25-54: Family reunion not a demographic

For more years than I can count, Adults 25-54 has been the “holy grail” of advertisers whether it be advertising agencies or local businesses. My belief is that advertising agencies started this demographic ball rolling which – over time – trained sales reps in all media to focus on this demo which – in turn – caused us to “train” our local businesses that this was the coveted advertiser group where to focus their marketing dollars.
It’s time to revisit the 25-54 demographic because of two reasons – the disparate life stages and the widening financial gap.
Selling 25-54 no longer makes sense for many reasons. First, in today’s society, 25-54-year-olds include latter Boomers, Gen X, Millennials, and the first two years of Gen Z.

And we know how much those four generations have in common, right?

The 25-54 demographic is in reality a family reunion with some grandparents, parents, aunts, uncles, older siblings, and younger siblings put neatly into an advertiser-ready demo that has come back to haunt us as media sellers. Businesses owners and marketing decision makers now hang onto that demo like a dog with the proverbial bone and are reluctant to consider moving their dollars away from that “tried and true advertising pool” that is now the shallow end of their potential customers.
If you’re a local business owner or marketing decision maker, you MUST change your focus if you want to thrive in this economy. 35-64 is the age range you must focus on for one simple reason: it’s where the money is, especially at the upper half of the age range.
Consider these changing life stage dynamics for those under 35 years of age:
According to a 2021 Pew Research study, about two-thirds of 25-year-olds (68%) are living outside their parents’ home, compared with 84% in 1980. And only 22% of people this age were married in 2021, compared with 63% in 1980. The same pattern holds when it comes to having children: Just 17% of 25-year-olds in 2021 had a child, compared with 39% in 1980.
Now consider how these trends affect your business:

• Today’s young adults are getting married much later than their parents’ generation. The gap in the share of this age group who are married is especially wide among young adults ages 25 to 29: 29% were married in 2023, compared with 50% in 1993.
• Young adults are also delaying having children. For example, 27% of adults ages 30 to 34 had a child in their household in 2023, compared with 60% in 1993.
• 44% of young adults say they received financial help from their parents in the past year. The top two areas in which they got help were household expenses and their cellphone bill or subscriptions to streaming services.

 
For businesses who want to attract married couples, couples with children, and/or home owners who have money for big ticket items commonly purchased according to that lifestyle and income but instead put their money into the lazy “we’ve always done it that way” demographic advertising buy, is aiming at a target that isn’t there.
In short: putting your marketing budget into the old “tried and true” is doing so at your business’ peril.
Our society, way of life, lifestyle, and patterns of behavior have all changed and we no longer live in an era of common experiences. As advertisers it is mission critical for your business to follow the money and talk to the lifestyle of the people with that money if you want a chance to grow.
And the next time a sales rep walks in and talks about how they’re number one in the 25-54 demo, tell them they can attend that family reunion without you.
If you’re looking for an advocate for your business who offers a wealth of experience in buyer behavior and messaging that cuts through the noise, contact me today for a complimentary marketing strategy session.