Why Entrepreneurs Must Know the Distinction [New Data]

Concerning millennials vs. Gen Z, the 2 generations have loads in frequent to the purpose many manufacturers will lump them collectively into the identical viewers, pondering they will enchantment to each. 

Do not make this error. Gen Z and Millennials share some issues however are nonetheless two fully completely different demographics. Do not imagine me? Properly, this is some knowledge from 700+ customers to show my case.

Here is every part it is advisable find out about Millennials vs Gen Z, and why entrepreneurs must know the distinction.

What’s a millennial?

A millennial is somebody born between 1981 and 1996, inserting them between the ages of 28 and 43 in 2024. Millennials are additionally typically referred to as Era Y and are the primary era to develop up within the Web Age.

They’re additionally the one era to recollect a time earlier than social media.

What’s Gen Z?

Gen Z, or “zoomers,” consists of people born between 1997 and 2012, placing them between the ages of 12 and 27. Much like millennials, Gen Zers grew up within the web age.

Nonetheless, not like millennials, zoomers grew up with social media and smartphones —making them the primary absolutely digitally native era to develop up in a digital-first world.

When you concentrate on the generational variations on the most important attainable scale, the oldest millennials are of their early 40s, is likely to be settled down, and might be making bigger purchases like automobiles or properties.

The youngest members of Gen Z are 12 years outdated, would possibly love kids’s exhibits, and will not be immediately making buying selections any time quickly.

Apart from the apparent age variations above, six extra components make these two generations essentially completely different.

Components That Differentiate Millennials and Gen Z

1. They’ve completely different attitudes about expertise and cash.

Understanding the period an age group grows up in can assist you determine generational commonalities like motivations, spending or saving habits, or ache factors that all of them share.

Two issues that differentiated every era’s childhood period included expertise and the financial system:

Know-how

The obvious distinction between the eras by which every era was raised is the presence of expertise. Millennials grew up utilizing DVD gamers, large private computer systems, cell telephones with tiny screens, and dial-up web.

At the moment, we thought these applied sciences have been groundbreaking. 

“I am thought-about a younger millennial, virtually Gen Z,” says HubSpot Advertising and marketing Supervisor Erica Santiago, “however I nonetheless keep in mind the handfuls of VHS tapes and DVDs I had on rotation as a child. I keep in mind my first telephone being a tiny pink flip telephone with the world’s smallest display screen.” 

Now, most kids and youths inside Gen Z have entry to iPads, smartphones, countless Wi-Fi, or streaming providers that put our prized DVD gamers to disgrace.

Many members of this era might need additionally grown up in households with early smart home technology.

While millennials watched innovation begin, Gen Z was immersed in it from day one.

But although Gen Z never had to know a time when they didn’t have a cool gadget to solve basic problems, the impact of technology, the internet, and social media has still taken a toll on the group.

Research shows that Gen Z — which has been called the “socially-conscious generation” — offers with much more body image, mental health, and cyberbullying points than some other age group has prior to now.

Consultants have additionally referred to as Gen Z the loneliest generation regardless of all of their digital connectivity choices.

Financial system

Millennials and Gen Z even have completely different attitudes towards cash. Whereas they each care about their funds and spend money on issues that may enhance their careers — like increased training.

And, as of 2024, our survey exhibits each generations are occupied with higher offers and cheaper alternate options to their regular purchases.

Nonetheless, millennials put their cash into shopping for extra services or products that can give them a optimistic expertise, whereas Gen Z is extra centered on financial savings and sensible merchandise.

Millennials within the U.S. constructed up their very own funds shortly after the Recession, which resulted in 2009.

For a few years up till 2019, regardless of monetary woes attributable to the poor financial system, rising dwelling prices, and excessive unemployment ranges, millennials remained optimistic about their future and finances.

Nonetheless, some research state that millennials’ financial optimism is dwindling due to post-pandemic inflation, recession, and market slump prevalent in 2023.

This alteration is mirrored in our survey, which discovered that 47% of millennials are spending much less cash on non-essential gadgets — greater than Gen Z (34%).

“Currently, I have been doing my greatest to keep away from spending on issues I do not want,” Santiago says. “Much less ordering off of DoorDash, and extra cooking at dwelling. I’ve began altering outdated garments and repurposing them, so I haven’t got to purchase extra.”

Gen Z was born at the beginning of the economic downturn. Because the oldest members of Gen Z have entered maturity, analysis exhibits that their previous expertise of dwelling within the Recession are main them to make extra practical spending decisions.

Our survey exhibits 41% of Gen Zers are being extra cautious about how they spend their cash, greater than millennials (37%).

When you’re advertising and marketing to those generations, you may need to keep in mind these attitudes about cash.

For instance, in order for you millennials to purchase your product, you may need to deal with constructing a model that provides a nice or entertaining buyer expertise, in addition to advertising and marketing services or products that give prompt gratification.

When you’re advertising and marketing to Gen Z, you may need your campaigns to obviously reveal how or why your product will probably be beneficial or sensible to them of their every day lives.

2. Gen Z is extra more likely to make cell purchases.

By now, you would possibly know that each of those generations are closely linked to the web and social media, Whereas millennials watched the web develop, Gen Z has used it since a really younger age.

Every day, millennials spend round 6 hours and 48 minutes on-line whereas Gen Z surfs for about 10.6 hours.

Each millennials and Gen Z additionally go browsing primarily with cell units, however a giant distinction between these generations is that Gen Z was virtually raised with smartphones.

Based on YPULSE, 12 is the typical age Gen-Z obtained their first smartphone, 5 years youthful (on common) than millennials.

Supply: YPULSE

Gen Z’s mobile-first mindset additionally impacts how they store. Members of the era are twice as likely to make a mobile online purchase than millennials.

Nonetheless, millennials nonetheless store loads on cell units. In actual fact, our survey discovered that 22% of the millennials questioned desire to order issues by way of cell, barely lower than the 28% of Gen Z respondents. 

Concerning on-line content material consumption, millennials and Gen Z spend most of their time watching movies and visiting social media websites.

Based on a latest research, millennials watch on-line movies for 1.5 hours per day, whereas Gen Z averages over three hours. In the meantime, each generations are thought to spend hours every day on social media.

Whilst you might need already recognized that cell optimization and video advertising and marketing are a key digital methods, these stats show that it could possibly make it easier to zone in on younger grownup generations.

When you actually need to entice consideration from each Gen Z or millennials, you may need to create cell movies, cell e-commerce websites, or different phone-based experiences that cater to them.

You also needs to make sure you market your self on platforms which can be already cell, reminiscent of main social media apps.

3. Each spend a whole lot of time on social media, however the platforms they use are fairly completely different.

The World Financial Discussion board stories that millennials are logged on to social media for a median of two hours and 38 minutes every day, whereas Gen Z logs on for more than four hours each day.

Apart from the time spent on social media per day, the platforms every era makes use of are additionally barely completely different.

Whereas my era thrived on MySpace and Tumblr and now enjoys platforms like Fb, Instagram, LinkedIn, and X, Gen Z has zoned in on video-based platforms like Instagram, YouTube, Snapchat, and — extra lately — TikTok.

Based on our survey, 72% of Gen Z individuals have used TikTok within the final three months to make a purchase order, whereas solely 51% of millennials have accomplished the identical.

The platform is among the fastest-growing social media apps as a consequence of booming world Gen Z customers.

Gen Z and millennials do have a couple of social platform preferences in frequent. One, for instance, is Instagram.

Our survey exhibits that 54% of Gen Zers have used Instagram to make a purchase order within the final three months, solely barely increased than the 53% of millennials who did the identical. 

Whereas Instagram is older and extra established than apps like TikTok or Snapchat, it is also pulled in millennials and video-loving Gen Z members. 

YouTube can also be a social community that each generations are prominently utilizing. Whereas YouTube was launched when most millennials have been kids, 96% of Gen Z users have accounts on the video-sharing platform.

Based on our survey, Gen Z and millennials frequent YouTube at an identical charge. 69% of Gen Z respondents mentioned they’ve used the platform within the final three months, whereas 68% of millennials reported the identical. 

The video platform can also be the second-most used search engine and a platform the place many in Gen Z and millennial generations go for product research, as 57% of YouTube’s viewers consists solely of the 2 generations.

Professional-Tip: To craft content material that can discover your viewers on varied social media platforms, think about using instruments like HubSpot’s Social Media Management Software.

Our software program contains time-saving instruments that will help you prioritize your social interactions — so you’ll be able to join with the individuals who matter most.

4. Millennials take note of advertisements for an extended period of time.

Every era’s habits align effectively with its common consideration span in the case of content material consumption.

Whereas millennials will take note of content material for 12 seconds, Gen Z will only focus on it for eight seconds.

Moreover, Gen Z enjoys fast or short-form video content material, like that of Snapchat or Instagram Tales, whereas millennials worth long-form content material, reminiscent of detailed movies or podcasts.

Because of this these promoting or advertising and marketing to millennials can get away with barely longer or extra in-depth content material, whereas these advertising and marketing to Gen Z will need to get their worth proposition out as rapidly and seamlessly as attainable of their campaigns.

As I’ve talked about above, most of in the present day’s social and on-line platforms have gotten extra video-driven. This mirrors the truth that video utilization is rising rapidly amongst each generations.

The presence of short-form movies can also be repeatedly rising, which can be why our survey suggests millennials are beginning to hop on the short-from video content material practice, as effectively. 

The vast majority of millennials in our survey (47%) say they like to find new merchandise by way of short-form movies like Instagram Reels or YouTube Shorts. That is virtually on par with the 48% of Gen Zers who share the sentiment.

Both means, for those who’re creating long-form content material for millennials or short-form clips for Gen Z, you may need to embrace mobile-optimized video when selling your model to both viewers.

As a marketer, you could want completely different instruments that will help you craft the suitable short- or long-form content material for both era. Happily, HubSpot’s Content material Hub is out there.

Content material Hub has varied instruments for ideating, creating, and posting partaking content material for varied platforms. 

To study extra about Content material Hub, click here.

Branded Content material

With regards to studying about manufacturers or merchandise on social media, every era additionally has its personal distinctive preferences.

For instance, Gen Z prefers to study merchandise by social media-based movies and influencer advertising and marketing, whereas millennials will reply to a wide range of promotional methods, together with extra conventional on-line advertisements, social media advertising and marketing, and branded podcasts.

Apart from embracing video and cell optimization, for those who’re advertising and marketing to Gen Z, you may additionally need to deal with content material that feels extra informative and fewer like an advert. This era has actively rejected conventional promoting techniques.

For instance, in keeping with Adweek, 99% of Gen Z skip ads, and 63% use ad blockers to keep away from promoting. 

5. Each generations buy lower than previous generations.

A standard fable about millennials and Gen Z is that each generations are financially illiterate.

As a result of this appears to be a scorching matter on-line and all through popular culture, I carried out a Cint ballot (previously Lucid), asking the identical group famous above to decide on which era they thought spent extra money on merchandise.

The Cint ballot under demonstrates this fable and notion as many individuals mentioned that they believed each era spend some huge cash:

Information Supply: Cint Software

Moreover, 36% of survey respondents mentioned millennials spent essentially the most on merchandise, whereas the identical proportion mentioned each generations spend some huge cash. Nonetheless, lower than 20% pointed to Gen Z.

Based on varied research, each generations spend lower than previous generations, whereas the oldest Gen Z members focus on responsible spending.

With regards to Gen Z members who’re sufficiently old to make purchases, analysis exhibits that they do less online shopping than millennials. 

Whereas millennials are barely much less frugal than Gen Z, the concept the older era is extra frivolous can also be an enormous false impression.

Whereas many millennials purchase their fair proportion of merchandise, in addition they earn more annually than most older generations, are the most educated age group, and are notably optimistic about their futures.

6. They’ve completely different profession motivations.

Each generations have in frequent that they’ve positioned significance on investing in class or abilities coaching.

Whereas older generations may afford each properties and training, millennials discover housing out of monetary attain and have primarily centered on paying the excessive prices of tuition.

Regardless of growing instructional prices, the development of investing in training is not anticipated to vary for both era.

every era’s work habits and early jobs can provide you a sneak peek into what their funds and every day motivations is likely to be sooner or later.

Whereas each millennials and Gen Z are pushed by increased training and profession progress, they nonetheless have a couple of slight variations that you simply would possibly need to find out about, particularly for those who’re a marketer in tutorial or B2B fields.

At the moment, many millennials are working or are enrolled in increased training. For your complete decade between 2020 and 2030, millennials will comprise the most important share of the workforce, representing 75% of the workforce by 2030.

However, though most of Gen Z remains to be in class, they’re additionally very career-minded.

With regards to on the lookout for jobs, Gen Z adults are extra financially motivated than the millennial era.

In actual fact, 65% of Gen Z staff worth wage over different job perks as 74% 2023 US graduates surveyed said they prioritize stability and salary from employers, outweighing components together with a recognized employer model, a fast-growing discipline, or general advantages.

These within the age group additionally say they’re going to spend money on ability coaching if it means they make more money.

Gen Z additionally applies for jobs extra aggressively than previous generations. Solely 10% of the generation begins their job search after school whereas most Gen Z college students start scouting out job choices between freshman and sophomore year.

So, what does this imply to your advertising and marketing technique? Each of those generations are onerous staff, extremely educated, and would possibly earn greater than previous generations.

Nonetheless, Gen Z is extra pushed to make and lower your expenses. Because of this to influence Gen Z, you would possibly must take additional time to brainstorm campaigns that present how your product will assist them and why it’s value their cash.

Odds are, they are going to be extra persuaded by the practicality of a product than the “trendiness” of it.

The best way to Market to Every Era

Sure, each generations have a whole lot of issues in frequent.

And whereas there are alternatives to market to each generations directly, it is likely to be extra useful to brainstorm artistic campaigns that zone in on one era or the opposite.

That will help you develop a technique that good points consideration from the suitable viewers, listed here are a couple of takeaways associated to every era:

Advertising and marketing Marketing campaign for Millennials

By now, you is likely to be most conversant in advertising and marketing to millennials. Fortunately, they’re additionally a terrific era to market to.

They’re on essentially the most distinguished social media networks in the present day and like to eat a number of completely different types of multimedia content material, from movies to podcasts.

They’re additionally sufficiently old to make buying selections, are extra educated than earlier generations, and spend appreciable time within the analysis stage earlier than shopping for a product.

Basically, many various codecs of promoting content material will interact millennials as a result of they’re repeatedly seeking to be enticed by a brand new product that can assist them of their every day lives.

As a result of millennials have a barely longer consideration span than Gen Z, it’s also possible to get a bit extra artistic by testing out longer-form content material like longer advertising and marketing movies or branded podcasts.

The perfect forms of advertising and marketing campaigns will inform millennials about how your product could make their lives simpler or the way it can resolve their day-to-day issues.

Focusing your technique on social media or on-line platforms like Facebook, YouTube or Instagram, where many adults go to research products, can also be beneficial to your strategy,

Marketing Campaign for Gen Z

To successfully persuade Gen Z to buy your product, you’ll want to make content that quickly cuts to the chase and explains why your product will provide value to them.

As mentioned above, Gen Z loves to use video to learn about products and spends most of their online time on mobile phones. So be sure to leverage short-form video formatting and mobile-optimized content in your campaigns.

You’ll also want to zone in on the niche social media platforms that they commonly use, such as Instagram, YouTube, TikTok, or Snapchat.

If you’re not on one of these platforms but still want to gain brand awareness there, consider sponsoring an influencerluencer who knows the audience and create content that discusses your product.

Marketing Campaign for Gen Z and Millennials

If you absolutely can’t budget pinpointed campaigns for millennials and Gen Z, but know you want to market to young adults, focus on the cusp of both generations by creating a campaign for 18 to 34-year-olds.

This will allow you to zone in on young and slightly older adults who can actually make purchasing decisions.

While a campaign with this age target might be slightly more favorable to millennials between 27 and 42, there’s still a chance you could grab attention from older teenagers who will soon be able to make more purchases if they can’t already.

Despite the differences between these two generations, there are also two big similarities: both love social media and instant gratification.

Be sure that your campaign clearly explains why your product will be valuable to the age group you’re pitching it to, and leverage the social media networks that the age group you’re targeting has in common.

For example, if you’re focused on promoting your product to people in the 18 to 34 range, you’ll want to be on Instagram, YouTube, and Facebook, because most members of this age group are using all three of them on a regular basis.

If you can create a campaign that leverages key social networks accordingly while highlighting why your product is so instantly gratifying and useful, you might attract interest from both groups fairly quickly.

Tips for Knowing Your Audience

As you create campaigns around a specific audience or age group, it’s important to do digging to learn what motivates this group of people, what their purchasing habits are, where they spend the most time, and what they’re looking for in a product.

Here are a few tips that can help you in this research:

• Identify specific demographics: Try not to be too specific or too broad. Pick an audience you can learn a lot about quickly that well aligns with your product and start researching that demographic.
• Learn about their work and education backgrounds: This will give you insight on what motivates them and how much they’re able to spend on a product.
• Find out which social platforms they use: Once you do this, you can research each platform and leverage it appropriately during your campaign.
• Consider writing a buyer persona: A buyer persona is a fictional character that has a very similar lifestyle to your ideal buyer. Having a persona in mind can help you quickly think about campaigns and strategies that they’ll engage most with. It’s also a handy place to organize all of your detailed research findings into one simple place.

Millennials and Gen Z may have more in common than they realize, but they are still two different generations and should be marketed to as such.

Now that you know the differences between them, you can craft separate strategies to appeal to the groups. Good luck!

Editor’s note: This article was originally published in December 2019 and has since been updated for comprehensiveness.