Think Generational Marketing Is the Lone Game in Town? Think Again

The Gist

• Generational marketing’s flaws. Generational segmentation often oversimplifies consumer behavior and leads to misguided strategies.
• Smarter segmentation strategies. Focusing on values, behaviors and needs over birth year results in more effective marketing.
• Real-world success stories. Brands like New Balance, Starbucks, Fenty Beauty and Amazon improved ROI by embracing value-, behavior- and need-based segmentation.

The advent of the first real marketable generation, the baby boomers, came about as a result of larger global forces (the end of WWII). So it’s no coincidence that the rise of generational marketing gathered steam alongside the growth of broadcast and digital communications. 

Grouping people based solely on birth year despite their countless differences became a cornerstone of audience segmentation strategy. But just as no serious marketer would build campaigns targeting only scorpios, we must question the value of generational segmentation when today’s technology reveals more actionable insights about how people actually behave and think. 

There’s often more connecting people than separating people across generations. Here’s why generational marketing is more illusion than insight and how brands can move toward more effective approaches.

Table of Contents

Why Generational Marketing Falls Short

Generational segmentation promises efficiency but delivers superficiality. By assuming all people born within arbitrary timeframes share identical behaviors and preferences, we’re building audience segmentation strategies on fundamentally flawed foundations.

Consider Adidas’s cautionary tale from 2023: Despite aggressive TikTok campaigns targeting Gen Z through audience segmentation, the company recorded its first annual net loss in over 30 years, $62.5 million down from a $659.9 million profit in previous year. Their hyper-focus on generational targeting generated fleeting engagement but failed to build sustainable loyalty.

Meanwhile, New Balance took a different approach and focused on universal values like quality and comfort rather than age brackets. The result was record global sales of $7.8 billion, a 20% year-over-year increase.

Audience Segmentation Myths: Why Generational Stereotypes Fall Short

Recent research finds (Editor’s note: these findings are based on the author’s company research):

• Gen Z values authenticity above all else: While this narrative dominates marketing discussions, research found that one in four Gen Z individuals are heavily influenced by aspirational branding. Moreover, Deloitte research shows 41% prioritize financial security and job stability just as much as social causes.

• Boomers don’t use technology: A staggering 77% of boomers are active on platforms like Facebook, and 60% use subscription-based video services. Further, 52% report shopping online first, which is nearly identical to Generation Z (49%) and millennials (52%).

• Millennials prefer experiences over products: Nielsen’s research contradicts this assumption and reveals that three in four millennials actively pursue tangible ownership, especially in housing and automobiles. Additionally, 57% are willing to pay more for convenience-enhancing products. This is higher than any other generation.

• Gen X only values practicality: While 75% of Gen X engage with brands for practical solutions, they’re also just as likely as millennials to express themselves through brands. Only 17% find technology confusing, which is significantly lower than both millennials (29%) and boomers (24%).

These findings expose a critical truth. The values and behaviors we attribute to specific generations are often universal human needs expressed through the lens of current technology and cultural context.

Beyond Age: A Smarter Audience Segmentation Strategy

Forward-thinking brands are moving beyond demographic shortcuts and instead focusing on the values, behaviors and specific needs that truly drive consumer decisions.

Values-Based Segmentation

Fenty Beauty exemplifies the power of values-based marketing. By launching a foundation in 40 shades to accommodate diverse skin tones, the brand resonated across generations and generated $72 million in earned media value within a month of launch. This universal appeal to inclusivity transcended age brackets entirely.

Contrast this with Revlon’s approach. The brand leaned heavily on youth-focused influencers while failing to address broader consumer needs. Their reliance on generational generalizations contributed to their eventual bankruptcy in 2022.

Behavioral Segmentation

Starbucks masterfully uses customer insights in its app and personalizes experiences based on actual purchase patterns rather than demographic assumptions. Regular morning customers receive different offers than occasional visitors. Creating relevance in this way drives both immediate sales and long-term loyalty.

Need-Based Segmentation

Amazon’s dominance stems from addressing universal needs rather than generational preferences. Their investments in frictionless experiences like one-click purchasing appeal equally to time-pressed parents, tech-savvy millennials and convenience-seeking seniors. Nearly half of Gen Z (49%) and 43% of boomers agree they’ll pay more for convenience, showing that core needs transcend generational divides.

Related Article: Customer Segmentation in an Era of Deep and Integrated Tech

Building Stronger Customer Connections

Positioning Your Brand for Sustainable Growth

To succeed in the future of marketing, brands must move beyond outdated demographic targeting and embrace behavior-driven, intent-based strategies. Here’s how: