The Two Most Important Population Cohorts: Millennials and Gen Z
Why are they the most important? Older generations are leaving the planet much faster than those born between 1980 and 2010.
They now account for just under 40% of U.S. population and U.S. brand sales. In less than ten years, they will account for well over 50% of the population and sales … and that will only increase over time. Thus, Boomers and Gen X need to effect the changes necessary which acknowledge the importance of the two younger cohorts or Boomers and Xers will become irrelevant and so will the rest of the world ... not just from a societal standpoint but from a business standpoint.
Key questions:
- What's the critical thing we need to know about Millennials and Gen Z?
- Why don't they engage with brands the same way Boomers and Gen Xers engage?
Key answers:
1) They are much more into experiences they have than messages we send them.
Measurable proof of that answer:Interpublic Group's highest profit margin comes from Momentum, IPG's Experiential Mktg Agency, not from McCann, IPG's advertising division, which is all about messaging, not experiences.
Primary Momentum users are Millennials and Generation Z.
All three ... Experiential Marketing, Influencer Marketing and Purpose Branding ... create brands most profitable users.
Why? Because these users are Brand Loyalists who don't require reduced brand prices the way brand Occasionalists do who buy only when the price is reduced.
This improves both short-term cash flow and long-term brand financial value.
Given all the above, what needs to be our industry's next step?
Basic foundational research on why and why not Millennials and GenZ* engage with brands and society … and how they engage.
*A more descriptive name for GenZ is SCREENAGERS because they are the first population cohort to grow up with nothing but screens in their line of vision.
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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.com/MyersBizNet.
Michael Donahue
Mike Donahue is a former Executive Vice President of the 4As, Senior Director of the ANA and CEO of Connect the Dots, a management consultancy.
