Mary Meeker Series: Ad Spend is Increasing
This post is Part 2 in our series addressing key highlights of the 2019 Mary Meeker Report. The future of marketing has always been nebulous. Come 2020, [...]
All posts tagged: Millennials
Millennials
MILLENNIAL MARKETING STATISTICS & FACTS FOR MARKETERS
100% OF AMERICANS AGES 18-29 OWN A MOBILE PHONE AND 94% OWN A SMARTPHONE
Smartphones serve as gateways to online services and information and represent one of the best ways for marketers to reach audiences. As virtually every adult owns a cellphone and 94% of them are smartphone owners, marketing on mobile is one of the best ways for advertisers to reach Millennial consumers. Millennial engagement on smartphones is noteworthy to marketers as well. 4 out of 10 of them say they interact with their phones more than they do with actual humans, and over three-quarters of Millennials average more than two hours a day on their smartphones. Marketing campaigns that target them will need to take smartphone ownership and social media engagement into account.
79% OF MILLENNIALS RECOGNIZE THAT ADS SERVE A PURPOSE FOR A BRAND
In some ways, advertising to Millennials may be easier than advertising to other generations. Nearly 80% of them believe that advertisements are necessary for brands to inform the public of the information and 46% of them are not bothered by advertisements at all. By way of contrast, 39% of audiences age 35+ are not bothered by advertisements. The share of Millennials not bothered by advertisements increases to 75% if the content they are viewing is free.
58% of the viewers don’t mind watching ads to support their favorite digital personalities. Consumer tolerance of specific ad formats varies in terms of ad preference:
- 80% prefer 15-second pre-roll ads
- 53% will tolerate one-minute ads
- 87% do approve of product placements, like video product demonstrations or sponsored videos
Still, influencer marketing continues to be a viable tactic for marketers. Millennials are willing to watch sponsored videos as long as it includes “authentic personalities and is entertaining and useful.”
68% OF THEM USE A SECOND SCREEN WHILE CONSUMING CONTENT
Second screen advertising is a booming marketing trend driven by 68% of 20-36-year-olds using a second screen during traditional viewing. A second screen is a secondary device that a viewer is using while watching television, like a laptop, tablet, mobile phone, e-reader, or gaming device. Out of all Millennials in the world, 50% will be distracted by multiscreen. Mobile device proliferation, especially in smartphones, has changed the viewing experience entirely. Viewers and consumer attention on video content are now divided, presenting an engagement issue in advertising. Marketers will need to address this mobile distraction with platform-diversified advertising campaigns.
1 OUT OF 3 MILLENNIALS USES AN AD BLOCKER
They have turned to ad blocking to combat increasingly intrusive online ads. A little more than 1 out of 3 Millennials from ages 26-35 use at least one ad blocker on mobile or desktop, and 14% use an ad blocker on both mobile and desktop. While many may not mind advertisements, these new consumers value authenticity, and ad blockers are used to weed out advertising formats that are not authentic. Marketers should move away from these formats and should seek to develop marketing content that provides value to Millennials.
57% HAVE SPONTANEOUSLY PURCHASED SOMETHING THEY SAW ON SOCIAL MEDIA
In a study about Millennial personal finance, 57% of them reported making an unplanned purchase based on something they saw on their social media feed. 55% said that they had experienced “FOMO” (fear of missing out) via friends’ social feeds. Social networking is an important component to them during an online purchasing decision because social networks represent primary information. For instance, 88% get their news from Facebook, and 67% of Millennials believe that they can learn anything from YouTube. Moreover, 33% would likely purchase a product viewed in a YouTube how-to video.
THE 92 MILLION MILLENNIALS IN THE UNITED STATES SPEND A TOTAL OF $600 BILLION EACH YEAR
Brands are constantly chasing the attention of Millennial buyers. Spending more than a combined $600 billion, the 92 million Millennials in the United States have a lot of purchasing power. By 2020, their spending in the U.S. is expected to increase to $1.4 trillion, representing 30% of total retail sales in the future. If they want to capitalize, brands need to learn to court them the right way with a variety of proven marketing techniques.
68% EXPECT THAT BRANDS PROVIDE AN INTEGRATED SHOPPING EXPERIENCE
If brands want to market to Millennials, they’ll need to create consumption opportunities on every platform. This means that seamless shopping processes that allow them to transition from advertisements on smartphones and desktops to online purchasing platforms and physical stores. For instance, 57% will compare prices of products in-store and online. In particular, brands will need to integrate social media channels as 47% of Millennial consumers consider social media in their shopping journey.
MILLENNIAL PREFERENCE OF DIGITAL VIDEO PLATFORMS IS DOUBLE THE PREFERENCE OF TRADITIONAL TELEVISION
Millennials consume more digital video and media than the average person, and 35% prefer viewing on YouTube. This is nearly double the 19% of Millennials that prefer watching on traditional television. Within YouTube, Millennials 18-34 enjoy every form of content more than adults over 35. Millennials are adopting a digital approach to video discovery, suggesting that online video distribution and advertising will only become more significant.
90% OF MILLENNIALS AGES 18-29 ARE ON SOCIAL MEDIA
Social media plays a key role in how 90% of Millennials interact with others and process information. Even more impressive than Millennial presence on social media is Millennial engagement behavior on social. For instance, Millennials will average 15 minutes editing a single piece of content posted on social, and 42% will double-check the information posted on social is accurate and authentic. To reach Millennials, brands need to be present on social media and need to create content that is engaging to capture Millennial attention.
40% OF MILLENNIALS RELATE TO ONLINE INFLUENCERS MORE THAN THEY DO THEIR FRIENDS
Traditional marketing strategies employ celebrities as the face of a brand to build relationships with audiences. But with the rise of social media came the rise of social media stars. Now, social media stars lauded for their authenticity and relatability are the true Millennial icons. In the YouTube community, 70% of teenage Millennials prefer YouTube creators to traditional celebrities. Even more, 40% of all Millennial viewers believe that their favorite creator might understand them better than their friends. These Millennial marketing statistics are a striking indication of the placement of this generation’s trust and attention.
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