“Generations X and Y will fuel the shopping growth needed to spur an economic recovery, according to a new study from PriceWaterhouseCoopers and Kantar Retail,” states an article on CMO.com.
While Baby Boomers (ages 46 to 64) were largely responsible for the retail spending that fueled recoveries from previous recessions, this time the Boomers are rebuilding personal wealth lost during the recent recession and saving for their future.
Although Gen X is only 75 percent the size of the Baby Boom generation, 71 percent of them have children under the age of 18, which is a time of great spending. In addition, these individuals are approaching their peak earning years.
Generation Y members (ages 10 to 28) have plenty of time to earn and save for the future, and react less strongly to economic conditions. With 85 million people in this group, they outnumber the Boomers. And although 10-year-old children may not have jobs, they have purchasing influence. Have you seen a tween’s bedroom these days? It’s hard to maneuver through all of the stuff—Xbox, iPod, laptop, TV and more clothes than you can imagine.
The article further explains that Gen Y has always lived a life of instant gratification, and for them, a tech lifestyle is a need, not a want. Some of this tech “need” also bleeds over into the Gen Xers. In fact, I recently overheard someone talking about delaying a dishwasher repair so he could buy an iPad—that’s how people live today!
So how does this apply to marketing in today’s world? Well, one thing hasn’t changed—and that’s the need to be right where your target audience is. The thing that has changed is where you’ll find them. If today’s big buyers and influencers are glued to their technology, then you need to incorporate the marketing tools that reach them on their favorite gadgets.
Today’s savvy marketers know that they need to be advertising online, utilizing social media, developing mobile apps and continuing to evolve quickly (yet wisely). Here are some important facts about some of these marketing opportunities.
- For the first time, marketers invested more dollars in online advertising than in newspapers in 2010, according to Outsell. Current estimates show $120 billion in digital expenditures and only $111.5 billion in print-based marketing.
- Facebook advertising will rapidly grow in 2011, predicts Ann Mack, director of trend spotting for New York’s JWT, the marketing agency formerly known as J. Walter Thompson.
- Another aspect of social media is YouTube. 2010 saw YouTube’s views per day increase from one billion to two billion, according to viralblog.com.
- Pizza Hut expects mobile to account for half of all future phone orders, according to its chief marketing officer, Brian Niccol. More of their consumers are already purchasing pizza via their mobile devices than online.
It’s never too late to incorporate these newer media into your marketing plan. Take the time to determine your target audience, evaluate your current plan, establish realistic goals and start utilizing the most effective new media for your organization.
Now is the time to make a move. 2011 promises to be another year of rapid change—so put on your running shoes and join us! iBi