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Are Consumer Brands Missing the Millennial Market?

A tsunami is coming and the question is whether consumer brand marketers are ready.  Millennials are graduating from American colleges and universities in record numbers and offer one of the most exciting marketing opportunities since the Baby Boom generation.  Statistics derived from DigitalMediaIX’s recently completed National College Student Survey have identified some critical trends relating to College Millennials and how these can be used to effectively support brand marketing strategies.

To effectively reach College Millennials, brand marketers must: 1) Understand this market; 2) Develop a social and online strategy to engage this demographic; and 3) Develop a mobile strategy which effectively supports this market.

Understanding College Millennials

Millennials were born in between 1982 and 2000 and rival the Boomers and size and likely will exceed them in consumer spending.  They are more educated, with an estimated 43% who will become College Millennials.  Already, more than half of the College Millennials are in the workforce, with the balance expected to graduate over the next seven years.  This generation has not known a world without the internet.  While previous generations will use social and online media, the Millennials will rely on it to support the brands they prefer.

Consider the numbers:

• Total Millennials number 74 million[1]
• College Millennials will represent  32 million or 43%[2]
• College Millennials will have 50% more income than their peers without degrees[3]
• 63% of Millennial income will support discretionary expenses[4]
• College Millennials will represent  an annual $120 Billion market–60% of their generation[5]

The Rise of Digital Media

Reaching this generation will involve a dramatic shift from traditional media to digital media.  Broadcast radio has almost been replaced by streaming music, which may or may not have advertisements.  Television viewing on a big screen may be preferred for feature presentations or sports, but Millennials more often will stream video content to their computers, tablets, and phones.  Millennials may rely on newspapers in college or for local news, but most students rely on internet sources to get their news, often tailored to their interests.  DigitalMedixIX’s Fall 2013 survey, found supporting numbers for these trends:

• 94% of college students are active with social media
• Students spend 7 hours per week on social media
• 44% percent report this is more than last year
• 86% have engaged with a consumer brand online in the last year.

Mobile’s Strong Influence

Students are always on the move and as a result have become more dependent on mobile devices, especially their phones.  The smart phones of today are similar in performance to the computers of 10 years ago!  In addition to communicating with friends, students accessing the internet, doing their banking, and are active shoppers with their smart phones.

• More than 96% have smart phones
• 90% access the internet with their smart phones
• 68% of students do their banking with their smart phone
• 64% have purchased products with their phones

Brand marketers need to adapt to this market, communicate to them on channels where they spent their time, support mobile devices that they rely on and understand what influences them in regards to brands.  While social and online media may not always show a direct connection to a sale of a product, building a strong brand image through these channels will be essential in reaching the College Millennials, the next wave in consumer spending.

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