Hacking The Millennial Mind
The 2016 consumer is evolving by the minute, and the mindshare of the consumer is becoming an intriguing challenge to capture. Advertisers are shifting gears to find the best mode of communication and are aggressively using new media as their main advertising channel. The Millennial Generation (ages 18-34) has become the central target audience to engage because it makes up the young adult workforce and is the most diverse generation in the world. This unique group demands meaningful content on-the-go that is relevant, about personal preferences, priorities, and profiles. Millennials want to connect with a compelling message that strengthens their relationships with vendors and drives them to enjoy products and services.
In this blog you will learn about the Millennials:
- Their Financial Power
- Their Social Media Presence
- The Size of Their Data
And more importantly you will learn:
- Which Type of Advertising Grabs Their Attention
- How to Keep Them Engaged After you Grab Their Attention
As you read this blog think about your own relationship with the Millennial generation. Are you a vendor, or a Millennial yourself? Consider how companies are actively marketing to this generation. How should marketers best engage this group and which channel of communication works to make a real connection? By the end of this blog, my hope is that you will understand how personalized advertising and Millennials go hand-in-hand.
Three particular forces of the Millennial generation stand out. The Millennials are driven financially, socially, and technologically, and brands and agencies need to catch up with them. In order to grab this group, they will need to strategize better solutions for product and service sales, and personalized advertising may be the best solution today.
Finances - Millennials Are Inheriting Loads Of Cash
Over the next 30 years, Millennials will inherit an estimated $30,000,000,000,000! Some even speculate $40 trillion, which represents 20% of the entire world’s wealth. With this epic influx of cash, Millennials will be the richest generation and the strength of the global economy. Millennials will be thinking about their savings and how to invest in the world market, as well as, pension plans and other insurances.
Advertisers for insurance companies, banks, and general retailers, will need turn to Millennials as the new source of wealth, and commit to them through a personal relationship. Generation X and the Baby Boomers make up the majority of the United States population and commit to brand products and companies more quickly than Millennials. Unlike generations before them, Millennials have a different approach to brand loyalty as they look to save money and time. Millennial Loyalty is earned and not simply given because a brand name is 100 years old.
According to Scrivantage, Millennials are 44% more likely to switch their investment providers simply because the other company offers online features. For certain products and services, Millennials care more about the convenience of its use over brand affinity. With high fees as the Millennials’ greatest fear, younger Americans switch investment providers often. Millennials are not looking for big brands but for better deals.
According to Accenture, 95% of Millennials preferred courtship through email campaigns before committing. Millennials are careful about their products. They want quality and quantity but from the right vendor. Advertisers, therefore, need to respond to the Millennials instead of waiting for them. Millennials will not buy a shoe or car because it is Nike or Volkswagen. Marketing campaigns should focus on grabbing the Millennial Audience by the heart if any vendor is going to secure a piece of their wealth.
Social Media - Millennials Are Plugged-In Differently
A common myth suggests that Millennials only shop online. However, this is not true when they spend $600 billion on consumer products per year and are slated to spend over $1.4 trillion by 2020. For the majority of these spenders, Millennials walk into retail stores like everyone else. What makes them different is they first consult social media before making a final purchase, reading online reviews, and researching products.
Millennials do not care for in-person interactions once in the store and instead interface on digital platforms to make consumer decisions. According to Accenture, 68% of Millennials look for promotional offers via their smart device and 84% of millennials prefer shopping in a store only after researching on social networking sites. Millennials are the most internet-connected generation in the world, and also a generation that is hesitant for one-on-one interactions. Texting and emailing supersede telephones. Millennials' social living is managed through the window of a device and on social network sites; 76% of Millennials follow brands or companies on YouTube while 84% of them follow brands on Facebook, and nearly half of all Millennials on twitter follow companies or brands. Social media and video content are where the Millennials are managing their consumerism.
Watch Millennials debunk the common myth:
According to the Pew Research Center, more than 75% of millennials opened a social media account in the last 5 years. While 80% of millennials have expressed wariness and difficulty trusting people they do not know, another 44% of Millennials are likelier to trust in complete strangers who happen to be experts than traditional advertisements, according to Hubspot. Millennials are 250% more trusting of blogs and therefore turn on the digital screen for marketing and information. Connecting with Millennials through their personal devices is the best approach to make a powerful first impression.
Technology - Millennial Data is Plentiful
Today, information is transferred in real-time and analyzed by groups around the world. Data about individuals, including preferences and profiles, can be transferred easily and used to tailor-make a specific marketing campaign to sell specific products to people. This happens on Facebook and other social networking sites too, where ads are frequently popping up on your screen. New parents find relevant ads for diapers on their personal profile pages, whereas those without kids do not. If you live in Los Angeles, you are likelier to see ads for restaurants in your area while someone in Minnesota will have different location services directing their ads.
Millennials in the USA, UK, and Canada, are all in touch with these data collection agencies as over 90% of them own some type of smart device that keeps them connected all times. Big data collection can help vendors and their advertisers understand what people need when they need it, and why they need to buy it.
All audiences benefit from this instantaneity of information, but it is the Millennial audience that is tuned-in to this distribution of data and willing to give up more information when requested. According to Get Satisfaction, four billion pieces of content is shared on Facebook daily, and free to the public. Data can also produce serious revenue over time, as recent data gathered from the health industry, for instance, offered potential revenue of $300 billion dollars of consumption within 10 years, if categorized correctly.
Millennials are sharing content with their location, gender, age, and much more, whenever they check-in, leave a new status, upload a photo, download an app, or take some other survey while surfing on their mobile devices. Therefore, data collection can be advantageous for advertisers in creating relevant messages for the consumer. This will impact the Millennial audience directly because this generation is giving away data and open to receiving information about products and services at all times.
The Next Steps… What Will Make Millennial Heads Turn?
According to Entrepreneur, the best method to market for the Millennial generation is through mobile marketing. With over 85% of Millennials using mobile devices daily, it makes sense to add a small ad that scrolls across a screen before playing Candy Crush or a pop-up that interrupts a favorite website session. However, these mobile marketing tactics are troubling, even annoying to the user. So what can change that attitude? Personalized Advertising will is a better solution to effectively connect with Millennials. It is important to connect with Millennials at all times, even with mobile devices, but it must be with unique and relevant messaging that speaks to their profiles and interests. Personalized video marketing is the most powerful method of communication and individual engagement.
While a picture is worth a thousand words, a video is worth two million, according to Dr. James McQuivey. The only word that matters with any personalized advertising message is one’s own name. Personalized videos speak directly to the viewer by name, addressing them in the subject line, the email body, and even in the video using voice overs. Video advertising translates to millions of words in just 30-60 seconds, but if the message is not personalized, the whole channel of communication can be lost completely. What will keep the viewer listening and watching is knowing that the advertisement is about them, and they have something to gain. Only when the viewer is hooked, is genuine marketing taking place between the vendor and the consumer.
An example of a successful personalized video with the Millennial Audience comes from a very popular Mexican-based airline that created two personalized video campaigns using a CRM platform. These campaigns led to a higher than standard 60% open rate on the email and over 90% of viewers converted, printing boarding passes at home. Of the Millennial audience that watched the videos, over 75% completed the video to the end.
Additionally, L’Oreal Paris did a study with Millennial and Generation X video viewers using three separate video ads. Each video was unique unlike the other, with the first professionally produced like a commercial on television. Another a series of picture clips without people speaking. The third was a personalized how-to video with one person speaking directly to the audience. Of all three videos, the personalized how-to video generated 100% ad recall by the Millennials compared to the other three videos. The method of personalized engagement created a memorable viewing experience. What is most striking is this video also had the lowest completion rate of all the videos. So while it may not have been the longest viewed video, it was certainly the most memorable amongst the Millennial audience, proving that personalization does make a lasting impression on this generation.
How to Personalize Marketing for Millennials?
Let’s review what we now know about the Millennials:
- They will have a lot of money over the next 30 years and they will continue to dominate the social media universe and use it for everything.
- Big data collection has lots of information about the Millennials, allowing for personalized advertising to be more creative and relevant for this generation, than any other at this time.
- Personalized advertising has proven to bolster strong results when utilized for Millennials and should be a marketing tactic moving forward for any vendor.
- Once hooked, it is important to nurture this generation, because Millennials care about relationships and having a stake in the product and services they use.
- Replicating personalized advertising but catering whatever is new to the details and profiles of the Millennials will allow for them to genuinely feel a part of something bigger, and not just another consumer bystander of big money brands.
In conclusion, Personalized Video communication is a revolutionary channel that will effectively convert data-driven content in a personalized message. As a result, it will win the hearts of the Millennial audience, and in the Digital Age, where Millennials are driven by economic, social, and technological forces, they will either be driven farther away from vendors or bridged closer together. Do not ignore these forces. Take advantage and make your brand or agency the name Millennials buy, love, and advocate for the world.
Are you a Millennial and feel different about what I said? Are you an advertiser and have had a different experience working with the Millennial generation? Please post your comments below and share the much-needed conversation on how to properly market in the Millennial Age.