Unlocking the Gen X Goldmine: Why Brands Must Rethink Social Media Strategies

In the ever-evolving landscape of digital marketing, one generation often captures the spotlight: the elusive Gen Z, known for their influence on short-form social media platforms like TikTok and Instagram. However, recent research by GroupM's Wavemaker reveals that another generation is quietly but steadily carving its niche in the social media sphere – Generation X. While Gen X has been frequently overlooked by advertisers, this untapped audience presents a golden opportunity for brands willing to adapt their strategies.

Wavemaker's report, aptly titled 'Finding the Gen X Factor,' dives deep into the world of Gen X, offering valuable insights into their social media habits, preferences, and the missed potential of engaging this generation.

Gen X- A Surprising Force on TikTok: Traditionally, influencer-led social media strategies have been synonymous with targeting Gen Z, but the research tells a different story. Gen X, aged 45-60, is emerging as the fastest-growing demographic on TikTok, now constituting 28 percent of its user base. This revelation shatters the stereotype that older generations are less engaged with social media.

The Disconnect- Advertisers vs. Gen X: Despite the enthusiasm Gen X brings to social media, Wavemaker's study unveils a stark disconnect in advertising efforts. Shockingly, only 5 percent of brand spending on influencer campaigns is aimed at Gen X, leaving this demographic feeling overlooked and undervalued. In contrast, just 13 percent of Gen X felt represented in ads, revealing a significant gap compared to younger generations.

This disengagement from typical influencer campaigns translates into less favorable outcomes. Gen X exhibited 30 percent lower retention rates, 20 percent fewer interactions with content, and a staggering 47 percent lower brand opinion compared to Gen Z and Millennials.

The Power of Representation: However, the report offers a glimmer of hope. When Gen X consumers felt better represented in influencer content, their preference doubled. Gen X resonates with content that aligns with their personality and interests, characterized by longer-form, in-depth, and informative posts with a softer, self-improvement language.

Trust- A Key Factor: The study underscores that trust plays a pivotal role in Gen X's buying decisions, being 30 percent more critical for them than for younger generations. Gen X also considers fewer brands in their buying decisions, showcasing a more selective approach. Their purchasing habits lean towards necessity rather than impulsiveness, setting them apart from their younger counterparts.

The Missed Opportunity: Gen X represents a substantial opportunity for brands, comprising 31 percent of the global population and contributing to nearly 27 percent of global spending. As $70 trillion of wealth is set to be passed down to them from the Baby Boomer generation, Gen X is poised to become the most affluent generation in history.

This isn't just about social media; it extends to television advertising, where older demographics are underrepresented. Wavemaker's research found that only 24 percent of TV ads feature people over 50, despite this demographic's significant purchasing power.

Reimagining Social Media Strategies: In light of these findings, it's clear that Gen X deserves more attention from advertisers. Brands need to rethink their social media strategies, emphasizing long-term, long-form, and community-based content to earn the trust, loyalty, and representation Gen X craves.

Zoe Bowen-Jones, Senior Insight Director at Wavemaker, emphasizes that Gen X consumers are brand loyal, have longer attention spans, and are more engaged on social media. They are, ultimately, more valuable consumers than their younger counterparts.

Stuart Bowden, Global Chief Strategy Officer at Wavemaker, highlights the importance of recognizing and responding to the unique needs and behaviors of Gen X on social platforms.

In conclusion, the advertising world must wake up to the immense potential that Gen X presents. By acknowledging and embracing the distinct characteristics of this generation, brands can tap into a demographic that is not only highly engaged and loyal but also holds the key to substantial future wealth. The era of Gen X is here, and brands that adapt their strategies accordingly will be the ones reaping the rewards.