Commentary

Millennials Upend Traditional Madison Avenue Advertising Practices

According to a new Report from Magisto, traditional marketing leadership teams, infrastructures, budgets and “best practices” are anchored in a non-digital history where marketers control a singular message through top-down broadcast advertising. That approach to marketing is teetering on the edge of dangerous precipice, says the report.

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The marketing and advertising industry is acutely aware of the challenges of a digital first world, but they are struggling to adjust, says the report. Millennial business leaders in small to medium sized businesses are redefining the advertising industry with a streamlined digital-first paradigm for marketing, but there are billions in advertising budgets for legacy businesses that have become unwieldy and increasingly difficult to deploy. Though, there is a way forward, says the report.

Reid Genauer, Chief Marketing Officer for Magisto, says “… the first step is to acknowledge that large brands and agencies can no longer depend on the high cost of creative and media as barriers to entry and growth… marketers need to dissect and adopt the strategies and tactics that are working for small and medium sized business… who approach marketing through a digitally native lens…”

In order to better understand SMBs current marketing strategies, Magisto surveyed 500 U.S. based small and medium sized businesses about their digital/mobile marketing strategies and tactics. Key findings in the report continue.

  • Millennials spend 58% of their marketing budget on digital media; Baby boomers spend only 14% of their marketing budget on digital media, making millennials 3X more likely than baby boomers to spend the majority of their media budget on digital advertising
  • Nearly half 41% of millennials spend the bulk of their marketing budget on mobile media. Less than 10% of baby boomers rely on the same media
  • In order to successfully cross the digital divide, says the report, businesses of any size need to put digital and mobile media at the core of their strategy rather than treating it as an extension. Small and medium sized businesses led by millennials do just that and are finding scalable and sustainable ways to deploy growing digital media marketing budgets

Millennials at small and medium sized businesses look at the entire customer journey through a unified lens or one integrated discipline. Unlike more traditional predecessors, millennials drive the entire marketing funnel from awareness, lead generation, revenue, creation and engagement via digital channels, with a focus on social media, says the report.

Millennials use social media to drive “top of the funnel” marketing objectives, including brand awareness.

  • 68% of millennials depend on social media ads for generating brand awareness; vs. 27% of baby boomers
  • 44% of ALL small and medium sized businesses depend on social media ads for generating brand awareness; vs.
  • 5% of small and medium sized businesses depend on television ads
  • 2% of small and medium sized businesses depend on radio ads
  • 13% of small and medium sized businesses depend on print ads

Millennials use social media to support the entire marketing funnel including conversions and revenue:

  • 60% of millennials depend on social media ads to drive revenue; only 27% of baby boomers do this
  • 41% of ALL small and medium sized businesses depend on social media ads for generating revenue; vs.
  • 3% of small and medium sized businesses depend on television ads
  • 3% of small and medium sized businesses depend on Radio ads
  • 12% of small and medium sized businesses depend on print ads

According to eMarketer, 2017 will be the first year in history that digital media ad spending surpasses television ad spending. Beyond ad spending, digital marketing and social media have gone from an extension of traditional marketing strategy to the underpinning of all marketing efforts including, earned, owned and paid media, concludes the report.

Methodology: In September 2016, Magisto surveyed an audience of over 500 SMBs ages 18+ about their digital marketing strategy. This survey was completed online and was completely anonymous. More data and strategies are presented in the complete report, which can be accessed here.

 For additional information, please visit Magisto here.

 

 

 

 

 

 

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