Febby

To get Gen Zs and Millennials on board with any investment, it is absolutely critical to know how this new breed of investors plays the game.

The term “digital native” is not very new. It dates back to over 20 years ago, thought to be coined by educator Marc Prensky in his 2001 journal article Digital Natives, Digital Immigrants1. Prensky noticed the swelling divide between students who grew up with computer games, email, the Internet, and instant messaging and teachers who turned to more traditional sources of information.

The characteristic traits of digital natives, he described, include a preference for fast and easily accessible information, networking, graphics, and “instant gratification and clear rewards”.

On the other hand, the older “digital immigrants” are in the process of learning the youngsters’ new language and adapting to a world of unknowns. Correspondingly, they tend to underappreciate the tech skills that digital natives have honed since childhood. Prensky explained, “Our digital immigrant instructors, who speak an outdated language (that of the pre-digital age), are struggling to teach a population that speaks an entirely new language”.

But even then, he warned that there was no turning back. Digital immigrants will have to face the fact that they need to get used to a new language and new ways of doing things.

Fast forward 20 years and the good professor’s study looks quite prophetic. As Millennials, and later Gen Zs, finish their education and enter the workforce, the dilemma has spilled over into the business world. With increasing disposable incomes, digital natives are starting to make impactful financial decisions.

To inform these decisions, Millennials and Gen Z overwhelmingly turn to the internet. A survey commissioned by Forbes Advisor reveals that up to 79% of young Americans take financial advice from social media platforms². Young people’s preference for fast and accessible information means that social media sites are powerful tools for investment literacy³.

Another study by Oliver Wyman Forum and The News Movement reveals that younger people are joining the investment game even sooner⁴. Compared to Millennials, Zoomers are 45% more likely to start investing by age 21, with an eye on new kinds of investment products like crypto and ESG.

Younger investors also include a lot more women and people of color. This diverse demographic offers an opportunity for flashy influencers on platforms like TikTok or Discord. This is a generation that appreciates tailored solutions that fit their needs.

The challenge for firms is now the same as Prensky’s generation of educators. Business leaders who belong to the digital immigrant generation have to take extra steps to catch up. To be fair, some banking and investment institutions are already ahead of their peers. Citigroup and NatWest, for example, already have a strong presence on TikTok, a feat that HSBC or Bank of America have yet to achieve.

Millennials and Gen Z see investing as an opportunity to put youthful idealism into practice. A joint study by the Stanford Graduate School of Business, the Rock Center for Corporate Governance, and the Hoover Institution finds that younger generations are more willing to invest in Environmental, Social, and Governance (ESG) investments even if it means higher risks or forgoing larger returns on investment⁵.

Younger folk also remain optimistic about crypto and fintech. The aforementioned Oliver Wyman Forum report also shows that “more than half” of Gen Z respondents plan to increase their crypto holdings well into 2023, despite market turbulence.

One touchpoint though that young generations still share with older ones is physical banking. Although online and mobile banking services are more prevalent than ever before, a Deloitte study says that 56% of Gen Z consumers still prefer a physical bank to open a checking account. Not far from 48% of Millennials and 64% of Baby Boomers. Trust and confidence in traditional financial institutions remain strong⁶.

To be sure, digital immigrants still have to learn new ways of doing things. But these tasks are made easier by the fact that Millennials and Gen Zs are still anchored to familiar expectations. They are not delinquents or excessively nonconformists but are actually optimistic about change and embrace innovation.

For the trickier part of marketing investments, having Millennials and Gen Zs on the team who already know how to speak the language, do the stuff, and follow the trends is going so clutch.

As Marc Prensky puts it, it’s high time to stop grousing about the old ways and follow the Nike motto “Just do it!”

At Global One Media, we seamlessly deliver our client’s message to potential young investors by harnessing the extensive outreach of social media.

Connect with us today and let us start your brand’s journey in the digital space.

¹ Prensky, Marc. Digital Natives, Digital Immigrants
² John Egan, Mike Cetera. Nearly 80% Of Young Adults Get Financial Advice From This Surprising Place.
³ Global One Media. How Social Media Became a Powerful Tool for Investment Literacy and Business
⁴ Oliver Wyman and The News Movement. A-Gen-Z-Report: What Business Needs To Know About The Generation Changing Everything
⁵ Stanford Closer Look Series. ESG Investing: What Shareholders Do Fund Managers Represent?
⁶ Deloitte. Recognizing the value of bank branches in a digital world: Findings from the global digital banking survey.

The pull of these sites can be surprising. Reddit, which takes up only a tiny social media footprint, is home to dozens of investment-focused communities like r/WallStreetBets and r/pennystocks.

Having financial and investment information at a finger’s length is hands down a modern marvel without comparison. Even though social media has been around for a few decades, its knock-on effect on investment literacy and business is just beginning.

Up until the mid-20th century, investing was an affair conducted almost entirely person-to-person². The earliest stock exchanges conducted their business on little more than benches in market squares or coffeehouses with stock promoters acting like merchandisers. It was not until the 19th century that the first stock exchanges were formally established.

At this stage, there were few ways to research and study investing. Retail investors relied highly on word-of-mouth, stock promoters, financial advisors, and print advertisements. Libraries, bookshops, and newspapers would later provide more reliable access to financial information. These, however, were not always available.

For a young adult living in the 1950s, simply learning about investments demanded considerable time and maybe money. Alternatives were not easy to come by. The ordinary investor was presented with highfalutin information and faced great risks of unreliable and outdated data.

The rapid development of computer technology in the past few decades made information cheap and quick. For investment literacy, this is a game changer. Anyone can simply look up investment lessons on their phone or on their computer through the internet.

Because of innovation, a sheer amount of investment information is now available online. Message boards and social media platforms replaced the market squares and coffeehouses of the old days. Young investors can simply select their favorite social media apps to access entire encyclopedias of information for any imaginable niche, sector, and industry.

Of course, there’s still a catch. It’s not just legitimate investment literature that is easy to come by on social media. Cheap and quick information also means that it is easy to proliferate scams and frauds. With some hype and appeal to emotion, fraudsters can make a quick buck off of unsuspecting investors.

Thankfully, equipping young investors with the investment basics is a big step to help keep them out of trouble.

For companies looking to get investors on board, social media can either be a curse or a blessing. Yes, the Internet offers a historically unprecedented way to connect with markets all over the globe but with the caveat that every other player gets this same advantage.

The world wide web is now a virtual market square where everyone shouts out their own advertisements. For everyone here, the challenge is to find a way to get their message heard.

For firms that understand the power of social media, nothing beats getting a talented marketing team that is well-versed in this tool. A skilled marketing outfit can turn the company’s value proposition into the right messaging for the right audiences.

Social media may be a double-edged sword, but it still offers an unparalleled opportunity for investment literacy among young audiences. Though many newcomers are still testing the waters of social media as a trusted source, Zoomers are sure to be a powerful investing force in the coming decades.

Latest reports put Gen Z at about 30% of the world population³, many of whom are in emerging markets and many with growing incomes—this is a whole generation that has an unprecedented opportunity to learn early and invest early, equipped with fast and low-cost information.

As social media transforms the investment landscape, both investors and companies need to use new tools to build mutually beneficial investment strategies.

At Global One Media, we seamlessly deliver our clients’ message to potential young investors by harnessing the extensive outreach of social media.

Connect with us today and let us start your brand’s journey in the digital space.

¹  John Egan, Mike Cetera. Nearly 80% Of Young Adults Get Financial Advice From This Surprising Place.
²  Andrew Beattie. The Birth of Stock Exchanges.
³  Jason Wise. Gen Z statistics 2023: How many people are in Gen Z?

Today, consumers expect a seamless and integrated experience with a brand whether they are online or offline. But creating such an experience can be tricky, and here’s where omnichannel marketing can make all the difference.

Omnichannel marketing is a multi-channel approach to marketing that aims to provide customers with a seamless and integrated experience across all touchpoints. The term “omnichannel” comes from the combination of two words: “omni” meaning “all” or “every”, and “channel”, referring to the various channels or platforms that companies use to interact with their customers.

What sparked the concept was the growing trend of customers using multiple channels and devices to interact with brands while seeking a cohesive experience. This means that a customer can start a purchase on their mobile device, continue it on their laptop, and finally, complete it in-store. The smartest brands offer that experience without disruptions or inconsistencies.

Case in point: Coca-Cola

As a 136-year old brand, Coca-Cola is an icon beyond dispute, known by billions around the world. To keep the Coca-Cola name iconic, the company’s marketing strategy is designed to be everywhere and to appeal to a wide range of consumers, from all walks of life.

How do they do it?

1. Consistent branding: Coca-Cola’s logo, colors, and branding are consistent across all of its products and marketing materials, helping to establish a strong, recognizable, and memorable brand identity.
2. Multiple channels: Coca-Cola uses all channels possible to reach consumers – be it television commercials, print ads, social media, or even branded merchandise. Who never got addicted to Coca-Cola collectibles?
3. Sponsorships and partnerships: Which company is consistently sponsoring the Olympics, world performances, and FIFA World Cup? Yes, Coca-Cola aims to increase its visibility and reach to every corner of the world.
4. Personalization: Coca-Cola embarked on personalized marketing campaigns, like its “Share-a-Coke” campaign, to create a more intimate connection with consumers.

This omnipresent marketing strategy has firmly established the Coca-Cola brand as one of the most recognizable and beloved brands in the world

Omnichannel marketing offers many benefits to companies and customers, but it doesn’t come without its own challenges:

• Data Management – Handling customer data from various channels is one of the hardest parts of omnichannel marketing. Companies must gather, analyze, and keep data accurate from different sources, which requires investment in technology, infrastructure, and skilled staff to manage it.
• Channel Coordination – Companies must make sure their messaging and branding are consistent across all touchpoints. Absolutely no contradictions! This requires careful planning and coordination across teams and departments.
• Personalization – While trying to achieve personalization, they must avoid infringing on customer privacy. Too much information or irrelevant recommendations can also annoy customers a lot.
• Technology Integration – Integrating technologies across channels can be complex, time-consuming, and expensive. Companies must make sure their systems work together and share data seamlessly and cost-efficiently.

But surpassing these challenges can truly be rewarding. Leveraging this approach allows companies to build strong and long-lasting relationships with customers and a solid value chain for their bottom line. By investing in the right technology, infrastructure, and people, companies can create an omnichannel experience that meets the needs and expectations of their customers. The results are worth all the effort!

At Global One Media, we help our clients seamlessly communicate their message to the online audiences.

Connect with us today and let us start your brand’s journey in the digital space.

Surprisingly, however, 70% of the respondents expressed that they were likely to invest, or invest more with better knowledge. The good news is that there is a plethora of online communities dedicated to knowing all there is to know about investment. These 7 YouTube personalities are sure to guide any investment and finance strategy.

Take the opportunity to learn from these online tutors and this may just be the starting point for the world’s next great investment journey.