By Monica Chaudhary
Millennials, the Gen Y in common terms are individuals who were born between 1981 and 1996. The term ‘millennials’ was first coined in a book ‘Generations: The History of America’s Future, 1584 to 2069’ by William Strauss and Neil Howe in 1991. Millennials are the first generation that grew up close with technology, and hence they are more likely to use social media platforms for their shopping needs. Research has shown that millennials have a higher level of trust in user-generated content and social proof than other generations, making them more susceptible to influence through social media channels. Social media marketing has a significant positive effect on consumers’ purchase intentions.
The last few years have seen India become the world’s largest millennial market, drawing attention from across the world to Indian millennials. According to Morgan Stanley research, 400 million Indian Millennials are growing, and are fast becoming the driving force behind the digital revolution. With a median age of 28.4 years, India has one of the youngest major populations globally, in contrast to the ageing populations and workforce in countries such as the US, China, Germany, and Japan. This factor is expected to keep India prosperous for a considerable period.
Social media marketing can be an effective tool for marketers to reach and influence millennial consumers. Social media is viewed as a means of global awareness and a platform for sharing information, leading to millennials developing enduring symbolic relationships with brands on these digital platforms. Social media marketing tactics that are most effective in influencing purchase intentions and decisions are online reviews, sponsored posts, and influencer marketing. Social media also reported to have a strong impact on the purchase intentions for a product or a brand.
“Purchase intention is a consumer’s expressed plan to buy a specific product or service in the near future.” This is the definition given in the marketing book by Kotler and Armstrong. In a more layman term, purchase intention is the individual’s conscious decision to buy a product or service that reflects a consumer’s willingness and ability to make a purchase. There are different ways in which social media can influence purchase intentions. Businesses can leverage social media platforms such as Facebook, Instagram, and Twitter to conduct targeted advertising campaigns that can be tailored to specific demographics or interests. This customisation capability can boost the likelihood of purchase intention among the target audience. User-generated content is another way individuals can engage themselves with products and brands. User-generated content such as reviews, ratings, and testimonials are being read/heard by consumers before making a purchase decision. Social media platforms make it easy for users to share their experiences and opinions, influencing others’ purchase intentions. By utilising social media platforms and engaging with consumers in a meaningful way, businesses can build trust and increase the likelihood of a purchase.
Twitter has become a valuable tool for marketers to reach and engage with millennial consumers. Due to its real-time nature and frequent updates, Twitter is an ideal platform for millennials to remain informed about the latest trends, news, and promotions. Retailers and brands often use Twitter to offer their followers exclusive deals, limited time offers, and flash sales, generating a sense of urgency that can prompt millennials to make purchases. Moreover, Twitter can utilise the influence of social proof by featuring user-generated content, including customer reviews and photos, to establish social validation and establish trust with potential buyers.
As per E-Markers report of 2020, the revenue generated from advertising accounts for around 86% of Twitter’s total revenue, which reached $2.61 billion in 2018, representing a growth rate of 24%, according to Investopedia.com in 2020. This consistent growth in Twitter’s revenue highlights the shift from conventional media methods to online/digital media by organisations.
There is a latest study published in a reputed journal in 2022 about the way Twitter advertising is changing Indian millennials online consumer behaviour. Researchers found some interesting insights about how twitter advertising influences the purchase intentions and purchase attitudes of Indian millennial consumers. The study took responses from 500 Indian millennials. The findings demonstrate that Twitter advertising has a favourable influence on the purchase attitudes of Indian millennials. Indian millennials who had logged-on to Twitter daily showed more positive purchase intentions and purchase attitudes towards Twitter advertising as compared to millennials who had logged-on just a few times a month. More interesting part is the duration of a Twitter login and its effectiveness. The millennial respondents who logged on for less than 1-2 hours in a day had higher positive purchase intentions and attitudes towards Twitter advertising than those who remained logged on for more than five hours.
Indian millennials who were younger demonstrated more favourable behavioural attitudes towards Twitter advertising than older users. Generally, younger population groups have more favourable attitudes towards social media advertising, and they tend to accept and utilise it more extensively.
Another interesting finding was the fact that female Indian millennials showed greater positive purchase intention and attitudinal responses owing to Twitter advertising than male. In comparison to women in Western countries, Indian women have only recently begun to experience greater financial independence, another way to explain is the theory of self-determination. According to this theory, humans have basic psychological needs for autonomy, competence, and relatedness. Autonomy refers to the need for control over one’s own life and decisions, competence relates to the need to feel capable and effective in one’s actions, and relatedness refers to the need to feel connected to others and have a sense of belonging. Studies have found that women in India have specific intentions and motivations when making purchases, and they are more likely to engage with products that allow for self-expression. Individuals are more likely to engage in behaviours that align with their psychological needs. This means that marketers need to create content that resonates with these values and desires.
These research results can assist traditional organisations in recognising and modifying their promotional strategies to incorporate Twitter advertising in their marketing budgets.
The author is associate professor marketing and acting head, GMBA & MGB, S P Jain School of Global Management.