Generation Y is a demographic coveted by retailers and marketers for their purchasing power. Millennials, the generation born between 1980-2000, will spend more than $200 billion annually starting in 2017, and $10 trillion in their lifetimes. According to Animoto, an online video creation application, new data from the 2015 Animoto Online and Social Video Marketing Study reveals video is no longer optional for brands and businesses looking to market to millennials. The study revealed seven in 10 are likely to watch a video when shopping online and 80 percent find video helpful when researching a purchase decision online.
In an era defined by instant access, powerful consumer voices and expectations of brand transparency, millennials' standards are higher for businesses than ever before. Brands must use new mediums and know not only how to reach them where they are online, but also according to their preferences in order to tap into that spending power. Animoto surveyed 1,051 U.S. consumers and published an infographic in conjunction with the study.
Millennials Use Video to Make Purchase Decisions
Increasing exposure to video has impacted Gen Y's view on video in the purchasing process. Compared to baby boomers, millennials are 150 percent more likely to comparison shop with video while shopping for a home, and 146 percent more likely to watch a video if it's available on a company's site while shopping online, and four in every five find video helpful during initial research for a purchase decision. Brands must strategically incorporate video into their online presence to assist this generation throughout the purchase cycle.
- 85 percent find video home tours helpful.
- Nearly three-quarters find video helpful when comparison shopping.
- Seven in 10 are likely to watch a company video when shopping online.
- 69 percent find video helpful post-purchase to research additional items from the same company.
- Nearly one-third find it helpful to watch video to learn more about a company before making a purchase.
- Millennials are 264 percent more likely to share videos about a product, service or company while shopping online than baby boomers.
Video Improves Traditional Marketing to Millennials
Nearly two-thirds of millennials (62 percent) prefer to watch a video from a company instead of reading text, and more than half are likely to watch a video from a brand if they receive it in an email. With this directive, businesses can incorporate video into traditional components of the marketing mix to effectively reach Gen Y-ers.
- Six out of 10 prefer to watch a company video over reading a company newsletter.
- 53 percent are more likely to read a newsletter from a company if video is included.
Millennials Connect With Brands on Social Media and Mobile
Businesses must ensure video content is optimized across the devices and channels millennials frequent most. Nearly half (48 percent) only watch videos on their mobile device. Millennial engagement with brands on social media is high; on Facebook, 84 percent follow brands.
- 76 percent follow companies on YouTube.
- Nearly half of millennials (47 percent) follow companies or brands on Twitter.
- 45 percent prefer to watch video on their mobile device rather than on a laptop or desktop.
- Four in 10 millennials (42 percent) follow companies or brands on Instagram.