Locker Room Advertising

American Demographics, Dec 1, 2002 by Pamela Paul

Byline: PAMELA PAUL

Americans may tend to be overweight and underactive, but gyms are still big business. Memberships at health clubs have increased by 95 percent during the past 14 years, generating more than $12.2 billion annually. The gyms themselves have proliferated too, with nearly 18,000 across the country today. A total of 58 million patrons - members as well as nonmembers - visited health clubs in this country in 2001. As the industry has grown, the type of people who step into the gym has also changed dramatically: Once stereotyped as a haven for twenty-something gym bunnies and bodybuilders, health clubs are now attracting a wider demographic spectrum.

Americans age 55 and older, for example, account for 17 percent (5.6 million) of the total gym-membership population today, compared with 9 percent (1.5 million) in 1987. The number of women belonging to gyms has risen by 94 percent since 1987, to 17.6 million, while male membership has grown by 95 percent, to 16.1 million, during the same period, according to the International Health, Racquet and Sportsclub Association (IHRSA), an industry trade association based in Boston.

"There are a wide variety of demographic groups in gyms these days," says Greg Sonzogni, director of sales at Lakewood, Colo.-based Promote It International, a company that creates in-gym sampling programs for marketers. "Not everyone is trying to target a 25-year-old bodybuilder."

But just about everyone is trying to target somebody at the gym. As the demographics of gymgoers have shifted, businesses have been making a concerted effort not only to market "in-venue" but also to tailor their messages to specific demographic groups. For instance, Promote It International designed a campaign for Nature Made supplements in April 2002 that targeted active seniors, 45 and older. The effort involved distributing sample bags of nutritional supplements at senior tennis tournaments in the Los Angeles area and at gyms selected for their high percentage of senior members and programs. "People in the industry are recognizing the competitive advantages of catering to a niche," says Bill Howland, director of research at the IHRSA. "Now there are clubs trying to be the family club, the mature population club, the medical wellness club or the club for corporate fitness."

Indeed, health and fitness clubs are creating more targeted programs and even specialized facilities catering to different demographic groups. Such chains as Lucille Roberts, Curves for Women, Contours Express and Slender Lady are geared exclusively to women. Upscale gyms targeted to professionals, prominent citizens and celebrities offer expensive and exclusive services. This enables advertisers to select the medium most appropriate to their message and to target further within an already upscale base demographic. Simmons Market Research reports that 14 percent of health club members earn more than $75,000 a year. According to Bally Total Fitness, the average income of its members is $52,000, and most of them fall within the 18- to 49-year-old age bracket.

"Advertising in the gym is attractive. Not only can one access a difficult-to-reach demographic, but since people come in two or three times a week, they get multiple impressions and they're a captive audience," says Bob Giardina, CEO of New York-based Town Sports International, which operates 126 gyms in New York, Boston, Philadelphia and Washington, D.C.

What's more, the targeted audience often appreciates the message, especially when it means a free magazine, an entertaining video program or a gift-size shampoo sample. In a study conducted by the New York-based trade group Promotion Marketing Association's Product Sampling and Demonstration Council, 25 percent of gym attendees said they received an in-venue sample during the past year, and the overwhelming majority was pleased with that opportunity. Sixty-eight percent said they were excited about receiving the sample, and 71 percent of samplers went on to buy the product.

Today, advertising in health clubs takes a variety of forms. Bally, for example, offers marketers a chance to host in-club events and promotions, conduct on-site demonstrations and provide sample products. In 2001, Unilever's Dove brand held "Dove Days" at select Bally clubs, during which members received complementary group fitness classes and staff received branded apparel. Dove also aired commercials on the Bally Total Fitness Radio Network, an in-club service that debuted in November 1999. The fitness chain has run similar promotions for Sunkist citrus fruits, Kellogg's Special K and Smart Start cereals, Sprint services and Kodak Advantix Access cameras.

Sampling is also on the rise. Last May, Unilever and Bally distributed samples of a new body care product, Dove Body Refreshers, to female members as they entered the gym. Bally has allowed marketers to target its male membership through sampling programs for deodorants, magazines, sports drinks and supplements. Another program run last spring and summer for Kraft involved a promotion for a free 14-day premier membership or a $75 discount on regular membership fees at Bally's clubs; the offer was made through certificates printed on Kraft 2% Milk Cheese products. The program, targeted to active, health-conscious adults, was also publicized through a print advertising campaign in People, Shape and Reader's Digest.