According to new research from Nielsen, today's Millennials are the most racially diverse generation in U.S. history, with nearly 43% identifying as non-white. Varying estimates place this group's purchasing power anywhere between $125 billion and $890 billion annually, while some estimates attribute these young shoppers with $200 billion of direct buying power plus an additional $500 billion in indirect influence, based on Millennials' powers of persuasion over their Baby Boomer parents.
With significant spending power, and men 18-34 years old representing over 30% of the adult male TV market, understanding these consumers' media consumption habits and what motivates them are critical insights for marketers. The report, says Nielsen, offers a sneak peek into the hearts and minds of this desirable demographic
Millennial males spend less time on average each week consuming traditional TV, only 20 hours, compared to 23 hours for Millennial females, 28 hours for Gen X males and 38 hours for Boomer males. However, this group spends significantly more time per week (2 hours 15 minutes) than any other demographic watching videos on the Internet.
While these young men are united by age, the group is diverse and their habits can vary by their ethnicity.
Eighty-eight percent of all Millennial males in the U.S. listen to radio each week, spending more time than their female counterparts (11 hours and 42 minutes vs. 10 hours and 46 minutes). They also show greater interest in personalized streaming audio services (Spotify or Pandora) than other demographics.
When it comes to social networking, 70% of Millennial males were engaged in social networking while only 38% of older non-Millennial men used social media platforms over the same 30-day period in the third quarter of 2014. Their social profile, vs. non-Millennial men shows:
Millennials are more likely than Gen X or Boomers to hear of what's going on with companies through social media tools, such as Facebook, Twitter or blogs. They're also more likely to trust the information they learn about a company through social media than information offered elsewhere. While the media has predicted that Millennial males are all but impermeable to marketing, data shows that Millennial males are not only receptive to marketing, but that they proactively try to learn more about the companies they hear about or do business with.
But just as Millennial men consume content differently than Millennial women, they also identify with ads differently. Advertisers in some categories are working overtime to reach this coveted segment, says the report, and by tailoring their outreach, they're finding success. For example, within the computers and electronics category, 76% of all impressions served to a campaign aiming to reach Millennial males do so successfully, compared with 57% for campaigns aiming to reach the general Millennial population.
While some companies have found success getting ads to resonate with Millennial men, within the electronics category Millennial males' spending represents more than 10% of total annual spend on electronics among adults. On average, a Millennial man shops five times for electronics each year and spends about $77 per trip.
Overall, Millennial men's spending across retail categories represents 8% of total adult audiences., close behind their female counterparts, who account for 9% of total spending across retail categories. Millennial males spend slightly more per shopping trip, but Millennial women shop more often. On average, a Millennial man spends $2,200 a year in retail, with key categories for the group being mass merchandisers, home improvement, digital apparel/merchandise, electronics and apparel.
The report concludes noting that even though Millennial men don't have the same level of discretionary income of other demographics, (with $1 trillion in collective student loan debt, more than a third unemployed, and more than two-thirds at graduation age without bachelor’s degrees), this group is widely considered to be influencers and highly covetable to marketers in their own right.
Investing in getting to know the intended audience, opines the report, is as important, or even arguably more important, than the messages themselves.
An Infographic Snapshot Summary
Who is the Millennial Male Consumer
….. More likely than GenXers of Boomers to learn about companies through social media
….. More likely to trust the info
….. Less concerned about the quantity of personal info companies capture
….. Watch traditional TV 20 hours a week
….. Watch video on the Internet 2 hours and 15 minutes a week
….. 88% listen to radio each week for 11 hrs and 42 minutes
Connecting In The 30 Day Period In 2014
….. 70% engaged in social networking
….. 57% downloaded apps
….. 56% downloaded games
….. 51% used a game console
….. 38% used twitter
Regarding Spending Habits
….. Spent $17B across retail categories annually
….. Spent $2,200 in retail annually
….. Spent $1.7B on electronics annually
….. Make 5 trips annually for electronics @ $77 per trip
Source: Nielsen Insights, December 2014
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