Senior Care in the U.S.: Reaching & Engaging A Growing Market (WHITE PAPER)
Few categories within healthcare are experiencing the combination of explosive growth and transformational change than in senior care. In this white paper we define the vertical by the numbers, talk about key trends that are shaping it, and close with thoughts on some of the challenges and opportunities around marketing to this increasingly-important demographic.
I. The Evolving Landscape of Senior Care
Between 2010 and 2020, the number of U.S. adults 60+ grew from 57.5 million to 76.5 million, an increase of 33% (Source: National Association For Home Care & Hospice). Those numbers continue to climb as the youngest baby boomers have now reached the age of 60, with their Generation X counterparts following behind them. There are also a multitude of forces influencing the future of senior care, including:
An increasing number of seniors who wish to age-in-place in their homes; an estimated 77% of adults over 50 feel this way (Source: AARP).
By 2036, the U.S. may feel a physician shortage as high as 86,000 physicians (Source: Association of American Medical Colleges).
An overall trend toward having a greater focus on health and wellness; in 2024, 58% of U.S. consumers said they were more focused on healthy living than the year before, including seniors.
The rise of technology and AI applications in healthcare, which are reinventing patient intake processes, and represent promise to enhance healthcare and clinician time to be more efficient in the future.
Put these factors together, and there is clearly a growing demand for efficient, high-quality, and personalized care models focused on the senior care space.
II. Key Trends Shaping the Future of Senior Care
Aging in Place & Home Healthcare:
There is a clear benefit for wanting to age-in-place from the perspective of the senior. There is an equally compelling, pragmatic argument for it as well, given the growing scarcity of healthcare services as demand is exceeding supply. This has raised demand and awareness for a variety of private home-based healthcare options that provide in-home support, as well as state-run PACE (Program of All-inclusive Care for the Elderly) programs that provide similar services to those who financially qualify. Aside from allowing the senior to age in the home and away from assisted living, many of these services are also designed to perform healthcare tasks at home that may historically have taken place in a medical facility or hospital. This can be even more beneficial for patients in rural areas underserved by the existing healthcare system.
As referenced above, technology is increasingly playing a key role in managing healthcare for this growing demographic, through innovations that include remote monitoring, telehealth, virtual care, and assistive devices that can range from physical robots (improving patient safety and ability to perform daily tasks) to wearables (fitness trackers, fall detectors) customized for a specific health need. While not a replacement for healthcare services, they can serve as complementary to existing medical care, as well as provide valuable data to clinicians to make onsite appointments more efficient. Safety is also a key component to many technology services, providing peace of mind to the patient and patient families.
The Rise of Specialized Care Models:
Specialized care models cater to specific needs and conditions, and have become increasingly relevant in senior care. This includes memory care units for individuals with dementia, palliative care for those with serious illnesses, and hospice care for those nearing the end of life. These models focus on providing specialized support, personalized care plans, and a safe and supportive environment tailored to the unique needs of each individual.
While aging in place may be the goal for the majority, as the number of seniors in the U.S. grows, assisted living facilities are are also becoming increasingly important in providing housing and care options for a population that requires additional support. Assisted living bridges the gap between independent living and nursing homes, providing personalized care plans, social engagement, and direct access to a broader range of healthcare services onsite. With the aging population, the demand for assisted living is expected to rise, making it a crucial component of the senior care landscape.
The Increasing Role Of Artificial Intelligence (AI):
As AI continues to be a disruptor in virtually all walks of life, its impact has arguably been slowed in healthcare due to regulations around patient privacy, HIPAA, etc. AI language models have been limited in use within healthcare due to sensitive patient data, and depending upon the application, may need to be part of a closed network to limit dissemination of patient-related inputs. Regardless, AI has become a key part of better operationalizing the industry, helping to streamline patient forms, intake, and when executed properly, allowing clinicians to spend more time with patients while not exacerbating existing inefficiencies with data input.
III. Senior-Specific Marketing Challenges / Opportunities
Building Trust
Seniors are more likely to be distrustful of digital pitches, putting more of their faith into traditional advertising. A December 2023 survey revealed that only 35% of consumers 60+ found content created by social media influencers more compelling than scripted advertising, indicating a preference for traditional ad formats (Source: Statista). However, this does not mean that digital vehicles are ineffective or underutilized by the demographic. 88% of those aged 55+ used YouTube on a weekly basis, according to a 2022 study (Source: Creating Results). In addition to YouTube, direct response TV opportunities like Amazon Fire TV can be effective, as well as CTV (Connected TV) ad formats.
Finding The Right Message
More often than not, seniors are overlooked in traditional marketing campaigns in favor of younger cohorts, despite the collective purchasing power of the group. And when they are the target of a campaign, messaging can include images that are either of people younger than 60, or depict them in unrealistic scenarios that aren’t relatable to most seniors. Like with any other cohort it’s important to connect with the demographic in an authentic and meaningful way.
Tapping Into The Collective Wealth Of Seniors
While many seniors may live on a limited fixed income with little wiggle room for ancillary purchases, that is collectively not the case for the overall demographic. Baby boomers control over 50% of all the wealth in the United States, with a total net worth of close to $70 trillion (Source: SheerID), a staggering number relative to the rest of the population. By 2030, seniors are projected to spend just under $15 trillion, up from $8.7 trillion in 2020 (Source: Brookings Institution). Marketers would be wise to consider the spending power of a demographic that is typically free of the day-to-day spending habits of those still raising children under 18.
A Bifurcated Audience
Particularly for those 70+, many purchasing decisions may be influenced (if not primarily decided by) the children of those in the age group. This can make targeting seniors in the older portion of the demographic very challenging, as messaging may need to appeal to both the senior and/or a Generation X or Baby Boomer child who has become the primary caretaker. To manage this dynamic, many successful marketers will take both age groups into consideration when crafting messaging, or even separate into two campaigns to address the needs and desires of both audiences individually.
In conclusion, as the number of seniors in the U.S. continues to grow, so do their individual needs, and the challenges in trying to reach them in an increasingly fragmented environment. Those who are successful must navigate these challenges in an authentic and intentional way, amidst transformational changes in the services the population requires.
ADDITIONAL RESOURCES
The Power of PACE, And Aging In Place (Traktion Talks Podcast)