Here’s a non-shocker: Millennial business owners depend on social media for brand promotion more than any other medium.
Shocked, right? OK, probably not. But just how much Millennial business owners are using this relatively new media — or how much they don’t use traditional media — may come as a surprise.
New data (PDF) from Magisto shows that 68 percent of Millennial small business owners and entrepreneurs depend on social media channels for developing awareness of their own brands.
Moreover, social media is relied upon by 60 percent of Millennial small business owners to generate revenue for their businesses. Just 27 percent of Baby Boomer business owners rely on social media as a revenue stream or for developing brand awareness.
“Millennials at small and medium sized businesses are defining a new world order for marketing that is digitally native, social-first and driven by video,” Magisto CMO Reid Genauer says. “They see the entire customer journey through a unified lens turning a system of fragmented consumer touch points into a holistic map that includes growing a brand and a business. Unlike more traditional predecessors, millennials drive all marketing functions via digital channels, with a focus on social media.”
Magisto finds that a majority (58 percent) of Millennial small business owners will spend most of their marketing budgets on digital channels. Baby Boomer business owners spend just 14 percent of their marketing budgets on digital ads.
So, what does this mean for your business?
If you’re competing in a market dominated by Millennials, it’s important to understand where they’re generating leads and engaging with their audience.
And it’s probably prudent to go there as well. It may not require completely tipping the scale from a marketing budget perspective, but it should prompt “older” business owners to take a look at social media and other digital marketing options.
Aira Bongco
You cannot separate millennials from social media. They live with it and they think that their audience do it too. It is their primary medium of promotion for their businesses.
Joshua Sophy
Totally agree, Aira. If your business is bent on targeting people of this generation, then your business absolutely must be on social media.
Great article! If you look at Facebook the trend in demographics is growing older, which makes it perfect for targeting babyboomers but at the same time they are not using Facebook or social media in general for their advertising. I would estimate that 40-50% of my clients are in the baby boomer generation and some get it and some don’t. I have a client that spends thousands of dollars with the PPC campaigns that I manage for his business, but he is skeptical to spend a penny in social media advertising.
I have tried to explain the benefits of social media to my clients, but it sometimes falls on deaf ears. Anyone have a way that works to get them to see the value?
Joshua Sophy
Great points, Erik. And thank you!
I, too, notice that Facebook does have a bit of an older audience. It certainly has saturation across several generations. Kinda sounds like it’s got to be a place where you promote any business, really.
Even if a client isn’t there, they know someone who is and their referral could lead them to look you up on the site.