In February, new home sales reached a level we haven’t seen since before the recession of 2008, signaling a rise in consumer spending. The National Association of Realtors just released a report citing 31% of home buyers in 2014 were Millennials (those born in the early 1980’s to late 1990’s). This year, Millennials are projected to be largest group of home buyers, overtaking Generation X.
With more Millennials pursuing the American Dream of home ownership, the demand for home improvement and home furnishing products is growing. But it isn’t just home goods stores that can benefit.
Many retailers have turned a blind eye toward Millennials because, until recently, they only made up a small portion of the buying power in the US. Times have changed, however, and Millennials now make up over $200 billion in direct buying power. They also influence another $500 billion in indirect buying. This buying power is going to be even greater in the next few years as their income is expected to exceed the boomer generation by 3X in 2017, and account for 46% of the nation’s income by 2025.
So how can retailers leverage PPC to capture these new customers?
Find where they live During the recession, Millennials were hit hard by limited job prospects, high student loan debt, and tight credit, so search marketers should begin by focusing on the metro areas that have a large Millennial presence (or that Millennials are migrating to), a strong job market, and have affordable housing options. With this list, you can then use keyword data to identify trends that signal whether or not to change bids, ads and/or destination URLs. To take it a step further, overlay data for time of day and device type to ensure more accurate bidding.
Make ads relevant Ensure all ads are relevant. More than any other group, Millennials expect ads to be tailored to their specific interests and needs. They are willing to give up personal information in exchange for information that interests them. Sixty-five percent will share their personal information in exchange for discounts, so make sure your offer is worth their click. At Adlucent, we use CRM data (and other 3rd party data sources) to create personalized ads that are significantly more effective.
Invest in social Go where they go. Three-quarters of Millennials have social profiles. By remaining active on social channels, Millennials will have more opportunities to engage with your brand. Include relevant information such as the goals of your company, any charitable activities you do, reviews, and personal recommendations. Social channels can also be used for converting customers. Use social remarketing to bring visitors back to your site to complete a purchase and find new people who are similar to your website visitors.
Be where they are: mobile Millennials are constantly connected, with 83% of admitting to sharing their bed with their phones. Because 85% of Millennials use mobile devices to research products (and 73% report that they make purchases directly on their smartphones), marketers should invest more on mobile search queries to drive traffic to local stores and/or convert online shoppers through text and product ads.
These are just a few ways to use PPC to engage with Millennials. What are some additional ways your business is acquiring more Millennial buyers?