Mil­len­ni­als, con­sid­ered less flat­ter­ingly by some as Gen­er­a­tion Me, do have their upside. We cur­rently rep­re­sent more than $200 bil­lion in annual buy­ing power.  Just a few years into our careers, the bat­tle for our cus­tomer loy­alty and future earn­ings from our gen­er­a­tion begins now. With­out the right strat­egy, the lost ones will be the busi­nesses that didn’t cap­ture a group of 86 mil­lion consumers.

The mil­len­nial gen­er­a­tion is demand­ing a more per­sonal human­ized approach from mar­keters, where ads are tai­lored specif­i­cally to a need we have at the moment. We need to have a rea­son to not read reviews, com­pare prices, and hold out for a bet­ter offer. Social media when done cor­rectly is a direct way into reach­ing my gen­er­a­tion. Recent find­ings from Adobe show that mar­keters and the social net­works are find­ing the right keys to improv­ing this rel­a­tively new form of marketing.

The Social Intel­li­gence Report released by Adobe shows that con­sumers are respond­ing well to per­sonal, tar­geted ads with click-through-rates (CTR) that have nearly tripled year-over-year. Mar­keters are learn­ing to opti­mize for con­sumers bet­ter by shift­ing from cost-per-click (CPC) model to a cost-per-thousand (CPM) model to take advan­tage the high CTR rates. CPM rates are up 120% year-over-year and CPC rates are down 40% year-over-year.

Facebook CPCs and CTRs

In 2013, the major social net­works got seri­ous about mak­ing their plat­forms more mar­ket­ing friendly. Face­book led with the new Time­line user inter­face, the intro­duc­tion of Graph Search and improved audi­ence tar­get­ing capa­bil­i­ties. Twit­ter also beefed up its tar­get­ing capa­bil­i­ties while acquir­ing Vine and MoPub to increase its video and mobile capa­bil­i­ties, respec­tively. Most recently, Pin­ter­est announced that it will be using pro­moted pins in the future to help retail­ers get prod­ucts directly to consumers.

With mil­len­ni­als, you need to reach them on many dif­fer­ent touch points and cre­ate no bar­ri­ers to pur­chas­ing. The recent social net­work improve­ments have cre­ated ways for mar­keters to achieve this. Prior to pur­chas­ing my HDTV, I looked at prod­uct reviews on Twit­ter, got ideas of the best brand on Face­book, researched those brands, and ulti­mately engaged with a tar­geted ad on Face­book that showed the TV I wanted with an entic­ing offer to pur­chase. I clicked on the ad, entered my infor­ma­tion and the TV was in my liv­ing room within the week. I even reached out to the com­pany on Twit­ter with an instal­la­tion ques­tion that was promptly answered.

Rev­enue per visit on Twit­ter is up 300%, Pin­ter­est up 150%

Con­sumers will spend $2.27 bil­lion dol­lars on Cyber Mon­day this hol­i­day sea­son, accord­ing to a recent pre­dic­tion by Adobe Dig­i­tal Index, with a record num­ber of sales being referred by social net­works. Twit­ter, Pin­ter­est, and Face­book have all shown growth in refer­ring rev­enue to retail sites — with Twit­ter grow­ing the fastest up 300% year-over-year. A strat­egy for these three plat­forms will ensure a suc­cess­ful social strat­egy this hol­i­day season.

Twit­ter: Twit­ter, which was already a major source of refer­ral traf­fic for media com­pa­nies, has improved its share of traf­fic to retail­ers by 2.5 times. It pro­vides a great plat­form for releas­ing infor­ma­tion for online deals to con­sumers as they become avail­able and cre­at­ing an oppor­tu­nity for them to engage directly with a brand for ques­tions, com­plaints, and even praise. Look at cre­at­ing an influ­encer base who can be spokes­peo­ple for your brand on Twit­ter and give you direct access to mes­sag­ing to mil­lions of people.

Pin­ter­est is cur­rently refer­ring more traf­fic to retail sites than Twit­ter, YouTube, and Redidt com­bined. It is the newest form of a cat­a­log where branded com­pany pages show­case its prod­ucts in a way that pro­duces high engage­ment and shar­ing from its consumers.

Face­book is still the giant in the room with engage­ment among brands up 115% year-over-year. Tar­geted ads are prov­ing to be viable with ROI up 58% year-over-year, but you can expect to pay a pre­mium as the cost for these ads go up 42% dur­ing the hol­i­day season.

Social RP

Mak­ing mil­len­ni­als a retailer’s best friend

Social media pro­vides a great out­let to con­nect directly with fans of your brand and to reach mil­len­ni­als on an indi­vid­ual basis. An Adobe Dig­i­tal Index study shows that 40% of rev­enue is com­ing from your loyal fan base, which is only 8% of web­site traf­fic. A loyal fan who is mar­keted to on a per­sonal level through social chan­nels will become a strong repeat cus­tomer and will lead to more loyal fans.

With 96% of mil­len­ni­als engaged on at least one social net­work, mar­keters would be wise to expand offer­ings in social chan­nels while head­ing into the crit­i­cal shop­ping sea­son. Tar­geted ads, cus­tomer ser­vice mon­i­tor­ing, social media “fan” dis­counts, and hol­i­day deal pages are all exam­ples of social media tools that mar­keters can use to ensure they con­nect with their fans and turn a reluc­tant hip­ster mil­len­nial into a life­long loyal consumer.

Fol­low the Adobe Dig­i­tal Index team on Twit­ter @adobeindex for more news, trends and updates on social media.

3 comments
joeygedgaud
joeygedgaud

Ads on Facebook not going out to at least the majority of your followers is a down fall and having to pay is ridiculous. Not to mention the shift in age use of Facebook. Facebook is a valuable resource but it needs to be treated carefully with this changing landscape and cost. Thanks for the insight.

Williams Brown
Williams Brown

I am going through this post and thinking of it’s theme and trying to understand what is this post about. At last I can have found something from this post which feels pretty good.