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A new report from Internet market research firm eMarketer suggests that the old birthday saying is true: you're not getting older, you're getting wiser. And that means as aging Baby Boomers start to retire and become our new generation of Elders, they are bringing their computer-savvy, Web-surfing ways into retirement - and spawning a new, emerging gray market of Internet users.

>> Aging Boomers Create New Online Market: According to eMarketer, the "current generation of adults over 65 hasn't fully adopted Internet use" because, to a large degree, "many had retired before online access became common in the workplace." But eMarketer predicts that "the next generation of seniors will be very different," as "there are powerful differences in Internet usage between today's older Americans and the current senior population." As such, it counsels, "if you think today's senior online population has lesser appeal to marketers, you're right." But "if you think tomorrow's seniors won't be of consequence, either, you're wrong." eMarketer observes that "until recently, there was very little interest in the idea of marketing to aging Baby Boomers," the generation of "post-World War II children born between 1946 and 1964," and even though "the over-50 population is growing faster than the under-50s, and Boomers have $1 trillion in spending power, marketers have largely ignored them as a target market." ("Seniors Online: The Picture Is Changing," May 19, 2005.)

The growth of this gray market is impressive: according to US Department of Commerce figures, in 2003, 61% of those aged 50-64 used the Internet, compared to 23.9% of those over 65. By 2004, 63.2% of those 50-64 were online, and 25.8% of those over 65. And, by 2005, 65.9% of those aged 50-64 and 27.7% of those over 65 were surfing the Web. By next year, 68.3% of those aged 50-64 will be online, and 30.0% of those over 65 will be. In 2007, 70.9% of those aged 50-64 will be surfing the Web, and 32.2% of those over 65% will be Googling in retirement. By 2008, while 73.7% of those aged 50-64 will be on the Internet, 34.1% of those over 65 will be doing the same.

And, according to numbers from the PEW Internet & American Life Project, back in March 2000, 54% of those aged 50-64 used computers, compared to just 20% of those over 65; and by February 2001, the gap widened - with 62% of those aged 50-64 using computers but only 17% of those over 65. In January 2002, 64% of those aged 50-64 used computers, compared to 23% of those over 65; and in December 2002, 66% of those aged 50-64 used computers, compared to 28% of those over 65. In August 2003, these numbers remained flat - but they started to climb again and in February 2004, 71% of those aged 50-64 used computers and 30% of those over 65. By January 2005, the percentage of those aged 50-64 using computers declined to 67% while the percentage of those over 65 using computers increased to 31%.

>> Elders - The Next Generation: With this steady climb in older Web surfers, eMarketer believes "online marketers and service providers are going to have to take notice," and while "the current generation of adults over 65 hasn't fully adopted Internet use," eMarketer believes that the "next generation of seniors will be very different." That's because "there are powerful differences in Internet usage between today's older Americans and the current senior population," as this year "there are 33.2 million people online in the US between the ages of 50 and 64 - triple the number of 65+ online users." But because "for many Baby Boomers, the Internet is an essential part of life," eMarketer expects that "as Boomers age, they will force change upon the companies that do business online - just as they have changed other industries at earlier stages of their lives." That means "financial services, health care and real estate are just a few of the categories that will undergo massive change as Boomers demand online access to information."

Today, eMarketer explains, "seniors are a cautious bunch online," but "the next generation of seniors is not" as they "use the Internet at home and at work, and they will carry those usage patterns over into the next phase of their lives." In February 2004, eMarketer notes, Pew found "that access to the Internet drops dramatically after age 68," with 62% of those aged 50-58 having Web access, compared to 46% of those aged 59-68, and 17% of those over 69. eMarketer believes that while a "simple reason for the difference in Internet usage between the two groups is in having access," that a "more complex reason lies in the differences in psyche among Boomers and the generation before them." As it explains, "while it's difficult to generalize an entire generation, Boomers are often thought of as more adventurous and willing to explore new territory," and "using the Internet is an extension of that quest."