From Baby Boomers to Gen Z, each generation of consumers has distinct habits and traits that set them apart. Millennials grew up during the rise of technology and the internet, making them the first generation to be truly digital-savvy and familiar with modern digital marketing methods. One undeniable fact about millennials? They have significant buying power—a 2022 report showed their collective net worth more than doubled since 2020, reaching $9.38 trillion in the first quarter of 2022, up from $4.55 trillion.
This means businesses face the challenge of adjusting their audience targeting strategies to cater to millennials’ unique interests, buying habits, and motivations, without neglecting the characteristics of other generations.
To put it simply, if you haven’t yet examined millennial psychographics and incorporated them into your overall marketing strategy, you’re missing an opportunity. Staying competitive with this demographic depends on your ability to engage millennials on a personal and intuitive level, in a way that aligns with their values. So what should you do? The first step is to learn more about what drives millennials and what they expect from the brands and businesses they support.
The Basics: Millennial Demographics and Background
Before you can delve into the values, beliefs, and aspirations of millennials, it’s important to understand who they are on a basic level. This starts with identifying the statistical factors that set them apart from other generations.
Here are the key demographics of millennials:
– Millennials are typically defined as those born between 1981 and 1996.
– Their marriage rate is lower than any previous generation at just 44%.
– In the US, the average net worth of millennials in 2022 was $127,793—more than double the average from two years earlier.
– Millennials are less likely to have their own families compared to previous generations at the same stage of life.
– 94% of millennials own a smartphone.
– 80% of millennials live within 100 miles of their hometown.
– More female millennials are employed than in any other generation (72%).
– Just under half of millennials own a home.
Millennial Psychographics: A Closer Look
Now that you know the basic demographics of millennials, what really matters to them? Why do they choose certain brands or businesses? What are their goals and motivations? These are just some of the questions you can answer by researching and creating a psychological profile of millennials as part of your marketing strategy.
Here’s an overview of the key components that shape a millennial’s identity from a psychological standpoint:
1. Lifestyle
Millennials are the most educated generation but not nearly as wealthy as their parents or grandparents were at the same age. This has forced them to prioritize their spending more than other generations. For example, 35% of millennials regularly pay for a gym membership, more than Baby Boomers or Gen Xers, but they spend less on cars and clothes than previous generations.
They are also getting married and having children much later and are more entrepreneurial than older generations. Keeping these lifestyle trends in mind is essential for understanding millennials’ perspectives.
2. Values
Understanding the common values held by millennials is key to building an accurate profile. Their values guide their decisions in all areas of life, helping them choose which products, services, and brands they want to support.
Research shows that millennials value inclusion, with 77% saying their favorite brands demonstrate a commitment to unity and inclusivity. They also prefer experiences over material possessions, choosing to spend their money on dining out, traveling, and being adventurous, rather than on clothes, shoes, or gadgets.
Millennials also value success in their careers, but they define success differently than previous generations. They prioritize work-life balance and aim to be successful while maintaining control over their non-work commitments.
3. Activities, Interests, and Opinions
What do millennials enjoy doing? Like most generations, they love watching TV, listening to music, eating out, and spending time with friends and family. Digital streaming has become the standard for TV and audio. According to research by YPulse, listening to music is the top activity for millennials in their free time, with 50% doing so regularly. Spotify, the world’s most popular audio streaming service, is the top choice for music discovery among millennials, with 489 million monthly active users globally, 274 million of whom are ad-supported.
It’s important to note that almost half of the millennial population in the US do not consider themselves religious. They are also more than twice as likely as older generations to identify as LGBTQ+, and over half believe systemic racism is widespread in society. Politically, just over half of US millennials consider themselves independent, indicating a growing trend of declining confidence in the Republican and Democratic parties among this generation. All these factors must be considered when defining the millennial personality from a marketing perspective.
Marketing to Millennials
Now that we’ve covered some key millennial psychographics, let’s discuss the techniques and strategies that resonate with this savvy generation.
1. Maintain Rapid Response Times
One of the most effective ways to market to millennials is through consistent and timely communication. Research shows that nearly half of all consumers expect companies to respond within 4 hours or less—this is especially true for millennials, who prefer to communicate with companies via live chat, social media, and email rather than by phone.
2. Make Mobile a Top Priority
There’s no denying it: the online world has gone mobile, and millennials are the driving force behind this shift. Nearly 95% of millennials now own a smartphone, and in the US, 73% shop on their mobile devices 1-4 times per week.
These statistics show that millennials have already embraced a mobile-first shopping experience, so it makes sense for businesses to meet them where they are.
With Spotify Ad Studio, you can engage millennials with compelling audio ads, video ads, and immersive podcast ads on the go.
3. Take Advantage of Audio Advertising
Did you know that 73% of American millennials feel that audio is the most immersive form of media? Along with Gen Z, millennials make up the largest demographic of podcast listeners, with one in five listening every week, averaging an hour a day. In the US, more than half of all millennial internet users are on Spotify.
In our 2021 Culture Next report, 62% of millennials said they enjoy audio advertising because it allows them to use their imaginations. Fortunately, audio advertising with Spotify is a straightforward process that requires no special skills or previous experience. Whether you represent a client or your own small business, running an audio or podcast ad campaign on Ad Studio can lead to great results—and is a quick way to reach millennials on their preferred media channel.
Connect with Millennials on Spotify
Want more information on how to reach this valuable market segment? Read our guide on marketing to millennials on Spotify. Our easy-to-use self-serve advertising platform makes it quick, simple, and affordable to connect with your target audience through engaging audio ads while they enjoy the content they love.
