How do different generations use social media?

More and more financial advisors are hopping on the social media marketing bandwagon. It’s a no-brainer for advisors who target millennials! But those who want target soon-to-be-retirees or 80-year-old who are planning their estates tend to think “the older generation isn’t on social media…. right?” Wrong Over 80% of each generation uses social media every day.1 As well, studies show that Americans of all ages spend an average of 147 minutes on social media platforms every day. 2 Although most Americans use social media, each generation tends to use social media for different reasons. To attract or retain clients, you must know their social media preferences/habits.

• Generation Z (also known as “Zoomers”) are the second-fastest adopters when it comes to social commerce. This comes as no surprise when they’ve had social media for more than half of their lives and are constantly online. 66% of Gen Z say social media is an integral part of their lives.² However, they prefer two to three platforms such as YouTube, Instagram, and TikTok.³
• Millennials grew up during the time when the Internet was becoming popular, but they didn’t grow up with social media. However, 63% of Millennials have increased their social media usage over the last year and 46% expect it to continue to increase over the next couple years.2 Having lived through many historical events, Millennials want the opportunity to be able to solve their own problems. When it comes to online branding, Millennials are drawn to brands that showcase value on social media.
• Generation X
  are the practical and self-reliant of the group. They’re also known as the “latch key” generation. They tend to stick to social media platforms they’re familiar with such as YouTube and Facebook. Gen X is also more apprehensive towards sharing personal information on social media due to fear of security breaches. However, social media is a key channel for Gen X to go to when they need to resolve a problem. In fact, in 2020-2021, there was a 110% increase in Gen X customers who chose to use social media to resolve customer service issues.³
• Baby Boomers
  may have been slow to the initial introduction of social media, however, that changed after the pandemic. Similar to Gen X, Baby Boomers prefer more established social media platforms. From 2012-2019, the number of Baby Boomers on Facebook roughly doubled.2 Although Baby Boomers have started to shop online, they still prefer brick-and-mortar stores. According to sources, brands will be able to make the biggest impact with Boomers by using their social media platforms to complement their brick-and-mortar strategy.

As you can see, social media is no longer just for “young” people. Financial advisors are missing huge opportunities by ignoring social media marketing. While their target market can be found many places, social media is now one of them. By assessing the different platforms through generations, financial advisors can more effectively determine what resonates with their customers and recognize where they need to ‘show up’ for their clients.

Sources:

1. INDIGITAL
2. BroadbandSearch
3. Sproutsocial
4. FLAGSHIP