No wonder media buyers and planners think that spending on online advertising will continue to grow at an absurdly fast pace in 2007. More and more, that’s becoming the first stop for those desirable shoppers born between 1977-1994. According to a new survey from marketing firm Vertis Communications, based in Baltimore, Md., the web is now the medium that Generation Y turns to first when making a purchase decision. It’s a recent development, too. In 2004, the internet trailed or tied not just TV but advertising inserts and circulars among both men and women. In 2006, 24 percent of Gen Y women said they turned to the internet first, up 50 percent from 2004 and two percentage points ahead of television. The jump was even bigger among Gen Y men, 38 percent of whom turn to the internet first, 81 percent more than in 2004. Ad inserts ranked No. 2 at 17 percent while TV fell from first to third, down by nearly half to 11 percent. Also seeing dips among Gen Y: newspapers, catalogs and magazines. Scott Marden, director of marketing research at Vertis, talks with Media Life about what media are being usurped by the internet, which could see shifts over the next two years, and why advertisers should be targeting more electronics ads at Gen Y women.
There were big shifts in the media that Gen Y men and women turn to first when making a purchasing decision. Which media does the internet seem to be impacting most among those demos?
For Gen Y women, the internet is impacting magazines and catalogs the most. For Gen Y men, the internet is impacting TV and magazines the most.
Why are Gen Y men more likely to turn to the web than women?
Because of their shopping behavior. Gen Y men are more likely to turn to the web than women because Gen Y men are more likely to research online than purchase at a store.
They’re also more likely to research and make purchases online and have a product shipped, or do research online, make a purchase online and then pick up product at the store.
We also see that women are more likely to turn to the newspaper, by a large margin. Have Gen Y men stopped reading newspapers?
No, Gen Y men have not stopped reading newspapers; newspapers impact their shopping behavior. Gen Y men still research by circular and purchase products at a store--37 percent compared to 40 percent of Gen Y women.
Magazines got just 3 percent apiece from these groups. Is that lower than other age groups, and why is it so low?
No. When ready to make a purchase, turning to magazines first to help with the decision is consistent with total adults, at 3 percent. There is no significant difference compared to other age groups.
TV's influence also dipped among men and women. Do you expect it to continue to fall?
It's impossible to predict.
What do Gen Y consumers see as most important when they make their buying decisions? That is, what influences them the most?
Consistent with total adults, price is important to Gen Y when making their shopping experience enjoyable.
You also found that marketers might be overlooking women when it comes to advertising electronics. Why is there still a gap there? How much has women's interest in electronics grown over the past few years?
Women's interest in home electronics depends on the item. Looking at interests in digital camera, in the next 12 months, 28 percent of Gen Y women plan to purchase a digital camera compared to just 18 percent of total adults. In 2004, 22 percent of Gen Y women planned to purchase a digital camera, compared to 20 percent of total adults.
