Millennials are the next baby boomers:a group of people so economically valuable that advertisers drop their existing methods to cater to them. Per the U.S. Census Bureau, as of 2019,millennials only accounted for 25%-27% of the total population, which surpassed the baby boomers (those born between 1946 and 1964) population in numbers. With an estimated U.S. population of 86-88 million, the millennials represent a substantial amount of spending money.
Who Are the Millennials?
Millennials are the group of people born from 1981 to 1996, dates recently crystallized by the Pew Research Center after years of vagueness that set them anywhere from 1980 to the early 2000s. The generation is also sometimes known as Generation Me or the Trophy Kids,nicknames that imply negative stereotypes, such as that the demographic is lazy, spoiled, and selfish.
Key Takeaways
- Millennials represent a large segment of the population and are an important target market for consumer companies.
- The group consists of people born between 1981 and 1996, or roughly 25% of the U.S. population.
- Many millennials research online, test products in stores, and seek out honest reviews before making a decision to buy.
- While many are underemployed and burdened with student debt today, millennials are likely to get richer over time and represent an important market for advertisers and consumer companies alike.
The laziness is perhaps understandable becausemillennials grew up as digital natives and seem to commandtechnology capable of doing anything they don’t feel like getting up to do. The television remote is too far away? There’s an app for that. Don’t want to deal with a long commute every day? Work remotely half the week. To older generations, it seems like millennials are doing a whole lot of nothing.
Why Do Millennials Matter?
Millennials are careful with their money. Having come of age in the aftermath of 9/11 and during theGreat Recession, Millennials are facing futures with less overall wealth than the previous generations. A number of things have caused this problem. First off, millennials bought into the American Dream of having post-secondary degrees and, as such, colleges are graduating an increasing number of students each year. However, these new grads are faced with debts that average roughly $39,000 per borrower.
Large debts mean that millennials are not able to live the same way their parents did. Entry-level salaries are sometimes meager and much of that income goes towards debt payments, credit cards, and, unless they’ve moved back in with mom and dad, to living expenses. There simply isn’t a lot of money left over for non-essentials.
While online shopping is a great convenience that could, perhaps, contribute to the aforementioned lazy millennial stereotype, brick-and-mortar shops aren’t going away. Remember, this is a generation that has either grown up or become accustomed to the instantaneous world of the Internet. For them, waiting for seven to nine business days for a product to ship is agony when the shop down the road has the same item ready for immediate use.
Why Now?
Why should advertisers pay attention to this poor, low-spending demographic? For starters, millennials are extremely loyal to the right companies. While Sears and Chevrolet(GM)may not be getting millennial dollars, companies with an efficient social media presence and those thatcustomize the shopping experience find that young adults will return.
In addition, companies are finding that traditional advertisem*nts are becoming less effective as a means to entice millennial shoppers. That's because the demographic typically choose to spend their scarce cash on products that they know will be worth their money:they research online, test the products in stores, and then seek out honest reviews by their peers before making a purchase.
By capturing the millennials now via cheap techniques, companies will find their advertising dollars stretch further as this group gets richer.
The Bottom Line
Millennials are underemployed and heavily indebted, but although guarded with their money, the group will spend when they think the purchase is worth the money: on services, heavily researched quality goods, and purchases that their peers have made. The group is loyal to companies that treat them like people, not numbers, and that interact with them (and solve problems)on their favorite social media sites.
FAQs
Many millennials research online, test products in stores, and seek out honest reviews before making a decision to buy. While many are underemployed and burdened with student debt today, millennials are likely to get richer over time and represent an important market for advertisers and consumer companies alike.
Why is targeting millennials important? ›
Most simultaneous internet and TV users are millennials, who make up 30.4% of all media multitaskers, per a February 2024 EMARKETER forecast. If millennials are part of your target audience, it's imperative to stay on top of their usage on devices, social platforms, and entertainment platforms.
What do Millennial consumers value? ›
Millennials favor brands that forefront sustainability efforts and social responsibility. Concerns about climate change and social responsibility drive millennials' commitment to sustainability. They actively seek out eco-friendly and ethically produced products, supporting companies that align with their values.
Why millennials are the most important consumer generation for the travel industry? ›
Desire for Personalized Experiences
Millennials value personalized experiences over one-size-fits-all solutions. They expect travel management companies to offer tailored recommendations based on their preferences, such as specific hotel amenities or preferred airlines.
What are the characteristics of Millennial consumers? ›
Reaching this generation means understanding their core characteristics: Ages 22 - 39. Large, diverse population. Tech Savvy: 60% of shopping is online.
Why is the millennial generation important? ›
Millennials represent a large segment of the population and are an important target market for consumer companies. The group consists of people born between 1981 and 1996, or roughly 25% of the U.S. population.
Why is knowing generational customers important? ›
It is important to understand that every generation interacts with marketing differently. By understanding which age demographics are in your target audience, your team will be able to produce appropriate content. For most businesses, it is beneficial to appeal to multiple generations.
What is the consumer behavior of millennials? ›
Millennials also prioritize time over money. They are willing to pay more for products and services that save them time and make their lives easier. This has led to the rise of subscription services and other convenience-based offerings. Finally, millennials are socially and environmentally conscious.
Which generation is the biggest consumer? ›
According to the research: Baby Boomers (ages 55-75 years old) spend a total of $548.1 billion annually. Gen X (ages 36-54 years old) follow Boomers with $357 billion annual spend. Millennials (25-35) are next with $322.5 billion in annual spend.
What do millennials value most in life? ›
Millennials embody a set of evolving values and aspirations that greatly influence their choices and behaviors. This generation highly values authority, achievement, and influence, demonstrating a strong desire for control, success, and recognition.
Collaborating with a wide range of different people is one of the aspects Millennials care the most about. Millennials like human interactions and meeting people. They enjoy working as a team as often as possible, connecting with colleagues, sharing experiences, and learning new skills with and from others.
Why are millennials so unique? ›
Millennials were the first generation to feel the impact of access. Access caused Millennials to have different perspectives, expectations, and behaviors. Access changed how Millennials job search, learn, socialize, travel, communicate, build businesses, network, entertain themselves, sell, buy, and work.
What makes a millennial spend more? ›
Quality and uniqueness are the most important factors in drawing millennial consumers to luxury products. Heritage and aspirational qualities are less important.
What is the difference between millennials and Gen Z consumers? ›
Millennials were born between 1981 and 1996 while members of the Gen Z years Gen Z years were born between 1997 and 2012. Millennials expect faster customer service. Gen Z tends to be better at accepting delayed gratification than millennials. Millennial customer service expectations are higher than Gen Z customers.
What is the purchasing power of millennials? ›
Generational Buying Trends: An Overview
Based on research by the World Economic Forum (2021; the most recent), here's how much each American generation spends annually: Gen Z: $41,636. Millennials: $69,061. Gen X: $83,357.
What age are millennial consumers? ›
A 2023 report by the Population Reference Bureau defines Millennials as those born from 1981 to 1999. CNN reports that studies sometimes define Millennials as born between 1980 and 2000.
Why is targeting Gen Z important? ›
Gen Z holds a pivotal role in marketing due to being the largest, most diverse, and highly influential generation globally. Their substantial spending power, estimated at a staggering $360 billion in the U.S. alone, underscores their economic significance.
Why are millennials important to the workforce? ›
Gen Zs and millennials are the change agents helping shape the future of work, and organizations that embrace and enable their passion for social impact and a values-first workplace will reap the benefits of a highly engaged workforce.
How do millennials like to be marketed to? ›
Inbound marketing utilizing authentic content, social commerce, “entertainmerce,” and user-generated content performs best with millennials based on their preferences. These interactive approaches build trusted relationships compared to traditional ads, which only 1% say increases their trust.
