Gen Z: A Unique Challenge

It’s back to school season and as Gen Zers head to college, marketers are realizing that they present a unique challenge. Ilyse Liffreing of Digiday reports that, while often grouped with millennials, Gen Zers are at “different life stages, care about completely different things and need to be programmed for and communicated to entirely differently.”

This realization has spurred an effort by agencies to begin researching this audience. Characterized by a progressive ideology and short attention span, Gen Z is very digitally savvy, having never known life without internet access. This generation also saw their parents go through a recession, in turn affecting their own purchasing behaviors.

Agencies and brands “are bulking up their own Gen Z expertise.” In order to help brands establish a connection, the Day One Agency created a website where Gen Zers answer questions covering various topics and the NFL partnered with AwesomenessTV for a series targeting Gen Z fans.

Sony Music Entertainment even created its own video production company, called Astronauts Wanted, to reach Gen Z. When asked what sets this group apart, Christine Murphy, Astronauts Wanted’s svp of branded entertainment, said, “They kind of have this heightened sense of intuition… and they really are progressive.”

 It is estimated that by 2020, Gen Z will number 2.6 billion and have an annual purchasing power of $44 billion. It would be wise for marketers to begin differentiating between millennials and Gen Z.

Most Improved Brands Among Millennials

In the results of a recent survey released by the public-perception research firm, YouGov BrandIndex, millennials reveal which brands were the most successful in gaining their patronage. Although some of the brands are not so surprising, others, including brands considered to be traditional, stand out from the list.

The rise of the sharing economy puts Uber at the top of the list, despite public relations woes plaguing the company. Chase also occupies the list at No. 13, prompting Ted Marzilli, CEO of YouGov BrandIndex, to say, “ethics are good, but price and convenience carry the day”.

Traditional brands can also be found in the top 20. The presence of Puma, Delta Airlines, Visa, Adidas, and Ace Hardware show the value millennials place in adaptability. However, it’s important to realize why these brands make the list. These “graybeards” so to speak, aren’t popular for their nostalgia but rather for their ability to stay relevant and adapt to current times.

Another head scratcher on the list is number five, TLC, which dates back to the 1970’s. However, the network has gone through several facelifts to evolve from an education-oriented channel to a source of entertainment filled with Honey Boo Boo and shows like, “My Fat Saved My Life”. 

How Millennials Didn't Live Up to Expectations in 2016... In a Good Way

We’ve all read blogs, seen news stories, and heard comments about how Millennials are changing the world; sometimes for the better but usually it’s the opposite. eMarketer has compiled a list of six things that weren’t true of Millennials in 2016; a list that provides some light on the typically negative viewpoint of these young adults.

Millennials will never become homeowners

False- according to a Navient survey in May, 71% of Millennials aged 31 to 35 own their home and most of these homeowners living in the suburbs.

Millennials barely watch any traditional TV

It’s true that Millennials watch less traditional TV, but they haven’t cut out “the tube” all together. eMarketer estimates that nine in 10 Millennials watch non-digital TV at least once a month in 2016.

Millennials have stopped listening to traditional radio

Not the case! Yes, with options like Pandora and Spotify, traditional radio usage has declined but it is not extinct. The trend is similar with that of television; there are more convenient options that Millennials are taking advantage of, but they’re not completely leaving traditional methods in the dust. In fact, younger Millennials (18-24) average 10 hours and 24 minutes per week with AM/FM radio. That number jumps to 11 hours and 20 minutes when talking about Millennials aged 25-34.

Millennials are moving their social presence from Facebook

With the addition of new social sites, the options are much broader, but Millennials are still actively on Facebook. Buzz Marketing Group asked Millennials to list their daily activities and 85% of respondents reported that one daily activity was posting or reading posts on Facebook. According to Roth Capital Partners, Facebook is the most frequently used social network by millennial mothers.

Millennials always ignore marketing emails

Nope! Millennials might frequently ignore said emails, but always is a bit drastic. A survey by Fluent shows that 12% of 18 to 29 year olds find marketing emails to always be useful. Averagely, 30% said marketing emails are sometimes useful.

Millennials have no intentions of getting married

That is just not true.  Today’s young adults are getting married later in life than their parents and grandparents did, however that doesn’t mean they won’t marry at all. Census Bureau data for 2016 shows that 62.2% of 25-29 year olds have never married, 38.6% of 30-34 year olds have never married, and only 24.1% of 35-39 year olds have never married.

Millennials might be different than the generations they follow, but they don’t seem to be living up to all the negative expectations. As for marketers, there are still tons of ways to reach these young adults from traditional TV to internet streaming radio, social media to wedding magazines, even real estate flyers and e-newsletters. 

A Small Age Difference Makes for a Big Buying Difference

eMarketer reports on, “How Younger and Older Millennial Shoppers Differ”. For this study, millennials are looked at through a more detailed lens.

According to the Bureau of Labor Statistics, the older millennial households (25- to 35-year-olds) spend an average of $49,547 while households with younger (those under the age of 25) millennials in-charge spend an average of $32,179. The Bureau compared spending on things like furniture, healthcare, pets, and entertainment, all of which the 25- to 35-year olds spent significantly more.

From an advertiser’s standpoint, this information can be very useful. Since we know that older millennials have more money to spend on all the “extras” in life, we can accommodate more of the budget towards these consumers, whereas it may be beneficial to target younger millennials with less expensive or budget friendly advertisements.