Why Y Women?
We released a new research report today that revealed that two-thirds of Gen X women chose Gen Y women as the most influential age group when it comes to defining trends in popular culture. Gen Y women, in turn, are discovering new brands and getting most of their style inspiration and product recommendations from blogs and social media.
Introduction
Who are Generation Y women? Sometimes referred to as the Millenials or Echo Boomers, they are primarily the children of the Baby Boom generation, and are estimated to number about 70 million men and women, or 20 percent of the population. They are the largest generation since the Boomers, and are generally defined as born between the mid 1970s and early 1990s.
They are ethnically diverse, extremely independent, and adept at navigating new technologies and media platforms. They are also thought to be more socially conscious than their older cohorts in Generation X, and are less inclined to draw a distinct line between their personal and professional lives, seeking instead to find jobs that are meaningful and spiritually rewarding rather than financially.
They are also highly influential in terms of spending. Harris Interactive estimates that Gen Y spent more than $120 billion in 2007. According to a May 2008 Nielsen report, US households with at least one member of Gen Y account for 37 percent of total dollars spent and 31 percent of total trips, and spend 15 percent more than the average household.
Gen Y women are ambitious, confident, tech savvy, and independent, but not immune to the potential downside that unbridled possibility holds for them. They complain the constant influx of information makes them feel overextended and rushed for time. Yet they are also extremely active online users and socially engaged. They constantly check their email, update their status on social networking sites, program their DVRs, text their friends, and upload videos to share with their social networks—sometimes simultaneously. It is no wonder they often complain they feel over- whelmed. Yet they can’t imagine life without the Internet, their computers, and their cell phones.
The constant onslaught of information means advertisers will face a more challenging audience than ever before. Their media landscape is extremely cluttered, but smart marketers can break through. If they don’t, they risk considerable loss. BusinessWeek pointed out nearly a decade ago:
Boomer brands flopped in their attempts to reach Generation X, but with a mere 17 million in its ranks, that miss was tolerable. The boomer brands won’t get off so lightly with Gen Y. This is the first generation to come along that’s big enough to hurt a Boomer brand simply by giving it the cold shoulder—and big enough to launch rival brands with enough heft to threaten the status quo.
While Gen Y women tend to be skeptical of marketing messages, they respond to brands and messages they perceive as “authentic.” What has changed for this generation is the definition of “authentic.” While Gen X and Boomers sought insight and brand approval from “experts,” includ- ing celebrities, third-party endorsements such as Good Housekeeping, or favorable reviews from professional writers, Gen Y needs more than that. They tend to view “experts” more skeptically and respond to the advice of their peers (and not just the ones they know in “real life”).
For a brand to be seen as authentic in the eyes of Gen Y women, it needs more than “profes- sional” approval—it needs to have currency among their peers. There is very little differentiation between professional and personal writers and reviewers in terms of authority for Gen Y women. If anything, they tend to trust nonprofessional writers, bloggers, and reviewers more than profes- sionals, believing they have less of a bias in their reviews.
“Why Y Women” is a two-tier study that examines Y women’s sphere of influence on lifestyle trends. It also looks at how they are, in turn, influenced by their media consumption. How do they shop? How do they share? How do they respond to advertising? Additionally, the study examines how technology and social media help them expand their sphere of influence. The study provides insight into how marketers need to target and communicate with this time-pressed, tech-savvy demographic and how much influence they wield on each other and on older generations.
Key Takeaways
- Gen Y Women Have Redefined “Authenticity.”
- They Exert Brand Influence on Older Women.
- Online Connections Impact Brand Discovery.
- Context Matters For Advertising.
- Gen Y Women Are More Brand Loyal Than Marketers Assume.
- Gen Y Women Are Loyal Blog Readers.
Do's and Don'ts
- Do realize context matters.
- Do be honest.
- Do engage in dialogue with your audience or customers.
- Do integrate your media across multiple channels.
- Don’t get too comfortable.
- Don’t ignore Twitter.
- Don’t dominate the conversation.
- Don’t underestimate the marketing savvy of Gen Y women.
Conclusion
There is no doubt that Gen Y women represent a challenge to marketers. They want to be addressed as individuals, they can be skeptical of marketing, and they are inundated by media and advertising. Attracting their attention in this environment is no small feat. Yet they also control a great deal of spending power, and greatly influence the spending of their older cohorts. Marketers cannot afford to ignore this demographic, despite the barriers they face.
One of the key transformations this generation has experienced is the redefinition of their peer group. Boomers and Gen X tended to think of their friends as people they know in real life—their neighbors, co-workers, and classmates. Gen Y’s peer group isn’t limited by geography. They communicate online with friends that they have never met, and may not even know the name of the person they consider their friend. Yet, they depend on these friends for product recommendations and brand discovery. Gen Y women seek authenticity in their brands, and authenticity
is bestowed by their peer group. What is different for this generation is that the peer group has expanded far beyond previous generations.
Perhaps as important, Gen Y women are active participants in their media usage. They want to contribute, comment, and respond to their peers. Marketers that provide the tools for them to do this will ultimately succeed in attracting them. Marketers need to look for opportunities to add social interactivity to their online presence, offering tools for self-expression and peer communication. Gen Y women are enthusiastic brand advocates, and are more brand loyal than most marketers assume. They are also trendsetters, influencing the purchasing decisions of women a generation older. Advertisers should cultivate a relationship with Gen Y women, providing them with the tools to act as brand advocates, whether that means rewarding them for retweeting marketing messages, forwarding SMS texts, or referring friends to a secret sale.
Last, marketers need to keep in mind that context matters for Gen Y women. This is not a generation that clicks on ads very often. Yet they are paying attention to advertising. When Gen Y women trust a website or blog, they tend to trust the advertisers on that site. Their relationship to the site impacts their relationship to the site’s advertisers. Exposure to brands (particularly unfamiliar ones) is more meaningful to them when it happens on a website they already feel an affinity toward.
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