Why Marketers Need to Know the Difference [New Data]

In recent times, there’s been a typical false impression that Gen Z and millennials are basically the identical.

When firms talk about reaching youthful audiences, many usually lump Gen Z and millennials into the identical group and create one marketing campaign technique that they consider matches each teams.

Certain, many millennials and Gen Zers are thought of “younger adults.” Each generations are extremely related to expertise and the web. It may appear efficient to run one marketing campaign geared toward each generations, however is that this actually the proper transfer?

To analyze, I made a decision to start out by letting shoppers weigh in on whether or not or not the identical advertising methods will interact each age teams.

In a Lucid ballot, I requested 350 folks to inform me if, “The identical advertising techniques that persuade millennials additionally work on Gen Z,” was a real or false assertion. And if you happen to suppose shoppers — the people who find themselves being marketed to by manufacturers — would sway a technique or one other, you may be barely stunned by the outcomes beneath:

Information Supply: Lucid Software

Though 56% of these polled thought the 2 generations could possibly be marketed to the identical method, almost half disagreed.

As a marketer specializing in viewers progress, I sway with the 44% of people that suppose the identical techniques will not work on each teams — no less than not without end.

However is both group of shoppers proper about their perceptions? On this weblog publish, I will share the chilly, laborious info researchers have found about generational similarities and variations between millennials and Gen Zers, whereas sometimes weighing the uncooked knowledge towards the best way on a regular basis shoppers understand the 2 generations. And if you happen to’re in a pinch, leap straight to the information you want:

When you consider the generational variations on the most important potential scale, the oldest millennials are of their early 40s, is perhaps settled down, and could possibly be making bigger purchases like vehicles or properties. The youngest members of Gen Z are 11 years previous, may love kids’s reveals, and will not be immediately making buying choices any time quickly.

Other than the plain age variations above, listed below are six extra components that make these two generations basically completely different.

Now, most youngsters and teenagers inside Gen Z have entry to iPads, smartphones, limitless Wi-Fi, or streaming providers that put our prized DVD gamers to disgrace. Many members of this era may need additionally grown up in households with early smart home technology.

Whereas millennials watched innovation start, Gen Z was immersed in it from day one.

However though Gen Z by no means needed to know a time the place they did not have a cool gadget to resolve primary issues, the impression of expertise, the web, and social media has nonetheless taken a toll on the group.

Research reveals that Gen Z — which has been known as the “socially-conscious generation — offers with way more physique picture, psychological well being, and cyberbullying points than every other age group has up to now. Specialists have additionally known as Gen Z the loneliest generation regardless of all of their digital connectivity choices.

Financial system

Millennials and Gen Z even have completely different attitudes round cash. Whereas they each care about their funds and put money into issues that may enhance their careers — like increased schooling.

Each generations are identified for bettering on monetary habits of previous generations, nevertheless, millennials put their cash into shopping for extra services or products that can give them a constructive expertise, whereas Gen Z is extra centered on financial savings and sensible merchandise.

Millennials within the U.S. constructed up their very own funds shortly after the Recession, which led to 2009. For a few years up till 2019, regardless of monetary woes attributable to the poor financial system, rising dwelling prices, and excessive unemployment ranges, millennials remained optimistic about their future and finances. Nevertheless, some research state that millennials’ financial optimism is dwindling due to post-pandemic inflation, recession, and market slump prevalent in 2023.

Gen Z was born at the beginning of the economic downturn. Because the oldest members of Gen Z have entered maturity, analysis reveals that their previous expertise of dwelling within the Recession are main them to make extra practical spending decisions.

If you happen to’re advertising to those generations, you may need to keep in mind these attitudes about cash.

For instance, if you would like millennials to purchase your product, you may need to concentrate on constructing a model that gives a pleasant or entertaining customer experience, in addition to advertising services or products that give immediate gratification. If you happen to’re advertising to Gen Z, you may need your campaigns to obviously reveal how or why your product might be invaluable or sensible to them of their day by day lives.

2. Gen Z is extra prone to make cell purchases.

By now, you may know that each of those generations are closely related to the web and social media, Whereas millennials watched the web develop, Gen Z has used it since a really younger age.

Every day, millennials spend round 7.5 hours on-line whereas Gen Z surfs for nearly 10 hours.

Each millennials and Gen Z additionally go surfing primarily with cell gadgets, however an enormous distinction between these generations is that Gen Z was virtually raised with smartphones. In accordance with YPULSE, 12 is the common age Gen-Z acquired their first smartphone, 5 years youthful (on common) than millennials.

Supply: YPULSE

Gen Z’s mobile-first mindset additionally impacts how they store. Members of the era are twice as likely to make a mobile online purchase than millennials. Nevertheless, millennials nonetheless do store rather a lot on cell gadgets. In reality, 71% say they do most of their online shopping with a mobile device.

Relating to on-line content material consumption, millennials and Gen Z spend most of their time watching movies and visiting social media websites.

In accordance with a recent study, millennials watch on-line movies for 1.5 hours per day whereas Gen Z averages over three hours. In the meantime, each generations are thought to spend hours day by day on social media.

Whilst you may need already identified that cell optimization and video advertising are a key digital methods, these stats show that it may possibly make it easier to zone in on younger grownup generations. If you happen to actually need to appeal to consideration from each Gen Z or millennials, you may need to create cell movies, cell ecommerce websites, or different phone-based experiences that cater to them. You also needs to make sure you market your self on platforms that’re already cell, akin to main social media apps.

3. Each spend a number of time on social media, however the platforms they use are fairly completely different.

To know how folks perceived every era’s social media utilization, I requested the identical group of 350 folks famous within the Lucid ballot above to weigh in on which group they thought spent extra time on social media. This is what they stated:

Information Supply: Lucid Software

The ballot outcomes above had been pretty cut up between millennials and Gen Z. Nevertheless, 27% of contributors say each generations are “at all times logged on.”

So, who’s truly probably the most tuned in to social media? Let’s examine what research on these teams reveal.

The World Financial Discussion board stories that millennials are logged on to social media for a mean of two hours and 38 minutes day by day whereas Gen Z logs on for more than four hours each day.

Other than the time spent on social media per day, the platforms every era makes use of are additionally barely completely different.

Whereas my era thrived on MySpace and Tumblr and now enjoys platforms like Facebook, Instagram, LinkedIn, and Twitter, Gen Z has zoned in on video-based platforms like Instagram, YouTube, Snapchat, and — extra lately — TikTok.

A latest Enterprise Insider survey that polled the oldest half of Gen Z discovered that contributors used Instagram, YouTube, and Snapchat most frequently.

Though TikTok appeared much less standard within the Enterprise Insider survey, this one-year-old platform is likely one of the fastest-growing social media apps as a consequence of booming global Gen Z users.

Gen Z and millennials do have a couple of social platform preferences in widespread. One, for instance, is Instagram. Whereas Instagram is older and extra established than apps like TikTok or Snapchat, it is also pulled in millennials and video-loving Gen Z members.

YouTube can also be a social community that each generations are prominently utilizing. Whereas YouTube was launched when most millennials had been kids, 96% of Gen Z users have accounts on the video-sharing platform. The video platform can also be the second-most used search engine and a platform the place many in Gen Z and millennial generations go for product research, as 57% of YouTube’s viewers consists solely of the 2 generations.

4. Millennials take note of advertisements for an extended period of time.

Every era’s habits align nicely with its common consideration span on the subject of content material consumption.

Whereas millennials will take note of content material for 12 seconds, Gen Z will solely concentrate on it for eight seconds. Moreover, Gen Z enjoys fast or short-form video content material, like that of Snapchat or Instagram Stories, whereas millennials worth long-form content material, akin to detailed movies or podcasts.

Which means that these promoting or advertising to millennials can get away with barely longer or extra in-depth content material whereas these advertising to Gen Z will need to get their worth proposition out as shortly and seamlessly as potential of their campaigns.

As I’ve talked about above, most of at the moment’s social and on-line platforms have gotten extra video-driven. This mirrors the truth that video utilization is rising shortly amongst both generations.

Whether or not you are creating long-form content material for millennials or short-form clips for Gen Z, you may need to embrace mobile-optimized video when selling your model to both viewers.

Branded Content material

In relation to studying about manufacturers or merchandise on social media, every era additionally has its personal distinctive preferences. For instance, Gen Z prefers to find out about merchandise by way of social media-based videos and influencer marketing, whereas millennials will reply to quite a lot of promotional methods together with extra traditional online ads, social media marketing, and branded podcasts.

Moreover, a recent survey reveals that 87% of Gen Z prefers advertisements or advertising content material that reveals precise folks discussing merchandise. In relation to millennials, solely 37% want to see folks discussing merchandise in advertisements or advertising content material.

Other than embracing video and cell optimization, if you happen to’re advertising to Gen Z, you may additionally need to concentrate on content material that feels extra informative and fewer like an advert. This era has actively rejected conventional promoting techniques. For instance, 84% of Gen Z will skip video ads as shortly as potential, whereas 65% have downloaded some type of ad-blocker on their cell gadgets or computer systems.

5. Each generations buy lower than previous generations.

A typical delusion about millennials and Gen Z is that each generations are financially illiterate. As a result of this appears to be a sizzling subject on-line and all through popular culture, I performed yet one more Lucid ballot, asking the identical group famous above to decide on which era they thought spent extra money on merchandise.

The Lucid ballot beneath demonstrates this delusion and notion as many contributors stated that they believed each era spend some huge cash:

Information Supply: Lucid Software

Moreover, 36% of survey respondents stated millennials spent probably the most on merchandise, whereas the identical share stated each generations spend some huge cash. Nevertheless, lower than 20% pointed to Gen Z.

In accordance with numerous research, each generations truly spend lower than previous generations whereas the oldest Gen Z members are focused on responsible spending.

Most of Gen Z would not even have a lot shopping for energy but. However analysis from a number of sources, together with Vice, Insider, and Adobe say that Gen Z goals to spend money pragmatically as in comparison with different generations. Some analysts suggest that Gen Z’s saving method is routed in budgeting classes that the era realized from the U.S. Recession.

In relation to the Gen Z members who’re sufficiently old to make purchases, analysis reveals that they do much less on-line purchasing than millennials. A latest examine from Ernst & Younger famous that 74% of millennials and solely 49% of Gen Z purchase merchandise on-line greater than as soon as a month.

However, whereas Gen Z buys much less on-line, they count on extra added service from a model once they make purchases. The identical E&Y examine discovered that 80% of Gen Z valued free delivery. The examine additionally discovered that 74% of Gen Z values manufacturers that give out reductions or coupons over different companies.

Whereas millennials are barely much less frugal than Gen Z, the concept the older era is extra frivolous can also be an enormous false impression. Whereas many millennials purchase their justifiable share of merchandise, additionally they earn more annually than most older generations, are the most educated age group, and are notably optimistic about their futures.

6. They’ve completely different profession motivations.

Each generations have in widespread that they’ve positioned significance on investing in class or expertise coaching.

Whereas older generations may afford each homes and education, millennials discover housing out of financial reach and have primarily centered on paying excessive prices of tuition.

Regardless of growing instructional prices, the development of investing in schooling is not anticipated to alter for both era. Whereas 10% of Gen Z teens are saving for college, millennial mother and father are putting more into their children’s college funds than previous generations.

every era’s work habits can provide you a sneak peek into what their funds and day by day motivations is perhaps sooner or later.

Whereas each millennials and Gen Z are pushed by increased schooling and profession progress, they nonetheless have a couple of slight variations that you simply may need to learn about, particularly if you happen to’re a marketer in educational or B2B fields.

In the present day, many millennials are working or are enrolled in increased schooling. For your complete decade between 2020 and 2030, millennials will comprise the largest share of the workforce, representing 40% of the worldwide working-age inhabitants by 2030.

However, though most of Gen Z remains to be in class, they’re additionally very career-minded.

In relation to on the lookout for jobs, Gen Z adults are extra financially motivated than the millennial generation. In reality, 65% of Gen Z workers worth wage over different job perks as 74% 2023 US graduates surveyed said they prioritize stability and salary from employers, outweighing components together with a identified employer model, a fast-growing discipline, or general advantages. These within the age group additionally say they will put money into talent coaching if it means they make more money.

Gen Z additionally applies for jobs extra aggressively than previous generations. Solely 10% of the generation begins their job search after faculty whereas most Gen Z college students start scouting out job choices between freshman and sophomore year.

So, what does this imply in your advertising technique? Each of those generations are laborious staff, extremely educated, and may earn greater than previous generations.

Nevertheless, Gen Z is extra pushed to make and get monetary savings. Which means that to influence Gen Z, you may must take further time to brainstorm campaigns that present how your product will assist them and why it’s price their cash. Odds are, they are going to be extra persuaded by the practicality of a product than the “trendiness” of it.

The very best varieties of advertising campaigns will inform millennials about how your product could make their lives simpler or the way it can clear up their day-to-day issues. Focusing your technique on social media or on-line platforms like Facebook, YouTube or Instagram, the place many adults go to analysis merchandise may also be useful to your technique,

You will additionally need to zone in on the area of interest social media platforms that they generally use, akin to Instagram, YouTube, TikTok on Snapchat. If you happen to’re not on one in all these platforms, however nonetheless need to acquire model consciousness there, think about sponsoring an influencer who is aware of the viewers and create content material that discusses your product.

Need to study extra about Gen Z or millennials particularly? Take a look at this weblog publish on marketing to Gen Z or this piece on millennial marketing.

Editor’s observe: This text was initially printed in December 2019 and has since been up to date for comprehensiveness.