New study explores Black millennial spending power
NEW YORK - A first-of-its kind study reveals the purchasing power of Black millennials. A CUNY Baruch College doctoral lecturer says marketers may be missing a new category of core consumers.
In Harlem, millennial favorite Melba's maintains authenticity makes the best marketing policy. The restaurant opened its doors for Jessi Mitchell to sit down with Dr. Sabrina Kizzie, who specializes in social media studies. She noticed a gap in information about a key demographic.
"They drive culture and influence culture," Kizzie remarked, "so it's a real missed opportunity when marketers and advertisers don't take advantage of this huge consumer market."
Kizzie said not even Black millennials themselves recognize the power they have.
"That's why this study is so enlightening," she continued, "because although they know they're influencers, I don't know if they know truly the significance of their spending power."
Out of 75 million American millennials, 14% identify as Black. For her dissertation, Kizzie surveyed 158 of them last year. While their wealth falls behind their white peers, the Black millennial trend to spend cannot be denied.
"They want to be entertained in terms of their mobile ads," Kizzie said. "But in terms of products, Black millennials are very much interested in messaging that really outlines the consumer benefits of that product."
Surviving a pandemic, two recessions and record levels of student loan debt, on top of inequality, this resilient group has managed to drive trends by managing their dollars.
Three Black millennials shared their perspectives, including Christopher Williams, an assistant vice president at Moody's Investment Services, as well as twin sisters Chardia Christophe-Garcia, an audience and community marketing executive director for Forbes, and Micaela Christophe, an event management vice president for a financial service firm.
"It's exciting to be able to say, 'Hey, I had a really long day at work and I want something.' I'm going to treat myself and get it," said Christophe.
All three estimate more than 70% of their shopping happens online.
"If you're putting an ad together and you're trying to target us," said Christophe-Garcia, "down to the look, the feel, the music, all of that really matters."
Advertisers have on average just 8.6 seconds to impress Black millennials before they keep scrolling.
"I'd seen a well-dressed brother rushing to the airport and he was showing how to, the suitcase, like how it maneuvers and it has a little stand your cup of coffee on," Williams remembered of a recent purchase. "The advertising spoke to me and a product is sold."
They say the most successful ads provide a solution, a snappier style of infomercials. Christophe bought two ice scrapers after seeing a social media ad on a cold day.
"I don't even own a car," she said. "I think it transcends from, you know, the '80s and '90s era when we've watched that growing up."
But Kizzie emphasizes businesses still miss the mark by not marketing directly to Black millennials, or only seeing them on special occasions, because they notice.
"We are not just our struggle," added Christophe-Garcia, "and it's important to celebrate the joy that we experience on a day-to-day basis as well."
Kizzie concludes more research needs to happen to help businesses better understand and build trust among young, Black buyers.
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