For decades, video has helped brands to tap into discretionary income. From baby boomers to generation X, the small screen offered a tried and true way to boost brand recognition and create sales lift through unique and memorable marketing campaigns. But, around the turn of the century, this impact began to shift as the makeup of America’s workforce began to dramatically change.
Millennials now make up the country’s largest generation by population. They command a staggering $1.3 trillion in annual consumer spending, a number that is poised to continue growing as this generation enters its earning prime. Until recently, however, millennials were largely ignored by marketers. Unlike their parents, millennials ignored traditional advertising avenues, like television, making them notoriously difficult to reach.
This is particularly well documented through the widely publicized trend of “cutting the cord”--eliminating cable and satellite TV subscriptions, or, even more commonly, "cord nevers" -- those never signing up for cable services in the first place. Nielsen estimates now show up to 3.5 million U.S. consumers cut the cord in 2017,*** and the vast majority of them are millennials. Even more dramatically, new evidence now shows nearly half of all millennials and Gen X-ers are watching no content at all on traditional TV platforms.**
That’s left waning options for advertisers who need to reach millennials with video content, particularly a dilemma for premium video content that captures and holds the elusive attention spans of the millennial generation. InStadium has created a unique solution to this problem by combining premium video solutions with something millennials have demonstrated a willingness to place monetary value on: experiences at live sports events. What better place to showcase high-quality video content than on massive screens at the center of an arena in front of tens of thousands of captivated fans?
A recent study* found 38 percent of millennials now define themselves as “committed sports fans.” This represents a seven percent jump in just three years and now puts millennials only slightly behind Generation X as the largest base of sports fans in America. It also explains why millennial live sports attendance has risen each year since 2015, while the cord cutting phenomenon continues to rise.
Millennials are trend-setters and a growing number of sports leagues are now reaping the benefit of their interest in live events. As advertisers seek new ways to build effective direct-to-consumer channels, it is clear that millennials are a critical piece of the puzzle. Reaching this age group effectively can mean the difference between successful marketing and ineffective ad spend. Reaching millennials in stadiums aligns with the trend across all sports of larger, high-definition screens, prompted first by the adaption to HD.
The immersive live sports environment presents a unique opportunity to effectively reach this valuable consumer subset by engaging them with premium video solutions while simultaneously reaching them through what they value most: experiences. InStadium compiled research outlining just how deep this impact is. Take a look at the study and the detailed results here to learn about how the live environment can help your brand reach this critical consumer subset and get in touch with us to start planning a customized program today.
Sources: *McKinsey & Company Online Survey, June 2017; **EventBright: Millennials, Fueling The Experience Economy, December 2017; ***AC Nielsen , 2017 DMA Listing