Investors/readers have perhaps heard analysts and reviewers tossing around the word "demo," which is short for demographics. Network television sitcom reviewers will often speak of "a show with great demos." In addition, analysts will sometimes refer to a company with a product launch "that fits the demographic profile."
Further, while the term demo can refer to any socio-economic or age category, a great deal of Wall Street's attention, as well as Madison Avenue's and Hollywood's, for that matter, is centered on one demographic segment: adults age 18-34.
This would explain some of the seemingly curious decisions by TV networks, media outlets, and Fortune 500 companies.
Fans of Major League Baseball frequently lament the late start for the World Series and play-off games, which often start after 8:30 p.m. Eastern Time (New York time), and sometimes don't end before midnight. They cry: "Why are the games started at such a late hour, if no one can stay up to see them?"
Fans of the Oscars, the Academy of Motion Picture Arts and Sciences award show, have the same complaint, although in recent years Oscar officials have taken steps to shorten the show, and start it earlier.
And the answer to both? The adults age 18-34 demographic group. But not merely the age 18-34 demographic, specifically, the time zone with the largest pool of 18-34 adults, namely the West Coast time zone, including the critical market of California. One need not explain why show producers and advertisers aim for the largest 18-34 demographic: It generates the highest rating potential and/or pool of targeted viewers. For this preferred group, the World Series' and the Oscars' start time is perfect: its starts after 5 p.m. Pacific Time and ends before 10 p.m.
Does that mean that Major League Baseball's World Series is timed to primarily attract West Coast adults ages 18-34? Yes, and the same is true, with only a few modifications, for the Sunday night broadcast of the Oscars.
Why the emphasis, for certain companies, on the age 18-34 demo, as opposed to, say, an age 35-54 demo? Certain companies are trying to build brand awareness, appeal and loyalty, and it's critical that they reach adult consumers when they are young, and most importantly, before they've formed an attitude toward a product or service. That's because, as political analysts and marketers will confirm, once an attitude is formed, it's hard to change.
However, that's not to say that other demographic categories don't matter: they do. Older adults, particularly senior citizens, certainly vote more regularly than the age 18-34 group.
The best way to play the 18-34 demo? Among those companies dependent on attracting that adult segment, look for companies whose products score high: Toyota (NYSE: TM), Apple (NASDAQ: AAPL) and PepsiCo (NYSE: PEP) are three that are winning in the age 18-34 category. Of course, that doesn't guarantee that the three (or others) will continue to shine operationally, but attracting the demo they most seek is a step in the right direction.
Fans of Major League Baseball frequently lament the late start for the World Series and play-off games, which often start after 8:30 p.m. Eastern Time (New York time), and sometimes don't end before midnight. They cry: "Why are the games started at such a late hour, if no one can stay up to see them?"
Fans of the Oscars, the Academy of Motion Picture Arts and Sciences award show, have the same complaint, although in recent years Oscar officials have taken steps to shorten the show, and start it earlier.
And the answer to both? The adults age 18-34 demographic group. But not merely the age 18-34 demographic, specifically, the time zone with the largest pool of 18-34 adults, namely the West Coast time zone, including the critical market of California. One need not explain why show producers and advertisers aim for the largest 18-34 demographic: It generates the highest rating potential and/or pool of targeted viewers. For this preferred group, the World Series' and the Oscars' start time is perfect: its starts after 5 p.m. Pacific Time and ends before 10 p.m.
Does that mean that Major League Baseball's World Series is timed to primarily attract West Coast adults ages 18-34? Yes, and the same is true, with only a few modifications, for the Sunday night broadcast of the Oscars.
Why the emphasis, for certain companies, on the age 18-34 demo, as opposed to, say, an age 35-54 demo? Certain companies are trying to build brand awareness, appeal and loyalty, and it's critical that they reach adult consumers when they are young, and most importantly, before they've formed an attitude toward a product or service. That's because, as political analysts and marketers will confirm, once an attitude is formed, it's hard to change.
However, that's not to say that other demographic categories don't matter: they do. Older adults, particularly senior citizens, certainly vote more regularly than the age 18-34 group.
The best way to play the 18-34 demo? Among those companies dependent on attracting that adult segment, look for companies whose products score high: Toyota (NYSE: TM), Apple (NASDAQ: AAPL) and PepsiCo (NYSE: PEP) are three that are winning in the age 18-34 category. Of course, that doesn't guarantee that the three (or others) will continue to shine operationally, but attracting the demo they most seek is a step in the right direction.
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