Brands which have coasted off of the Baby Boomers and failed to develop a point-of-market entry strategy to acquire younger customers are feeling the pinch more than ever. For many major brands, winning the Youth / Gen-Y / Millennial consumer means you will still be in business a decade from now.
OLG recently discussed its demographic time bomb problem – less than 13% of lottery players are under 25; while 42% are over 55. Many marketing experts are pointing to a lack of online marketing efforts. We’ve identified what we feel are the core issues:
Perceived Odds of Winning Trumps Prize Itself
This isn’t just about “lotteries”. This same issue of skepticism extends to branded contests and sweepstakes. Through extensive research, we’ve confirmed that perceived odds of winning trumps the prize or payoff itself. Millennial / Gen-Y consumers are constantly assessing their odds of winning to determine whether or not they will engage. As the saying goes, “you’ve got a better chance of getting struck by lightning than winning the lottery”.
Contest / Sweepstakes Fatigue
Youth, Generation-Y and Millennial consumers are the prime target for many Fortune 100 brands. They’ve grown up being inundated with contests and sweepstakes. As such, they’ve built a tolerance to these types of “FREE” or “CHANCE TO WIN” messages and have learned to simply ignore these types of outreach strategies. In order to effectively break-through, your communication needs to be extremely efficient in laying out winning odds, prizes and required action.
Paper-Based Lotteries are Simply Irrelevant.
Unless consumers are handed a scratch card as a promotional giveaway to determine an instant prize, paper-based lotteries are simply irrelevant. Gen-Y, Millennials and Youth are much more interested in digital-based activities such as Virgin Gaming or online poker to get their “gambling fix”.
Gen-Y / Millennials are far more financially aware than what most people think. Students are watching their debt levels increase, with national student debt in Canada recently breaking $15 billion. Today, an average student graduates with nearly $30,000 in debt. Students are smart high-low budgeters; with intentional prioritized spending strategies. They’re willing to spend on things that have big impact on their lives (i.e. PC, tablet and phone). Lotteries are a low ranking spend category; a non-existent one for most.