Marketing to Generation Y
They are young, media literate, tech savvy and a lot more discerning about how they consume than their predecessors. Most of all they are at the centre of the brand conversations that are taking place and marketers had better remember that.
‘Generation Y’ is probably the most media literate generation modern marketers have ever encountered. Why do brands obsess so much about the under-30 consumer base, or Gen-Y as they are often called today? Simple – the under-30s are vital to brands as they remain more open to new concepts and are at the age when habits and relationships with brands form. It’s a bit like the Jesuits used to say – get them when they’re young and you have them for life.
The great fear among traditional publishers, broadcasters and media owners is that Gen-Y is turning its back on ‘old’ media like newspapers, magazines, TV and radio to consume their information online.
This is an exaggeration. In fact Gen-Y is probably the most media literate generation modern marketers have ever encountered.
Yes they are online but they are fully aware of print, TV and radio offerings. They also adore the cinema. They just like to chose things themselves rather than be passive and receptive.
Attempting to lump all 18-30 year olds under the umbrella of Gen-Y is a futile exercise. An 18 year old ‘fresher’ is nothing like a 25 year-old first-jobber in the same way a just-married 30 year old is nothing like a 21 year old who has got the J1 for the first time.
Double dipping not tripping
To say that 18-30 year olds are not receptive to ‘traditional’ media and advertising is disingenuous. “We still see radio and TV playing an important role. However, certainly the competition for attention space for Generation Y is ever increasing. In addition, never before has this age bracket been so media literate,” says Luke Reaper, director with Behaviour and Attitudes.
“What we found through our ID research programme is that this age group is increasingly ‘media meshing’. The brands that are gaining traction are those that use traditional media like TV, radio and outdoor while at the same time launching complimentary interactive online campaigns,” says Adrian Fernandes, Amárach Research.”
“Online is a vital part of communicating to this particular group,” argues Sonia Harris of Burrell Marketing. “The majority spend their day at a computer and often their only break in the day is a little bit of ‘me time online’. The internet is a beckoning tool for marketers with smaller budgets and bigger goals.”
Adrian Fernandes also points to Gen-Y’s habit of ‘double dipping’. “Younger consumers often watch TV and have their laptop open, or they might listen to the radio while searching on the Net. If you look at outdoor campaigns many include their search terms on the posters.”
According to the latest Beta Life Youth study (on behalf of brands such as MTV and Nokia), 25% of Gen-Y first see or hear of brands through TV ads. 60% of those surveyed agreed TV advertising plays a role in their brand decisions, and 50% think that television ads endorse a brand’s image. The study covered five markets – the UK, US, Germany, India and Japan. The study also highlighted the influence of digital media. 71% of respondents agreed that the internet makes choosing a brand easier and that blogs, review sites and social networking sites are increasingly important.
“An important thing to remember about communicating on web 2.0 platforms such as Bebo, Facebook and YouTube is that the medium belongs to the audience,” says Philip Macartney, head of sales, Bebo. ”It is their space because they create most of the content as well as consume it. Get on these platforms , connect with the audience and have a digital conversation with them. Brands are part of the conversations on these spaces at the moment. The difference is that some brands are influencing these conversations and some are not.”
Click and stick
While young consumers tend to crave individualism they still form groups, both online and offline, that suit their perceived image of themselves. It has always been this way, it’s just today they have more immediate solutions to their needs such as social networks, blogs, Twitter and of course YouTube. “The basics of marketing still hold, we need to connect, engage and have a compelling message. But marketing to this generation is not solely about product qualities, but also about entertaining and having a brand story, the challenge is to move beyond simple product needs,” argues Reaper.
“Gone are the days when a website’s only use was to inform users about a product or service,” says Sonia Harris. “Users expect fully-functional sites that entertain and inform them. These users want genuine interactions with brands. Marketers can benefit from these interactions through designing clever usages such as competitions whereby users must click through to other sites all the while spending more time learning about the brand.”
Growing up in the Google Age
It is also important to note that for most in the 18-30 age group they have never really known a world without a search engine. Think about it. What kind of expectations does a person have growing up in the Google Age?
They are in constant communication with the media they chose to consume and the brands they chose to champion.
“Understanding the role of new media is critical. This often involves allowing consumers to own a brand, interact with it and even develop it. Sometimes marketers can be wary of this loss of perceived control. However, developing a genuine dialogue and having the courage to do so with Gen-Y is essential,” says Reaper.
“With regards to the likes of Twitter, Facebook, Bebo, YouTube etc. – the main concerns facing marketers and brands in these cases are the fact that it opens up discussion on the brand and while this can be beneficial it can also be detrimental to the brand’
s integrity. Personal opinions can be damaging and long-lasting, whether or not it’s justified. This lack of control can understandably make marketers wary and limit usage of online tools,” suggests Harris.
“Gen-Y also expect a lot from their brands,” says Fernandes. “They talk about what they buy when they are online. They will broadcast bargains they find as well as highlighting rip offs. Four years ago they were quite passive in terms of receiving messages from brands … now they are actively looking for good value. We are seeing the death of the cash-rich time-poor consumer. Gen-Y is also showing a greater interaction with loyalty schemes. We have seen the development of the ‘Recessionista’ – a consumer type who celebrates their bargain hunting and good money management.”
Easier and cheaper
However, at present the Gen Y consumers simply don’t conform to most of the standard marketing categories. They are quite difficult to reach – unless you know how.
So how do you reach them? “Understanding the different sub-targets are vitally important for targeting,” says Reaper. If we take the simple example of what the internet is used for in the past month from the JNIR/Behaviour & Attitudes research, 54% of 15-18 year olds used the internet for social networking in the past month versus only 20% of 25-34s. A similar age difference in free music downloads is also evident. Generation Y are vital to brands as they remain more open to new concepts and are at the age when habits and relationships with many brands form.”
“Launching a campaign online in Ireland is still perceived as a risk, brands often tend to have the safety net of a traditional media campaign to back their online activity up,” says Philip Macartney. “While this is a prudent strategy with older audiences it makes no sense when you are targeting the youth audience, as they are easier and cheaper to target online.”
At present, however, the internet has not delivered on all its promises. Search still takes in nearly half the money, display is disappointing and it’s difficult to make internet users pay for content. But all these things are not necessarily true forever. The crisis in traditional media is useful for shaking the rules. More importantly, now is the time to find new solutions. A new standard of video advertising on the web that will transform online display advertising is already in development. Google and some very big agencies are working on it. Watch this space. Gen-Y will soon seem like quaint, predictable consumers of the first digital age.
