Boomers Online: Attitude Is Everything

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1 December 2008 Lisa E. Phillips, Senior Analyst Boomers Online: Attitude Is Everything Executive Summary: Baby boomers have never lacked for attitude. The 77.2 million people now between ages 44 and 62 know they are aging, but do not expect to get old.they plan to retire but not on the schedule their parents set: Most still expect to work until age 70.Their motto used to be, Don t trust anyone over 30. Now they don t trust anyone under it, except maybe their own kids. US Baby Boomer Internet Users and Penetration, (millions and % of population) Baby boomer Internet users % of baby boomer population 73.5% 74.7% 75.8% 76.8% 77.8% 78.7% % of total Internet users 29.4% 28.8% 28.3% 27.7% 27.3% 26.8% Note: born between 1946 and 1964 Source: emarketer, November Boomers make up the largest group within the US Internet population, at 56.7 million users. However, they view the Internet as a tool, a way to get things done not a lifestyle or source of entertainment the way their younger counterparts do. They still read newspapers and magazines, and watch more programming on TV sets than on computer screens. And they will readily switch brands if they do not feel they are getting enough quality or value for their money. The image a brand projects means less to them than does their own trust in a company or its products. For additional information on the above chart, see Endnote in the Endnotes section. The emarketer View 2 Boomer Internet Users 3 Attitudes Toward Advertising and the Internet 7 Media and Mobile Usage 10 Online Activities 14 Conclusion 21 Endnotes 21 Related Information and Links 22 Marketers targeting this group online would be mistaken to treat them all alike. Older boomers (ages 54 to 62) use media more like the matures who preceded them. They get most of their news offline and go online for further information, but their kids are teaching them to send text messages. Younger boomers (ages 44 to 53) act more like Gen Xers as Internet users. They watch more video online than older boomers and are already avid texters. They participate in social networks but not with the fervor of their children. All boomers, however, prefer to instant messaging (IM). Key Questions How many boomers are online? What can advertisers do to reach them online? How brand-loyal are boomers? What type of content appeals to them? What media do boomers use most often? How do they use mobile communications? The First Place to Look Copyright 2008 emarketer, Inc. All rights reserved.

2 The emarketer View Key emarketer Numbers Boomers Online 75.3 million (1) US baby boomers in 2013, down from 77.2 million in million US baby boomer Internet users in 2013, up from 56.7 million in % US baby boomer Internet users % of total US Internet users in 2013, down from 29.4% in 2008 Note: born between 1946 and 1964 Source: (1) US Census Bureau, August 14, 2008; emarketer For additional information on the above chart, see Endnote in the Endnotes section. Baby boomers make up the largest US generation, both online and offline.at 77 million strong, about 74% of them use the Internet at least once a month. However, their attitude toward the Internet is less a love affair and more a marriage of convenience.they go online to get things done, such as finding information on products and services, shopping, and staying in touch with friends and family. Boomers are big communicators, and trust recommendations they hear in conversation. A year-long survey by Keller Fay Group for Prevention magazine found that word-of-mouth is a strong influence to buying decisions among boomer women. Some 68% of boomer women rated information they heard in conversations as credible; 56% passed along the information to others; 39% sought additional information; and 55% said they made purchases based on their conversations. Those findings may explain why boomers are less brand-loyal than younger people. Some 61% agreed that in today s marketplace, it doesn t pay to be loyal to one brand, according to a 2008 AARP/Focalyst survey. The same attitudes appeared in a TV Land survey, where 26% of boomers said they were not brand-loyal, compared with 21% of respondents under age 40. Their willingness to buy new brands carried across virtually every product category, including electronics, personal care products, restaurants and automobiles, the survey noted. How boomers use the Internet today is indicative of how they will use it as they age into their 70s and 80s.They will remain online and engaged as long as their health and abilities permit. Technology providers should be preparing to help keep this cohort online. And marketers who pigeonhole boomers as just aging seniors and expect their Internet use to dwindle will find they and their brands are ignored and distrusted by this judgmental generation. Likewise, boomers online interests and behavior today may presage how younger generations behave online when they age into their 40s and 50s when they still have children at home and are helping to support their boomer parents. Certainly they have their own tastes in online content and view the Internet as a lifestyle rather than a tool. But their life stages will still dictate seeking out the same types of information on subjects such as health, government policies and financial services. The lessons marketers learn from boomers online today will be valuable still in coming decades. Birth cohort: A group of people who were born in a specified calendar period. (Source: US Census Bureau) Generation: 4. The average period (about thirty years) between the birth of one generation and that of the next 5. a) All the people born and living at about the same time b) A group of such people with the same experience, attitude, etc. in common [the computer generation] Source: Webster s New World College Dictionary, Fourth Edition, Wiley Publishing, Inc., When it comes to social media, however, many boomers do not see the point. Writing blogs and participating in social networks lead the list of Internet activities that do not interest boomers, according to a joint survey from ThirdAge and JWT BOOM in June Instead, respondents were most interested in , staying in touch with family and friends, reading articles and researching products online, sharing photos and shopping. Boomers Online 2

3 Boomer Internet Users As much as they hate to admit it, the baby boomer population is now on the wane, albeit slowly. From 77.2 million boomers in 2008, the cohort is projected to shrink to 75.3 million in 2013, when they will be 49 to 67 years old, according to the latest US Census Bureau estimates. As a percentage of the total US population, this generation will decrease from 25.4% in 2008 to 23.6% in US Baby Boomer Population, (millions and % of total) Age range Baby boomers % of total population (1) 25.4% 25.0% 24.7% 24.3% 23.9% 23.6% Note: born between 1946 and 1964 Source: US Census Bureau, August 14, 2008; (1) emarketer calculations, November As the oldest baby boomers turn 62 this year, the youngest are just turning 44. That age gap has led some demographers to consider this monolithic generation as actually two in one: older boomers (born between 1946 and 1954) and younger boomers (born between 1955 and 1964). One argument for this division is that people born in the 1940s have little in common with those born in the 1960s. Consider that the first boomers turned 18 in 1964; John F. Kennedy was assassinated a year earlier and the Vietnam War was heating up. Older boomers experienced 1967 s Summer of Love very differently from younger boomers (the oldest of whom were 12 that year). And many older boomers were active participants in the violent anti-war protests in the late 1960s. Younger boomers outnumber older ones, at 57.9% of the boomer population in Their share will increase slightly, to 58.5% in 2013, when the youngest boomers turn 49 and the oldest boomers approach age 70. US Older and Younger Boomer Population, (millions and % of total) Age range Older boomers % of total boomers (1) 42.1% 42.0% 41.9% 41.8% 41.6% 41.5% Age range Younger boomers % of total boomers (1) 57.9% 58.0% 58.1% 58.2% 58.4% 58.5% Note: Older boomers born between 1946 and 1954; younger boomers born between 1955 and 1964 Source: US Census Bureau, August 14, 2008; (1) emarketer calculations, November On the Internet, younger boomers outnumber older boomers as well. In 2008, there are 35.3 million boomers between ages 44 and 53, compared with only 21.4 million boomers ages 54 to 62. While both age groups will continue to go online in increasing numbers, younger boomers are already fairly well-represented at 79% penetration. By 2013, 83% of this group will be online. By contrast, about 66% of older boomers are online in emarketer expects that, despite projected mortality rates of close to 1% in five years, 72.5% of this group will be Internet users. (emarketer defines an Internet user as someone who goes online from any location at least once a month.) US Older and Younger Boomer Internet Users and Penetration, (millions and % of population) Older boomer Internet users % of older boomer population 65.8% 67.2% 68.6% 69.8% 71.2% 72.5% % of total Internet users 11.1% 10.9% 10.7% 10.5% 10.4% 10.2% Younger boomer Internet users % of younger boomer population 79.1% 80.1% 81.0% 81.8% 82.5% 83.1% % of total Internet users 18.3% 17.9% 17.5% 17.2% 16.9% 16.6% Note: Older boomers born between 1946 and 1954; younger boomers born between 1955 and 1964 Source: emarketer, November For additional information on the above chart, see Endnote in the Endnotes section. Boomers Online 3

4 Boomer Internet Users emarketer s numbers are close to those of the Pew Internet & American Life Project, which polled consumers in May 2008 by telephone. However, Pew qualifies respondents as Internet users if they say they use the Internet, with no specific frequency. US Internet User Penetration, by Generation, May 2008 (% of population in each group) Teens (12-17)* 93% Generation Y (18-31) 90% Generation X (32-43) 88% Younger baby boomers (44-53) 79% Older baby boomers (54-62) 67% Silent generation (63-72) 53% G.I. generation (73+) 24% Note: *data is from the Pew Internet & American Life Project survey conducted during November 2007-February 2008 Source: Pew Internet & American Life Project, provided to emarketer, October As a single group, boomers make up the largest generation online. comscore data from September 2008 showed 53.3 million boomers online, or 28.2% of the total million Internet users that month. Although younger generations such as Gen X and Gen Y showed Internet penetrations of 88% and 90%, respectively (according to Pew data), the size of the groups does not rival the baby boomers, even as an aging cohort. US Internet Users, by Age, September 2008 (thousands and % of total) ,042 (9.5%) ,820 (10.5%) ,826 (12.0%) ,116 (15.4%) ,204 (18.6%) ,073 (17.5%) Gender More boomer women are Internet users than boomer men, according to comscore data, a finding that reflects the US Internet population in general. However, US Census Bureau estimates show the number of female boomers is beginning to surpass males in the offline population as well. US Internet Users Ages 45-64, by Gender, September 2008 (thousands) Male Female Total ,692 17,381 33, ,837 10,357 20,194 Total Internet audience 25,529 27,738 51,942 Total US Internet audience 94,326 95, ,468 Note: home, work and university locations Source: comscore Media Metrix, provided to emarketer, October Marketers should note that older women have been going online in ever larger percentages since In 2008, 68% of women ages 50 and older are Internet users, according to Vertis Communications, compared with just 30% in Some of the growth was achieved based on the sheer size of the boomer generation, which began turning 50 in US Older Female Consumers with Internet Access, (% of respondents) % % % % % % Note: ages 50+ Source: Vertis Communications, "Customer Focus: Decade of Data" as cited in press release, January 14, ,194 (10.7%) ,194 (5.9%) Note: home, work and university locations; numbers may not add up to 100% due to rounding; total US Internet audience=189,468,000 Source: comscore Media Metrix, provided to emarketer, October Boomers Online 4

5 Boomer Internet Users Obviously, Internet offerings have grown more robust in the past decade, and these older females are finding plenty to interest them. Female boomers online activities are similar to those of women in other generations: They use the Internet chiefly for news and information, product research, shopping and buying, according to an April 2008 telephone survey by BlogHer and Compass Partners. However, they are not as avid participants in social media activities, such as reading or posting comments on blogs, downloading music or watching streaming TV shows or movies. Online Activities of US Female Internet Users, by Generation, March 2008 (% of respondents) Millennials (18-24) Retrieve news and 80% information Research products and 63% services online Online shopping and buying 66% Instant message 82% Upload/share digital photos 75% online Read blogs 85% Post comments to blogs 67% Contribute to message 49% boards Download music 69% Watch streaming TV shows 62% and movies online Write/update blogs 66% Upload/share videos (on 41% YouTube, etc.) View/listen to podcasts 26% Generation X (25-41) 83% 80% 74% 64% 67% 66% 48% 50% 52% 42% 35% 26% 23% Baby boomers (42-60) 78% 76% 70% 48% 45% 41% 27% 31% 25% 25% 17% 14% 16% Seniors (61-75) 78% 73% 60% 42% 33% 26% 11% 14% 8% 11% 5% 7% 9% Total 80% 75% 69% 57% 55% 53% 37% 37% 37% 33% 28% 21% 19% Note: n=2,350 Source: BlogHer and Compass Partners LLC, "2008 Social Media Study," April Access Broadband connection is a significant indicator of higher Web usage. With boomers representing the largest group of Internet users, it is no surprise they are well-connected. The Pew Internet & American Life Project found that 76% of boomer Internet users had a broadband connection at home. Demographic Profile of US At-Home Broadband Users, June-September 2007 (% of Internet users in each group) Gender Male 79% Female 75% Age (Generation Y) 79% (Generation X) 84% (baby boomers) 76% (matures) 65% 71+ (after work) 54% Race/ethnicity White 78% Black 68% Latino* 73% Family annual income <$40,000 62% $40, % Education Less than high school diploma 61% High school diploma 73% Some college 78% Advanced college degree 83% Geographic locale Urban 79% Suburban 79% Rural 64% Total 77% Note: n=1,702; *English-speaking only Source: Pew Internet & American Life Project and the Graduate School of Library and Information Science at the University of Illinois at Urbana-Champaign report "Information Searches that Solve Problems: How People Use the Internet, Libraries and Government Agencies When They Need Help," December 30, Boomers Online 5

6 Boomer Internet Users Although 21% of boomers had no Internet access, almost two-thirds (64%) reported having broadband access from some location, whether home, work or other, and 15% still used dial-up connections. Demographic Profile of US Internet Users, by Access Technology, June-September 2007 (% of respondents) Age No access Dial-up at home only Broadband (any location) (Generation Y) 9% 12% 80% (Generation X) 10% 11% 79% (baby boomers) 21% 15% 64% (matures) 44% 17% 39% 71+ (after work) 71% 9% 20% Household income <$40,000 39% 18% 43% $40,000+ 9% 10% 81% Education High school diploma or less 39% 13% 48% Some college 15% 14% 71% College degree or more 7% 11% 82% Note: n=2,796 ages 18+; numbers may not add up to 100% due to rounding Source: Pew Internet & American Life Project and the Graduate School of Library and Information Science at the University of Illinois at Urbana-Champaign report "Information Searches that Solve Problems: How People Use the Internet, Libraries and Government Agencies When They Need Help," December 30, Income and Spending As a group, boomers are fairly flush. They had a total annual income of $3.4 trillion in 2007, according to Javelin Strategy and Research. However, an AARP/Focalyst survey found that 40% have virtually no net worth outside their home equity and 30% have no basic retirement savings account. As the US financial system began to melt down in September 2008, AARP reported that one in five middle-aged workers had stopped contributing to their retirement plans in the past year. Those facts add credence to surveys in previous years showing younger boomers especially are not planning to retire until their late 60s or early 70s. Boomers income has grown as they aged into their peak earning years, generally considered to be between 40 and 60 years of age. The Media Audit found that the number of affluent boomer households (headed by people ages 50 and older, with annual incomes of $50,000 or more) grew by 5.3 million between 2004 and These affluent boomers made up 15.7% of all US households in US Affluent Baby Boomer* Households, 2004 & 2007 (millions and % of total households**) (13.1%) (15.7%) Note: *ages 50+ with income of $50,000+; **percent of all households within the 80+ markets surveyed by The Media Audit Source: The Media Audit as cited in press release, March 27, It should be noted, however, that the majority of boomers were under age 50 when these surveys were taken. In 2004, boomers ages ranged from 40 to 58; in 2007, the range was 43 to 61. So really, the results cover older boomers (and seniors) rather than the whole cohort. Part of the growth of affluent households comes from increases in income among older boomers and seniors. More than 62% of households headed by someone age 50 or older had annual income of $75,000 or more a nearly 5-percentage-point gain compared with Some 18% had income exceeding $150,000 in 2007, up a similar 4.4 percentage points. US Affluent Baby Boomer* Households, by Income, 2004 & 2007 (% of respondents) $75,000+ $100,000+ $150, % 18.0% % 38.0% 57.5% 62.4% Note: *ages 50+ Source: The Media Audit as cited in press release, March 27, Boomers Online 6

7 Boomer Internet Users Boomers are not reluctant to share their wealth with loved ones, either. According to TV Land s Generation BUY: A Close Look at the Boomer Consumer study, people in their 40s and 50s are spending more on themselves per month than are millennials and Gen Xers, and are spending twice as much as younger cohorts on others in their lives. The study, which surveyed nearly 4,000 adults in January and February 2008, found that people ages 40 to 59 spent more than three times the amount of money per month on spouses ($514) than did adults under 40 ($169). Additionally, they spent nearly twice as much per month on children ($295, compared with $158 for those under 40) and three times the amount per month on teenagers ($494 versus $136). With so many purchase decisions to make for the household, these buyers are an important marketing sector even when they are not the prime target. Attitudes Toward Advertising and the Internet As a generation whose slogan used to be don t trust anyone over 30, it is not surprising that trust is still a big deal to boomers. Credibility is key to attracting their attention, and keeping it. Some 26% of boomers in the TV Land survey said they were not at all brand-loyal, compared with 21% of Gen Xers and millennials. An overwhelming 91% of boomers said they expect brands to provide more value, versus 83% of Gen Xers and millennials. As the TV Land survey concluded, boomers will consider new brands if the alternative provides a more useful or functional product or service with better benefits or value. They are less likely to be swayed by the notion that the brand is more prestigious or the latest style. They value reliability and quality over a plethora of features they do not need. These attitudes showed up in a survey by Focalyst in early Nearly three-quarters of respondents ages 43 and older said they paid more attention to ads for products they already planned to buy indicating that although they had already made the decision to purchase something, they were open to pitches from more than one advertiser. Still, the pitch itself could easily turn them off: Two-thirds of these respondents said they were less likely to buy a product if they thought the ads were offensive and nearly the same number believed that ads had gotten more crude in recent years. Finally, 23% were insulted by ads targeting their age group. US Baby Boomers' Attitudes Toward Advertising, Q (% of respondents) Pay more attention to ads for products I plan to buy 74% Less likely to purchase a product if the advertising is offensive to me 67% Believe ads have gotten more crude in the past few years 66% Wish ads had more real information about the products 61% A lot of ads today are weird 53% Read the ads in magazines that I subscribe to or buy at a newsstand 44% Find ads geared toward my age group insulting 23% Note: ages 43+ Source: Focalyst, "How Well Do You Know Boomers? Counting Down the Top 10 Boomer Myths" as cited in press release, April 14, Boomers Online 7

8 Attitudes Toward Advertising and the Internet Advertisers are missing huge opportunities, and not just through the tenor of their ads. Six out of 10 respondents to the Focalyst survey indicated they did not find enough real information about the products they were interested in buying in the ads they paid attention to. More useful information and less crudity would appeal to this audience. Boomers also feel advertisers are not trying to talk to them. More than one-half (54%) of the 1,320 baby boomers surveyed by Edelman in February 2008 said the advertising industry misrepresents and neglects them. Far higher percentages 72.5% of younger boomers and 83.2% of older boomers and seniors said online advertising focused on younger age groups, according to Burst Media. The online survey included 13,123 adult Internet users. US Internet Users Ages 35+ Who Believe Online Advertising Is Focused on Younger Age Group, by Age, February 2008 (% of respondents in each group) % % % Source: Burst Media, "Online Insights," March 7, This is the generation of Jack and MLK and Bobby; of Vietnam and Kent State; of Apollo I and Watergate. They ve seen their dreams trampled, their leaders disgraced and their nation dishonored. What makes you think they ll believe you? John Barker, president, Barker/DZP, in Advertising Age, April 4, 2008 On the Internet, however, advertisers are getting responses from boomers, especially the younger set. These 45-to-54-year-olds were more apt to click on ads in text links than any other age group, according to an iperceptions study. A similar percentage (22%) were attracted by ads in right banners on a Webpage, and were less likely than users under age 45 to click on ads in the top banner. Although they were less attracted to video ads than Internet users under age 35, they showed more interest in this format than Gen X users. Click rates from older boomers were far higher than senior Internet users, who only rated in the single digits, but still trailed those of younger boomers. Demographic Profile of US Internet Users Who Are Likely to Click on Online Ads, by Format, August 2008 (% of respondents) Age Text links Right banner Top banner Video ads <25 14% 14% 23% 31% % 19% 22% 21% % 22% 22% 14% % 22% 18% 16% % 16% 10% 13% 65+ 7% 6% 4% 5% Income <$50,000 36% 33% 39% 49% $51,000-$75,000 18% 20% 18% 18% $76,000-$100,000 15% 16% 11% 11% $101,000-$150,000 16% 15% 17% 10% $151,000-$250,000 10% 11% 9% 7% $250,000+ 5% 5% 6% 6% Frequency* First visit 17% 12% 14% 19% Daily 29% 31% 36% 33% Weekly 33% 34% 31% 31% Monthly 15% 16% 14% 12% Sporadic 7% 7% 5% 6% Note: numbers may not add up to 100% due to rounding; *frequency of visiting the site on which the ad appears Source: iperceptions Inc. survey provided to emarketer, October 6, Boomers do not believe everything they see on the Web, however. An online survey by Harris Interactive, co-designed by Dr. Alan Westin, emeritus professor of public law and government at Columbia University and principal of the Privacy Consulting Group, gauged Internet users reactions to the notion of behavioral targeting and the effectiveness of online security policies written in accordance with the US Federal Trade Commission s (FTC s) principles on self-regulation of behavioral targeting. Boomers Online 8

9 Attitudes Toward Advertising and the Internet All boomers were uncomfortable with the notion that sites such as Google, Yahoo! and MSN might target ads to them based on their online behavior. Two-thirds of boomer respondents were either not very or not at all comfortable with the practice. Comfort of US Internet Users with Websites* that Target Ads or Content to Personal Interests Based on Usage, by Generation, March 2008 (% of respondents in each group) Echo boomers (18-31) Gen X (32-43) Baby Matures Total boomers (63+) (44-62) Very comfortable 9% 9% 5% 4% 7% Somewhat comfortable 40% 36% 29% 27% 34% Not very comfortable 35% 30% 36% 34% 34% Not at all comfortable 17% 25% 30% 35% 25% Note: n=2,513; numbers may not add up to 100% due to rounding; *e.g., Google, Yahoo! and Microsoft (MSN) Source: Harris Interactive, "Harris Poll" as cited in press release, April 10, When these boomer respondents were shown four separate privacy and security policies posted online, their level of comfort rose significantly: 52% said they were somewhat or very comfortable with behavioral targeting of ads compared with only 34% before the policies were explained. Still, nearly 48% remained skeptical of whether Websites that displayed such policies actually abided by them. Comfort of US Internet Users with Websites* with Privacy and Security Policies that Target Ads or Content to Personal Interests Based on Usage, by Generation, March 2008 (% of respondents in each group) Echo boomers (18-31) Gen X (32-43) Baby Matures Total boomers (63+) (44-62) Very comfortable 10% 9% 9% 4% 9% Somewhat comfortable 52% 46% 43% 42% 46% Not very comfortable 27% 25% 26% 28% 26% Not at all comfortable 11% 19% 22% 26% 19% Note: n=2,513; numbers may not add up to 100% due to rounding; *e.g., Google, Yahoo! and Microsoft (MSN) Source: Harris Interactive, "Harris Poll" as cited in press release, April 10, Content Boomers are similarly judgmental of online content. More than 80% said that in order to be trusted, content needed attribution to experts, authors or authorities with credentials in the subject areas they were writing about, according to a survey of Internet users over age 40 by ThirdAge and JWT BOOM. These respondents were not put off by sponsored content: 66% said they would trust it. The caveat was that they needed to trust the company that sponsored the content. Leading Factors in Determining Whether or Not to Trust Website Content According to US Internet Users Ages 40+, May 2008 (% of respondents) Content needs to be attributed to experts, authors or authorities who have credentials in the subject areas they are writing about 83% Content was sponsored by a company they know and trust 66% Visited the site for a long time and came to trust it/the brand 62% Recommended as trustworthy by family members and friends 58% Note: n=1,834 ages 40+ Source: ThirdAge and JWT BOOM, "Boomers, Healthcare and Interactive Media," provided to emarketer, June 2, Just as they feel neglected by advertisers, boomers feel online publishers ignore their interests. Older boomers especially feel this alienation. Only 23% of this age group said online content is focused on their age group, while 35% of younger boomers said the same. That leaves a whopping 77% of older boomers and 65% of younger boomers who are not finding their lives and interests addressed by online publishers. US Internet Users Who Believe Online Content Is Focused on Own Age Group, by Age, February 2008 (% of respondents in each group) % % % % % % Total 52.0% Note: n=13,123 Source: Burst Media, "Online Insights," March 7, Boomers Online 9

10 Attitudes Toward Advertising and the Internet Yet some boomers have found content that is worth paying for. Almost one-third agreed strongly/somewhat strongly that they would rather pay to see content in exchange for not seeing ads, according to a January 2008 survey by Deloitte Development and Harrison Group. Of that group, 57% said they were willing to pay $25 or more annually to avoid online ads. In general, 37% of boomer respondents thought $25 or more was a reasonable fee to get away from advertisers. US Consumer Attitudes Regarding Ad-Supported vs. Paid-For Online Content, by Age, October 2007 (% of respondents*) Millennials Generation X (13-24) (25-41) I would rather pay for online content** in exchange for not being exposed to ads $25+ per year is a reasonable fee to pay for online content** in exchange for not being exposed to ads (among total population) $25+ per year is a reasonable fee to pay for online content** in exchange for not being exposed to ads (among those who agree they would rather pay for ad-free online content) 42% 43% 62% 43% 46% 65% Baby boomers (42-60) 32% 37% 57% 25% 36% 55% Total 37% 41% 60% Note: n=2,081; *those agreeing strongly/somewhat; **i.e., news, information, sports, games, social interaction sites, movies, music or TV Source: Deloitte Development and Harrison Group, "The State of the Media Democracy Second Edition," provided to emarketer, January Media and Mobile Usage Boomers were the first US generation to grow up with television, and the technology has become an essential part of their lives. Personal computers, the Internet and mobile phones came along much later in boomers lives and their usage by boomers consistently lags behind that of succeeding generations. However, while boomers still engage with traditional media for longer periods than young adults, many turn to the Internet for more information and use search engines to find it. Older Americans spend more time watching television than with any other media, according to Nielsen Media Research and the Television Bureau of Advertising (TVB). The age breakouts Nielsen/TVB published in May 2008 do not correspond directly to the boomer cohort.the closest range is ages 35 to 64, so the data is more directional than emphatic. Still, it is clear that people in this age group spent 4 hours on average watching television on a daily basis. Listening to the radio averaged 1.6 hours and the Internet nearly 1.5 hours daily close to the national average of 1.64 hours a day. Demographic Profile of US Adult Consumers, by Average Time Spent per Day* with Major Media, January 2008 (minutes) Matures (61-75) TV Newspaperzinenet Radio Maga- Inter- Age Household income <$25, $25,000-$50, $50,000-$75, $75, $100, Education High school graduate Some college College graduate or more Occupation Professional/technical/manager/owner Administrative/clerical/sales Trade/service Total Note: *yesterday Source: Television Bureau of Advertising (TVB), "2008 Media Comparisons Study" conducted by Nielsen Media Research, May 7, Boomers Online 10

11 Media and Mobile Usage A separate study from the Pew Internet Project showed that older boomers watch more television on a daily basis than do their younger counterparts. While 74% of all adults watched TV almost every day, 89% of respondents ages 50 to 64 did so, compared with 80% of those ages 30 to 49. Although the ages in the Pew study do not correspond exactly with the younger boomer cohort, this group watched television much more often than even younger adults ages 18 to 29. The latest wave of BIGresearch s Simultaneous Media Usage Study shows just how far emerging media have penetrated the lives of older and younger boomers or have not, as the case is illustrated below. From IM to watching TV and video online, younger boomers engage in these activities at higher rates than older boomers. Not surprisingly, both groups are outstripped by young adults, many of whom came of age with the Internet and mobile phones. Frequency of TV Watching Among US Adults, by Age, December 2007-January 2008 (% of respondents in each group) All adults Almost every day 58% 72% 80% 89% 74% Few times per week 23% 19% 11% 6% 15% Less often 12% 7% 5% 4% 7% Never 6% 2% 3% 2% 3% Note: numbers may not add up to 100% due to rounding Source: Pew Internet & American Life Project, "Networked Families," October 19, Television programs are best watched on a TV set, across all age groups, according to Strategy Analytics. Few respondents over age 50 watched TV programming online (5%) compared with slightly younger adults ages 35 to 49 (15%). Even fewer respondents in these age groups went to network TV Websites. US Weekly TV, Online TV and Network TV Website Viewers, by Age, June 2008 (% of respondents in each group) TV Online TV Network TV Websites % 26% 9% % 24% 7% % 27% 8% % 20% 11% % 15% 8% % 5% 2% Source: Strategy Analytics, "The Age of Web TV: Strategy Analytics' Digital Media Survey -June 2008," June 24, Emerging Media Used* by US Internet Users, by Age, December 2007 (% of respondents in each group) Total Instant messaging (online) 71.5% 61.0% 53.8% 42.5% 37.2% 31.2% 49.3% ipod or MP3 player 69.9% 55.6% 50.3% 30.8% 19.9% 7.9% 39.0% PDA 27.8% 24.6% 23.1% 16.8% 12.0% 5.3% 18.3% Mobile pictures/video 59.9% 49.9% 37.0% 22.9% 16.9% 9.0% 32.3% Satellite radio (XM or 27.5% 27.6% 29.6% 21.9% 21.2% 15.7% 24.1% Sirius) Text messaging (mobile 75.9% 68.4% 56.1% 38.3% 21.7% 9.9% 45.2% phone) TiVo, ReplayTV or DVR 38.6% 43.8% 43.9% 33.5% 30.2% 20.9% 35.5% Video games 72.3% 66.3% 56.1% 39.6% 29.0% 21.5% 47.5% Mobile video 31.5% 23.3% 15.6% 7.4% 2.9% 1.3% 13.4% Internet radio 37.0% 36.9% 32.9% 25.1% 17.1% 8.5% 26.5% Blogs 46.8% 37.4% 27.2% 20.4% 16.0% 10.5% 26.0% Mobile phone 90.7% 91.7% 90.5% 87.2% 84.8% 79.3% 87.5% Online TV/video 69.4% 62.5% 52.5% 39.2% 28.0% 18.6% 45.0% Note: n=15,727; *"regularly" or "occasionally" Source: BIGresearch, "Simultaneous Media Usage Study (SIMM11)," provided to emarketer, May 14, Boomers Online 11

12 Media and Mobile Usage The way boomers use the Internet differs from the way young adults do, too. Most do not like to multitask while online at least, not as often as they do when consuming traditional media which may signal they are more engaged while online. Boomers responding to a 2008 Mediamark Research and Intelligence survey said they did not conduct any other activities during 58.2% of the time they were online, compared with 53% of the time they spent reading magazines and 50% of time spent with newspapers. Average Daily Exclusive* Media Usage at Home According to US Consumers, by Age, 2008 (% of time spent with each media) Total 18+ Newspapers 47.6% 50.0% 55.0% Internet 46.6% 58.2% 53.8% Magazines 49.3% 53.4% 53.6% TV 52.8% 46.1% 49.4% Radio 28.8% 22.2% 28.3% Note: *i.e., not multitasking Source: Mediamark Research and Intelligence (MRI), "2008 MediaDay" as cited in press release, September 16, Just as the MRI data shows newspaper readership is higher among boomers, news is the most-sought-after online content among boomers ages 55 and older. Almost 56% of respondents to the Burst Media survey went to local and national news Websites, while shopping and product information was a distant second, at 44% of respondents. Other popular content categories included health information, international news, travel information and food/recipe sites. Leading Types of Online Content Used by US Internet Users Ages 55+, February 2008 (% of respondents) Local/national news 55.9% Shopping/product information 44.0% Health information 42.5% International news 38.9% Travel information 38.2% Food information/recipes 34.1% Traditional media does a lot to spur online searches among boomers, although BIGresearch noted some differences between younger and older boomers. Magazines, newspapers and broadcast TV prompted more online searches among all boomers, while more younger boomers than older boomers cited cable TV, face-to-face conversations, radio, Internet ads and social networks as influences leading to online searches. ads attracted younger and older boomers in equal measure, while direct mail appealed to more older boomers. Media that Influence Online Searches According to US Internet Users, by Age, December 2007 (% of respondents in each group) Magazines Reading article Broadcast TV Newspapers Cable TV Coupons Face-to-face communication Radio Direct mail advertising In-store promotions Online advertising Outdoor billboards Online communities* Instant messaging Mobile phone Blogs Yellow pages Mobile pictures/video Text messaging Other % 28.7% 37.3% 26.9% 49.8% 32.8% 39.5% 33.1% 24.0% 31.2% 29.0% 35.2% 15.9% 22.5% 20.6% 21.8% 16.6% 7.4% 14.1% 15.3% 4.5% % 38.0% 42.2% 32.3% 46.0% 36.3% 39.4% 37.0% 30.6% 31.7% 29.8% 30.1% 16.9% 17.3% 12.3% 12.9% 12.6% 7.7% 7.7% 6.8% 5.0% % 42.3% 44.9% 39.5% 37.7% 37.6% 38.0% 34.1% 30.3% 29.1% 27.4% 26.6% 12.9% 9.9% 8.0% 7.2% 8.6% 7.0% 5.1% 4.1% 5.1% % 45.9% 45.4% 44.1% 31.9% 35.8% 33.2% 29.5% 28.9% 28.8% 25.9% 24.9% 10.7% 5.3% 5.0% 4.6% 5.4% 6.5% 2.7% 2.3% 6.5% % 49.3% 45.6% 47.1% 27.5% 35.4% 29.2% 23.6% 31.2% 28.6% 25.1% 23.0% 7.5% 3.2% 3.9% 2.8% 3.9% 7.0% 2.0% 1.3% 7.6% % 51.5% 40.0% 54.0% 24.5% 36.0% 23.2% 20.9% 31.6% 23.5% 25.7% 18.0% 4.6% 1.4% 3.7% 2.4% 2.7% 7.9% 1.4% 0.7% 7.3% Total 47.3% 42.9% 42.8% 40.9% 36.1% 35.8% 33.9% 30.0% 29.6% 28.8% 27.2% 26.1% 11.5% 9.7% 8.6% 8.3% 8.1% 7.2% 5.3% 4.8% 6.0% Note: n=15,727; *e.g., MySpace or Facebook Source: BIGresearch, "Simultaneous Media Usage Study (SIMM11)," provided to emarketer, May 14, Source: Burst Media, "Online Insights," March 7, Boomers Online 12

13 Media and Mobile Usage Mobile Communications To boomers, mobile phones are not a gateway to the Internet yet. To them, the Internet is a source of information rather than entertainment, and that is also how they see their mobile phones. A survey conducted by Millward Brown for Hallmark Channel showed that just 35% of a combined group of boomer and Gen X respondents (who also had cable or satellite TV) considered their mobile phone to be an entertainment device. More than one-half (52%) of the millennial respondents turned to their mobile phones for entertainment. US Consumers with Cable* or Satellite TV Who Consider Their Mobile Phone an Entertainment Device, by Generation, December 2007 (% of respondents in each group) Millennials (n=300 ages 18-34) 52% Baby boomers (n=648 ages 35-64) 35% Note: includes responses of "strongly agree" and "slightly agree"; *analog or digital Source: Millward Brown, "CTT - Consumers, Technology & Television Study Highlights" commissioned by Hallmark Channel and provided to emarketer, March 26, Given a choice of consumer electronic devices, boomer Internet users overwhelmingly chose PCs over mobile phones (51% and 21%, respectively), while the opposite was true for Gen Yers (47% and 38%), according to Accenture. Preferred Consumer Electronics of US Internet Users, by Generation, December 2007 (% of respondents) Gen Y (18-24) Baby boomers and older (45+) Mobile phone 47% 21% Computer (desktop or laptop) 38% 51% Regular (CRT or tube) TV 10% 6% HD plasma or LCD TV 3% 5% Other 2% 17% Source: Accenture, "Get Ready: Digital Lifestyle 3.0," October 14, Boomers make fewer mobile phone calls per month than younger adults and teens. Only children and seniors make even fewer, according to Nielsen Mobile. Younger boomers average slightly more calls per month than older boomers (193 compared with 145), and send far more text messages (128 compared with 38). Average Monthly Calls Made/Received and Text Messages Sent/Received per US Mobile Phone Subscriber, by Age, Q Calls Texts < , Total Source: Nielsen Mobile as cited in press release, September 22, One reason younger boomers text more often than older boomers may be the presence of children still in the household, or at least college-age children in the family. A study conducted by Opinion Research Corp. (ORC) for Sprint found that 76% of boomers who text are sending messages to their children. As the Pew Internet & American Life Project noted in a recent Networked Families report, parents both single and married send text messages at higher rates than do those without children. Text Messaging US Households, by Household Type, December 2007-January 2008 (% of respondents in each group) Singles (n=565) 22% Single parent (n=83) 61% Multiple nonmarried adults* (n=218) 49% Multiple nonmarried adults plus child (n=150) 59% Married couple* (n=785) 28% Married couple with child (n=482) 53% All adults (n=2,252) 40% Note: at least one member of the household does this activity; *no child Source: Pew Internet & American Life Project, "Networked Families," October 19, Boomers Online 13

14 Online Activities Given their age, boomers Internet activity could predictably be centered on their health and finances. While that is the case, they are also communicating with one another via , shopping and buying, playing games, watching video and checking out social networks (but not hanging out on them). In fact, communicating and interacting with family and friends are of great interest to boomer Internet users. In a June 2008 survey conducted by ThirdAge and JWT BOOM, , keeping in touch and receiving photos all ranked above shopping online. Online Activities that Interest US Internet Users Ages 40+, May 2008 (% of respondents) Seeking out health and wellness information 97% 96% Staying in touch with family/friends 92% Reading articles 91% Conducting product research before offline purchase 88% Receiving photos of family/friends 84% Online shopping 78% Note: n=1,834 ages 40+ Source: ThirdAge and JWT BOOM, "Boomers, Healthcare and Interactive Media," provided to emarketer, June 2, Their interest in communicating online seems to be limited to their own circle of family and friends. The same survey found that writing blogs, participating in general social networking and playing games with others were among the least interesting activities, perhaps because they invite or involve dealing with strangers, to a degree. Online Activities that Do Not Interest US Internet Users Ages 40+, May 2008 (% of respondents) Writing blogs 67% Participating in general social networking 63% Playing games with others 62% Listening to podcasts 55% Downloading music 44% Note: n=1,834 ages 40+ Source: ThirdAge and JWT BOOM, "Boomers, Healthcare and Interactive Media," provided to emarketer, June 2, Still, the Pew report on Networked Families showed boomers ages 50 to 64 are least inclined to say the Internet has improved their communications with friends a lot even less so than seniors over age 65. Most of them saw little improvement in their ability to meet new people online just 8% of boomers, seniors and even Gen Xers said so. The low percentages seem to translate into very low interest in pursuing this activity online, given the abundance of social networks and online communities that afford many opportunities to meet new people. US Internet Users Who Say the Internet Has Improved Their Connections to Others "a Lot," by Age, December 2007-January 2008 (% of respondents in each group) Connections to friends 49% 38% 25% 32% Connections to family 23% 22% 25% 26% Ability to meet new people 21% 9% 8% 8% Source: Pew Internet & American Life Project, Networked Families," October 19, Like other adult Internet users, boomers prefer to talk face-to-face about products, brands or services. Some 93% of boomers were very or somewhat likely to share product information with friends, according to the ThirdAge/JWT BOOM survey. The digital channels they use to communicate their news follow a familiar pattern: and the telephone were more popular with older boomers, while more younger boomers used mobile phones, instant and text messages, social networks and blogs, according to BIGresearch (n=239) (n=565) (n=465) 65+ (n=224) Methods Used After Online Searches to Communicate with Others About Products According to US Internet Users, by Age, December 2007 (% of respondents in each group) Face-to-face Telephone Mobile phone Instant messaging Text messaging Online communities* Blogging Other % 47.5% 43.6% 50.5% 32.6% 30.7% 22.7% 9.6% 1.0% % 52.9% 47.4% 41.0% 20.5% 19.1% 14.6% 8.1% 1.7% % 55.8% 50.2% 30.5% 13.5% 10.1% 8.2% 4.0% 1.8% % 51.9% 50.3% 23.0% 8.3% 4.7% 5.0% 2.1% 2.4% % 53.4% 52.2% 19.5% 6.1% 1.9% 2.8% 1.0% 2.3% % 53.7% 56.4% 15.6% 4.8% 1.0% 1.3% 0.6% 3.6% Total 67.0% 52.8% 50.2% 29.6% 13.8% 10.8% 8.8% 4.1% 2.2% Note: n=15,727; *e.g., MySpace or Facebook Source: BIGresearch, "Simultaneous Media Usage Study (SIMM11)," provided to emarketer, May 14, Boomers Online 14

15 Online Activities However, given the choice between IM, text messaging or sending an , 80% of younger boomers and 87% of older ones still preferred the old-fashioned digital channel, according to a May 2008 white paper from ExactTarget. Digital Channel Preferred by US Internet Users for Messaging, by Age, February 2008 (% of respondents in each group) Instant messaging Text messaging % 42% 27% % 34% 34% % 21% 58% % 10% 78% % 6% 80% % 3% 87% 65+ 0% 0% 89% Note: n=1,555 Internet users who own a mobile phone Source: ExactTarget, "2008 Channel Preference Survey," May 2008 as cited in ExactTarget white paper, "Walking a Day in Subscribers' Shoes," October 21, marketing messages are not lost on younger boomers, especially. A JupiterResearch study showed this group was most likely to forward an message from a marketer to another adult, at 10%, compared with 7% for all adults. Recommendations from friends and family are valued highly by boomers, so marketers should consider messages as an important medium to reach them online. US Adults Who Have Forwarded an Marketing Message to Another Adult, by Age, 2007 (% of respondents) % % All adults 7% Source: JupiterResearch, "Viral Marketing: Bringing the Message to the Masses," August 2007 as cited by BtoB Magazine, September 20, Gaming Older female boomers are causing a boom in online gaming, second in growth only to teen girls, according to comscore Media Metrix. Comparing visits to gaming sites in August 2007 and 2008, participation rose 43% among older female boomers (ages 55 to 64), to 4.42 million. Gaming growth among younger female boomers was just 16% in the same period, although the number of younger boomer gamers was nearly 3 million more than the older boomer group. US Female Internet Users Who Visited Online Gaming Sites, by Age, August 2007 & August 2008 (thousands of unique visitors and % change) August 2007 August 2008 % change ,030 4,710 55% ,781 5,090 35% ,724 6,543 14% ,990 8,839 11% ,366 7,359 16% ,100 4,418 43% Total 33,888 42,884 27% Note: home, work and university locations Source: comscore Media Metrix as cited in press release, September 15, Social Networking The simple fact that baby boomers outnumber teens by almost three to one seems to have caused a stampede in creating social networks to cater to the older set. In recent years, a plethora have launched, such as Eons, ReZoom.com, Multiply, Maya s Mom (which has since been subsumed into BabyCenter), BOOMj.com and Boomertown.com in 2007, and Boomster and Boomerater in But the message has not gotten out to most boomers, it seems. The NPD Group reported that 41% of boomers ages 44 to 61 visited social network sites, giving LinkedIn, Facebook and MySpace as examples. Boomers had visited social network sites an average of eight times in the three months prior to the survey. Boomers Online 15