Brands face a major challenge: How to convince Millennials to buy products when so many of them are frugal with their money and spending. According to a new eMarketer report, “Millennials in the Marketplace: A Generation Moving on Its Own Unpredictable Path,” Millennials are likely to seek low prices over products from their favorite brands. Clearly, consumer loyalty is a growing concern for businesses that target consumers, but some digital channels may help companies capitalize on internet marketing opportunities.
A recent comScore report noted that U.S. Millennials have an annual spending power of $170 billion. However, these consumers won’t blow their money on just anything – a Q3 2012 poll by IRI discovered that 45 percent of Millennials buy products that are on sale over alternatives from their favorite brands. This means businesses that traditionally appealed to younger demographics may find their profit margins down because of the weaker economy.
But brands shouldn’t fret: digital media is here to save the day. Millennials have an affinity for new channels like social media, streaming video sites and online gaming platforms. More, eMarketer estimates that 95.2 percent of Millennials will be mobile phone owners by the end of 2013 – three-quarters of this demographic will have smartphones.
Perhaps most convincing for marketers looking to convert Millennial prospects is that these consumers use their internet-enabled devices to shop. Research from eMarketer shows sites like Google and Bing are increasingly important components of Millennial’s purchasing behaviors, as they compare prices on their phones while in retail stores.
Marketers must realize that Millennials turn to social media content and video content for a variety of purposes, and they often access these types of information via their phones. Therefore, leveraging these new-media channels for engagement in brick-and-mortar outlets and online can increase website conversions for brands that target younger, more money-conscious consumers.