Searching for the grey gold - 2013

SEARCHING FOR
THE GREY GOLD
2013 STOCKHOLM SCHOOL OF ECONOMICS
& ROYAL INSTITUTE OF TECHNOLOGY.
Media Management.

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We would like to thank everyone that has helped
us in this project. Special thanks to TV4 and in
particular Marie Swanström and Jon Runestad,
who have not only given us the chance to work on
an interesting project, but that has also always
been ready to help and come both with ideas and
act as a sounding board. It has been great fun as
well as a real learning experience to work with you!
Also, thanks to our supervisor Christopher
Rosenqvist for all his support and encouragement.
Authors
Maryna Blinovska, marynab@kth.se
Olle Bergendahl, obergen@kth.se
Edward Dahlbäck Rörström, 21991@student.hhs.se
Ebba Carlson, 21673@student.hhs.se
Fredric Dahlblom, 21925@student.hhs.se

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Executive Summary
As Sweden’s population grows older, the average age of consumers as well as TV viewers
is increasing. Although only a few companies currently target the Grey Gold, it is a
growing segment that must be accounted for the future. It is also relatively uncontested
and highly affable - and willing to spend money. In order to capitalize on the segment in
the future, the task set by TV4 was to investigate why advertisers in general do not direct
their marketing towards this segment, as well as which industries that could be targeting
this segment or already do it to some extent.
To investigate these questions, interviews were held with both internal and external
stakeholders, such as the TV4 management, industry representatives and researchers.
Theory from secondary sources was also added together with an international
benchmark.
Looking internationally as well as in Sweden at industries that are currently or planning
to target the Grey Gold segment, it includes for example technology, travelling, housing,
food, glasses/aids, health/medical and banking. In these sectors, by providing
convenience, health or everyday luxury to the segment, the market will be growing
rapidly as demand is increasing.
The main reasons that advertisers currently do not directly targeting the segment are:
• Partly a misconception – since the segment is not sold by TV4, it is not tracked.
The targeting is not always obvious.
• The average age in advertising industry is low and they tend to focus on their
own age group.
• For many companies it is not the primary target group. The elderly are
considered to have a lower life time value than younger customers and are seen
as harder to persuade.
As seen in the previous sections there are indeed companies that do target the Grey
Gold, but also many that should be targeting the segment. The challenge for TV4 is to
put it on the agenda and charge the advertisers for it. In order to solve this challenge,
three solutions were proposed. They can be implemented either alone or to a certain
extent combined:
• New TV channel specifically targeting the group.
• New pricing model.
• Action based segmentation.

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Table of contents
1. INTRODUCTION 6
1.1 ASSIGNMENT 6
1.2 LIMITATIONS 7
2. METHOD 8
2.1 PRIMARY DATA 8
2.2. SECONDARY DATA 8
3. BACKGROUND 9
3.1 AN AGEING POPULATION 9
3.2 THE NEW TEENAGERS 9
3.3 MEDIA HABITS 9
3.4 ADVERTISING 10
3.5 INTERNATIONAL BENCHMARK AND UPCOMING INDUSTRIES 10
4. THE GREY GOLD FROM FOUR POINTS OF VIEW 12
4.1 ADVERTISERS 12
4.1.1 SEB 12
4.1.2 VOLKSWAGEN 13
4.1.3 COM HEM 13
4.1.4 VING 14
4.2 AGENCIES 15
4.2.1 ADVERTISING AGENCIES 15
4.2.1.1 Senior Agency 15
4.2.1.2 Forsman & Bodenfors 16
4.2.2 MEDIA AGENCIES 17
4.2.2.1 OMD Stockholm 17
4.3 INDUSTRY VOICES 18
4.3.1 ANDERS ERICSSON, CEO SVERIGES ANNONSÖRER 18
4.3.2 THOMAS BACOCCOLI, MTG SALES DIRECTOR 19
4.4 RESEARCH 20
4.4.1 ATTITUDE OF THE GREY GOLD TOWARDS ADVERTISING 20
4.4.2 ACADEMIC VIEW ON THE GREY GOLD MARKETING 22
4.4.3 ATTITUDE IN SOCIETY TOWARDS THE GREY GOLD 23
5. SOLUTIONS 24
5.1 START A NEW TV CHANNEL 24
5.1.1 OPPORTUNITY 25
5.1.2 PREFERENCES 26
5.1.3 VIABILITY 26
5.2 NEW PRICING MODEL 26
5.2.1 EXTERNAL ANALYSIS OF ADAPTING THE PRICING STRUCTURE 26

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5.2.2 INTERNAL ANALYSIS OF ADAPTING THE PRICING MODEL 27
5.2.3 CO-ORDINATED ADVERTISING IN TV4 AND TV4 PLAY 28
5.3 ACTION BASED SEGMENTATION 28
5.3.1 WHY CHANGE THE SEGMENTATION BASE? 29
5.3.2 THE PREREQUISITES ARE ALREADY IN PLACE 30
6. CONCLUSION 31
7. REFERENCES 32
7.1 ARTICLES 32
7.2 BOOKS 33
7.3 ELECTRONIC RESOURCES 33
7.4 INTERVIEWS 34
7.5 REPORTS 34
APPENDIX 1 – INTERVIEWEES 35
APPENDIX 2 - STATISTICS 36
APPENDIX 3 – LIST OF RECOMMENDED COMPANIES 37

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1. Introduction
Sweden is getting older. Over the next ten years the population is expected to increase by
approximately 829,000 people and it is in the older segment that the greatest increase is
expected. The number of people in the age of 65 years and above is projected to increase
by around 328,000, compared to adolescents aged 0-19 which will increase with 279,000
and those aged 20-64 with just slightly over 222,000. Today there are nearly half a million
Swedes that are 80 years or older. This is expected to increase to 800,000 in the next 20
years and reach one million by 2040.1
It is not only the number of people in the older age
group that is growing; their wallets are also increasing in size compared to previous
generations. When they watch television, TV4 is their preferred commercial TV channel.
This makes them an increasingly important group of consumers for companies to
consider, sometimes referred to as - the Grey Gold.2
This poses two challenges for the commercial Swedish TV broadcaster TV4. First, TV4
has an average viewer age of 52, but there are only a handful of advertisers that actively
target the Grey Gold.3
Second, the TV4 Group and their channels TV4, Sjuan, TV4
Sport, TV4 Fakta, TV4 Film, TV4 Comedy, TV4 Guld and the play service TV4 Play
only charge for advertising contacts in the age group 12-59, while having a surplus of
contacts older than 59. The advertising contacts that are older than 59 years become
bonus contacts which the advertisers get without any cost.
The TV4 Group therefore asked five students at the Royal Institute of Technology and
Stockholm School of Economics to further look into these issues.
1.1 Assignment
The task was defined as follows:
1. The project’s mission is to explore why advertisers do not think it is worth to
direct their marketing to the Grey Gold group.
2. For what reasons are communications, audiences and target groups often
simplified as “every 20-49 years?”
3. Investigate which industries are in line to develop products or services with the
Grey Gold as an audience.
These were the questions posed to the project group at an initial stage. Later, as some of
the answers to the questions were found, TV4 asked for plausible solutions on how to
charge advertisers for targeting the Grey Gold.
1 SCB (2013), Sveriges framtida befolkning 2013-2060, BE 18 SM 1301.
2 SCB (2004), De äldres ekonomiska välfärd.
3 TV4 Gruppen, 2013. The Grey Gold assignment.

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1.2 Limitations
To better answer the assignment questions, some limitations had to be made. The report
only focuses on the TV4-Group’s channels that actually have commercials. Also, the
main focus of the report was the Swedish TV-market. Some data was collected from
other countries (such as Denmark, the U.K., the U.S., etcetera.), but the solutions were
developed with the Swedish market in mind. The exact age-definition of the Grey Gold
varies between sources and research, but the difference was not considered to impact the
content of this report. This report focuses on the Grey Gold as people that are already,
or are about to, retire.

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2. Method
2.1 Primary data
Since previous TV4-reports on the subject of the Grey Gold have mainly focused on
quantitative data, qualitative in-depth interviews were conducted with people within four
main areas: advertisers (companies advertising on the TV4 Group channels), advertising
and media agencies, industry voices (from the media industry) and research.4
The
interviews were conducted either in person, via telephone or by email.
The interview questions were focused around the following themes:
• If they market themselves towards the Grey Gold.
• If “yes” - how they market themselves towards the segment.
• Their view of the segment.
• Their view on TV advertising towards the segment.
• How advertising towards the segment should be conducted.
• Why the majority of all advertising does not target the segment.
• Which industries they think target the Grey Gold.
The complete list of interviewees can be found in Appendix 1.
2.2. Secondary data
The background research on the segment was mainly based on secondary data from
scientific articles and reports from TV4, Kairos Future and SCB. The other minor
sources, as well as the major sources, are all listed in the reference list.
4 TV4 Gruppen, 2013. Silverrävarna.

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3. Background
The exact age definition of the consumers referred to as the Grey Gold differs
depending on whom you ask, but an applicable definition is people who are about to
retire or who have already retired. As stated earlier, the segment is growing in numbers,
becoming highly affluent, has an increasingly young mind-set, and is aiming at having
better health conditions.5
3.1 An Ageing Population
In the 1960’s, life expectancy in Sweden was about 73 years, resulting in an average
retirement period of only eight years. When going into retirement most people were
worn out after a long life of hard labour, and medical care was less efficient in the 1960’s.
Today the life expectancy in Sweden is 81 years, doubling the number of post-retirement
years.
At present, 12.4 per cent of the Swedish population is aged 55-64; another 20 per cent is
65 and above. The age group 65 and above is growing the most, according to new
statistics from SCB.6
The median age has been steadily increasing since the 1960’s, and
the current median age of 42 years combined with the low birth rates actually makes the
Swedish population one of the oldest in the world. The complete statistics and the
corresponding graphs can be seen in Appendix 2.
3.2 The New Teenagers
Kairos Future calls the 55-64 year-olds “the new teenagers”: they are demanding, used to get
what they want, have plenty of time and have only themselves to take into consideration.
When retiring, they look forward to freedom and having fun. About 70 per cent of them
plan to travel more and they already constitute 30 per cent of the total traveling
consumption. This shows a change in values: from saving and owning to consuming and
experiencing, fulfilling dreams when no longer being limited by time or money. And the
Grey Gold can certainly afford it. The 55-64 year olds have the highest disposable
income of all age groups, on average 223,000 SEK per year after taxes.7
Hence, they
possess 70 per cent of the total purchasing power and 80 per cent of the bank savings.8
3.3 Media Habits
Long gone is the stereotype of the knitting grandmother. A more realistic scenario would
be to find her busy Skyping her grandchildren. Today 65 per cent use the Internet on a
daily basis and 91 per cent have a cell phone. More than 50 per cent of the age group 50-
64 have been shopping online. Unlike younger generations who prefer YouTube or play-
services, the Grey Gold has been increasing their viewership of regularly broadcasted
TV. The group constituted approximately 37 per cent of TV4’s viewers in 2009.
6 SCB (2013), Sveriges framtida befolkning 2013-2060, BE 18 SM 1301.
7 Ibid.
8 Detter, Thorbjörn (2013). Senior agency. Telephone interview with T. Detter on 26h April.

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However, TV4 has recently lost viewers in the 60+ segment to SVT1.9
TV4 is viewed by
more than 50 per cent of the 60+ population every day and 80 per cent on a weekly
basis. This makes TV4 the most watched commercial TV channel among the Grey Gold
segment. The values, tastes and frames of reference are normally set at the age of 20-25
and remain throughout life, which is important to remember in communications. For
example, the Grey Gold grew up loving the music like the Beatles, the Kinks and Abba
and are likely to identify more with that music than contemporary hits.
3.4 Advertising
It is interesting that only 5 per cent of the total marketing budget is spent on the Grey
Gold, not least since 58 per cent are willing to try out new brands. 10,11
However,
advertising targeting the Grey Gold must be adapted to fit the preferences of the
segment:
3.5 International Benchmark and Upcoming Industries
The Grey Gold is the segment that grew up in the age of consumerism and the era of
brands. According to the report by Nielsen and Boomagers Agency, in the U.S. the
elderly “have the most and spend the most, are more tech savvy and more marketing-friendly than
believed, and most importantly, that their loyalty is not to be taken for granted.” 12
Regarding industries that are in line to develop products or services specifically targeting
the Grey Gold, it is significantly more common and developed outside Sweden, although
there are some Swedish examples too:
9 Svenska Dagbladet (2013), Youtube större än tv bland unga vuxna. Retrieved 2013-05-25 from
http://www.svd.se/naringsliv/digitalt/youtube-storre-an-tv-bland-unga-vuxna_8137840.svd.
10 Detter, Thorbjörn (2013). Senior agency. Telephone interview with T. Detter on 26h April, 2013.
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TV4 Gruppen, 2013. Silverrävarna.
12 Nielsen & Boomagers Agency (2012). Introducing boomers: marketing’s most valuable generation.
Background | Key facts
• 62 per cent of elder women wants to see people their own age in the
commercials
• 33 per cent consciously avoid products whose advertising has a
stereotypical depiction of elderly
• They do not want to be reminded of being old
• They want an emotional message AND a rational USP (Unique Selling
Point). The most important characteristics of a brand or a company for
the 50+ group is “the feeling of quality” and “attention and service”.
Advertisers | Key takeaways
• The elderly are considered difﬁcult to persuade and have lower life-time
value than younger people.
• The biological age of the Grey Golds differ from their cognitive age.
• TV is often chosen for the primary target group, which is usually a
younger segment.
Agencies | Key takeaways
• Low average age in the advertising industry inﬂuences output.
• Young people use more media channels compared to elderly, making
elderly an easier target.

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• Technology: A growing market, 41 per cent of U.S. Apple computer purchasers
are older than 55. Devices are adapted for elderly in terms of easy-to-use
functions and interfaces.
• Travelling: Rosa Bussarna is highly successful with trips for people aged 50 and
above. Cruising companies adapt schedules to shorten trips, hence attracting
more elderly.
• Glasses and other aiding equipment: With increasing age, eyesight as well as
balance and hearing are often degraded. Readerwear in Canada are very
successful in selling inexpensive, fashionable eyewear.
• Health: In order to prevent aging and health disorders, the elderly are prepared
to do almost anything. The fitness company Club 50 plans to offer special
classes, something that is also increasing in Sweden with for example SATS
offering classes for elderly during the day. Also, the medical industry is blooming.
• Housing: There are housing adapted to the needs of elderly, for example elderly
homes for couples13
or senior housing where people are encouraged to move in
already at 55+. 14
• Banking: Many banks, like for instance SEB, are making special offers targeting
the segment.
13 Dalarnas Tidning (2013). Här är kommunens nya lyxiga äldreboende. Retreived 2013-05-25 from:
http://www.dt.se/nyheter/borlange/1.5467450-har-ar-kommunens-nya-lyxiga-aldreboende.
14 Silver Life (2013). Retrieved 2013-05-20 from http://www.silverlife.se/.

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4. The Grey Gold from four points of view
4.1 Advertisers
For companies successfully adapting or creating offerings for the Grey Gold, it has been
shown that there is big money to be made. When approaching the advertisers the goal
was to find companies that already in some way target, or whose products or services
could be targeting this segment and that run TV commercials on TV4. The interviews
were conducted to understand their view on the Grey Gold and how communication
should be designed to target the segment.
4.1.1 SEB
Britta Lundqvist, Deputy Head of Marketing Campaigns at SEB Sweden, underlined the
importance of the Grey Gold as customers to SEB, as well as to other banking and
financial institutions, simply because of their financial strength.
The first time SEB explicitly targeted this segment was in the autumn of 2011, with the
nostalgic campaign “If you remember this - it is time to think about when to start to use your
retirement-savings”. It was highly successful, featuring teenagers styled in typical 1970’s
outfits and haircuts, to connect with the Grey Gold and make them reminisce about their
youth. For the TV commercial created as a part of the campaign, TV4 was the prime
media choice. Still, the target group bought was younger than the Grey Gold, since the
elderly already were overrepresented as viewers. This suggests that SEB was aware of the
fact that people aged 59 and above become bonus contacts, free of charge. According to
Lundqvist, there are no specific characteristics that define ads towards the Grey Gold.
Overall, ads should be relevant for its intended target segment and include an interesting
offer.
Regarding the present and near future, SEB is spending money on different customer
relation initiatives to get in touch with the Grey Gold. However, at the moment they do
not have any mass media campaigns directed towards the segment.
Image 1. SEB’s campaign that successfully targets the Grey Gold.

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4.1.2 Volkswagen
Ola Petersson, Marketing Manager at Volkswagen Finans, had a very clear opinion on
the concept of cognitive age, arguing that people in the Grey Gold segment often feel
younger than their actual biological age. Based on this, Petersson states that people in
this segment prefer to see younger actors or models in commercials and that the use of
elderly in commercials targeting the Grey Gold could lead to the reaction: “I’m not really
that old, am I?”
Petersson also believes that the Grey Gold is not as easily influenced by advertising as
younger segments are. Most elderly people have already tried out a lot of different brands
and have their mind made up on which brands they like or not, making them less likely
to switch brands. This experience, in combination with the lower life time value of an
elderly customer, were suggested key reasons as to why advertisers in general rarely target
the Grey Gold.
Furthermore, Petersson considers TV to be the most effective media channel to target a
very broad audience. In order to target niche markets or smaller customer segments,
there are probably more effective channels for Volkswagen, for example printed media,
car shows or actual car dealership businesses. This could be another reason why TV
commercials are seldom used to explicitly target the Grey Gold.
4.1.3 Com Hem
Com Hem mainly uses age to define their customer segments, according to Hanna
Sweijer, Research Analyst at Com Hem. Besides age they also use geographical and
needs-based segmentation to some extent. They do not have an upper age limit, and
Sweijer believes that they are quite successful even in the older segments. Their main
marketing campaign, the award-winning “Judith & Judith”, does not target a specific
segment. Its mission is to reach the whole Swedish population, making TV the most
effective media channel for the campaign, confirming Petersson’s opinion.
Upon being questioned why advertisers in general do not target the Grey Gold, Sweijer
points out that it is sufficient to target an average user or the “middle-segment.” When
this segment is effectively targeted, it will lead to network effects, attracting people both
from younger and older segments.
In line with some of the other interviewees, Sweijer says that TV commercials are a good
way to reach the Grey Gold, but also argues like Petersson, that other media channels
like direct mailing and advertisements in magazines might be even more effective. A TV
commercial spot provides a very limited amount of time, which might not be sufficient
to persuade an older consumer.
Sweijer is also of the opinion that the Grey Gold prefers younger models in TV
commercials. In some cases it could be effective to use e.g. older actors, but only as an

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exception. Sweijer believes that almost every brand and every segment enjoys being
associated with someone who is “young and attractive.”
4.1.4 Ving
Claes Pellvik, Marketing Manager at Ving, was interviewed to get an insight on how the
travel industry in general, and Ving in particular, targets the Grey Gold segment. The
first thing Pellvik mentioned was that Ving realized early that people born in the 1940’s
would become an important and affluent customer segment. Also, Ving had a large
customer base approaching their retirement age. The solution was to create a concept
called Sunprime, focusing on consumers travelling without kids. Pellvik emphasizes that
this concept does not cater exclusively to the Grey Gold, but also to people in their 30’s
or 40’s who do not have kids or to people who like to travel without their kids.
Regarding the low number of TV-commercials targeted towards the Grey Gold, Pellvik’s
view was that most companies use the TV medium to reach their main target group,
which in Ving’s case is mothers aged 20 to 49. This was perhaps the most important
statement made by Pellvik. This statement is somewhat in coherence with what Sweijer
said, stating that it is sufficient to only target people in their thirties and forties.
Pellvik, like many others, believes that the elderly do not identify themselves as being old
and a commercial targeting the Grey Gold, like Sunprime, does not use elderly people as
models. This is in line with Petersson’s views on the subject. If a company decides to
market themselves towards the elderly, it is more important to focus particularly on the
content and the values the commercial conveys. In Ving’s case, Pellvik mentions aspects
such as high quality hotels, good food and comfortable beds.
Lastly, Pellvik considers the lifetime value to be important when choosing which
segments to target. The lifetime value of a customer in his 30’s is certainly higher than
that of a customer in his 60’s. Younger people are also easier to persuade into trying out
a new brand, again confirming the opinion of Petersson. Therefore, Pellvik in general
considers it to be more efficient making commercials that are targeting the younger
segments.
Background | Key facts
• 62 per cent of elder women wants to see people their own age in the
commercials
younger segment.

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4.2 Agencies
The advertising and media agencies play an important role in the process of creating and
channelling commercials to the public. The advertising agencies create commercials of all
different kinds, and to all types of customers. They are in direct contact with the
customers and have as their main task to provide a communicative solution that solves
the customer’s request to attract a certain segment. However, it is not always that easy,
since the communicative solution has to be routed through the right channels in order to
be effective to the right segment. That problem is solved by the media agencies, which
provide the right channels in which the communicative solutions are showed and
presented. That said, a lot of the power to affect the Grey Gold is assigned to the
agencies. In order to fully understand the agencies’ view on the Grey Gold segment,
direct contact with people working at different agencies were made.
4.2.1 Advertising agencies
From an international viewpoint, Sweden is known for creating commercials and
campaigns that often receive interest and awards. Therefore, the advertising commercials
created in Sweden are not only successful in terms of increased sales and market share
for the customer, but they are also in level with the best international commercials.
Consequently it is interesting to understand why the majority of the Swedish advertising
agencies find almost no interest in targeting the Grey Gold segment.
4.2.1.1 Senior Agency
The contact person at Senior Agency was Thorbjörn Detter, Founder and Co-owner at
the Stockholm Office. This agency is specialized in creating communicative solutions
targeting older customer segments. They believe that the Grey Gold segment is very
interesting and, most importantly, very profitable. Detter claims that the segment is
interesting because they have a lot of money, are willing to spend, but will only act on
commercials that have the right message. Senior Agency does not agree with the
common belief that elderly people have less interest in commercials. Instead he claims
that the Grey Gold only appreciates commercials that are presented in the right way,
preferably informative and rational. If you have a creative commercial with an unclear
message, it will most likely not work with the Grey Gold. On the other hand, a
commercial emphasizing the message will most likely have a stronger impact.
Furthermore Detter said that the Grey Gold segment will only be profitable for a limited
time, since people born in the 1960’s and onwards will not have the same amount of
savings when retiring. Furthermore, it is highly likely that the retirement system will be
changed, making people who are currently in the workforce retire at an age later than 65.
Upon being asked why only a few other agencies have the same strategy as Senior
Agency, Detter answered that other agencies focuses on the elderly segment but not to
the same extent as Senior Agency. He also considers it odd that, while at a business
school, students are taught that the most affluent segment is the preferable, but as soon
as they start working at an agency they forget it and start making commercials for
younger people.

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In today’s agencies the average age is 34 years, and the youngest employees are often 25
years or younger.15
It is natural for them to more easily identify with and create
commercials for people in or around their own age. Detter also believes that age is in
some sense discriminated in today’s society, and that we all strive to be younger and look
younger. It is therefore less attractive to address the older segment, since not even the
elderly want to be associated with being old.
Detter was also asked about his opinion on not being able to purchase any age group
above 59 years of age. Detter’s answer was simple: “I am really glad to be able to buy TV-
commercials for less money than others, it is a bargain.” In other words, Detter is well aware that
he is not able to buy his specific target group, instead he buys any other segment and gets
the elderly segment for free, making it a bargain.
“I am really glad to be able to buy TV-commercials for less
money than others, it is a bargain.”
Thorbjörn Detter, Senior Agency [The quote has been translated from Swedish to English].
4.2.1.2 Forsman & Bodenfors
Forsman & Bodenfors (F&B) is one of Sweden’s largest advertising agencies. When
asked about their view on the Grey Gold, they know that it is a financially strong
segment. However this does not necessarily make it a money-spending segment. F&B
believes that this segment is not appropriate for the same type of products as other
segments, making it less interesting for customers to target. F&B also agrees that the
industry itself creates advertising primary focused towards people in their 30’s. They too
have very young employees and they think that it affects the commercials created at their
agency as well.
When talking to a copywriter that has been working with F&B since the start, he says
that he does not remember a single time that any customer specifically asked to reach the
Grey Gold segment. He finds it shocking since they have been asked to reach out to all
kinds of different segments but never an elderly segment specifically. This says quite a lot
of about the industry and how companies view the Grey Gold.
F&B did not agree on Detter’s argument about creative commercials not being
appropriate for elderly people. Instead, F&B considers it to be a simple excuse for
creating boring commercials. They look at creativity as the power to make consumers
aware of a message in a medium that is already filled with other messages, and not as a
measure of complexity as Detter described it.
15 Lönestatistik (2013). Retrieved 2013-05-15 from
http://www.lonestatistik.se/loner.asp/yrke/Marknadsforare-1081.

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4.2.2 Media agencies
4.2.2.1 OMD Stockholm
Omnicom Media Group is the world's top corporate media services conglomerate, and
they own the media agency OMD Stockholm. 16
They believe that the Grey Gold
segment is not equally represented compared to other segments in digital advertising,
more specifically in social media and web banners. This is because the Grey Gold does
not have the same experience with digital media channels as other younger segments.
Rasmus Bjurström, Chief Digital Officer at OMD Stockholm, believes that the Grey
Gold segment could be educated on how to use the newer media channels. He mentions
QR-codes as an unsuccessful implementation of new digital ways of doing advertising,
but also that something corresponding could be successfully reintroduced if done
properly.
As of today, the Grey Gold segment is not fully adapted to Sweden’s advertising climate.
One might argue that this is a unique situation compared to what it looked like a couple
of decades ago. Bjurström argues that this is not the case. He claims that there has always
been a younger generation revolting against the existing generation. An example of this
would be when teenagers introduced punk music, something that was completely
different to what most people were listening to at the time. The only difference is that
the younger generation of today has the possibility to change and affect society in a
greater extent, due to the great impact of the Internet.
Few agencies specialize in reaching out the Grey Gold segment. As previously
mentioned, Senior Agency is one of them. OMD does not specifically reach the Grey
Gold. In fact, they have very little work that is connected with this segment at all.
Bjurström believes that there are three reasons behind this situation. The first reason is
vanity, since there are young people working at agencies and looking young and fresh is
regarded attractive by the society. The second reason is that it is hard to reach the
segment using the same channels as for younger people. Therefore, there are fewer
channels to use when advertising towards the Grey Gold. Thirdly, there is not enough
research conducted about the segment. Bjurström thinks that with the automatic
payment systems of the future, companies will be able to gather more information about
all different segments in terms of their personality and specific interests. Once that is
developed, companies will be able to be even more specific when looking for a specific
target group.
In terms of buying spots for TV-commercials, OMD does not actively buy spots for the
Grey Gold. However, when there is a situation in which they need to reach out an older
segment, they just buy their primary target group, knowing that they get the older
segment for free. This was perhaps one of the most important findings from the agency
interviews, since this was not the first time an agency used this argument, suggesting that
this is the way the whole industry thinks about TV spots for elderly people. Bjurström
16 Yahoo Finance (2013). Retrieved 2013-05-15 from http://biz.yahoo.com/ic/14/14326.html.

18
had a hard time understanding why there would be any change in the market if TV-
channels provided spots for 59 year olds and above, since few commercials are created
for that specific segment as of today.
Still, Bjurström also stated that he thinks advertising on television is a good way to reach
the Grey Gold segment. The argument, linked to the Internet usage, is that younger
people are only a few clicks away from streaming a movie or a series, while the Grey
Gold have to deal with commercials if they want to see a movie or a series.
OMD does not think that there is a specific type of advertising for elderly people, since
demographics is just one of the variables when reaching out a certain target group. On
the other hand, the main reason why the majority of companies chose to target women
and men in the age of 20-49 with high income is because they are the ones consuming
the most. This goes especially for FMCG (Fast Moving Consumer Goods) companies
since they want to reach the largest consumption group in society, which is 20-49 year
olds with children.
4.3 Industry voices
Beyond advertisers and agencies, the industry voices provide a clearer picture on how the
Grey Gold segment is being handled. Anders Ericsson, CEO of Sveriges Annonsörer,
was interviewed on how the industry works and what the future might hold.
Additionally, Tomas Bacoccoli, Sales Director at MTG, well-informed on Swedish radio
and television was interviewed. He has been a part of MTG for a long time and has been
a key player in the growth and success of the company.
4.3.1 Anders Ericsson, CEO Sveriges Annonsörer
Ericsson believes there is a general attitude in society that young people are perceived as
more attractive and interesting. There is also a wish to be forever young, something that
has been an important part of society for a long time. This situation is enhanced by the
fact that the average worker at an agency is usually between 20 and 30 years old, creating
a system in which customers want to reach a young target group, and the ones creating
the commercials are young as well. In other words, there is little room for elderly people
to affect the media perception of what is interesting and trendy.
younger segment.
• Young people use more media channels compared to elderly, making
elderly an easier target.
• At the moment not able to buy TV-spots for 59+.

19
According to Ericsson this has not always been the case, since the concept of teenagers
was first introduced after the Second World War. He argues that a child used to reach
adulthood in one single step, but after the WWII society allowed children to become
teenagers. This was the start of the predilection of youth, and ever since then it has been
an important part of society. Ericsson talks about how elderly people automatically
started to use a hat when they reached a certain age during the 1950’s. Nowadays older
celebrities such as Mick Jagger wear jeans or boyish–looking clothes. This could be a
cultural issue since the elderly are not looked upon in the same manner in Asia, and in
the USA more people work after their 60’s due to a different retirement system.
Advertising agencies are changing their way of segmenting: instead of using
demographics in a large extent, action segmentation is more appropriate. Today, people
that are thirty years old might act as if they were sixty and the other way around. Age has
gone from being a viable segmentation base, to just being a parameter that not always
accurately leads to the right segment.
4.3.2 Thomas Bacoccoli, MTG Sales Director
The Grey Gold segment is different compared to other segments in the sense that they
have a slightly more negative view on commercials. They are less active on social media
and listen less to commercial radio. Bacoccoli argues that the main reason to why this
segment is different, is because they have already tried a lot of things in their lives. Their
mind is already set in terms of what they want and need, making them harder to
convince than other segments that have less experience in trying out products and
services.
However, Bacoccoli believes that this is about to change due to an increased
understanding of digital solutions that agencies will have to adapt in the near future.
During the past 10 to 15 years this segment has been less interesting due to the
introduction of social media. However, today when you walk down the street you see
everyone (even the Grey Golds) walking around with an iPhone. This is a clear sign that
also the elderly are adapting to the current media landscape. Bacoccoli underlines that the
elderly will eventually fully adapt to technological change in the future, and not be stuck
in old media channels.
Program Slaget om Sverige
Sveriges
Mästerkock
Så Mycket Bättre X Factor
Target (TRP avgW)
A3+ 8,39 10,65 19,85 8,61
Target (TRP avgW) A12-59 5,87 10,14 19,84 8,83Target (TRP avgW)
Research | Key takeaways
• No general negative attitudes against the elderly within the Swedish
society.
• Elderly advertising attitude - the answer depends on who you ask, no
coherent view.
• Simple demographic segmentation is not enough, different cultural frame
of references.
Industry voices | Key takeaways
• No particular discussion about “not targeting elderly” being a problem in
the industry.
• Elderly do not appreciate commercials in the same extent as younger
people.
• Society prefer youth to elderly, which is reﬂected in advertising.

20
4.4 Research
4.4.1 Attitude of the Grey Gold towards advertising
Discussing the Grey Gold with the stakeholders above, there is one particular argument
which is not only an individual opinion, but which claims scientific proof, namely that
the Grey Gold would prefer informative over creative communication. This would
derive from the misconception that the elderly have an overall more negative attitude
towards advertising, when in fact they just prefer another type of advertising - more
informative and rational. In order to evaluate these arguments, an investigation of
scientific articles and interviews with researchers on the subject were made.
First, according to an article by Shavitt et al. (1998), there is a more favourable attitude
towards advertising among young Americans among elderly17
. Especially those between
18 and 34 years report an overall greater liking of advertisements compared to older
respondents. They also report being less offended, less insulted and less often misled by
advertising. Another interesting fact is that the article states that the age group 55 to 64
are the ones agreeing the most on that the advertising in general is informative,
considering the Detter quote.
Drolet & Williams (2005) found that older adults specifically had a higher liking and
recall of emotional appeals, while young adults had a higher recall of rational appeals18
.
This interestingly contradicts the argument that the rational advertising is more
important to reach the Grey Gold. It is essential to understand the goals of older adults’
consumption in order to create offers for them.
Moreover, Gilly & Zeithaml (1985) found that in order to reach the elderly and
communicate with them, organizations should contact them directly through media
vehicles precisely targeted at them, e.g. a magazine for older people, rather than to rely
on publicity or word-of-mouth.19
The authors also state that print media should be
emphasized in the communications.
According to Niclas Öhman, Head of R&D at Nepa, it is a simplified explanation that
the elderly would prefer more informative and rational advertising. He states that
research rather shows that advertising with an emotional content is always preferable,
except for dominant brands. Rational advertising seems to work better in bad economic
times, which may be applied to the elderly who up until recently have not been very
financially strong. However, the emotional advertising always works better, regardless of
the financial situation.
17 Shavitt S., Lowrey, P., Haefner, J., 1998. Public Attitudes Towards Advertising: More Favorable Than You Might
Think. Journal of Advertising Research. (Jul-Aug, 1998) pp. 8-22.
18 Drolet P., Williams A., 2005. Age-Related Differences in Responses to Emotional Advertisements. Journal of
Consumer Research. Vol.32, No. 3(Dec., 2005), pp. 343-354.
19 Gilly, M. C., and Zeithaml, V A., 1985. The Elderly Consumer and Adoption of Technologies. Journal of
Consumer Research, Vol. 12, No. 3 (Dec., 1985), pp. 353-357.

21
Öhman strongly turns against the use of age as a determinant, and thinks there are
probably other underlying reasons. A note here is that demographics, although still used,
is not a preferable segmenting base, as already stated by Russel Haley back in 1968.20
Maria Soukannas (2008) found five different groups of elderly that would not be
differentiated between by the age segmentation, see Image 2.21
Image 2. Five different groups of the Grey Gold as identified by Maria Soukannas
Öhman compares it to the boiling point of water on the top of Mt. Everest, which is 69
°C, but not because of the height, but because of the lower the air pressure. The same
thing applies to age and ad impact. He rather believes it to be found in the cultural frame
of references and refers to, like many others, that few advertising campaigns have a target
group of 55+. This is mirrored in the average price of a 55+ contact that is less than the
half of what it costs to reach a 30-year-old. The 55+ segment has a totally different
cultural frame of references than the typical person working in an advertising agency.
Something that an employee at an advertisement agency might consider to be innovative,
relevant, creative and/or emotional, could probably be perceived as rather odd in the
eyes of the elderly.
To further explore the different cultural frames of references, an academic article based
on a survey conducted in a non-western country was studied. This article is investigating
the Pakistani consumer’s attitude towards TV advertising based upon consumer age and
gender. Interestingly enough this article suggests that the age groups 41 to 50 and 50+
like creativity, humour and other emotional attractions more than other age groups,
supporting F&B’s statement on creativity. It also shows that young consumers are more
interested in rational or knowledge-based appeals compared to other appeals.
In South Africa, Beneke et al. (2011) found that the mature market is indeed most in
favour of traditional media vehicles such as TV, radio and print.22
However, highly
interesting he also discovered that the general attitude towards advertising was negative,
since many individuals in the elderly segment are feeling neglected in favour of younger
consumers.
20 Haley, Russel I., 1968, Benefit Segmentation: a Decision-Oriented Research Tool, Journal of Marketing, Vol.32,
No.3 (Jul. 1968), pp. 30-35.
21 Suokannas, M., 2008. Den anonyma seniorkonsumenten identifieras. Nr 185 i Serien Ekonomi och Samhälle,
Hanken.
22 Beneke F., Frey N., Chapman R., Mashaba N., Howie T., 2011. The grey awakening: a South African
perspective. Journal of Consumer Marketing, Vol. 28 Iss: 2, pp.114 -124.
Company
SEB
Nordea Bank
Åhléns
ICA
Mio AB
Clas Ohlson
Bauhaus
Rosa Bussarna
Travellink
Apollo
Ving
Fritidsresor
Vitalab
Apoteket
BMW
Volkswagen
Senior Radical Prolonged youth Hedonism & LuxeryExperienced & Soulful

22
4.4.2 Academic view on the Grey Gold marketing
Lastly, Lars-Johan Lindqvist, professor in marketing at Hanken School of Economics in
Helsinki, was interviewed. He is specially focused on research and teaching marketing
towards elderly.
Lindqvist finds it curious that the marketers are not more interested in the elderly since,
as mentioned earlier, it is a growing segment in most markets, they are healthier and they
have a higher disposable income than thirty years ago. This is supported by for instance
Thompson and Thompson, who underline that the ageing population is a more pressing
issue for marketing in Europe than it is in the US, and that marketing must be adapted.23
The definition of elderly is unclear and varies from 50+ to 65+, but practically even as
low as 45+ despite them having both the highest disposable income and the greatest
assets in most countries. However, it is important to notice that from a marketing
perspective, cognitive age is more important than actual age. According to a research at
Uppsala University, starting at the age of 25 both men and women tend to feel younger
than their actual age.
Wägar and Lindqvist also showed in a study that for a personal service (clothing shop,
home electronics, hairdresser, bank and dentist), elderly consumers prefer to be served
by elderly staff in all cases.24
Furthermore, Lindqvist says it is shown that printed media is better than radio and TV
for elderly consumers. Also, explicit messages (e.g. “to be used with at least one window open”)
are better than indirect (e.g. “to be used in a ventilated room”), somewhat in line with Detter’s
statement. The elderly are more irritated by distractions than younger audiences.
Lindqvist also underlines that marketing should appeal to all of our senses, but since the
senses change as we are getting older, marketing must be adapted. For example, the
eyesight often gets poorer and requires larger fonts, better lighting and other colouring.
Hearing gets more difficult and taste is weaker so that the tastes must be clearly
described to be possible to be experienced. Both the products and the corresponding
marketing must be adapted.
He thinks that the people working in marketing make it easy for themselves; since the
decision makers are 20-49 years old and they do not care what the elderly think and want.
“Maybe you could even say that the elderly (45+) is the most discriminated group in our society?”
Lindqvist finishes.
23 Thomson, Nicholas J., Thompson, Keith E., (2009): Can marketing practice keep up with Europe´s ageing
population, European Journal of Marketing, vol 43 No. 11/12, ss 1281-1288.
24 Wägar, Karolina, Lindqvist Lars-Johan, (2010):”The role of the customer contact person´s age in service encounters”,
The Journal of Services Marketing, vol 24, no 7 pp. 509 -517.

23
4.4.3 Attitude in society towards the Grey Gold
Just recently, the Swedish parliament changed the discrimination legislation to include
age as a ground for discrimination. This was done mainly to counteract the
discrimination taking place in the job market against the elderly. There is also a common
view in society is that there is a general negative attitude towards the elderly and aging –
coined as ageism by Robert Neil Butler in 1969.25
However, when investigated by the
Swedish SOM Institute in 2003, no negative attitudes towards the elderly were found
within the Swedish society.26
25 Butler R. N., 1969. The effects of medical and health progress on the social and economic aspects of the
life cycle. Industrial Gerontology 2:1-9.
26 Holmberg et al (2003). Äldre i samhället. SOM-Institutet vid Göteborgs universitet.
Sveriges
Mästerkock
Target (TRP avgW)
A3+ 8,39 10,65 19,85 8,61
A60+ 16,96 13,64 23,33 7,91
society.
coherent view.
of references.
the industry.
people.

24
5. Solutions
Based on the data collection, TV4 apparently faces two major challenges. The first
challenge, as the channel is strong among the Grey Golds, is to put the segment on the
agenda and make the advertisers realize its potential. Secondly, since the advertisers get
the 59+ for free, TV4 must find a way to charge the advertisers targeting the segment. It
is especially important for TV4 to start charging advertisers for the Grey Gold if they
would be successfully put on the agenda. TV4 faces the choice of either waiting for the
advertisers to start targeting the segment, or driving the market themselves. By driving
the market TV4 could first make the advertisers target the segment, and then start
monetizing on it. This is especially important since the window of opportunity is now,
considering the technological development and consumer power of the current
generation of people going into retirement.
According to Storbacka and Nenonen, a market actor wanting to influence the market
should be considered as a focal actor. Such an actor should go through something called
market scripting – activities that intend to alter the current market configuration – aiming
at aligning the other actors’ business models to support the ones of the focal actor.27
Also, Jaworski et al stress the influence a market actor could have in shaping the
market.28
Taking the market structure and market behaviour as given means being market
driven. On the other hand, driving markets is a proactive approach seeking to influence
the structure or behaviour of a market in favour of one’s own position.
TV4 is already capable of promoting the Grey Gold towards different stakeholders and
has the appropriate material to do so. Therefore, when proposing solutions, such a
solution were excluded. Instead, the solutions provided are strategic moves that will put
the Grey Gold on the agenda and enable TV4 to charge the advertisers for targeting this
segment.
5.1 Start a new TV channel
The first solution to the challenge of making advertisers pay for targeting the elderly and
putting the segment on the agenda, would be to start a new channel. Thereby, the
established payment structure could be changed (i.e. to include the Grey Gold). Also, a
new channel would create new slots for commercials, which would allow TV4 to harvest
the surplus of companies wanting to buy commercials. Starting a new channel could be a
good way to safely try out a new pricing strategy. Instead of changing the pricing
structure for all channels at once, a new channel targeted towards the Grey Gold could
be used as a guinea-pig to assess the viability of a new pricing structure.
27
Storbacka, K. & Nenonen, S. 2011, "Markets as configurations", European Journal of Marketing, vol. 45,
no. 1, pp. 241-258.
28
Jaworski et al. (2000) Market Driven Versus Driving Markets. Journal of the Academy of Marketing Science;
Vol. 28 (January): 45-54.

25
By creating and buying content targeted towards the Grey Gold, TV4 will also be able to
attract and retain viewers from other channels whereby the base of viewers would be
expanded.
5.1.1 Opportunity
Currently there is no TV channel in Sweden that exclusively targets the elderly viewers.
TV4 is however already the market leader together with SVT1 in this segment. Since
SVT is not commercial, that makes TV4 the leading commercial channel. However,
regarding the advertisement revenue, TV4 only offers target groups based on gender and
in age groups 12-59 to its advertisers.
As previously shown, the elderly is the only age group that is growing, they are the most
affluent and they have a lot of time to spend. Also, they are the group of regular TV
viewers that are increasing most.
Television viewing increases after the age of 50. Physical limitations related to higher age
help to explain why, according to several studies. Older people experiencing problems
with seeing or hearing (at least 20 per cent of people over 65) find television easier to
deal with, since it provides both verbal and visual information. Thus, they may turn to it
when sensory loss begins to discourage the use of radio and/or print.29
Yet the members of this group tend to feel ignored by TV; as many as 70 per cent of the
65+ in the UK feel ignored by program makers30
. Both the presenters and interviewees
are increasingly young and are failing to represent the view of the elderly and to portray
them correctly. Instead they feel TV is “dumbing down”; younger and better looks, but
less knowledgeable.
An American study by Gerbner of TV programs in the early 90s showed that even if the
elderly is the fastest growing age group, in TV they “seem to be vanishing instead of increasing
as in real life.”31
Despite Americans 60+ comprised more than 17 per cent of the
population, they only accounted for 5.4 per cent of all TV primetime characters and 4
per cent of the casts for daytime serials. Yet, this group are highly important viewers: the
average age of a Fox News viewer is 65 years; for Fox it is 44 years. Ten years ago, the
average age of Fox viewers was only 35 years.32
In 2009 in Sweden, the 60+ made up 37 per cent of all TV viewing; in 2000 it was only
30 per cent. TV4 reaches 50 per cent of the people aged 60+ in Sweden every day, and
every week approximately 80 per cent are reached.
29 CML (2012). Retrieved 2013-05-16 from http://www.medialit.org/reading-room/studies-analyze-
elderly-use-television.
30 BBC News (2002). Retrieved 2013-05-20 from http://news.bbc.co.uk/2/hi/entertainment/1880391.stm
31 Leading Age (2012). Retrieved 2013-05-20 from
http://www.aging.org/i4a/pages/index.cfm?pageid=1871.
32 Gawker (2010). Retrieved 2013-05-19 from http://gawker.com/5610255/confirmed-only-old-people-
watch-tv.

26
5.1.2 Preferences
In order to successfully create a new TV channel targeting the elderly, it is important to
take into consideration their special preferences. This includes older presenters and
interviewees to correctly represent viewers of a more mature age. It also means taking
into account the fact that values and preferences are set in the age 20-25, so references
must be adapted to that.
5.1.3 Viability
TV4 continuously updates its range of channels, adding and removing different options.
For example, TV4 Sport Xtra and TV4 Fakta XL are new while TV4 News and TV4
Science were recently cancelled. Therefore, it is highly viable to start a new channel. TV2
in Denmark started the TV channel Charlie, specifically targeting the Grey Gold since
there was no channel doing that. It is a pay channel and a huge success in terms of reach
and popularity. Advertisers pay to reach the segment, both at TV2 and Charlie, although
the reactions from advertisers have so far been mixed.33
Given the similar culture and
population in Sweden, such a channel would most likely also be a success here. Utilizing
the first mover advantage may be essential, though.
When starting a new channel it is important to evaluate the investment costs and the
financial risks. It is indeed true that it would be expensive to start a new channel, but it is
important to notice that TV4 are starting new channels almost every year. The fact that
there are more companies that want to buy commercials than there are spots for
commercials makes it important for TV4 to create new channels and new commercial
spots. If a new channel is going to be created it might as well be a channel that is
targeting the Grey Gold. By doing so, TV4 could solve two challenges at once: both
creating new commercials spots (decreasing the supply/demand imbalance) and starting
to evaluate a new way to monetize the Grey Gold.
5.2 New pricing model
5.2.1 External analysis of adapting the pricing structure
The next proposed solution is to create a new pricing model across all channels by selling
segments aged for example 12-69 or 12-79.
The direct aim is to charge advertisers for a segment they otherwise get for free. The
indirect aim is to strategically drive the market in a direction favourable for TV4. By
changing the pricing structure TV4 clearly signals the importance of the segment by
putting it on the agenda. Leveraging the market leadership, a strategic change by TV4 will
also impact other actors to reconsider their business models as well.
In order to evaluate the plausibility, Porter’s Five Forces have been used. However, in this
case, the strategic impact is mainly concentrated to advertisers and competition (such as
MTG, SBS). The remaining three forces have therefore been excluded.
33 Hilma, Irina. TV2 Denmark. Email interview 2013-05-24.

27
TV4 is the clear market leader in Swedish commercial TV industry, with the ability to
reach 99 per cent of the Swedish population. This implies a strong bargaining power
towards advertisers. Advertisers cannot use SVT because there are no commercials on
their channels, and no other commercial media channel has such as high reach as TV4.
Kanal 5 have the ability to reach 87 per cent, Internet 88 per cent and the daily printed
media 65 per cent of the Swedish population.34
Also, the numbers for Kanal 5 are even
lower for the Grey Gold segment, making the relative reach of TV4 even higher.
Therefore, despite being forced to pay, advertisers still must to use TV4 because it clearly
is the best way to reach the Grey Gold. The attractiveness of TV4 to advertisers is shown
by demand exceeding supply for advertising spots, implying that prices can be raised.
Altogether, the advertisers are dependent on TV4 because of its vast reach and the lack
of alternatives. Taken together, this puts TV4 in a position where it can dictate prices on
its own terms. Furthermore, advertisers (e.g. Senior Agency) are well aware that the Grey
Gold is currently under-priced.
Looking at competitors’ power, statistics reveal that TV4 is the only commercial TV
channel that attracts viewers of all ages. Among TV-viewers aged 60 to 99, the market
share of 20% for TV4 is significantly higher than for any other commercial channel: TV3
has 5 per cent and Kanal 5 has 3 per cent.35
The market leader SVT is not a commercial
channel and therefore not an alternative for advertisers and hence no competitor.
Therefore, the threat of competitors is relatively low when it comes to advertising
targeting the Grey Gold. TV4 is uncontested as the best-reach commercial media
channel.
To conclude, advertisers have a low bargaining power being dependent on TV4 and
competitors constitute a low threat since they have a low reach in this particular group.
5.2.2 Internal analysis of adapting the pricing model
Internally, the TRP (Target Rating Point) and CPP (Cost Per Point) are the main
determinants of price. Naturally, if changing the pricing strategy, this system may have to
be adjusted as well. As shown by statistics provided by TV4, the segment A60+ usually
has higher TRP ratings than other segments. For example “Så mycket bättre”, one of TV4’s
most popular shows, has a TRP of 19.84 for A12-59 and a TRP of 23.22 for A60+
(Figure 1).
Figure 1. TRP values for some of TV4’s most popular shows
35 TV4 Gruppen, 2010. 60+ Hur tittar de på TV4?
Sveriges
Mästerkock
Target (TRP avgW)
A3+ 8,39 10,65 19,85 8,61
A60+ 16,96 13,64 23,33 7,91
society.
coherent view.
of references.
the industry.
people.

28
Higher per-show TRP value means that TV4 can broadcast fewer commercials, and still
reach the customer’s desired total TRP value (such as for instance TRP 200 for a whole
week). Simply put, the group A60+ can be considered easier to reach than other
segments. Therefore the corresponding CPP value should be relatively low. According to
Hemmingson, the only factor TV4 looks at when determining the price of a segment is
“how easy they are to deliver to the customer”. Since the A60+ is the group that watches
TV4 the most, they should have the lowest CPP price of all the segments.
To conclude, the combination of being easy to reach and a low CPP price makes the
A60+ (the Grey Gold) an attractive segment to buy – even if advertisers would have to
pay, the price would be relatively low.
5.2.3 Co-ordinated advertising in TV4 and TV4 Play
By co-ordinating the advertising in TV4 and in TV4 Play, it is possible not only to deliver
greater value to advertisers, but also to more precisely target the appropriate audience.
The consumption and reach of on-line TV is increasing, and TV4 play has a total of 7
million visits each month.
TV4 Play is currently split into two parts, Free and Premium, covering a broad range of
customers. To better customize ads towards a specific target group, viewers’ behaviour
and preferences should be tracked and analysed. The current media agencies that buy
commercials on TV4 Play have no possibility to take part of how many ads a person has
viewed. Therefore, it is important to start tracking the viewers’ behavioural patterns. This
could be achieved by making viewers log in, allowing TV4 to collect more user data,
thereby enabling TV4 Play to have more precise targeting and more interactive
advertising. Otherwise, simply having a panel of viewers (like the MMS system), could
provide advertisers with the relevant data.
As stated in the TV4 Play – Implications of a login wall, the fact that people trust TV4 would
make them more prone to create an account on TV4 Play.36
Although the advertisers are
not willing to pay for the Grey Gold now, there is an opportunity to introduce an offer
adapted both for regular broadcasting and streaming channels where user data adds value
to the advertiser. Moreover, increased knowledge about the viewers would also benefit
TV4. It is also a powerful tool to monitor market trends. Such data could also provide
pre-requisites for the third proposed solution, namely action based segmentation.
5.3 Action based segmentation
This solution is based on charging the advertisers for targeting the Grey Gold without
letting them know that they are paying for it. By changing the segmentation base from
age and gender to action, this could be a way to both indirectly charge for all ages, and to
36 Streman. et al. (2012). TV4 Play - Implications of a login wall. Stockholm School of Economics, Media
Management.

29
better align TV4’s offers to the methods used by advertising agencies. In other words,
TV4 would make advertisers pay for the Grey Gold without directly noticing it, and
facilitate the purchasing process for the advertisers at the same time. Moreover,
advertisers can reach a more precise and relevant segment, increasing the advertising
efficiency. In short, this is a win-win solution for all parties.
5.3.1 Why change the segmentation base?
Different researchers define segmentation in different ways, but one of the most
frequently used definitions was coined by prominent marketing professor David Jobber:
“The identification of individuals or organizations with similar characteristics that have significant
implications for the determination of marketing strategy.”37
How you identify these similar
characteristics has evolved since around the 1920’s, starting off with profile segmentation
based on demographic and geographic variables. However, marketers found that people
sharing the exact same demographic and geographic variables could have completely
different consumption habits and values. This is evident when you compare for example
Swedish pop-historian and Herman Lindqvist and Keith Richards, rock-history and
founder of The Rolling Stones. Arguably, their only common denominator is being men
born in 1943. It is highly unlikely that an advertiser targeting Herman Lindqvist would
like to target Keith Richards with the same campaign, see Image 3.
Image 3. Illustrating the blindness of age and gender as bases for segmentation
Therefore, new means of segmentation were developed based on psychographic
characteristics. This development was accelerated by marketing researchers and especially
the influential article “Benefit Segmentation: A Decision-Oriented Research Tool” by Russel
Haley, arguing for segmentation based on the differences in specific benefits that
different groups of consumers look for in a product.38
Later this developed into what is
today called action segmentation, which is based on benefits sought, usage, purchase
occasion, behaviour etcetera, as seen in Figure 2.
37 Jobber, D. (2004). Principles and Practices of Marketing. McGraw-Hill Higher Education.
38 Haley, Russel I., 1968, Benefit Segmentation: a Decision-Oriented Research Tool, Journal of Marketing, Vol.32,
No.3 (Jul. 1968), pp. 30-35.
Why action segmentation?
Accurate targeting | Commonly used | MMS Compatible | Better viewer understanding
Agenda | The Challenge | The Assignment | Data | Solutions | Conclusion
Herman Lindqvist, pop-historian Keith Richards, rock-history

30
Figure 2. From profile segmentation to action segmentation
As of today, TV commercials bought based on the age and gender of the viewer poses
two major issues. First, as argued above, a lot has happened in the field of research since
the 1920’s. Profile segmentation still serves a purpose in finding the consumers, but
segmenting on demographic and geographic variables alone is not precise enough,
missing out on some potential consumers and reaching some unwanted customers.
Secondly, as a result of the development in marketing, most advertisers segment their
market based on benefits sought and consumer behaviour rather than profile. Therefore,
when buying TV commercials, many companies must adjust their target segment into the
profile segmentation frame, resulting in extra work and inaccuracy in reaching the
intended consumers.39
By changing the segmentation base, TV4 will be able to properly
charge for their whole audience.
5.3.2 The prerequisites are already in place
The MMS system serves as the analytical tool for measuring TV viewership, and thus it is
the base for the pricing of the TV commercials. The system does not only collect
information about age and gender of the viewer (which TV4 uses as their segmentation
base), but also a lot of other background information on the individual viewer. This
means that the tool which could be used to base the segmentation on other variables
than age and gender is already in place. If there is a need for it, it would certainly be
possible to add extra variables.
Since this is not only a change that TV4 would benefit from, it could definitely be done
in cooperation with the advertisers by showing them that it would improve their accuracy
and reach. Not to be forgotten, this would also serve as an opportunity for TV4 to better
understand their viewers and serve as support for everything from strategy decisions to
program purchasing. A good example of such as change can be seen in SVT, who some
years ago successfully changed the segmentation base to a value-based model in order to
better understand their viewers.
39 Grabe, Emily. Emily Grabe Consulting AB. Telephone interview 2013-05-10.
Charge the advertisers for targeting the elderly, by not
charging them for targeting the elderly.
Proﬁle segmentation Action segmentation
- Demographics
- Geographic
- Socioeconomic
- Beneﬁts sought
- Purchase occasion
- Purchase behavior
- Usage
- Perceptions and beliefs
Agenda | The Challenge | The Assignment | Data | Solutions | Conclusion

31
6. Conclusion
The aim of this report was to explore why advertisers do not think it is worth to direct their marketing to
the Grey Gold group.
First, it is partly a misconception. Although there are some companies targeting the
Grey Gold, they are not many. However, commercials targeting the Grey Gold might
not be easy to distinguish since they may use younger models (to sell the image of
youth), or that they appear to have a very general targeting. Also, since TV4 does not
sell the segment it is hard to tell which segment(s) the advertisers actually target as they
are aware they get the Grey Gold as bonus contacts.
Furthermore, for many companies it is not the primary target group, and therefore
they do not use TV medium to reach them as it is regarded expensive. Perceived
challenges with having the Grey Gold as a primary target group include their lower
lifetime value and the fact that they are considered more experienced and harder to
persuade unless the offer is well-suited, even though 58 per cent are willing to test
new brands.40
Communications, audiences and target groups are often simplified as "every 20-49 years", largely
because the people working in the marketing departments as well as in the media
agencies are mostly very young, averaging 34 years. Despite knowing that the Grey Gold
is a profitable segment, they tend to focus on younger segments closer to their own age.
Also, it is more difficult to understand the advertising preferences of an age group
different from you own.
Industries in line to develop products or services with the Grey Gold as audience are technology,
travelling, housing, food, glasses/aids, banking and healthcare. These sectors have
in common that they provide extra convenience or everyday luxury to the segment, by
having special offers. Special offers may be easy-to-use mobile phones, healthy food that
is conveniently packaged or trips that are adapted to the preferences and needs of the
more mature travellers.

32
7. References
7.1 Articles
Beneke F., Frey N., Chapman R., Mashaba N., Howie T., 2011. The grey awakening: a South
African perspective. Journal of Consumer Marketing, Vol. 28 Iss: 2, pp.114 - 124.
Butler R. N., 1969. The effects of medical and health progress on the social and
economic aspects of the life cycle. Industrial Gerontology 2:1-9.
Drolet P., Williams A., 2005. Age-Related Differences in Responses to Emotional Advertisements.
Journal of Consumer Research. Vol.32, No. 3(Dec., 2005), pp. 343-354.
Gilly, M. C., and Zeithaml, V A., 1985. The Elderly Consumer and Adoption of Technologies.
Journal of Consumer Research, Vol. 12, No. 3 (Dec., 1985), pp. 353-357.
Haley, Russel I., 1968, Benefit Segmentation: a Decision-Oriented Research Tool, Journal of
Marketing, Vol.32, No.3 (Jul. 1968), pp. 30-35.
Jaworski et al. (2000) Market Driven Versus Driving Markets. Journal of the Academy of
Marketing Science; Vol. 28 (January): 45-54.
Shavitt S., Lowrey, P., Haefner, J., 1998. Public Attitudes Towards Advertising: More Favorable
Than You Might Think. Journal of Advertising Research. (Jul-Aug, 1998) pp. 8-22.
Storbacka, K. & Nenonen, S. 2011, "Markets as configurations", European Journal of
Marketing, vol. 45, no. 1, pp. 241-258.
Suokannas, M., 2008. Den Anonyma Seniorkonsumenten Identifieras. Nr 185 i Serien Ekonomi
och Samhälle, Hanken.
Thomson, Nicholas J., Thompson, Keith E., (2009): Can marketing practice keep up with
Europe´s ageing population, European Journal of Marketing, vol 43 No. 11/12, pp. 1281-
1288.
Wägar, Karolina, Lindqvist Lars-Johan, (2010):”The role of the customer contact person´s age in
service encounters”, The Journal of Services Marketing. Vol 24, no 7 pp. 509 -517.

33
7.2 Books
Jobber, D. (2004). Principles and Practices of Marketing. McGraw-Hill Higher Education.
7.3 Electronic resources
BBC News (2002). Retrieved 2013-05-20 from
http://news.bbc.co.uk/2/hi/entertainment/1880391.stm
CIA (2013). World Factbook. Retrieved 2013-05-15 from
https://www.cia.gov/library/publications/the-world-factbook/
CML (2012). Retrieved 2013-05-16 from
http://www.medialit.org/reading-room/studies-analyze-elderly-use-television
Dalarnas Tidning (2013). Retreived 2013-05-25 from:
http://www.dt.se/nyheter/borlange/1.5467450-har-ar-kommunens-nya-lyxiga-
aldreboende
Gawker (2010). Retrieved 2013-05-19 from
http://gawker.com/5610255/confirmed-only-old-people-watch-tv
Guardian (2013). Retrieved 2013-05-20 from
http://www.guardian.co.uk/tv-and-radio/tvandradioblog/2013/apr/15/off-their-
rockers-older-people-jokes
Leading Age (2012). Retrieved 2013-05-20 from
http://www.aging.org/i4a/pages/index.cfm?pageid=1871
Lönestatistik (2013). Retrieved 2013-05-15 from
http://www.lonestatistik.se/loner.asp/yrke/Marknadsforare-1081
SCB (2013). The future population of Sweden 2013−2060. Retrieved 2013-04-17.
http://www.scb.se/Pages/PublishingCalendarViewInfo____259924.aspx?publobjid=19
262
SCB (2013). Från folkbrist till en åldrande befolkning. Retrieved 2013-05-20 from
http://www.scb.se/pages/publishingcalendarviewinfo____259923.aspx?publobjid=2015
SCB (2004). De äldres ekonomiska välfärd. Retrieved 2013-05-20 from
http://www.scb.se/Pages/PublishingCalendarViewInfo____259923.aspx?PublObjId=2
496
Silver Life (2013). Retrieved 2013-05-20 from http://www.silverlife.se/
Svenska Dagbladet (2013), Youtube större än tv bland unga vuxna. Retrieved 2013-05-25
from http://www.svd.se/naringsliv/digitalt/youtube-storre-an-tv-bland-unga-
vuxna_8137840.svd

34
Yahoo Finance (2013). Retrieved 2013-05-15 from
http://biz.yahoo.com/ic/14/14326.html
7.4 Interviews
Anonymous, Forsman & Bodenfors. Telephone interview 2013-04-19.
Bacoccoli, Thomas. MTG. Telephone interview 2013-04-26.
Bjurström, Rasmus. OMD. Telephone interview 2013-04-17.
Dalen, Claes. Alexander White. Telephone interview 2013-04-12.
Detter, Thorbjörn. Senior agency. Telephone interview 2013-04-26.
Ericsson, Anders. Sveriges Annonsörer. Telephone interview 2013-04-26.
Grabe, Emily. Emily Grabe Consulting AB. Telephone interview 2013-05-10.
Hemmingsson, Carl. TV4. Interview 2013-04-17. TV4 Headquarter, Stockholm.
Hilma, Irina. TV2 Denmark. Email interview 2013-05-24.
Lindqvist, Lars-Johan. Hanken School of Economics. Email interview 2013-05-10.
Lundqvist, Britta. SEB. Interview 2013-05-02.
Petersson, Ola. Volkswagen. Telephone interview 2013-03-26.
Pellvik, Claes. Ving. Telephone interview 2013-04-12.
Runestad, Jon. TV4. Interview 2013-03-27. TV4 Headquarter, Stockholm.
Swanström, Marie (2013). TV4. Interview 2013-03.27. TV4 Headquarter, Stockholm.
Sweijer, Hanna. Com Hem. Telephone interview 2013-04-15.
7.5 Reports
Holmberg et al (2003). Äldre i samhället. SOM-Institutet vid Göteborgs universitet.
Nielsen & Boomagers Agency (2012). Introducing boomers: marketing’s most valuable generation.
Streman. et al. (2012). TV4 Play - Implications of a login wall. Stockholm School of
Economics, Media Management.
TV4 Gruppen, 2010. 60+ Hur tittar de på TV4?
TV4 Gruppen, 2012. TV Skola.
TV4 Gruppen, 2013. Silverrävarna.
TV4 Gruppen, 2013. The Grey Gold assignment.

35
Appendix 1 – Interviewees
Company Contact Position
TV4 Carl Hemmingsson SVP Sales
TV4 Jon Runestad Research Analyst
TV4 Marie Swanström Marketing Analyst
Volkswagen Ola Petersson Head of Marketing
SEB Britta Lundqvist Deputy Head of Marketing
MTG Thomas Bacoccoli Sales Director
Sveriges Annonsörer Anders Ericsson CEO
Com Hem Hanna Sweijer Research Analyst
Hanken School of Economics Lars-Johan Lindqvist Professor, Dean
OMD Rasmus Bjurström Chief Digital Ofﬁcer
Senior agency Thorbjörn Detter CEO, CO-Owner
Forsman & Bodenfors Anonymous Copywriter
Alexander White Claes Dalen Marketing Director
Ving Claes Pellvik Marketing Manager
Emily Grabe Consulting AB Emily Grabe CEO
Nepa Niclas Öhman Head of R&D Department
TV2 Denmark (Charlie) Irina Hilma Research Department

36
Appendix 2 - Statistics
Figure 3. Average age of the Swedish population 1968-201241
.
Figure 4. Population chart of the Swedish population in 201342
Figure 5. Diagram of the average minutes watching TV daily43
41
SCB (2013), Sveriges framtida befolkning 2013-2060, BE 18 SM 1301.
42
CIA (2013). World Factbook. Retrieved 2013-05-15 from
https://www.cia.gov/library/publications/the-world-factbook/.
43
Runestad, J. (2013). TV4. Email contact.

37
Appendix 3 – List of recommended companies
Company
SEB
Nordea Bank
Åhléns
ICA
Mio AB
Clas Ohlson
Bauhaus
Rosa Bussarna
Travellink
Apollo
Ving
Fritidsresor
Vitalab
Apoteket
BMW
Volkswagen
Senior Radical Prolonged youth Hedonism & LuxeryExperienced & Soulful

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