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Marketing to Generation Y. Marketing to Generation Y. Demographic Trends Slides 7-14 Marketing Communications Slides 15-23 Spending Patterns Slides 24-31 Media/Technology Usage Slides 32-36.

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Marketing to generation y1
Marketing to Generation Y

  • Demographic Trends Slides 7-14

  • Marketing Communications Slides 15-23

  • Spending Patterns Slides 24-31

  • Media/Technology Usage Slides 32-36

A great deal has been written about ‘Generation Y’ since the term was first coined in 1993 by Advertising Age magazine.

The term refers to the last generation to the term was be born wholly in the twentieth century. This group is also known as “echo boomers,” the “millennials” or often “generation why.”

While the youngest Generation Y is only the term was 10 years old, marketers are focused on those who are currently 15-30 years old. In the US, Generation Y is 70+ million people strong, almost double the size of ‘Generation X,’ its predecessor.

Generation y in context
Generation Y in Context the term was

  • This is a generation who never knew life without AIDS, never felt the chill of the Cold War, who learned about the birds and bees from President Clinton’s well-publicized antics, wore designer kids clothes, never went to a library for research and can’t imagine life without ATMs, DVDs, DVRs, IM, AOL and SUVs.

  • Generation Y has always lived in a multimedia world and has an innate ability to decode brand symbolism and iconography.

  • The Gen Y world is one of contradictions that it completely embraces. Young people can switch on CNN and see disasters and then escape from it all on an iPod.

Source: Brand Strategy

Demographic trends

Demographic Trends the term was

Generation y represents the future market for most consumer brands
Generation Y Represents the Future Market For Most Consumer Brands

  • Gen Ys according to Census data were born between 1977 and 1994, making this segment ages 15–32.

  • There are approximately 70 million Gen Y consumers.

  • By 2010, Gen Ys will outnumber Baby Boomers.

  • Gen Ys will make up 50% of the 18-49 demo by 2010.

  • The number of Gen Ys will grow to nearly 90 million by 2020.

  • This generation – sometimes called the Net Generation – is the most technology-savvy group of Americans.

Generation Y or Millennials are crucial consumers for all kinds of businesses because of the size of this generational segment.

Source: U.S. Census Bureau

Adult internet population by generation
Adult Internet Population by Generation Brands


Gen Y (18-32) 30%

Gen X (33-44) 23%

Younger Boomers (45-54) 22%

Older Boomers (55-63) 13%

Silent Generation (64-72) 7%

G.I. Generation (73+) 4%

Percent of Internet users (does not include teens)

Source: Pew Internet & American Life Project, Generations Online 2009 1/28/09

U s population data
U.S. Population Data Brands

U.S. Census Bureau population estimates for 2009:

  • 2009 U.S. Population 307 million 100.0%

  • Birth – Age 18 74,548,215 24.3%

  • Age 18 – 24 30,412,035 9.9%

  • Age 25 – 44 83,096,278 27.1%

  • Age 45 – 64 79,379,432 25.9%

  • Age 65 and over 39,570,590 12.9 %

Source: U.S. Census Bureau Population Estimates for 2009

Percent distribution of total population
Percent Distribution of Total Population Brands

Birth-18 Years


65+ Years


18-24 Years9.9%

25-44 Years


45-64 Years 25.9%

Total U.S. Population=307 million

Source: U.S. Census Bureau Population Estimates for 2009

Gen y racial and ethnic composition
Gen Y Racial Brandsand Ethnic Composition

  • Non-Hispanic White Alone 60%

  • Non Hispanic Black Alone 14%

  • Non-Hispanic Asian Alone 4%

  • All Other Races 3%

  • Hispanic (Any Race) 19%

Source: U.S. Census Bureau, National Population Estimates and Projections. Cited in MetLife Mature Market Institute 2009

Family life and gen y
Family Life and Gen Y Brands

As young adults, many Gen Yers consider marriage to be an essential component of the American Dream.

Marital Status Males Females

Married 21.3% 27.9%

Widowed 0.0% 0.3%

Divorced 2.0% 3.2%

Separated 1.3% 2.1%

Never Married 75.3% 66.5%

Source: U.S. Census Bureau, DataFerrett, Current Population Survey, March Supplement, 2009. Cited in MetLife Mature Market Institute 2009.

Gen y s priorities
Gen Y’s Priorities Brands

  • Gen Y places tremendous emphasis and precedence on the following arenas:

Source: Millennials:” Confident, Connected. Open to Change”- Pew Social & Demographic Trends 2/24/2010

Marketing to gen y grows in importance
Marketing to Gen Y Grows in Importance Brands

Advertisers are looking at creating new ways of

targeting Gen Y for several reasons:

  • This consumer segment (or generational cohort) is harder to reach with traditional media.

  • Gen Y is a collection of different psychographic groups, each with its own motivations and preferences.

  • The Gen Y audience is very diverse and fragmented and consequently more accepting than their predecessors of diversity.

  • Advertising to the traditional, mass audience frequently does not have appeal for the younger cutting-edge consumers.

Reaching gen y with effective marketing
Reaching Gen Y with Effective Marketing Brands

  • They are family and friend oriented. This is why cell phones and two-way paging are so attractive to them.

  • Word-of-mouth marketing is very powerful with this group because they are so friend conscious.

  • Viral marketing as a popular and effective medium- go where they are in order to reach them.

  • They are very optimistic and have a positive outlook on the world.

  • Non-profit sponsorships and cause marketing efforts will get a positive response.

  • They are tenacious doers; offer products that help them become better.

  • Make sure your marketing also reaches parents of Gen Y, for they are close to their children, and still buy things for them.


Generation y places high value on
Generation Y Places High Value On… Brands

  • Connection

  • Diversity

  • Living first

  • Time with friends

  • Civic activities

  • Taking care of the environment

  • Authenticity

  • Quality

  • Access to information

  • Ongoing learning

  • Career development

  • Freedom to travel

Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields, 12/25/2008

Communicating with gen y
Communicating with Gen Y Brands

  • Know that there are more media outlets for Gen Y to be aware of, and there are more opportunities for advertisers to reach them.

  • Create effective communication via events, the Internet (instant messaging), blogs, sponsorships, billboards.

  • Plan strategically targeted messages.

  • Follow the grassroots approach, and promote products at places teens gather.

  • High-pressure selling is out. These consumers are used to buying online- without pressure.

  • They research the Web. They understand transparency in prices and technical information- don’t talk down to them in the technical terrain.

  • Associates have to know more than these consumers have learned about the products on the Web.


Generation y replacing generation x
Generation Y Replacing Generation X Brands

  • What this means is that the purchasing power is going to be largely transferred from Baby Boomers, who are retiring, down to their children and grandchildren.

  • Generation Y was born with a cell phone and a laptop in their crib. To be “plugged in” 24/7 has almost become a natural extension of their being.

  • This is the most optimistic generation to ever walk the face of the planet. They care about the earth and servicing theit community.

Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields 12/25/08

Gen y consumers are optimistic about future
Gen Y Consumers Are Optimistic BrandsAbout Future

  • According to a survey by StrategyOne for Pepsi in November 2008, people born 1980-1990 remain confident about the future despite the falling economy.

  • Four out of five Millennials are hopeful about 2009.

  • 95% agree that it is important to maintain a positive outlook on life.

  • 77% have a strong sense of optimism about their careers.

  • 74% find that supporting causes makes them feel more optimistic.

Source: Center for Media Research, MediaPost 12/31/08 (Latest data available)

So how do we market to gen y
So, How Do We Market To Gen Y? Brands

In order to successfully market to Gen Y, we must first recognize the four areas Gen Y considers before purchasing a product or service:

  • Cheap cost

  • Good quality

  • Fast service

  • An “experience”

Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields, 12/25/08

Where can we reach gen y
Where Can We Reach Gen Y? Brands

  • Concerts (Gen Y loves live music).

  • Extreme sporting events (skateboarding, snowboarding, BMX).

  • Movies

  • Hiking events (Gen Y love the outdoors).

  • Video games and video game competitions

  • Mashups

Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields 12/25/08

Gen y currently spends over 200 billion and they drive many adult purchasing decisions

Gen Y currently spends over $200 billion, and they drive many adult purchasing decisions.

Source: Fast Company Magazine 6/19/08 (latest data available)

General gen y expenditures
General Gen Y Expenditures many adult

Average Annual Expenditures

Under 25 25-34

Food and Alcohol $4,895 $6,720

Housing 9,975 17,218

Apparel and Services 1,351 1,965

Transportation 5,464 8,699

Health Care 682 1,737

Entertainment 1,608 2,766

Personal Insurance and Pensions 2,283 5,510

Cash Contributions 427 1,036

Education 1,691 759

Miscellaneous 949 1,650

Average Annual Expenditures $29,325 $48,159

Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey, 2008. Cited in MetLife Mature Market Institute.

U s total annual income by generation 2007 2012 2017 trillions
U.S. Total Annual Income by Generation, 2007, 2012 & 2017 (Trillions)

Source: Javelin Strategy & Research cited in eMarketer 11/3/08 (Latest data available)

Gen y advertising brand preferences
Gen Y Advertising & Brand Preferences (Trillions)

The College Explorer survey of college students ages 18-30,

conducted by Alloy Media & Marketing revealed:

  • 41% of respondents prefer socially responsible brands.

  • Important issues for determining socially responsible corporations (69% of respondents) were donating money to a cause or charity or using eco-friendly business practices.

  • 68% said the criteria for socially responsible corporations was fair labor practices, 46% said supports diversity in the workplace.

  • 49% said that social messages incorporated into advertising have an effect.

  • 93% say they are less likely to ignore an ad that promotes a brand’s partnership with a cause.

Source: Alloy Media & 8/4/08 (Latest data available)

Gen y new car buyers seek vehicle safety security and durability
Gen Y New-Car Buyers Seek Vehicle Safety, Security and Durability

  • Strategic Vision’s New Vehicle Experience Study shows that Gen Y is not that different from older car buyers.

  • 79% of Gen Y buyers said their most important considerations are safety, security and durability rather than how fun a new vehicle is to drive.

  • 40% of Gen Y buyers said they definitely would buy Toyota, and 36% said they same of Honda.

  • Gen Y consumers constitute about 10% of the total new-vehicle market.

Source: MediaPost Publications 10/30/08 (Latest data available)

Gen y are more likely to make their own investment decisions than other generations
Gen Y Are More Likely to Make Their Own Investment Decisions Than Other Generations

  • According to Scottrade, an online investing firm, 51% of Gen y makes their own investment decisions compared with 40% of the total population.

  • Only 5% of Gen Y has someone else making their investment decisions, compared with 10% of the total population.

  • 34% of Gen Y investors say their investment decisions are better than average, compared with 25% of the total population.

  • 79% of Gen Y investors are using financial websites to get information, compared with 48% of the total population.

  • Scottrade is enhancing educational components of its online offerings for the Gen y consumer, and anticipating more mobile investing.

Source: Marketing Daily, MediaPost 11/12/08 (Latest data available)

Gen y driving the trend for environmentally friendly clothing
Gen Y Driving the Trend for Than Other GenerationsEnvironmentally Friendly Clothing

  • Research from Iconoculture shows that 20-28-year-olds are willing to pay more for organic and fair-trade products.

  • Iconoculture’s research describes four distinct shopping types:

    • The Living Green consumer who has embraced the concept of the environmental lifestyle and is driven by dedication, purity and awareness.

    • The Core Fashionista who is looking to build up the green in her fashion portfolio and redefining her sense of eco-chic.

    • The Walking Green consumer who is driven by wanting to belong to a greater community and is a trend follower.

    • The Spending Green shopper who buys green clothes because that sense of exclusivity and entitlement are important to her, and buying green connotes luxury.

Source: MediaPost Publications 4/7/08 (Latest data available)

Media technology usage

Media/Technology Usage Than Other Generations

The media consumption of college students
The Media Consumption of College Students Than Other Generations

  • According to conclusions from Alloy Media + Marketing’s 9th annual College Explorer Survey, anticipated annual technology spending among college students (ages 18-30) has reached an all time high at $6.5 billion, ranking 3rd in overall discretionary spending.

  • The study found that students are spending an average of 12 hours daily engaged with some type of interactive media.

  • Additionally, students are spending twice as much time on their computers as compared to television viewing.

Source: Alloy Media + Marketing 9th annual College Explorer Survey

The media consumption of college students1
The Media Consumption of College Students Than Other Generations

  • 33% of 18-24 year old students have increased their consumption of webisodes or user-generated videos since last year.

  • 30% of 18-30 years olds report frequent video viewing on social networking sites.

  • 61% of students are watching movies on computers vs. 76% on their television.

Source: Alloy Media + Marketing 9th annual College Explorer Survey

College students adopt new technologies to engage connect and entertain
College Students Adopt New Technologies Than Other Generationsto Engage, Connect and Entertain

Alloy Media & Marketing’s 8th College Explorer survey

of college students ages 18-30 revealed:

  • Seven in ten students now own a laptop.

  • The college student, on average, consumers 1.9 hours of MP3 usage.

  • 5.0 hours of computer contact.

  • Growing numbers of students use their cell phones for communication, entertainment and web access.

Source: Alloy Media + Marketing College Explorer, 2009

Generational differences in online activities
Generational Differences in Online Activities Than Other Generations

Younger Older

Online Activity Gen Y Gen X Boomers Boomers

Watch videos 72% 57% 49% 30%

Buy something 71% 80% 68% 72%

Use social networking sites 67% 36% 20% 9%

Make travel reservations 65% 70% 69% 66%

Get info about jobs 64% 55% 43% 36%

Send instant messages 59% 38% 28% 23%

Download music 58% 46% 22% 21%

Bank online 57% 65% 53% 49%

Play games online 50% 38% 26% 28%

Read blogs 43% 34% 27% 25%

Download podcasts 25% 21% 19% 12%

Create a blog 20% 10% 6% 7%

Visit a virtual world 2% 3% 1% 1%

Source: Pew Internet & American Life Project, Generations Online 2009 1/28/09

Thank you

Thank You! Than Other Generations