Are All Millennials an Advertising Gold Mine? Using Data to Reach the Millennial Generation

A report released by ad tech firm Turn is causing quite a stir in the advertising community. According toTurn, advertisers are spending a mindboggling 500% more to advertise to the Millennial generation (18- to 35-year-olds) than they spend to reach all other demographic groups combined (this includes Traditionalists over age 70, Baby Boomers, Generation X, and Generation Z). Advertisers spend four times as much to reach Millennials with display advertising, four times more to reach them on social media, four and a half times more to reach them via mobile, and six times more to attract them through video advertising. Who are these Millennials and why are advertisers treating them like kings and queens? Are they really worth all this dough?

According to the research, advertisers may be somewhat off, as Millennials (of which there are 75 million in the United States alone) aren’t one, large demographic group with a homogenous income, interests, strengths, and weaknesses. Instead, Turn identified four distinct groups of Millennials. Advertisers are better advised to develop separate strategies for each of these segments, instead of approaching the group as a whole.

Struggling Aspirationals

Struggling aspirationals are healthy, responsible, and thrifty. You can reach them with offers that help them save money and move closer to meeting their goals.

Fifty-Seven percent of Millennials fall into a group Turn calls “struggling aspirationals”, who are into healthy living, being good to the environment, and love food. This group is relatively poor, earning under $50,000 per year, but are always looking for good deals. Advertisers can best reach them via limited-time promotions and membership offers. If you’re in the business of the big-ticket items like flat-screen TVs, cars, vacations, and tech gadgets, your long-term branding efforts can pay off.

Comfortable TV Watchers

Don’t assume that the TV watchers are too poor to buy your merchandise. This is a diverse subgroup of Millennials with disposable income. You just have to dig into the data to find the hidden niche markets here.

Before you skip over this group, you need to know that they are the second most lucrative on the list. Comprised of just 8% of the Millennial demographic, they earn $50,000-$90,000 per year and represent a wide range of interests from sports to news and drama to reality TV. Advertisers can reach various niche groups within this segment by delving more deeply into data and identifying potential target markets here.

Active Affluents

Active affluents are either starting families or have families, so they are always on the lookout for children’s products, affordable family vacations, products to use and enjoy outdoors, and anything to do with good food.

Seventeen percent of Millennials fit into this segment, and they make up some rich territory for advertisers. These people have families or are starting families, so they’re up for lots of kid- and parent-related merchandise. They are also outdoor lovers, foodies, fitness buffs, and avid travelers, so there are plenty of products and services that they are in the market for. With $50,000-$90,000 annual incomes, this group also has the disposable income to actually buy your stuff. Since this group is in almost constant motion, mobile advertising is the ideal platform for reaching them with ads.

Successful Homeowners

The Millennial homeowners have plenty of disposable income and are more than willing to part with it. You just have to reach them where they are and do so powerfully and forcefully.

Eighteen Percent of Millennials are classified as homeowners, and with income levels above $100,000 per year, they are both able and willing to buy high-ticket and luxury items. However, this group is typically under-targeted by advertisers. Video ads are a wide-open platform for reaching this group of Millennials.

Are you looking for even more advice on delving into the data for advertising insight on Millennials? Big Data Week is the place for you.