Our 81 + 78 Ageism Problem and Your Advertising Industry

Ah The "Debate"

Understanding that people 81 and 78 are in cognitive decline shouldn't be a surprise. OK, not all older people. But these guys, yes.

Ageism And Advertising

One of the chapters in my "How To Build A Kick-Ass Advertising Agency" discusses ageism in advertising. Here you go...

Ageism, another business and cultural issue, is a global business challenge.

From Wikipedia:

Ageism, also spelled agism, is discrimination against individuals or groups on the basis of their age. This may be casual or systemic.

Ageism is particularly endemic in the advertising industry. In 2021 only 8% of WPP’s workforce was over 50, and rival Dentsu’s 50-plus total skewed lower at 6.9%. Note that 34% of the US population is over 50.

Simply insane.

Given the size and purchasing power of the 50-plus group, it’s amazing how poorly this demographic is properly represented in advertising campaigns. From AARP on the effect of ageism on the advertising product itself:

That helps explain why those age 50 and over who do most of the consumer spending represent only 15 percent of adults in online media images and are seven times more likely than younger adults to be portrayed negatively.

I see two reasons for our age of ageism.

First, there appears to be a belief that younger people are simply better at creating truly wonderful marketing, advertising, and new tech solutions in the digital age. FYI: Satya Nadella, the Microsoft CEO was born on August 19, 1967. UM, OK.

What does Marc Zuckerberg think? “Young people are just smarter.”

Think it’s just Silicon Valley speak? Nope.

Just ask WPP:

We have a very broad range of skills and if you look at our people—the average age of someone who works at WPP is less than 30—they don’t hark back to the 1980s, luckily.

This lame statement was made by WPP’s CEO, Mark Read. Read is around 55. Guess it’s OK for management to be “old.”

The second reason for agency ageism is the cost of older employees. Employees over 50 simply cost more, and higher costs are not good in a profit-stressed industry like advertising.

In addition to having a higher salary requirement than a twenty-some-thing, older employees have higher employment-related costs. Older employee benefits like the health plan and longer vacations simply cost more. Growing annual healthcare costs at 15% a year were a major reason I decided to sell my advertising agency.?

Yes, costs play a huge role. However, advertising is an industry that has decided that youth is a requirement in the digital age. Agencies like natives. Somehow marketing experience delivers less value. Bob Hoffman knows.

If you think that ageism in advertising is solely a byproduct ofagencies having to cut costs, you’re wrong. Most agencies wouldn’t hire a 55-year-old copywriter if she came free and gift-wrapped.

?OK Boomers - Y'all Know This

I’ll end with an interesting stat: US boomers hold $71 trillion+ in assets.

To put this into perspective, one-seventh of the world’s assets are controlled by 76 million US boomers.

Does this remarkable stat suggest that agencies will hire more 50-plus employees to help their clients understand, reach, and sell to the older, richer crowd? No.

So, what is the reason for ageism in advertising? Show Me The Money.

My takeaway is that people over 50 are smart but are too expensive in a low-margin industry.