Why Gen X Matters: Uncovering the Untapped Potential for Brands

Despite the focus on marketing to Gen Z, marketers may be disregarding the significant spending power of their parents. Gen X, on track to become the wealthiest generation in history with a projected $70 trillion inheritance from baby boomers, actively participates in social media and represents the fastest growing user demographic on TikTok. However, a recent report from Wavemaker reveals that only 13% of this demographic feels adequately represented in social advertising, indicating a missed opportunity for marketers.

Gen Xers are highly active on social media, with 92% using it daily and making up 28% of TikTok's user base. However, despite their presence and engagement, they only account for 5% of brand spending on influencer campaigns. Moreover, there is a significant lack of research focused on Gen X, with the advertising industry dedicating merely 4% of generation research to this cohort.

"There is a lack of research on Gen X compared to other generations, despite the fact that they are expected to become the wealthiest generation in history and are known for their long-term brand loyalty," stated Zoe Bowen-Jones, Wavemaker's senior insight director, in an email to Our Website. "Their social presence is often overlooked."

This study examined 200,000 Gen Xers globally, utilizing five different methods. The qualitative study involved 60 individuals from the U.S., India, and the U.K., who shared their attitudes and behaviors towards social media. Group M's Audience Origin syndicated survey contributed data on 67,000 Gen Xers. On-device content testing observed how 4,000 Gen Xers engaged with influencer campaigns. In addition, influencer marketing agency Goat provided insights on 7,000 Gen Xers. Lastly, Momentum conducted a meta-analysis of studies from 2019 to 2022, encompassing three markets and four categories.

Overlooked and understudied

The 45-to-60-year-old age category, commonly referred to as Gen X, represents 27% of global spending. Furthermore, this group's income and savings have experienced a consistent growth. Not only does Gen X already possess a significant nest egg, but they are also poised to inherit trillions in the near future.

Despite making up 31% of the global population, Gen Xers are not adequately represented in advertising. Only 24% of TV commercials depict characters who are over 50 years old, while 76% portray characters between the ages of 19 and 49. As a result, the industry has created a sense of being overlooked, with only 13% of Gen Xers feeling represented. Although this percentage is higher than that of baby boomers (9%), it remains significantly lower than younger generations.

"This report not only highlights the disparities in social media usage among the 'wealthiest generation the world has ever known,' but more importantly, it sheds light on how we can identify and address these differences," stated Bowen-Jones. The lack of visibility leads to noticeably diminished engagement. When it comes to influencer campaigns, Gen Xers had a 30% lower retention rate and 20% fewer interactions with content compared to Gen Zers and millennials. Moreover, there was a 47% decrease in the impact on brand opinion."

What Gen X wants

When it comes to winning over the favor of Gen X, brands cannot simply apply the strategies used for millennials and Gen Z. This particular consumer group has distinct expectations and preferences that brands need to cater to.

Gen X creators have a better connection with Gen X consumers compared to other groups. Furthermore, the posts made by Gen X creators are usually 75% lengthier than those of Gen Z creators. In terms of style and content, campaigns preferred by Gen Xers emphasize self-improvement rather than using a more sales-oriented tone common among younger creators.

Effectively targeting a Gen X audience can yield greater benefits since trust plays a 30% more significant role for this group when making purchasing decisions, compared to younger generations. Additionally, Gen X purchases are mainly motivated by necessity, whereas Gen Zers are twice as likely to adopt a "treat yourself" mindset. Furthermore, Gen Xers consider 27% fewer brands than younger consumers.

"Gen X offers great potential for brands as they consist of highly engaged, loyal, and affluent consumers. Advertisers should not disregard this demographic," stated Bowen-Jones. "Our research reveals that Gen X is exceptionally brand loyal, possesses longer attention spans, and actively participates on social media. Ultimately, this makes them more valuable consumers compared to their younger counterparts."