How a generation interacts on social media is a key building block when defining how to market to a target audience. With roughly 4.2 billion active users on social networks in 2021, generational differences in the social media landscape are clearly evident. Generational behaviors have a great impact on how to interact with an organization during each phase of the sales funnel. Although the majority of social media users are from younger generations, the social platforms attract older generations as well. To develop a better understanding of a target audience on social media, you will need to gain clear insight on the cohort of that audience, their characteristics, economic status, and the way they use these platforms.
Baby Boomers
GENERAL CHARACTERISTICS
Baby Boomers are the generation that was born post World War II between 1946 -1964 aka the baby boom era. Baby Boomers account for 21% of the US population, estimated at 71 million, and are the second largest group after Millennials. It’s difficult to describe an entire generation's characteristics, but due to events this generation had witnessed during their youth, most of them had built awareness of the need to focus on humanitarian and societal welfare programs. It is important to note that Baby Boomers were raised in a peaceful, comfortable, and prosperous environment. The drastic switch in education, economy, society, and the comfortable upbringing had impacted their lifestyle and mindset. Their workplaces changed from racially homogenous to more racial and gender diversity. Concerning their flourishing economic situation, Baby Boomers are more inclined to spend and have a great investment mindset.
FINANCIAL CHARACTERISTICS
The Baby Boomer generation is not only a large population but most importantly they are affluent. This generation is considered the wealthiest cohort in American history. They control approximately 51% of the country’s wealth ($69 trillion) which is more than twice the amount they had in 2011 ($33.43 trillion). It isn’t abnormal that Baby Boomers outspend all other living generations. The Baby Boomer heirs will receive the largest wealth transfer in American history.
Baby Boomers spend $548.1 billion annually and tops the buying power list with $2.6 trillion.
As of 2020 Baby Boomers have the second-highest average student loan debt of $40,512.
Baby Boomers mortgage debt is below the U.S average ($229,242) at approximately $198,203
Their non-mortgage debt is below the nation’s average ($25,112) estimated at $24,136.
Baby Boomers average credit card debt is slightly over the national average ($5,525) at $6,230.
HOW THEY USE SOCIAL MEDIA
Baby Boomers have experienced the most media and technological changes from B&W TV to laptops and smartphones. Contrary to the common misconception Boomers are not inept at technology and social media. Statistics show that they are active on these platforms and their numbers are growing. 82% of Baby Boomers who use the internet have at least one social media account. 84% of them conceived social media to be an improvement in their lives, but still only 40% consider it to be essential. According to a report from Statista, Facebook is the most popular app among this cohort (78%), followed by YouTube (67%), and then finally Pinterest (40%). 73% of Baby Boomers use social media to keep in touch with friends and family. Facebook has proven to be the most popular platform where families and friends can easily keep in touch mainly because Facebook’s user experience is easy to learn. Most Baby Boomers still get their news from printed magazines and TV instead of social media platforms. 54% of Baby Boomers watch slower-paced, long-form videos online. Baby Boomers prefer video content because they like to master new skills, watch news, and be entertained. 53% of Baby Boomers use social media during their spare time which is an interesting statistic to note when developing content for this generation. 82% of video-watching Baby Boomers use YouTube while 68% claim to watch YouTube videos solely for entertainment purposes. They are 1.3x more likely to watch a YouTube tutorial video than read instructions and 1 in 3 will use YouTube to learn about a product or service.
Generation X
GENERAL CHARACTERISTICS
Gen X is the “Sandwich” or “Forgotten Middle Child'' generation born between 1965-1980. They were given these nicknames because they were born between Baby Boomers and Millennials. Gen X is a relatively smaller generation and in 2020 was almost 20% (65 million) of the US population. Growing up in the turbulent 1970s and 80s has defined most of the Gen Xers characteristics and views. They were raised in a time characterized by drastic social changes like tension between the US and the Soviet Union and space exploration. A few them were forced to take care of themselves at an early age because they were a part of two-income or divorced households. This fostered their independence, self-reliance and grew an unconventional approach to friendship.
FINANCIAL CHARACTERISTICS
Gen Xers make up nearly 29% of the US wealth, a 3.9% increase over the first quarter of 2020. This figure is nearly half of Baby Boomers wealth (68.93 trillion dollars), which illustrates the marked gap between the two generations' financial status. This gap will not be closed anytime soon as the Gen Xers are approaching the middle of their career AKA the peak-earning years. Other main financial statics to note include:
Gen Xers buying power totals at $2.4 trillion, spending $357 billion annually.
Gen Xers are holding the most debt with an average of $32,898 (excluding mortgage debt). They have racked up $259,100 as average mortgage debt and $7,236 on average credit card debt.
57% of Gen Xers are heirs to $68 trillion from older generations. Being the main shareholders of this immense fortune will make Gen Xers the wealthiest cohort in the US and solve many of their financial problems.
HOW THEY USE SOCIAL MEDIA
Gen Xers grew up with various technological inventions like the Walkman, MP3s, CDs, and DVDs. They are the first generation raised with personal computers and the internet. This made Gen Xers early adopters of the connectivity lifestyle. Currently, Gen Xers are experiencing another level of connectivity. Because they are highly flexible and adapt easily, Gen Xers have easily embraced social media. According to Pew Research Center, 81% of adults 30 to 49 years old and 73% of adults 50-64 years old use at least one social media site. The majority of these two age groups are Gen Xers which shows that this generation is very active on social media. According to Statista, Gen Xers use Facebook(76%), YouTube (70%), Instagram (47%) and Twitter (39%). Like younger generations, 74% of Gen Xers say social media is an essential part of their lives. Gen Xers can be split into two groups: older and younger. The older crowd likes Facebook for the same reason Baby Boomers do: chatting with family/friends and for the convenience of finding news. Their younger counterparts are more like millennials: they like visual content and celebrity/influencer/brand updates. Therefore their Instagram usage is higher than Baby Boomers. 60% of Gen Xers prefer video when learning about a new brand or product and 68% make their buying decisions based on online reviews. Gen Xers are often being ignored by marketers, as they focus more on their Millennial and Baby Boomer counterparts.
Millennials
GENERAL CHARACTERISTICS
Millennials or Generation Y is the umbrella term for the individuals who were born between 1981 and 1996. They follow Gen Xers and precede Gen Z and are considered mainly the children of Baby Boomers (this generation is often called “Echo Boomers”). Millennials are the most populated demographic cohort in US history. They make up almost 22% of the population (roughly 72.26 million) which outnumber Baby Boomers as the nation’s largest living adult generation. A major reason why the size of Millennials is relatively higher than the previous generation is the good economic conditions and cultural behaviors their parents have had. Mainly being the offspring of Baby Boomers, Millennials share with their parents some general characteristics like being concerned with their health, societal issues, being ambitious, and embracing diversity. It’s important to note Millennials are considered the most diverse generation in American history. It’s well known that Millennials strive for transparency and authenticity. This attribute can be seen when they interact with companies and demand them to authentically show more actions and less promises. They are like Xers when it comes to independence but more individualistic. For decades individualism has been a growing characteristic in American society, but it seems to have peaked with Millennials and Gen Z. Millennials are considered self-centered, assertive, and confident. At the workplace, it is common for Millennials to seek out new challenges as they tend to question authority more than the other cohorts. They were overly nurtured by their parents, but digitalization and globalization also shaped a big part of the Millennials mindset and personality.
FINANCIAL CHARACTERISTICS
Statistics indicate more Millennials are financially struggling than older generations. According to a 2018 report from the Federal Reserve, Millennials had been worse off compared to previous generations during their young adult years. As young adults, they had lower earnings, fewer assets, and less wealth. Millennials’ wealth is just shy of $7.5 trillion, which is only 5.6% of the nation’s wealth. This national wealth percentage is a slight 1.2% improvement compared to the same period in 2020. Millennials' average income is lower than the two older cohorts. It is evaluated by Statista to be in the range of $70,565, which is less than the income of Baby Boomers ($72,201) and Gen Xers ($90,964). Millennials rank third in spending by generation with $322 billion spent during 2021. This is an interesting piece of information because Millennials are the most marketed generation when compared with Baby Boomers and Gen Xers. They spend somewhat less than Gen X and over $200 billion less than Baby Boomers. Millennials have the fastest growing debt among all generations. Although Gen Xers carry the highest debt in the US, Millennials are extremely close to surpassing them.
The average Millennial consumer has $28,317 in non-mortgage, non-student loan debt
Millennial homeowners have an average mortgage balance of $255,527
Millennials have an average of $38,877 in student loan debt
The Millennial debt situation is imminently expected to change because they will soon receive their share of the greatest wealth transfer in American history. Being mainly the children of Baby Boomers means they’re included, alongside Gen X, in receiving the stockpile of money Baby Boomers have amassed for decades. Receiving 43% of the assets from the massive wealth distribution means Millennials wealth will skyrocket in the next two decades.
HOW THEY USE SOCIAL MEDIA
Millennials are extremely tech-savvy. Living in a time of massive technology evolution has made them early adopters of technology. This digital literacy has enabled them to easily adopt social media in everyday life. Millennials are considered the first generation with widespread access to social media. In 1997, Millennials were introduced to the first social network SixDegrees. By the turn of the millennium, the social media landscape started advancing and evolving which allured influxes of young Millennials. Today, Millennials’ passion for social media has turned into an everyday routine. 86% of Millennials use social media while 72% of them view social media as an essential part of their lives. 79% of US Millennials access social media multiple times a day. Multi-networking is common for Millennials as they jump around from one platform to another. In 2021 Facebook was the most popular platform for this cohort with around 87% using it at least once a week. YouTube came second with 86% using it at least once a week and Instagram was ranked third (71%). Snapchat is popular too among Millennials with 52% using it at least once a week followed by Twitter (42%) and Pinterest (42%).These statistics demonstrate Millennials are active on more social platforms than other generations. They make up a third (33%) of Instagram platform users. Millennials do not see social media merely as an entertainment outlet but they perceive it as a mini-world. 61% of Millennials use social media to get in touch with friends and relatives. 51% of Millennials use social media to kill time, while 43% use social media to get breaking news and 47% to discover trends. Millennials are following brands online with the same purpose they are seeking information or being entertained. 72% of millennials purchase fashion and beauty products based on Instagram posts, which again shows the value of visual platforms, especially Instagram, to this generation.
Generation Z
GENERAL CHARACTERISTICS
Gen Z or “Zoomers'' is the latest generation in the US. They are the individuals who were born between 1997 and 2012. According to Statista, They make up 20.35% of the US population which is about 67 million people. Their population size is smaller than Millennials, but more than Gen Xers. Gen Z are mainly kids of Gen Xers but are very different from their parents' generation. Since most of them are teens and older members are starting to enter the workforce, their general core attributes are steadily taking shape. One of the strongest characteristics associated with this generation is diversity. Gen Z is the most racially and ethnically diverse American generation to date. The majority were born into families that have more diverse structures than their grandparents and great grandparents. Gen Z craves security. Much of their lives have been shadowed by tumultuous stability and financial insecurity experiences. Notably during the great recession in 2007, they developed a unique awareness of financial mindfulness and value security at an early age. Because of this experience at such a young age they are more likely to be conservative spenders. Similar to Millennials, this generation desires independence. In communication, especially in the office setting, they prefer the personal approach over digital chat. 74% of Gen Z workers prefer face to face communication with colleagues. Due to exposure to endless hours of online connection and the digital world, depression and isolation within this demographic have risen. According to Telstra’s Talking Loneliness report, 54% of Gen Z reported that they feel lonely. Gen Z is viewed by many as the most individualistic generation. Like millennials, Gen Z is considered egotistical and self-absorbed and the rate of individualism within Gen Z is high.
FINANCIAL CHARACTERISTICS
As Gen Z enters the workforce, a lot of questions arise about their financial status. Gen Z is expected to take over the economy in the coming decades. Many wonder about this generation's financial and economic situations and if they will repeat the Millennials' financial issues or if they will be able to gain a better position. Globally, according to Bank Of America, Gen Z’s income will grow 400% through the coming decade to hit a stunning $33 trillion. This means they would take over a quarter of the universal income by 2030 and exceed Millennials’ spending power in 2031. Another report conducted by Oxford Economics across six developed countries shows Gen Zers’ income will go from $449 billion to over $3.5 trillion by 2035. The report also found the digital economy will be shaped by this generation. The accelerated shift toward the digital economy and the growing need for digital skills will be in favor of Gen Z in the long term because they are the most digitally capable generation. The recent spike in e-commerce, digital communication, remote working, and other digital services (mostly driven by Covid-19) is expected to keep rising. Gen Z has already started saving. Their financial consciousness and agility coupled with their strive for security has driven them to start saving for personal/retirement at a very young age. Unlike their Millennials peers who started saving at the age of 25 years old, American Gen Zers chose to start at a median age of 19, which is younger than all other generations. They have an average of $35,900 in personal savings and another $37,000 for retirement according to Northwestern Mutual’s 2021 Planning & Progress Study.
HOW THEY USE SOCIAL MEDIA
Gen Z was born when the internet was already considered mainstream. They have no or little knowledge about life before the internet nor have they experienced living without it, therefore they view digitalization and technology as necessities. They are multi-taskers and extremely online focused. Gen Z is well known for consuming content through multiple screens at the same time. Gen Zers heavily use social media for multiple purposes. They no longer view these platforms recreationally but rather as indispensable. Like the older cohorts, more than 80% of Gen Z uses social media daily while 77% use it multiple times a day. 65% of Gen Z consumers escalated their usage of social media during 2020. Gen Z’s social media preferences and priorities are quite different. Unlike Millennials who divide their time on multiple platforms, Gen Z choses to be on fewer platforms. Excluding YouTube, this generation leans toward using three visually oriented platforms: Snapchat (42 million users), TikTok (37.3 million users) and Instagram (33.3 million users). Facebook, which is the favorite network of Baby Boomers, Xers and Millennials, comes in fourth place with 28.7 million users. In general, visual content is more appealing to Gen Z than written content. They are a video-driven generation so they lean towards engaging and consuming substantially more with videos and pictures. 77% of them prefer image content types and 61% are specifically interested in watching more video content. Generation Z prefers using mobile devices over other devices. 73% of teenage Gen Zers watch videos on their smartphones (and other mobile devices). These videos are mostly “snackable” fare which demonstrate how much short form video resonates with this age group. Gen Z’s attention span is under 8 minutes. That is 4 minutes less than Millennials at 12 minutes. Gen Z relies on social media to follow brands and make informed purchasing decisions. 73% of Gen Zers follow one or more brands on social media; and they are 59% more likely to follow a brand compared to the other cohorts. 41% of Gen Z say Instagram is their preferred social media platform for following brands. 97% of Gen Z consumers say they use social media as their top shopping source; as 85% go to social media to learn about new products and nearly 33% had bought a product after seeing it on social media. Social commerce is mainly driven by Millennials and Gen Z who will account for 62% of global social commerce spend by 2025.
CONCLUSION
People of all ages are participating in countless online conversations, many of which are on social media platforms. As social media becomes seamlessly integrated in everyday life, organizations need to become laser focused with who they are trying to reach and how. Organizations can leverage social media to their advantage by assessing key generational social demographics. Strategies should be tailored to the target cohort’s motivations per social platform for the highest chance of success. Across all generations video content is a key, it just depends on who is being targeted and whether they prefer short form or long form video content. As always, it is important to test, optimize and repeat to create content that will resonate with your target audience.
If you are interested in learning more about how to develop a generational content strategy, send an email to samantha@s-alchemy.com.