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Irish youth stay loyal to brands
Sunday, March 22, 2009 by Jane McDaid
Today’s youth are more inclined to ‘ keep on spending ‘ ‘ than any other demographic group. In a recent survey carried out by Bord Bia,18-24-year-olds were (up to 8 per cent) less ‘‘panicked’ than their seniors about the economic climate. Those at retirement age (5565+) were also less perturbed by these uncertain times. Those aged 45 to 50 were the most ‘‘panicked’’, with 20 per cent of respondents ‘‘highly concerned’ about their future.

In recent research by media agency OMD, 2,000 Irish youths were asked to describe their future in one word. Encouragingly the most popular two answers were ‘‘bright’’ and ‘‘uncertain’’.

According to KBC, the cost of living has increased by 0.5 per cent for stay-at-home 20somethings. As a result, a shift in their spending habits and lifestyles has become obvious. OMD’s research revealed that 60 per cent of 18 to 29year-olds were staying in more and 43 per cent were drinking at home more often.

However, despite these lifestyle changes, some 39 per cent of Irish young people have remained faithful to the brands that they love and have grown up with.

The iPod generation has also reportedly increased use of social networking by 37 per cent - a figure that reflects Facebook’s massive Irish uptake in recent months and Twitter’s fast-growing popularity.

So, if today’s youth audience are less likely to go out and more likely to sit in, tapping a way on social networking sites like Twitter, Facebook and Bebo, what does this say to brands that target this demographic? Obviously, get online. If you’re not already there, you’re not likely to be one of those brands they ‘‘love’’ anyway.

Equally obvious is advice to spend smart. Spending smart on credible, effective and interactive marketing and PR is always important. But now, more than ever. More than any other demographic, the youth audience needs to be entertained or they’ll simply move on.

Today’s youth haven’t known days without AberCrombie & Fitch, American Eagle ; Mini ; MAC makeup and Xbox. They are fully connected to their chosen brands and have been since the boom began.

The marketer’s job is to stay faithful to this group. The challenge for brands, however, is that it has never been harder for brands to demonstrate loyalty.

As brands struggle with margins and currency differentials and retailers insist on ridiculous discounting that eats into margins, marketing budgets are being squeezed to accommodate this . It’s imperative, though, that brands don’t facilitate this ‘‘squeeze’’ at the expense of the brand.

How can they do this? By continuing to innovate and entertain the youth market with interesting, interactive and credible brand, marketing and sales activity. It has always been important to take a look at businesses and brands with a long-term, strategic approach - but it’s even more important today.

The relationship between a brand and a brand fan should be like a long-term relationship, not a one-night stand. All relationships endure tough times, but the really strong ones don’t crack when times get tough - they last forever and get stronger as they mature. This is a time for winners and losers. Less progressive brands and businesses are (worryingly) only learning now that they need to be value and quality led.

The hard times will teach businesses and brands a thing or two. Hard-working, innovative, brands and companies will survive, and even prosper, in times like this. At the expense of the losers? Yes.

Jane McDaid is managing director of Thinkhouse, specialists in youth communications

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