Marketers must distinguish between Millennials and Gen Z to effectively engage each generation. New data reveals that combining both groups in a single campaign approach can lead to missed opportunities and reduced impact.
By Brad Nakase, Attorney
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The idea that millennials and Generation Z are basically the same has gained traction in the past few years.
Businesses frequently combine millennials and Generation Z into one category when talking about engaging younger consumers, developing a single campaign approach they think would work for both.
Companies that want to engage younger consumers often lump millennials and Gen Z into one category and design one marketing plan that they think would appeal to both.
I chose to begin my investigation by asking customers to comment on whether they thought identical marketing approaches would work for each age group.
I polled 350 individuals on Lucid to find out if the following was accurate or false: “The very same marketing strategies that convince Gen Z also work for millennials.” Furthermore, you may be a little taken aback by the following findings if you believe that consumers—the individuals to whom brands market—will lean on one side or another:
Nearly half of the people surveyed disagreed, despite 56% believing that each of the generations might be targeted in the same manner for marketing purposes.
I agree with the forty-four percent of respondents who believe that the same strategies are unlikely to succeed in both categories in the long run as a marketing professional who specializes in audience building.
But are the opinions of any consumer group accurate? In the following post, I’ll discuss the actual data that academics have gathered regarding the generational differences and parallels: millennials vs Gen Z, periodically comparing the raw numbers with the opinions of average customers. In an emergency, skip forward to the information you require:
In terms of the biggest generational divide, most senior millennials have reached their early forties, may have stabilized, and maybe investing in larger investments like homes or cars. The newest members of Generation Z are eleven years old, may enjoy watching kids’ shows, and would not be making purchases anytime soon.
These six additional criteria further highlight the basic millennials vs Gen Z disparities, in addition to the evident age differences mentioned above.
Gaining insight into the time period in which a specific generation grows up can aid in identifying connections between generations, such as shared pain points, savings and spending behaviors, and goals. The two factors that set apart each generation’s formative years were the economy and technology:
Technology
The existence of technology is the most visible distinction between the periods in which each generation grew up. Millennials are the generation that was raised on dial-up internet, DVD players, and enormous personal computers. These technologies seemed revolutionary to us at that point in time.
The majority of Gen Z kids and teenagers now have the luxury of iPads, iPhones, limitless Wi-Fi, and streaming platforms that are on par with our beloved DVD players. It is possible that a large number of people in the current generation grew up in homes equipped with initial smart home equipment.
Gen Z saw innovation firsthand, whereas millennials witnessed it happen.
Even so, social media, the internet, and technology have had a negative effect on Generation Z, even if they were never exposed to a world without cool technology to help with everyday issues.
According to research, Gen Z, sometimes referred to as the “socially aware gen,” is more affected by concerns related to appearance, mental wellness, and cyberbullying than any previous age group. Notwithstanding their abundance of digital connectivity possibilities, experts have labeled Gen Z as the most isolated generation.
Economy
Regarding money, Millennials vs Gen Z think differently. Despite their shared concern for money, they both make investments in things such as higher education that can advance their professions.
The two generations are credited with upgrading the financial practices of their predecessors; however, Gen Z is more concerned with practical goods and savings, whilst millennials allocate more of their income to purchasing more services and goods that will make their lives better.
Soon after the Great Recession finished in 2009, millennials living in the United States began to accumulate their own financial assets. Millennials had a positive outlook on the state of their finances for a number of years prior to 2019, even in the face of financial difficulties brought on by the weak economy, growing housing expenses, and elevated unemployment rates. However, according to some research, the post-pandemic price inflation, downturn, and market decline that will likely occur in 2023 are making millennials less optimistic about their financial future.
When the economic collapse first started, Generation Z came. Based on studies, the eldest members of Generation Z have reached adulthood, and their previous history of living through the Great Recession has made them more frugal with their spending.
These perspectives on money are important to keep in mind if you intend to market to these specific generations.
For instance, if you would like millennials to purchase what you’re selling, you should concentrate on developing an image that provides a fun or engaging consumer experience in addition to advertising goods/services that provide rapid satisfaction. In order to effectively sell to Generation Z, your campaigns should make it apparent to them why or how their product would benefit them on a regular basis.
Gen Z has been using the web since they were very young, while millennials saw it expand. Right now, you may be aware of how much both the aforementioned generations rely on social media and the internet.
Gen Z spends almost ten hours a day online, compared to 7 and a half hours for millennials.
Gen Z differs greatly from millennials in that they were virtually reared on smartphones, yet both groups predominantly use mobile devices to access the internet. Gen-Z is, on average, 5 years younger than millennials when it comes to the age at which they obtained their 1st smartphone, as reported by YPULSE.
How Gen Z shops are also influenced by their mobile-first mentality. Comparing members of this generation to millennials, the former are two times more likely to complete an online purchase using a mobile. Still, millennials make a lot of purchases using mobile devices. Indeed, 71% of respondents claim to use their smartphones for the majority of their purchases on the internet.
Gen Z and millennials consume the majority of their web information by viewing videos and using social media.
A recent survey found that whereas Gen Z watches web videos for almost three hours a day on average, millennials only view them for 1.5 hours. The two generations are believed to spend several hours every day on SM (Social media).
These statistics demonstrate that targeting young adult groups can be facilitated by utilizing mobile optimization & video advertising, which are undoubtedly important digital techniques. Make mobile movies, mobile e-commerce pages, or similar phone-based interactions that appeal to Gen Z and millennials if you truly want to draw their attention. Make sure to promote yourself on mobile-ready sites as well, like the leading social media applications.
I polled the 350 participants during the lucid survey above to find out which generation they believed used social media most frequently in order to get a sense of how individuals viewed the use of social media by each generation. This is what they stated:
The poll findings above showed millennials vs Gen Z as fairly evenly divided. Nevertheless, according to 27% of subjects, each generation is “always hooked on.”
Who is, in fact, the most active on social media? Let us examine the findings of research on these groupings.
According to data from the WEF, millennials spend a mean of 2 hours & 38 minutes a day on social media, and Gen Z spends over four hours doing so.
In addition to the amount of time devoted to social media each day, there are subtle differences between the platforms used by each generation.
As my generation flourished on Tumblr and MySpace and now finds enjoyment on Facebook, Twitter, Instagram, and LinkedIn, Generation Z has become increasingly focused on video sites such as YouTube, Instagram, Snapchat, and, most recently, TikTok.
The most popular apps among Gen Z users, according to a new Business Insider study of the older half of the population, were Instagram, Snapchat, and YouTube.
TikTok ranks as one of the social media applications with the quickest growth rates while appearing less popular according to the latest Business Insider poll. This is because the number of Generation Z users worldwide is increasing.
There are certain social media platform preferences shared by millennials and Generation Z. Instagram is one such example. Even though Instagram is more seasoned and well-known than applications like Snapchat, or TikTok, it still attracts millennials and Gen Z users who enjoy watching videos.
Another social media platform that is widely used by both generations is YouTube. Despite being created when the majority of millennials were still in school, 96 percent of Generation Z users had profiles on YouTube. With 57 percent of YouTube’s viewership being made up of people from Generation Z and millennials, the video site is the 2nd-most common search engine as well as a popular destination for researching products.
When it involves consuming content, the behaviors of each generation correspond quite well to its typical attention span.
Generation Z is only going to give content eight seconds of their attention, compared to 12 seconds for millennials. Additionally, millennials respect long-form material like in-depth podcasts or videos, whereas Gen Z prefers rapid or short-format videos like Instagram or Snapchat Stories.
Therefore, marketers who target Gen Z should focus on delivering the value they offer as fast and smoothly as possible through their ads, whereas those who target millennials may get by with slightly lengthier or greater in-depth material.
As previously said, the majority of social media and internet platforms in use today are increasingly focused on videos. This reflects the rapid increase in video usage across both generations.
When marketing your company’s products to either generation—millennials or Gen Z—you should use mobile-optimized videos, whether you’re making long-form material for them or short videos for them.
Branded Content
Every generation has different tastes when it involves discovering companies or items on SM. Gen Z is more likely to know about products via influencer marketing and social media videos, whilst millennials are more receptive to a wider range of promotional tactics, such as traditional web advertisements, social media advertising, and sponsored podcasts.
Additionally, according to a recent report, 87% of Generation Z likes marketing materials or advertisements that feature real people talking about items. Just 37% of millennials say they would rather see product discussions in advertisements or other marketing materials.
If you’re selling to Generation Z, you should embrace mobile optimization & video in addition to emphasizing content that reads more like an informational piece than an advertisement. The current generation has deliberately disapproved of conventional marketing strategies. For instance, 65% of Generation Z has installed an ad-blocker tool on their PCs or mobile devices, and 84% of them will swiftly avoid video advertisements.
There is a widespread misconception that Gen Z and millennials lack financial literacy. I did another Lucid poll with the exact same people mentioned above to find out which gen they believed spent more cash on items because this appears to be a popular topic in pop culture and online.
The following Lucid poll illustrates this misconception and thinking, as a large number of respondents stated that they thought both generations spent plenty of money:
In addition, 36% of poll participants claimed that millennials spend the largest amount of money on goods, while an identical proportion claimed that both groups made large financial expenditures. Still, fewer than 20% mentioned Gen Z.
Several studies show that although the older Gen Z individuals tend to concentrate on careful spending, both groups actually expend less than previous generations.
Gen Z’s majority doesn’t possess much purchasing power yet. However, compared to previous generations, Generation Z believes that spending money should be done sensibly, according to studies from a number of organizations, including Adobe, Vice, and Insider. Certain experts propose that the thrifty behavior of Generation Z stems from the knowledge they acquired about budgeting during the American recession.
Research indicates that millennials are more likely to shop digitally than members of Generation Z who have grown sufficiently old to engage in purchases. Just 49 percent of Generation Z and 74 percent of millennials, respectively, make more than one monthly online purchase. This information comes from the latest Ernst & Young research.
Gen Z, however, expects more extra services from brands when they’re making purchases, even when they purchase less online. Eighty percent of Generation Z appreciated free delivery, according to the same Ernst & Young poll. Additionally, the study discovered that 74 percent of Generation Z favors brands that offer coupons or discounts above those of other companies.
Though Generation Z is thriftier than millennials, there is a major misperception that the elder generation is excessively frivolous. Even though they are the highest educated generation, buy a disproportionate amount of goods, and have a very positive outlook on their prospects, millennials also make more money yearly than most younger generations.
Both generations value education and skill development, which is something they share in common.
Older generations were able to pay for both education and homes, but millennials are more concerned with paying for their expensive tuition than housing since they discover it out of their financial means.
Both generations are anticipated to continue their pattern of spending on education despite rising educational costs. Although only 10% of Generation Z teenagers have begun saving for higher education, parents of the millennial category are contributing more to their kids’ college accounts than previous generations have.
It is possible to get an early indication of future financial situations and daily incentives by examining the work patterns and early employment of each generation.
There are some minor distinctions between millennials vs Gen Z that you may find interesting, particularly if you work as a marketing professional in the academic or business-to-business sectors. Both generations are motivated by a desire to further their education and advance in their careers.
A lot of millennials are either employed or engaged in postsecondary education today. Millennials will account for 40 percent of the working-age labor force worldwide by 2030, making up the largest portion of working people for the full ten years between 2020 & 2030.
Generation Z is mostly a school-age population, however, they also have strong employment aspirations.
Compared to the millennial gen, Generation Z adults tend to be motivated by money when they search for work. Actually, as of 2023, 74 percent of Generation Z workers will prioritize their wages over other benefits. According to a study of US grads, their top priorities are stability and pay from their employers, surpassing characteristics such as a well-known company brand, a rapidly expanding sector, or comprehensive perks. The age bracket also says that if investing in skill development increases income, they will do so.
Additionally, Gen Z is applying for work more actively than previous generations. Just 10 percent of Generation Z pupils begin looking for work after college, whereas the majority of them do so during their freshmen and sophomore years.
What would this imply for your promotional plan, then? These two generations may make more money than previous ones because they both work very hard and have advanced degrees.
On the other hand, Generation Z is motivated to earn and save wealth. Consequently, you may need to dedicate more effort to developing campaigns that convince Gen Z of the value of your item and demonstrate how it will benefit them. It’s likely that a product’s usefulness will influence them more than its “trendiness”.
Sure, there are plenty of similarities between the two generations.
Although there exist prospects for simultaneously marketing to both age groups, it might turn out to prove more advantageous to devise innovative tactics that specifically target one generation over the other. Here are some insights specific to each age to assist you in creating a plan that attracts the right kind of attention:
Millennial-focused marketing campaign
Millennial marketing is probably the term you’ve heard most about by now. Thankfully, marketing to them is also quite effective. Their preference is to consume various forms of multimedia information, such as podcasts and videos, and they are active on the leading social media platforms now in use. They invest a lot of time doing research before making a purchase, are older and capable of making decisions about what to buy, and have greater education than earlier generations.
Millennials can be reached in a variety of ways by marketing material since they are constantly on the lookout for new products that will make their lives easier.
You may also be a little more inventive by experimenting with longer-format content, such as longer branding films or sponsored podcasts, as millennials possess a marginally larger attention duration than Generation Z.
The most effective marketing initiatives will explain to millennials the way your offering can improve their daily life or offer solutions to challenges they face. One way to improve your strategy is to concentrate on online platforms or social media such as YouTube, Instagram, or Facebook where a lot of adults visit to look up things.
Gen Z Marketing Campaigns
If you aim at persuading Gen Z into buying your product, you should create content that gets right to the point and shows them how and why it will benefit them.
As previously discussed, Gen Z prefers to utilize videos to find out about things and uses their mobile devices for the majority of their web browsing. In your promotions, make sure to use mobile-optimized material and short-format video packaging.
It’s advisable to focus on the specific social media sites that they frequently utilize, including YouTube, Instagram, Snapchat, or TikTok Should you wish to increase brand exposure on these networks even if you are not using them, think about supporting an audience-savvy influencer to produce product-focused content.
Millennial and Gen Z Marketing Campaigns
Create a campaign targeting the eighteen- to 34-year-old demographic if you are unable to allocate funds for marketing targeting millennials & Generation Z but still want to target young people. By doing so, you’ll be able to focus on individuals who are young to somewhat older and capable of making purchases.
Even while millennials between the ages of 27 & 42 might be a bit more favorable for your campaign, there’s always an opportunity you could attract older teens who, if they haven’t already, will shortly be ready to conduct more purchases.
In addition to their differences, both of these generations have two major things in common: they both enjoy social media & quick fulfillment. Use the social media platforms that members of the age bracket you are pitching to have in common and make sure that your message makes it apparent why their group will find your product helpful.
For instance, if your goal is to market your service or good to individuals between the ages of 18 and 34, you should be active on Facebook, Instagram, and YouTube as the majority of individuals in this demographic use these platforms often.
You may be able to draw attention from both categories really fast if you are able to create an advertising strategy that makes appropriate use of major social networks and emphasizes how instantly satisfying and helpful the product is.
It’s crucial to conduct research before creating campaigns aimed at a certain age or demographic to find out what drives this demographic, where they invest their time, what drives them, and what kinds of products they want to use. You can use the following tips to aid in your research:
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