Millennials are no longer financially dependent teens. They’re in their 20s and 30s and part of the workforce. They’re also more financially responsible than older generations perceive.
On average, a millennial earn around $56,000 per year, before taxes. This generation spends a total of $600 billion per year, and they are estimated to spend $1.4 trillion in 2020. Nonetheless, this doesn’t mean that millennials aren’t wise consumers.
Before making a huge purchase, millennials will research the product for 4.6 hours on average. 40% of millennials look at online reviews. This generation trusts online content during research, as 83% of millennials consult them before deciding.
Additionally, 63% of their overall expenses are necessities, and 65% will wait until a product is on sale.
Almost half of the millennials prefer online shopping because it’s easier to compare products and prices. Online shopping has become a cheaper, quicker, and more convenient option nowadays.
People no longer have to change from their pajamas to buy the things they need. Not only do they save time and energy comparing products from one store to the other, but they also save themselves the trouble of dealing with crowds and long lines.
When faced with the option of cheaper but longer shipping, and more expensive but same-day delivery, millennials opted for the latter. There’s “substantial demand for immediacy and convenience,” highlighting the culture of faster living within younger generations.
Advertising to millennials
There are a lot of avenues to advertise to this tech-savvy generation. Ads appear even while scrolling through social media. Sometimes, they’re even forced to watch ads before a YouTube video. There’s also the presence of “influencers” that brands are taking advantage of.
Individual consumer interests determine targeted ads by collecting data from internet activity. Technology such as website data capture software gathers one’s online habits such as what they search, read, watch, and purchase. By tracking people’s interests, the internet can show users specific ads that they are most likely to click.
According to Lexington Law, “Millennials are receptive to online advertising that is restrained, targeted and relevant,” but only 6% find credibility in online advertising. The majority of them also prefer non-intrusive in-feed ads.
Influencer marketing makes use of popular social media personalities to promote brands and services. The idea is that these people, who already have a huge following, post about how good the product is. In return, their fans will be “influenced” and become customers of the clients.
This kind of marketing has a quick ROI as $1 investment can generate a $6.50 income. Additionally, 49% of consumers trust the recommendations of influencers. By 2020, influencer marketing is projected to reach $10 billion. This scene is surprisingly huge and successful that 57% of fashion companies engage in influencer marketing.
This younger generation has developed different consumption habits. In the age of information and technology, they have become informed buyers despite the evolving marketing strategies of different brands. For businesses, this means one thing: adaptation. It’s about time to get into new advertising campaigns for different platforms.