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Millennials – a target group with potential?

Millennials – a target group with potential?

Andreas Kraus
Andreas Kraus
published on June 15, 2022   
updated on June 21, 2022

Target group Millenials – The most important in a nutshell

  • Millennials include all people born between 1981 and 1995.

  • The Millennials target group is also referred to as "Generation Y" or the "digital natives" generation.

  • Millennials have witnessed the emergence and development of digitization and are aware of all the advances to date.

  • 80% of Millennials store online, which is why you should value a mobile friendly website with a responsive design..

People who belong to the “Millennials” target group are also referred to as “digital natives” because they grew up in the digital world. The generation therefore developed in a completely different way than its predecessors. Millennials differ not only in terms of technical know-how, but also in the way they work, their purchasing behavior, their media consumption and their handling of money. Millennials are often flexible in adapting to new environments, both professionally and personally, and are known for keeping many options open. However, the generation is also highly individualistic, places great value on personal development, and often possess high expectations. We help you understand the Millennials target group and address them correctly.

 

Which people does the Millennials target group include?

The “Why” generation includes all people born between 1981 and 1995. The target group got its name because it generally questions more than previous generations. In addition, Millennials are the first age group to have grown up in the digital world. They have witnessed digitization both in its origins and in its development and are aware of all the advances made so far. They are also the generation that can influence further development.
 
This is why addressing the target group in the right way is also so important in a marketing context, as it has to be done in a different way than for previous generations. Due to the extensive digital knowledge that the generation brings with it, both the positioning should be adapted and even more modern marketing strategies should be worked out. We would like to highlight the potential that comes with the development of Generation Y in this article, because one thing is certain: digitization is the future!

 

Millennials and digitalization

The digital transformation of communication and information is in a constant state of flux. An ongoing development process can also be seen in new technologies in social and professional areas. For example, most companies now work paperless, which requires a high level of integration of technical tools and, at the same time, the corresponding know-how. Large companies in particular are initially faced with the challenge of accepting such further development and implementing it accordingly.
 
Earlier generations in particular often reach their limits here, as they first have to learn how to use new equipment and processes. Older generations often find it difficult to understand why work equipment and working methods that have worked for years should suddenly be changed. In times of global digitization, however, there are now more efficient methods for a very large proportion of processes.
 
Millennials, on the other hand, are very familiar with technological advances, which is why they in particular become important to a company, as you can support the older employees and move the company forward.

 

Millennials’ media consumption

On average, Millennials spend about 3.2 hours per day online – that’s almost one day per week! This is another area where smartphones and tablets are being increasingly relied upon, with the laptop or desktop becoming less important away from the job world. Almost everyone uses social networks, and Millennials are most likely to be found on Facebook, YouTube and Instagram.
 
A clear trend can also be spotted in shopping: according to a study in the US 2020, 80% of Millennials store online. This means for online store owners that they should put great emphasis on a mobile friendly website with a responsive design for their websites, so that the offer can be easily seen via a smartphone.

Millennials - a target group with potential?
Learn more about the importance of a mobile-friendly website and how you can create a responsive website without programming skills.

Understanding Millennials as a target group

Growing up with digital media isn’t the only thing that sets Millennials apart from other generations. In the past, it was normal to study or go into training directly after school. Nowadays, however, the majority of school leavers spend another year or more abroad before that to gain new experience. When Millennials do decide to study, they often do so after the standard period of study. It is not uncommon for Millennials to still be young professionals in their late 20s. Once they have arrived in professional life, their priorities are no longer a top salary, but sufficient free time, work-life balance and the opportunity to work in a home office.

Millennials compared to the other generations

Maturists (vor 1945)
Baby Boomer (1945 - 1964)
Generation X (1965 - 1980)
Millennials (1981 - 1995)
Generation Z (nach 1996)
Working
3 %
33 %
35 %

29 %
Part-time & education
Aspired goal
House owner
Job security
Work-Life-Balance
Freedom & flexibility
Safety & stability
Typical product
Car
Television
Computer
Smartphone & Tablet
3D-Printer
Communication
Letter
Telefon
E-Mail & SMS
Social Media & SMS
Portable Devices
Preferred medium
Face-to-Face
Face-to-Face
E-Mail & SMS
Online & mobile
Facetime
Millennials - a target group with potential?
You want to know more about other generations?
We’ll give you an overview of how to reach Generation Z in another blog post.

Millennials in dealing with money

Millennials also differ from other generations in their approach to money. Whereas in the past, people increasingly relied on protection in the form of home purchases and savings, only 39% of the generation say that protection is important. 70% prefer to use their money for experiences rather than possessions. Most money is often spent on travel, entertainment and food. However, should millennials decide to invest their money in addition, this often involves ESG investments, meme stocks or cryptocurrency.
 
Happiness is more important than money – that sums up the Millennials’ view well. This is not surprising; after all, this generation experienced the 2008 financial crisis firsthand and saw with their own eyes how quickly large fortunes can be reduced. Thus, availability via a product becomes much more important than actual ownership.
 
Netflix offers the best example here. For Millennials, owning the movies is not important – they want to be able to watch them whenever they want. Whether it’s Spotify, car-sharing or Uber: everywhere, it’s all about having products or services ready to call up at any time. Ownership is taking a back seat.

Millennials and their purchasing power

For many companies today, the question arises as to whether marketing specifically targeted at Millennials makes any sense at all. Due to declining birth rates, one might assume that this generation does not have an overabundance of representatives, especially in comparison to Baby Boomers or Generation X. Yet Millennials are the largest living generation in the U.S. and are projected to make up 75% of the global workforce by 2025. As such, Millennials will be a major buying force in just a few short years – so now is the time to develop a plan to meet the demands of this generation.

Millennials and their purchasing decisions

It’s noticeable that this generation does a lot more research before making a purchasing decision. This is quite understandable when you grow up with a choice of 15 different brand products that differ in price, performance and quality. Thanks to the smartphone, information on the Internet is much easier to access than it was just a few years ago. Accordingly, sellers should make sure to provide customers with product information quickly and easily – not only in brick-and-mortar retail, but also in online retail. The products should also have received a good online rating from customers. Millennials are increasingly paying attention to this before ultimately making a purchase decision.

Millennials - a target group with potential?
Learn why online reviews are so important and how you can send a direct review link to your customers via Google.

Reaching Millennials through Social Media Ads from LocalUp

Millennials spend a lot of time on social media channels, which is why businesses are increasingly turning to social ads to reach this audience. Social ads are purchased advertisements on social networks. Companies are not only achieving success with the use of this marketing method on Facebook and Instagram; social ads can also be placed on Twitter and YouTube. Such advertisements are personalized ads. Specific targeting can be carried out using the data that users disclose on the platforms they use. This gives companies the opportunity to address the desired target group and effectively advertise their products.
 
LocalUp also relies on social media marketing. Here, customers receive automated, personalized, and location-based advertisements that are played out to the audience according to the target group. By precisely defining the target group, wastage is reduced and only the desired people are reached. In order to achieve the maximum in this respect, LocalUp also relies on multi-channel campaigns. The ads that are played out are thus not overlooked by anyone who actively uses even one social media channel.

Millennials - a target group with potential?
Learn more about LocalUp’s marketing automation and how you can use individualized social media ads for your business.

Keep an eye on the Millennials target group

Since millennials make up the largest percentage of all generations, about 22% of the world’s population, they are an important target group. They have experienced digitization in its origins as well as in its current advances, understand development processes and may be part of it themselves. Therefore, you should adapt your company to this generation not only in marketing, but also in many other areas.

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