.
Shopping List
It’s no surprise that grandparents are a great market for kids’ products. Many grandparents take care of their grandkids at least part of the time, so they purchase cribs, strollers and other childcare products so that the child’s parents don’t have to transport these items to grandma’s and grandpa’s house. And, according to Goyer, as of 2002 (the year in which the AARP’s last grandparents survey was published), 4.5 million kids were living with their grandparents.
The survey also reveals that 87 percent of grandparents buy clothing for their grandkids; 80 percent buy books; 76 percent purchase toys; and 45 percent give their grandkids videos and DVDs. Grandparents also help with day-to-day expenses, and many take their grandkids on trips as well.
While grandparents spend a good deal of money on their grandkids, that doesn’t mean they buy nothing for themselves! “They tend to buy automobiles, second homes, and exotic vacations or adventure vacations,” says Awsumb. “Grandparents account for 53 percent of all luxury travel.” Anything that comes under the “travel” header, like rental cars and hotels, also are a good bet. Other important purchases for grandparents are insurance and financial products.
Grandparents are concerned with staying healthy and vital. “Lifestyle and health are important, and an anti-aging attitude is fairly common,” says Allison Bergeron, vice president of sales at Specialists Marketing Services, which manages several grandparents files. This means grandparents are a good market for vitamins, exercise equipment, and other health and fitness-related products.
Reaching the Market
As a market, grandparents do respond well to direct mail, but don’t discount online marketing as an effective way to reach them.
“A significant amount of marketing should be online—more than most marketers realize,” says Michael Heaney, vice president of list brokerage at Specialists Marketing Services. “Grandparents are typically well-educated with respect to knowledge and technology. Grandparents are e-mailing their friends, children and grandchildren at least three to five times a week.”
Since the majority of buying for grandkids (and for their households) is done by women, it’s a good idea to target grandmothers in your marketing. “We have found targeting to women has increased response and improved overall performance,” says Heaney.
When it comes to creating marketing messages for the grandparent market, “I’ve sat through more than 50 focus groups with grandparents, and I learned that they don’t want to be told how to be a good grandparent,” says Goyer. “They’ve already raised a family, so they’re not receptive to that message.” On the other hand, grandparents do respond to messages about enriching their relationships with their grandchildren.
Grandparents are a big, affluent, modern market. Speak to their joy of being grandparents and their interest in healthy, fun living, and your product or service will be a hit.
Linda Formichelli is a freelance writer. She can be reached at linda-eric@lserv.com.
A Grand Market
Estimates for the number of grandparents in the United States range from around 39 million to 80 million, depending on which survey you look at. About 4,000 people become grandparents every day, according to Judi Awsumb, executive vice president of GRAND Media, which publishes GRAND magazine. The typical grandparent is a baby boomer between the ages of 45 and 65 (though 65 is a bit beyond the baby boomer generation); the average age of a first-time grandparent is 47; and the average grandparent has six grandkids.
Grandparents are an affluent market. “Statistically, baby boomers have 77 percent of the nation’s wealth, and they will inherit more than any other previous generation,” says Awsumb. “The Depression-era parents they came from tended to be more conservative and to save.”
Today’s grandparents are redefining this stage of their lives. “They’re more involved with their grandchildren, and they seem to be enjoying it in a way previous generations have not, I think because they have more money and more time,” says Awsumb. In fact, grandparents spend a whopping $30 billion each year on their grandkids, and the amount a grandparent spends on a grandchild increases as the grandchild gets older, possibly because older grandkids are going to college, buying houses and doing other things that require a lot of money, points out Amy Goyer, national coordinator of the AARP Foundation’s Grandparenting Program.
Shopping List
It’s no surprise that grandparents are a great market for kids’ products. Many grandparents take care of their grandkids at least part of the time, so they purchase cribs, strollers and other childcare products so that the child’s parents don’t have to transport these items to grandma’s and grandpa’s house. And, according to Goyer, as of 2002 (the year in which the AARP’s last grandparents survey was published), 4.5 million kids were living with their grandparents.
The survey also reveals that 87 percent of grandparents buy clothing for their grandkids; 80 percent buy books; 76 percent purchase toys; and 45 percent give their grandkids videos and DVDs. Grandparents also help with day-to-day expenses, and many take their grandkids on trips as well.
While grandparents spend a good deal of money on their grandkids, that doesn’t mean they buy nothing for themselves! “They tend to buy automobiles, second homes, and exotic vacations or adventure vacations,” says Awsumb. “Grandparents account for 53 percent of all luxury travel.” Anything that comes under the “travel” header, like rental cars and hotels, also are a good bet. Other important purchases for grandparents are insurance and financial products.
Grandparents are concerned with staying healthy and vital. “Lifestyle and health are important, and an anti-aging attitude is fairly common,” says Allison Bergeron, vice president of sales at Specialists Marketing Services, which manages several grandparents files. This means grandparents are a good market for vitamins, exercise equipment, and other health and fitness-related products.
Reaching the Market
As a market, grandparents do respond well to direct mail, but don’t discount online marketing as an effective way to reach them.
“A significant amount of marketing should be online—more than most marketers realize,” says Michael Heaney, vice president of list brokerage at Specialists Marketing Services. “Grandparents are typically well-educated with respect to knowledge and technology. Grandparents are e-mailing their friends, children and grandchildren at least three to five times a week.”
Since the majority of buying for grandkids (and for their households) is done by women, it’s a good idea to target grandmothers in your marketing. “We have found targeting to women has increased response and improved overall performance,” says Heaney.
When it comes to creating marketing messages for the grandparent market, “I’ve sat through more than 50 focus groups with grandparents, and I learned that they don’t want to be told how to be a good grandparent,” says Goyer. “They’ve already raised a family, so they’re not receptive to that message.” On the other hand, grandparents do respond to messages about enriching their relationships with their grandchildren.
Grandparents are a big, affluent, modern market. Speak to their joy of being grandparents and their interest in healthy, fun living, and your product or service will be a hit.
Linda Formichelli is a freelance writer. She can be reached at linda-eric@lserv.com.
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