The mysterious Generation Y
Generation Y, also known as Millennials were born between 1980 and 1995, and already outnumber Baby Boomers and out power their parents in spending power, so marketers are salivating over how to reach this generation who values the opinions of strangers online equally to the opinions of their friends and family1.
24/7 Wall St. created a list of products that the “Facebook Generation” (aka GenY, aka Millennials) would not be buying in the future, but do Millennials agree?
Millennials will not use email in the future
Although Google and Microsoft are likely to disagree, Facebook founder, Mark Zuckerberg called email “too formal,” which is the basis of 24/7’s argument that Millennials will not use email for much longer, pointing to email use falling for the 12-17 demographic and rising for people over 55.
The idea that email is disappearing is ludicrous, in fact, email use is on the rise across the board as spam filters are finally working 20 years later, and we all get as much spam on social networks as we do in our email inbox. Zuckerberg has never lived in a cubicle, so his word is not final on this matter, and considering 12 to 17 year olds as the benchmark for email use is misguided, as they are not yet in the professional world. What is accurate, however, is that for personal use, it is not likely any Millennial will pay for email, so we can meet 24/7 half way on this one.
Generation Y won’t buy beer
According to 24/7, there is a shift in beer consumption, and after traditional beer brewers like Budweiser having relied on men in their 20s are watching their core demographic slip away to lite brands. Budweiser research reveals that 40 percent of young people today have never tried regular beer, which was 10 percent in 1988.
This is a really complicated product for a number of reasons, but is worth looking at for other industries to learn about the Millennial generation. 24/7 is right in that the traditional beers are being ditched for light beers, but moreover, the generation is more open to wine and mixed drinks, as the generation has much fuzzier gender boundaries than former generations – it’s not butch for a girl to drink a beer, and it’s not feminine for a guy to order a mixed drink.
We’ve come a long way since the Mad Men era of scotch and masochism, and most marketers are highly ignoring the changing gender roles. It’s okay for a man to be the stay at home parent in the Millennial generation, it’s okay for a woman to be a CEO, and sexuality is blurred as well. These all play a role in purchase decisions as men and women are less concerned with what a product choice says about their gender or sexuality.
Newspapers are on the way out
People under 30 don’t read newspapers now, and media companies are scrambling to figure out their next move – 24/7 is right on with this projection. Millennials are mobile, and they are multi-taskers. Reading a newspaper requires one to sit still and look at the same thing for an extended period, which is not a common behavior for Millennials when it comes to media consumption.
Books are still in use for this generation, but the next will not likely even touch print. The web opens so many doors and allows information to flow freely, so although newspapers in print will not reach Millennials, digital news does, and boy, does this generation consume a lot of that, whether it is niche news or celebrity news.
No more cars?
This one surprised us a bit, as 24/7 says less than half of all Americans 19 and under had a license in 2008, and car sales have struggled to reach the younger demographics.
Why is this? In my opinion, there are four reasons. First, after high school, most Millennials do not see see cars as a status symbol as previous generations did. Secondly, laws have changed dramatically for this generation, many of whom were not legally allowed to get a license at 16, so that “sweet 16” mentality is shifting, so the importance placed on that car is different now. Third, although frequently accused of being “slacktivists,” Millennials volunteer more hours and give more money to environmental causes than any generation in history, grew up around recycling, were told by age 10 that global warming was real and it was our fault. Lastly, cars are becoming less relevant because Millennials are flocking to the city and emphasizing buying homes and condos that have high walkability – it is almost cool with this generation to boast that they “got rid of” their car.
24/7 argues that most 25-29 year olds live in a household with only wireless phones. There is no arguing here – I’ve had a cell phone since I was too young to get one without an adult co-signer, and although I grew up with a phone in my house, by the time I was in college, no one talked on the phone, we all texted or emailed or instant messaged. Dorms and student apartment housing being built now in some cities does not have the wiring for landlines, as developers are discovering that it is a feature most do not use, thus a corner that can be cut.
What is still up for debate is VOIP phones, as most Millennial entrepreneurs that I know have this as their setup so they can have a professional voicemail system or route it to other staff including an assistant. This avoids professional contacts calling their cell phone and getting the “wazzuuuuppppp!!?????” voicemail greeting.
I would add that many Millennials, having grown up with social networks (in my case AOL, ICQ, etc., and in my final year of college, Facebook) divide their personal life from their professional life in a very guarded way, not friending anyone on Facebook that they haven’t met in person and know socially. Keeping a separate phone is something I can see increasing in coming years, but not so that there is a landline, but due to the division of personal and professional as the generation becomes acutely aware of how each impacts the other.
Suck it, cigarettes
Smoking rates among young people have historically exceeded those of the general population. Now that group is dropping the habit quicker than anyone (down 17.6 percent from 2005 to 2010) while it Americans over 65 have increased their smoking by 10.5 percent in the same period.
What businesses need to glean from this particular factoid is that Millennials may eat junk food, but anything that is obviously a health risk is often avoided, even binge drinking which is decreasing as well. I find my generation to be very conscious of being healthy; not necessarily for vanity, but for reasons of health. Think of it this way – a first date in 1980 might entail a 24 year old discussing what car they drive (going back to the car prediction), what high profile job they have, what texture is on their business cards (I kid), while a 24 year old today will chat about what local foods they like, or where they go running in the morning, or how they worry that their shirt took a trillion gallons of pollutants to make. These two cases are obviously an exaggeration, but my point remains.
Dude, you’re not getting a Dell
24/7 notes that Millennials are the only demographic to own more laptops than desktops, and most buy laptops as their first computers. I would add that the rising popularity of tablets will also have an impact on the fact that Millennials are not typically tied to desktops for personal use, but of course, all are bound by what their employer requires of them.
Technology manufacturers will adjust, and already know that mobile is where it’s at. Smartphones did not replace computers as once suspected, as websites and technology did not catch up fast enough, and Millennials are bi-techtual, meaning they usually own more than one device. It is common to own a laptop, a tablet, and a smartphone, not necessarily by the same manufacturer – not all Mac fans are die-hard, many will own a Macbook Pro and an Android smartphone, so brand loyalty is also in flux.
Television is absolutely on the way out
Although television sets are not at all going away, the viewing habits are rapidly changing, with Millenials between 18 and 24 watch less traditional television than any other demographic and Netflix and Hulu are taking over viewing for this generation. Many do not even have cable, which is an adjustment that carriers will be impacted by, but will likely make up the difference by increasing internet rates, claiming there is no more bandwidth because of the video streaming, so the costs will even out in the long run.
Millennials are not a complex generation, we just grew up with technology, which doesn’t make us more special, smarter or faster than any generation, just different in how we consume products. We care less about status symbols and more about convenience. We care less about being called gay for ordering the wrong drink or wearing the wrong shirt, and we genuinely care about our health after watching the previous generation force airplane seats to widen by however many inches over the decades.
Marketers frequently miss the mark in reaching Millennials, tying to much of their assessments to technology and the impact it has had on the generation, but it is much more sociological than many believe. It has less to do with a stupid iPad and more to do with how we see ourselves and those around us, having had a different type of access to the world via the web. It is important for brands of all size that plan on growing in coming years to understand the relatively dramatic shifts going on right now in consumer behavior, as Millennials are now very powerful buyers in the market.
Jack of all trades vs. specialized expert – which are you?
(BUSINESS MARKETING) It may feel tough to decide if you want to be a jack of all trades or have an area of expertise at work. There are reasons to decide either route.
When mulling over your career trajectory, you might ask yourself if you should be a jack of all trades or a specific expert. Well, it’s important to think about where you started. When you were eight years old, what did you want to be when you grew up? Teacher? Doctor? Lawyer? Video Game Developer? Those are common answers when you are eight years old as they are based on professionals that you probably interact with regularly (ok, maybe not lawyers but you may have watched LA Law, Law & Order or Suits and maybe played some video games – nod to Atari, Nintendo and Sega).
We eventually chose what areas of work to gain skills in and/or what major to pursue in college. To shed some light on what has changed in the last couple of decades:
Business, Engineering, Healthcare and Technology job titles have grown immensely in the last 20 years. For example, here are 9 job titles that didn’t exist 20 years ago in Business:
- Online Community Manager
- Virtual Assistant
- Digital Marketing Expert
- SEO Specialist
- App Developer
- Web Analyst
- Social Media Manager
- UX Designer
We know that job opportunities have grown to include new technologies, Artificial Intelligence, Augmented Reality, consumer-generated content, instant gratification, gig economy and freelance, as well as many super-secret products and services that may be focused on the B2B market, government and/or military that we average consumers may not know about.
According to the 2019 Bureau of Labor Statistics after doing a survey of baby boomers, the average number of jobs in a lifetime is 12. That number is likely on the rise with generations after the Baby Boomers. Many people are moving away from hometowns and cousins they have grown up with.
The Balance Careers suggests that our careers and number of jobs we hold also vary throughout our lifetimes and our race is even a factor. “A worker’s age impacted the number of jobs that they held in any period. Workers held an average of 5.7 jobs during the six-year period when they were 18 to 24 years old. However, the number of jobs held declined with age. Workers had an average of 4.5 jobs when they were 25 to 34 years old, and 2.9 jobs when they were 35 to 44 years old. During the most established phase of many workers’ careers, ages 45 to 52, they held only an average of 1.9 jobs.”
In order to decide what you want to be, may we suggest asking yourself these questions:
- Should you work to be an expert or a jack of all trades?
- Where are you are at in your career and how have your skills progressed?
- Are you happy focusing in on one area or do you find yourself bored easily?
- What are your largest priorities today (Work? Family? Health? Caring for an aging parent or young children?)
If you take the Gallup CliftonStrengths test and are able to read the details about your top five strengths, Gallup suggests that it’s better to double down and grown your strengths versus trying to overcompensate on your weaknesses.
The thing is, usually if you work at a startup, small business or new division, you are often wearing many hats and it can force you to be a jack of all trades. If you are at a larger organization which equals more resources, there may be clearer lines of your job roles and responsibilities versus “the other departments”. This is where it seems there are skills that none of us can avoid. According to LinkedIn Learning, the top five soft skills in demand in 2020 are:
- Emotional Intelligence
The top 10 hard skills are:
- Cloud Computing
- Analytical Reasoning
- Artificial Intelligence
- UX Design
- Business Analysis
- Affiliate Marketing
- Scientific Computing
- Video Production
There will be some folks that dive deep into certain areas that are super fascinating to them and they want to know everything about – as well as the excitement of becoming an “expert”. There are some folks that like to constantly evolve and try new things but not dig too deep and have a brief awareness of more areas. It looks safe to say that we all need to be flexible and adaptable.
Video is necessary for your marketing strategy
(BUSINESS MARKETING) As technology and social media move forward, so do marketing opportunities. Now is the time for video content social media marketing!
As an entrepreneur, you’ve surely heard the phrase “pivot to video” countless times over the last few years. It’s the path a lot of media companies are on, but even brands that aren’t directly talking about this pivot have increased their video production. This shift stems in part from studies showing users spend more time on pages featuring video content. Social media has also played a significant role, and recently, new social platforms have made the pivot to video even more important.
Snapchat and TikTok are leading the social video sector as emerging social media platforms, but the audiences for these platforms skew especially young. The content on these platforms also tends toward the meme-worthy and entertaining, raising the question: are these platforms a good use of your time and resources? The answer depends on your industry, but whatever your field, you can certainly learn from the pros dominating these new platforms.
The promotional angle
One of the primary ways that businesses use video content across platforms is by creating promotional content, which range widely in style, cost, and content, but there are a few strategies that can really help a promotional video succeed.
First, a great promotional video hooks the viewer within the first few seconds. Social media has shrunk everyone’s attention span, so even if your video is on a longer form platform, the beginning has to be powerful. Having a strong start also means that your video will be more flexible, allowing it to gain traction across different platforms.
What you’re promoting – what your business does and who it serves – plays a critical role in what kinds of video content you make and what platforms you use. TikTok is a lot of fun, and it’s playing a growing role in business, but if your entire audience is age 30 and up, there’s not much point in trying to master the form and build a viewership there. You need a sufficient youth-heavy market to make TikTok a worthwhile investment, but Snapchat, which also serves a youth-heavy market, might be a different story.
Even if you don’t intend to make heavy use of Snapchat, the platform recently made a big splash in the video sector by opening up its story tools to other platforms. That means businesses will be able to use Snapchat’s tools on platforms like Facebook and Instagram, where they may already have an audience. It will also make crossover content easier, allowing you to maintain consistent branding across all platforms. You may never download Snapchat proper, but you may soon be using their tools.
It’s all about strategy
However you choose to approach video content, the fact is that today video is a necessary part of your content marketing strategy. In part this is because, while blogs aren’t going anywhere, and short-form social media is definitely ascendant, both make use of video, but that’s not the only reason. Video is so powerful because it’s deeply personal. It makes your audience feel that much more closely connected with you and your brand, and that alone is enough to change buying patterns.
Another key advantage of video is that, consumers genuinely enjoy well-made videos. Unlike blogs, which most users will typically only seek out if they need information, there are brands out there who are known for their video content. They’ve found a way to hook viewers and make them feel like they have two products: entertainment and whatever it is they actually sell. You, too, can do this with enough creativity and today’s social media tools.
It’s critical that you don’t let your brand fall behind on video right now, because if you even stop for breath, you will be left behind. As TikTok and Snapchat have made clear, video doesn’t stop for anyone. At this point, video isn’t the future of social media or ecommerce – it’s the present.
How a Facebook boycott ended up benefitting Snapchat and Pinterest
(MARKETING) Businesses are pulling ad spends from Facebook following “Stop Hate for Profit” social media campaign, and Snapchat and Pinterest are profiting from it.
In June, the “Stop Hate for Profit” campaign demanded social media companies be held accountable for hate speech on their platforms and prioritize people over profit. As part of the campaign, advertisers were called to boycott Facebook in July. More than 1,000 businesses, nonprofits, and other consumers supported the movement.
But, did this movement actually do any damage to Facebook, and who, if any, benefited from their missing revenue profits?
According to The Information, “what was likely crumbs falling from the table for Facebook appears to have been a feast for its smaller rivals, Snap and Pinterest.” They reported that data from Mediaocean, an ad-tech firm, showed Snap reaped the biggest benefit of the 2 social media platforms during the ad pause. Snapchat’s app saw advertisers spending more than double from July through September compared to the same time last year. And, although not as drastic, Pinterest also saw an increase of 40% in ad sales.
As a result, Facebook said its year-over-year ad revenue growth was only up 10 percent during the first 3 weeks of July. But, the company expects its ad revenue to continue that growth rate in Q3. And, some people think that Facebook is benefitting from the boycott. Claudia Page, senior vice president, product and operations at Vivendi-owned video platform Dailymotion said, “All the boycott did was open the marketplace so SMBs could spend more heavily. It freed-up inventory.”
Even CNBC reported that Wedbush analysts said in a note that Facebook will see “minimal financial impact from the boycotts.” They said about $100 million of “near term revenue is at risk.” And for Facebook, this represents less than 1% of the growth in Q3. However, despite what analysts say, there is still a chance for both Snapchat and Pinterest to hold their ground.
Yesterday, Snap reported their surprising Q3 results. Compared to the prior year, Snap’s revenue increased to $679 million, up 52% from 2019. Its net loss decreased from $227 million to $200 million compared to last year. Daily active users increased 18% year-over-year to 249 million. Also, Snap’s stock price soared more than 22% in after-hours trading. Take that Facebook!
In a prepared statement, Chief Business Officer Jeremi Gorman said, “As brands and other organizations used this period of uncertainty as an opportunity to evaluate their advertising spend, we saw many brands look to align their marketing efforts with platforms who share their corporate values.” As in, hint, hint, Facebook’s summer boycott did positively affect their amazing Q3 results.
So, Snapchat and Pinterest have benefited from the #StopHateForProfit campaign. Snapchat’s results show promising optimism that maybe Pinterest might fare as well. But, of course, Facebook doesn’t think they will benefit much longer. Back in July, CEO Mark Zuckerberg told his employees, “[his] guess is that all these advertisers will be back on the platform soon enough.”
Facebook isn’t worried, but I guess we will see soon enough. Pinterest is set to report its Q3 results on October 28th and Facebook on the 29th.
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