The USA is home to 87.5 million Millennials (ages 18 to 29). In comparison, 83.7 million Americans fall under the “Generation X” category (30 to 49-year-olds), whereas the number of Baby Boomers (aged 50 years and older) is 66.4 million. In the infographic below, the University of Southern California’s Online Master of Science in Applied Psychology degree examined the psychology marketers need to use to successfully target this growing group in America.
Millennial Profile
The American millennial demographic can be divided into five distinct categories based on how they use Internet technology. First, 23% of the millennial population is less engaged online compared to other Millennials, earning the label “digital window shoppers.” Among these, men make up 58% and women 42%. Up to 26% of the millennial population can be categorized as “digital socialites” because they are highly active online. Unlike the previous category, women are the majority at 55%, with men at 45%. At the same time, 23% of Millennials are extremely tech-savvy and heavily consume streaming and online video content. Sixty-four percent of these web media enthusiasts are male, while 36% are female. At least 17% of the least digitally engaged Millennials are likely to be unemployed, with men and women accounting for 53% and 47% of the unemployed, respectively. Finally, 15% of Millennials are highly engaged. Among these, 57% are male and 43% are female.
How Different Generations View and Consume Media Content
1. Device Ownership
– 85% of American Millennials own a smartphone, 78% own a PC or a laptop, and 50% own a tablet.
– 79% of Generation X own a smartphone, 81% own a PC or laptop, and 57% own a tablet.
– 54% of senior Americans own a smartphone, 70% own a PC or laptop, and 37% own a tablet.
2. Media Consumption
Due to their tech-savvy nature, Millennials are the smallest group of newspaper and magazine readers. They account for only 31%, 35%, and 33% of readers who consume magazine content via tablets, PCs/laptops, and smartphones, respectively. They also account for 20%, 32%, and 48% of US web users who consume newspaper content via tablets, PCs/laptops, and smartphones, respectively. Millennials are only second to Generation X in terms of internet usage. In the US, 35% of Millennials, 38% of Generation X, and 28% of Baby Boomers use the internet. Additionally, Millennials spend the least amount of time watching TV (2.4 hours) compared to Generation X (2.61 hours) and Baby Boomers (3.78 hours). Millennials also account for the smallest percentage of radio listeners (31%) compared to Generation X (35%) and Baby Boomers (34%).
3. Social Media Usage
Millennials are heavy social media users. In fact, 89% of American Millennials use social networking sites regularly. In comparison, 82% of Generation X and 49% of senior Americans use social media regularly. Moreover, 82% of Millennials use social media to interact with brands or retailers, 49% follow their favorite brands or retailers via social media, and 38% use social media to discover brands. For the other generations collectively, 65% use social media to interact with brands or retailers, 31% follow their favorite brands and retailers, and only 26% use social media to discover brands.
Spending Preferences
Millennials tend to spend their money on education, clothing, food, services, socializing, transport, dining out, and groceries. Generation X consumers spend most of their income on entertainment, pensions, and personal insurance. Baby Boomers spend their money on personal care products, healthcare, reading, miscellaneous expenses, and services.
Shopping Preferences
Up to 53% of Millennials make purchases online. In comparison, only 28% of Generation X and 10% of Baby Boomers use the Internet to buy goods and services. While shopping online, 31% of Millennials use either a PC or a smartphone. In comparison, 23% and 15% of Generation X consumers use PCs and smartphones, respectively. Generation X consumers are more likely to use a tablet (18%) while shopping online. On the other hand, 28% of Millennials and 24% of Baby Boomers use a tablet to shop online. Due to their limited tech knowledge, Baby Boomers are more likely to use a PC (18%) than a smartphone to shop online. Thirty-one percent of Millennials and 13% of Generation X consumers use the same devices for online shopping.
Ways Brands Market to Millennials
Warby Parker has capitalized on Millennials’ spending habits and their preference for social and environmental responsibility to market their products. In the US, 77% of Millennials believe the economy affects how they save and spend money. Furthermore, 87% of Millennials want to make purchases that have an environmental or social benefit. The shoe retailer Toms has used marketing strategies that capitalize on Millennials’ propensity to use social media to reach them. Presently, 77% of Millennials use social media to engage with brands on CSR issues, compared to the US average of 53%. Notably, 91% of Millennials prefer brands associated with a good cause, compared to the US average of 85%. The ride-sharing company Uber has leveraged Millennials’ ambivalence towards car ownership to grow its business. Only 15% of Millennials believe it is necessary to own a car, whereas 25% say it is important but not a priority.
Secrets to Effective Millennial Marketing
While mobile devices are the best channels for reaching Millennials, you should have a multi-platform marketing strategy since many Millennials own multiple devices. For instance, 55% watch video content on multiple devices. Customization should also be part of your marketing strategy because 85% of Millennials are likely to purchase personalized goods and services. Authenticity is another key factor since Millennials tend to dislike deceptive advertising. Publishing informational blogs can also help you reach Millennials, as one in three Millennials use blogs for research before making purchases.
Conclusion
American Millennials are a key consumer demographic for online marketers, thanks to their tech savviness and consumption of web-based content. Additionally, they are more likely to spend money on goods and services compared to Generation X and Baby Boomers. Finally, they are more likely to use smartphones and tablets for online purchases.
