Picture your “typical” millennial. Young, tethered to social media, still living at home. New data reveals that not only is this picture wrong—it’s obsolete. The digitally native generation that helped elect Barack Obama, embraces equal marriage rights, and cares deeply about the environment is evolving—and quickly. And that change is being brought on by one simple fact: millennials are now parents. Of the older half of millennials (those aged 25 to 34) over 22 million already have kids. Each day roughly 10,000 millennial moms give birth. Our new research reveals that parenthood is driving a more pragmatic, conservative outlook—and it’s dramatically changing how millennials buy, behave and believe.
In 2013, our first study of millennial parents revealed that traditional values and ideals were starting to take hold in this often-watched generation. In just a short year, the changes have become even more profound. Let’s take a look at five new trends that will redefine how marketers speak to and with millennials.
The Millennial Political Conundrum
Parenthood shows a sharp increase in millennials that identify themselves as “conservative evangelical Christians” from 9.6 percent to 32.9 percent. However, more millennial parents, 30 percent, self-identify with the Democratic Party than any other.
This data serves as a reminder to marketers and researchers—don’t assume the stereotype. Millennials are a racially diverse group that cut across wide swaths of American life. This political data is the perfect embodiment of that very diversity. Church and faith play a vital role in the majority of minority households, and with the introduction of children, we are starting to see millennials cleave to their roots.
Yet, there is still a large group of millennial parents that support gay marriage equality and legalization of marijuana. While they may seem to contradict themselves, one thing is certain—millennial parents are thinking about tradition now more than ever. They’re simply redefining what it means to be “conservative.”
Millennials Letting Go of Green?
Before they become parents, 10 percent of millennials belong to an environmental organization, which drops to 0.2 percent after they have children. In fact, when it comes to environmental issues, millennials are waning in their commitment to one of the most basic conservation ideals: recycling. Before they have children, millennials over-index against the general population—meaning they are more likely to believe/act than the total U.S. population—in nearly every category of recycling. After they have kids, that commitment experiences a sharp decline, with commitment to “very often” and “sometimes” shifting to “never” when it comes to recycling everything from glass to newspaper to aluminum cans.
At first glance, you might assume that millennials are simply too busy to recycle once they have kids. But, they also report a drop-off in affinity for eco-friendly products. Before they have kids, 59.6 percent of millennials say they are more likely to purchase a product that is environmentally friendly. That figure drops to 37.1 percent after they become parents.
It remains to be seen if this data is signaling the death-knell for green products. The data shows that there is still a steadfast group of millennial parents that are committed to the environment, but the majority seems to be more apathetic.
Millennial Parent Optimism and Spending Grow
Over the past year, millennial parents’ income has remained largely flat. Of those households reporting annual income of between $50,000 and $100,000, 7.6 percent reported a drop in income; those households above $100,000 in earnings remained flat. Even though millennial parents’ income isn’t increasing, they remain very optimistic about the future and show an increased propensity to shop and spend.
Before they had kids, just 26.7 percent of millennials say they “shop frequently,” which jumps to 46 percent after parenthood. But where are they spending their money? Most millennial parents report significant spending increases on items like household items, food, and gas, as well as an increase in plans to spend on big and medium-ticket products.
What does this all mean for brands and marketers? Keep in mind that while millennial parents are forecasting spending increases, they are more pragmatic than ever before. They seek out deals and expect products to be useful and practical. If they are going to indulge, it’s most likely for their children.
Millennials Drop Their Friends
As millennials become parents, they report drops in seeking advice from (or giving advice to) friends on purchases in nearly every category, with health and electronics being important exceptions. The influence to purchase is becoming decidedly “old school” for the digital generation. In fact, 22.1 percent of millennial parents say “fashion magazines help determine what clothes to buy,” versus 7.6 percent before they have kids. Similarly, 21.3 percent of millennial parents say they like to "buy the same products celebrities use," versus 6.3 percent before they had kids.
It’s important to note that while celebrity and fashion magazine influences still don’t represent a majority of millennial parents, the numbers have jumped significantly. Brands should take heed of this growing trend and not incorrectly assume that a friend’s opinion on Facebook trumps fashion advice from major print titles.
Millennials and Privacy
In what might be the biggest revelation for marketers, millennial parents seem to have been widely influenced by recent news of data breaches. An astounding 29 percent of millennial parents say they “use the internet less because of privacy concerns,” up from 9.8 percent before parenthood.
While this may seem like a troubling statistic for marketers, the data also revealed that millennial parents are willing to forgo privacy concerns if they are offered a deal. Millennial parents who want to hear about new products or services via email stands at 31.9 percent, versus 17.3 percent for millennials without kids. Likewise, before they had kids, just 2.5 percent of millennials were ‘interested in receiving ads on their cell phones,’ which jumps to 12.3 percent after they have children.
Like every generation before them, millennials are being changed by parenthood. It’s up to marketers to know the facts and plan accordingly.
