The return of Fall means back to school for many, but the prospect of life returning back to “normal” seems as distant as ever as concerns over the delta variant continue to rise.
Millions of Americans made up for lost time dining out during the Summer months, but attitudes seem to have now shifted again as parents are faced with more variables when deciding whether to dine out or eat at home.
With millions of Americans armed with vaccinations and an economy on the upswing, diners are becoming more comfortable eating out. This summer showcases a promising increase in demand in the food sector, expanding over multiple categories ranging from restaurants to packaged goods.
For the first time in more than a year, the pandemic is not the top reason consumers cite for staying home at mealtime. Cost has overtaken COVID-19 as the biggest disincentive to eating out. And a red-hot economy is affecting everyday dining brands in other ways. Consumers are excited to experience seasonal flavors — from grilled meats to fresh fruits — but both restaurant owners and stakeholders all along the grocery supply chain are grappling with labor shortages. Get more advice on how to navigate supply and demand this summer by downloading our latest Everyday Dining Forecast
Given all the talk about Boomer and Millennial market potential, here are ten items that compare the financial clout of the over-50 cohort with its under-50 counterparts, gleaned from the U.S. Bureau of Labor Statistics (2018), that are worth considering.
The takeaways here are pretty obvious.
The value of the over-50 market is significantly greater than the value delivered by younger cohorts. But you probably already knew that. Boomers have been accumulating wealth for a half-century. So it stands to reason they have more money available for discretionary spending – on themselves, on their children and grandchildren, on travel, and to give away to charitable causes.
They will continue spending on their homes, too, even though they are not necessarily in an acquisition-stage of life. According to AARP, 86% of adults 65+ plan to remain in their homes for the rest of their lives. Beyond the ongoing upkeep of their residences, significant investments in home improvements that will allow them to remain in their homes will also be required.
Affluent Boomers are going to be market drivers for another 20-30 years. Their market potential will remain significant. Don’t make the mistake of giving this valuable cohort a short time horizon.
Prematurely or not, American consumers are growing less concerned about COVID-19, and signs of their shifting behavior are everywhere. For our latest Health and Wellness Consumer Forecast, we surveyed over 200 consumers to explore what these emerging trends mean for brands in nutrition, fitness, healthcare and more as they plan for marketing outreach in the months ahead.
Key insights include:
There’s much more to the story, so download your copy of Slingshot’s Spring 2021 Health and Wellness Forecast today.
It wasn’t even six months ago when marketers were scratching their heads trying to figure out how and when things might start returning to normal. What would it take to get consumers to start buying and behaving like they used to?
Today, as millions of Americans are being vaccinated against COVID-19 each week, we might at last have our answer. And that possibility is certainly reflected in Slingshot’s most recent consumer forecast.
Today, as millions of Americans are being vaccinated against COVID-19 each week, we might at last have our answer. And that possibility is certainly reflected in Slingshot’s most recent consumer forecast.
We surveyed 210 consumers on a variety of topics, and the insights are telling for marketers in most every consumer category.
Here are our top five takeaways:
Though concerns still exist among large portions of the population, consumers are showing less overall anxiety about COVID-19 than anytime in the past year. 45% of consumers are less anxious now about COVID-19 than they were at the start of the year, a trend certain to accelerate as the vaccine rollouts widen.
And while younger audiences show less concern than older audiences, the numbers are noteworthy across the board as people begin to feel more confident about getting out again.
After a year of consumers making fewer non-essential purchases, not only is there plenty of demand in certain sectors, there’s also the money to pay for it. For instance, in the travel sector, people who put off taking vacations during the lockdown are now eager to make up for lost time.
Travel intention is up a whopping 30% from the winter, with a full 60% of all respondents intending to take a leisure trip before summer. That’s great news for travel brands. What’s more, those numbers hold up across all age groups and income levels, pointing to some serious demand among consumers to get out of the house this spring.
Better yet for travel brands is that many of these consumers actually plan to increase their travel spending. 85% of respondents expect to spend more or the same amount as they did on their last trip, with only 15% expecting to spend less.
And there’s more good news for destinations: older audiences in particular are primed for longer trips, with more than half of travelers age 60 and older intending to travel for five nights or longer.
Casinos also appear primed for a comeback, with multiple respondents citing trips to Vegas or other gambling destinations for their next vacations. And while more people still intend to travel to destinations they’ve been to before, trips to new destinations are up over ten percent from the winter, suggesting more adventurous forms of travel may be in the offing this spring.
The desire to get out and spend more goes beyond travel. For example, the combination of the changing seasons and the continued vaccine rollout are driving more people back into restaurants, with intentions to dine out up 25% from the winter.
In fact, those who plan to dine out more often outnumber those who intend to scale back by nearly two to one. And among affluent audiences? A staggering 87% plan to eat out more often this spring.
But there’s a bigger story here, as people are also foregoing other services in lieu of more in-person experiences. Examples include:
Put it all together and what we see is an ever-increasing desire among more consumers to get back out in the world and enjoy more of the experiences they were forced to forego during the lockdown.
As the following graph makes quite clear, diners are most likely to venture back out to restaurants during the weekend, with the lunch and dinner day parts leading the charge.
Retailers of all stripes should take note, as we believe this reflects a broader trend in the marketplace. Busy, time-strapped consumers, many of whom are still working from home, are most likely to venture out and spend more during the weekends when they’re off the clock.
While there is good news relating to consumer segments in all age and income groups, extra attention should still be paid to more affluent targets (HHI $175k+), especially as it relates to discretionary or elective spending. Not only is this the audience least impacted by the downturn, many also managed to save money over the past year as well.
In other words, they currently have the most cash to spend while also showing the desire to get out and spend it. Versus the general population, affluent audiences are:
In other words, following the money might be the smartest way of all to boost business this spring.
Judging by this forecast, it appears that springtime might bring some sunny days to marketers who have been in the dark for much of the past year. And the best news of all may be what’s lurking behind these encouraging numbers: COVID-19 anxiety is still the number one thing keeping most consumers from shopping, buying, dining, and traveling. That means there’s still plenty of upside ahead, and we may only be seeing the tip of the iceberg when it comes to consumer demand. We’ll be keeping a close eye on all of these trends to see exactly which way the marketplace is headed come summer.
How and what we advertise to seniors will be different, thanks to COVID-19.
Conventional wisdom has historically dictated that best ways to deliver marketing communications targeting older adults is via traditional media, because the 65+ group looked to television, newspaper and radio before going to the internet for news and other programming.
Furthermore, it should not come as a surprise that the senior cohort has historically lagged behind younger demographic groups in its adoption of new technologies. This has certainly been the case as it relates to communications technology. For example, according to recent Pew Research, only 67% of adults 65+ have internet access. That compares to 90% of all adults. Just 42% own and use smartphones versus 77% of all adults. Older adults are simply more comfortable with the communications technologies they have grown used to.
Given their reticence to adopt new communications technology, seniors have understandably shied away from social media. Less than half of all Boomers participate with social media, and their social media participation growth had nearly ceased. As recently as 2019, Pew Research had pegged adults 65+ using Facebook at 46% as compared to Total U.S. adults at 69%. YouTube usage difference were even greater: adults 65+ at 38% versus Total U.S. adults at 73%. This gap broadens further where other social media channels are used.
That’s All Changing
That was all before COVID-19 and sheltering-in-place. Social isolation caused by quarantines and shelter-in-place orders has forced the older cohort to consider and use newer technologies to communicate with family and friends – platforms like FaceTime, Zoom and more. While it is too early to measure, it’s a good bet that now seniors have successfully mastered these technologies, they are not going revert back to old habits. Increased social media activity by seniors should follow, as well.
Other new technologies that aid seniors’ abilities to remain in their own homes as they age have also enjoyed a boost from COVID-19-imposed seclusion. Demand for non-invasive monitoring systems that allow adult children to know their aging parents are well will grow, as fresh recollection of the chaos created for in-home caregiving during the pandemic will move those adult children to invest in such products. The need for new technologies to help senior living communities better serve and care for their residents has also been highlighted as a result of COVID-19 resident lockdowns. Operators will have no choice but to invest in these technologies in order to stay viable and competitive.
Many recent lifestyle changes responding to COVID-19 are likely to continue after the pandemic risks subside. Consensus from the 2021 Consumer Electronics Show suggests four broad changes that will remain:
Needless to say, there will be more technologies that soar as they demonstrate the benefits they deliver to the senior market. And more opportunities to sell the wealthiest cohort in the history of marketing.
What Does This Mean for Advertisers?
Primary takeaways are that marketers need to shed their biases about advertising to seniors. COVID-19 forced new communications technologies on the 65+ crowd and they’ll continue using them – just like younger cohorts. And there are new tech products and services that need to be introduced and promoted to seniors. In short, there is a whole realm of new opportunities for marketers to reach and sell seniors – just like they do with younger cohorts.
This doesn’t mean the silver market will abandon traditional media and traditional products that offer qualities with which they are familiar (and like). Marketers shouldn’t abandon those media, either. Ultimately, marketers targeting seniors now enjoy more opportunities to sell them and a greater arsenal of weapons to deliver their selling messages to this highly desirable audience.
Bummed out by a cancelled summer internship? Us too. Thanks, 2020. So, in honor of all the summer’s lost internships, we’re hosting SlingTalks, a modified version of our 8-week Slingternship. That’s right, we’re jamming 8-weeks worth of industry experience into a 4-day advertising internship crash course. We’ll be talking all things account management, strategy, creative, media, SEO, content, leadership and how they all work together to connect people to our clients’ brands. Oh, and did we mention this is some serious insider knowledge coming from some of the most incredible (even if we might be a little biased) industry experts? Keep scrolling to sneak a peek at who they are and what they’ll have to say.
Last week, a major study was released that seeks to pinpoint the key drivers of the coronavirus economic slowdown and to gauge the effectiveness of stimulus efforts meant to combat it. The researchers mined vast quantities of consumer data from multiple sources, and the conclusions drawn by the study contain important insights for marketers tasked with navigating brands through these challenging times.
Perhaps most important for marketers is the oversized role affluent consumers play in the current economy. This is unlike the recessionary conditions we’ve witnessed in the past, so let’s take a look at what’s making the current situation so unique.
To understand the nature of the economic slowdown, it’s important to understand where spending dropped off most rapidly as America went into coast-to-coast lockdown.
The study discovered that spending reductions were the greatest among higher income households who can typically be counted on to frequent local businesses, such as bars, salons, shops, and other small businesses, especially in more affluent urban areas. The study found that the more disposable income a household typically spent pre-COVID, the greater the toll that their reduced spending had on the economy.
In other words, the robustness of our economy before COVID-19 was largely built on high levels of discretionary, non-essential spending. The pandemic brought that purchasing behavior to a near standstill.
This is different from a typical recession, which is marked by a drop principally in spending on durable goods, putting more of the financial pinch on manufacturers and large retailers. Instead, it’s small, “non-essential” businesses that have shouldered the load.
In retrospect, this makes perfect sense, as the people with the most disposable income suddenly had no place to spend it. Like everyone else, they responded to the lockdown by spending largely on what they saw as essential for weathering life stuck at home, with far less spending on non-essentials. As of mid-June, high-income households had reduced spending by 17%, while low-income households saw a much smaller 4% overall reduction.
The result was a 70% drop in revenue among small, locally-owned businesses frequented by higher income consumers. The impact was felt even more acutely in urban areas that also bring in substantial revenues from the tourist trade. Cities such as New Orleans, Miami, and Honolulu were hit with a one-two punch and saw the greatest drop in small business earnings.
Montgomery County in Maryland is among the most affluent counties in the nation, and historically immune to the impacts of recession. During the dotcom recession of 2001, for example, unemployment there never went above 3%, and in the Great Recession, the county boasted one of the lowest unemployment rates in the country. Today, it stands at 12%.
Why? Because that 70% decline in revenue among small businesses in affluent areas like Montgomery County led to a corresponding (and cataclysmic) 70% reduction of their work forces, while businesses in poorer zip codes lost a smaller (though still painful) 30% of workers. But across the board, in rich zip codes and poor alike, unemployment is by far highest among lower-income service workers, many of whom work paycheck to paycheck.
Past recessions have been marked by wide scale layoffs at large companies, inflicting a heavy toll on salaried employees. This time, job losses are scattered across millions of small businesses– businesses that typically employ hourly workers at the lower income levels.
There’s no question that people found the stimulus checks they received quite useful and the money most likely flew straight through their bank accounts and back out the door. And yet the study indicates that the economy didn’t get the widespread boost that was hoped for.
This appears to be because most of the stimulus money didn’t go to the businesses that were suffering the most—again, those small, locally owned business. Instead, most of the money went to pay for essentials, like food, rent, and mortgages, or to pay down credit cards. But comparatively little went to pay for services from those same small businesses that were hardest hit by the lockdown.
So while the stimulus did boost spending, that influx went primarily to brands like Amazon and Walmart, without ever reaching the parts of the economy that needed it most.
The bottom line is that a return to higher rates of discretionary spending is the needed catalyst for increased consumer activity overall. In fact, a sustained uptick in non-essential spending should be a positive signal to brands of all stripes that the economy is headed in the right direction. As of now, such consumer behavior is directly related to the confidence that large segments of the population either do or don’t have in venturing out and engaging in all of their usual pre-COVID activities.
Marketers have a big role to play in this. As we’ve discussed before, clearly communicating the measures you’re taking to create a safe, comfortable buying experience is currently job one. This is particularly true for brands in the retail, hospitality and service sectors, but it extends to marketers in any industry that depends on in-person customer foot traffic.
Outreach to more affluent consumers is especially important right now, as they not only have the most disposable income on hand, they’re also exhibiting the highest levels of pent-up demand for many types of consumer goods and services. And with so many marketers making the short-sighted decision to lay low, brands that are proactive about addressing the needs of affluent consumers could find themselves in a surprisingly uncrowded marketplace filled with potential buyers.
In other words, now’s the time to reach out to those audiences we know are eager to start spending again… under the right conditions.
Recent polling shows that leisure travel is the first major purchase more than half of Americans plan to make as lockdown restrictions are eased. But when, where, and how will they to do it? The answers will have profound implications for destination marketers in the crucial travel months ahead. Join us as we explore how to craft the right message and experiences to bring those visitors back.
As the COVID-19 lockdown has unfolded, pent-up demand among American consumers has begun to reveal itself. And nowhere is that demand greater than in the leisure travel space.
Consider this: A new Harris poll found that for over half of all Americans, travel is number one on their list of major purchases when things return to normal. Further, this demand is most prevalent in families led by parents in the 35-49 age group, with household incomes of $75k or more. If that sounds like the visitors you seek to bring in each year, read on.
In what could be great news for domestic destinations, multiple studies point to those travelers heavily favoring over-the-road travel. No surprise there. With all the negative press associated with flying, and inconsistent responses from the airlines as the pandemic unfolded, much of the traveling public is still leery of travel by air.
So, we know they’re going to travel, and likely by road. But where? Indicators, such as a recent report from Skift, show great preference for non-urban beach and rural destinations. This may be attributed to a combination of health concerns and a desire to make up for those postponed Spring Break trips to the mountains and the coast. The same study also shows potential travelers with strong preferences towards rentals and independent accommodations over chain hotels—lodging they perceive as either more self-contained, easier to keep clean, or more flexible should their travel plans change again.
This all adds up to good news for drive destinations–especially those that allow for some continued measure of social distancing. But are destination marketers as ready as the traveling public to re-engage?
In a separate Skift study, it was reported that almost all destinations deserve high marks for altering their marketing campaigns during the lockdown. But it’s a different story when it come to what happens next. Indeed, as of May, only about half of all destinations had even begun planning for outreach in the months ahead. Many destinations, it seems, are unsure of what to do next. Potential visitors, meanwhile, have already begun researching and planning their next trips, with more than half intending to hit the road within the next six months.
The pent-up demand for leisure travel is real, and certain destinations could see a real surge in visitations in the coming months. So how can destination marketers make the most of it as they seek to recover from the spring lockdown? And how can they do so at a time when marketing budgets have likely been cut?
Here are four steps we believe destination marketers can take to begin attracting visitors eager for a safe, rewarding travel experience:
As potential visitors plan their next trips, their excitement for travel is mixed with lingering health concerns. Destinations that appear indifferent to these feelings stand to lose tremendous potential business from people who want to visit, but also want to know you’re taking their safety seriously.
If there’s an official destination response to COVID-19, make it easily accessible for all to see. Include a link on your DMO homepage, and promote it to your entire email list. And make sure hoteliers, restaurants, and attractions are all on board. The information should be comprehensive but not overwhelming, letting people know just what to expect in the places where they’re most likely to spend time and money. The more they feel you’re taking a proactive stance, the more comfortable they’ll be vacationing with you.
Ask yourself: what are the most important questions to answer for visitors as we seek to give them the confidence they need to choose our destination?
That open and transparent approach should be felt above all else by your loyal repeat visitors. This is your chance to make this critical audience feel wanted and welcome. So reach out to them as directly as possible, letting them know you’re open for fun and that it just wouldn’t be the same without them. Make sure they know that the great experiences they’ve come to know and love are still there waiting for them. Not only are your core loyalists vital to your business, they often serve as your best advocates for getting the word out to a wider audience.
Ask yourself: what can we do to make our destination as appealing as possible to the visitors who know us best?
And speaking of wider audiences…
Just as demand for drive destinations is on the rise, it’s falling for air travel to spots both within and outside of the country. What’s more, 65% of travelers in a just released report from Mintel stated they will not consider travel to any one-time COVID hotspots. Less frequented destinations can be the solution for those potential visitors who are rethinking how they want to vacation during uncertain times.
As we mentioned earlier, travel intentions seem to be highest among people with incomes of $75k and more, and according to Ipsos, that extends right up to more affluent travelers. Indeed, this is the number one target audience when it comes to pent-up demand for leisure travel today. And just like everyone else, they’re gravitating towards destinations they deem safe for travel at this unique time.
Make sure that your more upscale accommodations are well represented in any communications. Affluent travelers will be looking for seclusion and self-sufficiency as well as luxury, and will be happy to pay for any services that add to this mix of demands.
Many other potential visitors have chosen to travel this year by RV, with rentals and sales soaring in recent months. This represents a reliable audience of travelers who will be on the road looking for great destinations and experiences. RV travelers may not book lodging, but they’re just as willing as anyone to shop and dine while visiting a destination. And since they tend to stay longer in places where they feel welcome, they can often mean even more to the local economy.
Ask yourself: How can we reach the widest possible audience of potential visitors who may be traveling differently in 2020?
Parents of young children will have two big concerns as they plan their travel: how to keep the kids safe, and how to keep them busy. You can provide the answers to both.
Again, this is where clear, upfront messaging about your destination’s COVID-19 response comes into play. We know that moms do their homework, and if they don’t find what they’re looking for from you, they’ll quickly look elsewhere. You might even consider launching a travel hotline or online chat feature that potential visitors can use to ask direct questions about what to expect at your destination.
Of course, the peace of mind you provide will only go so far if they don’t see the potential for plenty of family fun as well. Be sure to show parents how they can pack the day full of experiences that the family will love and will leave the kids ready for a great night’s sleep.
Ask yourself: how can we strike the right balance between the top two concerns on the minds of parents traveling today: safety and fun?
As unsettled as the recent times have felt in the travel sector, you can be sure that the demand for leisure travel is very real. All across America, families are planning for their first foray away from home since the lockdown began. Those destination marketers who move quickly to engage them and respond to their concerns should be in for a busy, and profitable, travel season in the months ahead.
There’s little doubt that as COVID-19 continues to spread, uncertainty is spreading with it, adding confusion to the marketing landscape like few times in recent memory. Marketers are scrambling to figure out the best course of action. Do we pull back? Shut down? Or do we go into a purely tactical, hard sell mode?
Before you hit the panic button, consider this. As we speak, millions of Americans are settling in at home. Kids are out of school and bored. Moms and dads are either working from home or just stuck there. Everyone online, eyes glued to their screens. And appointment television like sports and other live programming is all but gone. Think about those cruise passengers, stuck in their rooms, attached to their phones, tablets, and televisions. For many people, it’s going to be like that.
In other words, they’re a captive audience that can be reached more readily than at just about any other time. The challenge, then, is not if they can be engaged, but what to engage them with.
Our advice? Instead of basing decisions based on whether or not you think people will buy, think first about what it is you can provide them, right now, in their current state, at this extraordinary time. You may be surprised at the value you can offer.
We suggest you start by asking these four questions:
In many ways, as we mentioned above, it has changed substantially. People will be staying home more. A lot more. Out-of-home activities such as restaurant dining, movies, and shopping will all be curtailed. And yet, they’ll also be doing everything they can to maintain as much normalcy as possible. It’s true for businesses as well. While conferences are getting postponed and travel is cut, business leaders are seeking solutions to keep things humming along.
And every last one of them will be keeping an eye on the horizon, for the moment they can return to regular life. You can play a role in helping them make it happen.
Even in unusual times, people have needs that brands can fulfill. And what they need now, more than ever, are solutions to make life better in the new normal. That means ways to keep the kids entertained, or way to put comforting meals on the table. And they’ll no doubt be shopping Amazon and other online outlets for everything from necessities to anything that might provide some sense of relief.
Think of the anxiety that comes from a moment like this. People are worried about everything from shortages to cleanliness to how they should invest for the future (hint: don’t sell now). At Slingshot, we have clients who produce everything from toilet paper to shelf-stable milk. As store shelves empty out, the need for both those items and many others will continue to grow.
Meanwhile, more time also means time to spend learning about places, products, and brands they might not dig into otherwise. That’s another great opportunity.
Their lives have changed, so as marketers, we’ll need to change what we offer to them. Are there over the phone, delivery, or online services that can replace similar in-person offerings? What about a temporary subscription service that can be waived or transferred once the crisis is over?
Perhaps they were forced to cancel that bucket list Spring Break vacation but aren’t yet ready to give up on a trip. Can your destination be the drive-market alternative?
How many young families who rarely cook at home are now looking at their ovens and thinking, what do we do with this thing? Can you provide the recipes, the inspiration, or better yet, the meals?
What else can you do to adapt your offerings to meet their rapidly evolving needs? Different people have different needs, but make no mistake, they all have them. We can sit on the sidelines, or we can be the solution.
Perhaps more than anything else, what people need now is to know that you get it. You understand what they’re going through, and care more about helping them than selling to them. Airlines and hoteliers have addressed this by waving change or cancellation fees. Major internet providers are postponing the cancellation of services to people behind in their payments. And other brands are reaching out proactively, through email, text, or online, to let customers know how they’re responding to the situation.
This sort of authentic, empathetic behavior is a must. Not only is it the right thing to do, any brand that appears tone deaf to the unique need state of their customers right now is at risk of losing their business for good. If you do nothing else, make sure you do this.
At Slingshot, we believe that this is no time to lay back or shut down. Your customer are still your customers, and they have real needs to be addressed. Someone is going to step up and provide the solutions they’re looking for. Let’s work together to make sure that it’s you.
