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Use Promotions to Reach Gen Y

January 23rd, 2010 2 comments

Using traditional promotions to reach Generation Y doesn’t work.

Let’s just get that out of the way. We’re normally not supposed to start articles like this on a down note, but you need to know what doesn’t work before we can really talk about what does.

Generation Y — those born between 1977 and 1994 — don’t respond to regular promotions. They don’t watch TV, they don’t read billboards, they don’t do direct mail. But they’re such an important target to marketers, that most marketers are looking for any kind of promotions to reach Gen Y.

So why Y?

Because they’re a consumer power that actually outnumber the Baby Boomers. There are 82 million Gen Yers, give or take a few, and only 78 million Boomers. Generation Y are 26% of the population, and their spending power is more than $200 billion, plus they influence another $300 – $400 billion. According to some reports, Gen Yers influence over 50% of their family’s car choices.

Tantalizing, huh? But if you can’t reach them with traditional promotions, how do you do it?

That’s where online and digital promotions become important. Generation Y is online. That’s where they grew up, that’s where they get their information. When asked where they get their news, most Gen Yers said “Yahoo.” They watch YouTube videos on their phones. They communicate through texts, and use Facebook.

In short, Generation Y wants you to communicate with them, not market to them. So what are some promotions ideas you can use?

First, you need to go where they are. Before you start any sort of Gen Y promotions campaign, get to know them. Figure out who your target audience is, and where they like to hang out, what they like to do, where they get their entertainment.

Vans Shoes, makers of the famous skateboard shoes, built skateboard parks in California and Florida. They sponsor a skateboard team. When their customers need to buy new skateboard shoes, they buy the ones they see at the skate parks, or on the shirts of the team from the skate competition.

Tampax sponsors a social network for young girls, without blatantly marketing to them. They place their logo discreetly on the network, while young girls connect with each other and discuss whatever young girls discuss. The logo just sits there. Then, when it’s time to go shopping for feminine products with their moms, they choose the product they see on their network.

Brands like Mountain Dew, Nokia, Coca-Cola, and Chrysler are paying video game developers for product placement promotions inside video games. Tony Hawk’s Ride, EA’s NBA “2K10,” and Need for Speed: Shift are just a few of the games that include ads. Whether it’s billboards, vending machines, or traditional sports advertising venues (like sponsor signs inside an arena), video game promotions are an excellent way to reach Gen Yers. Remember, Gen Y influences more than half of their family’s car purchases, so putting car ads in video games makes great promotions sense.

Text clubs are another form of digital promotions. Since most Gen Yers are communicating with each other via text, they’re a great way for local businesses like restaurants and clubs to reach Generation Y. Text clubs are opt-in marketing efforts. A restaurant can use text clubs to advertise hidden specials — “free appetizers with dinner, tonight only” — or a club can send out sneak previews about bands or drink specials.

When you’re creating your B2C marketing campaign, make sure you give digital promotions a good, hard look in order to reach the elusive Generation Y. With their spending power and large population, it’s important to connect with them now, so as they grow older and their spending power increases, you have earned their brand loyalty and top-of-mind awareness.