You can think of tech-savvy Gen Y as spoiled, iPad-wielding urbanites looking for green alternatives. Born between 1980 and the early 2000s, Generation Y seems poised to be the next big consumer and target marketing group. After all, they will quickly become the predominant generational group within the primary age to buy a home. While the 25+ share of Generation Y will grow significantly over the next three years, its anticipated economic contribution and bottom line won’t be seen until 2015 and beyond. Generation Y is also known as Millennials.

To understand this marketing group, you must first understand what constitutes its psychographic makeup:

1. Economic influence and age distribution: Generation Y is currently between the ages of 16 and 32 and represents a substantial and important economic influence that will affect business and marketing trends in the next decade. The table below represents the percentage of the Gen Y population in 2012 compared to 2017. In 2012, Gen Y is 29%, Gen X is 42%, and Boomers are 29%. In 2017, Gen Y is 44%, Gen X is 41%, and Boomers are 15%, a dramatic shift in demographics.

2. Technology: 90% have a computer and 82% have a cell phone. They rely on technology for relevant information and entertainment.

3. Wealth: Gen Y said being rich was very important to them, this increased from 45% for Baby Boomers to 70% for Gen X and 75% for Millennials.

4. Politics: The percentage who said it was important to keep up with political issues dropped, from 50% for Boomers to 39% for Generation X and 35% for Millennials. Political issues are a distraction for Generation Y, as long as their world is intact, they care little what happens on the political front.

5. Philosophical Perspective: “Developing a meaningful life philosophy is not important to this group” This further decreased, across generations, from 73% for Boomers to 45% for Millennials. Individualism is paramount with Generation Y compared to conformity with previous generations.

6. Environment: “Getting involved in programs to clean up the environment” dropped from 33% for Boomers to 21% for Millennials. Gen Yers want their environment to be clean of toxins and pollutants, but they want someone else to put in the effort.

7. Competitive Drive: Gen Y’s are “Trophy Kids,” a term that reflects the trend in competitive sports, as well as many other aspects of life, where mere participation is frequent enough to earn a reward. This has been reported to be a problem in corporate settings because individual achievements have been mitigated. Some employers worry that Millennials have too high expectations in the workplace. Studies predict that Generation Y will change jobs frequently, occupying much more than Generation X due to their high expectations.

8. Maturity: Millennials are sometimes referred to as the Boomerang Generation or the Peter Pan Generation, due to members’ perceived penchant for delaying some rites of passage into adulthood. Much longer periods than most previous generations. These labels were also a reference to the trend of members living with their parents for longer periods than previous generations.

9. Religion: Members of Generation Y are less likely to practice organized religion than previous generations, and more likely to be skeptical of religious institutions.

10. Debt: Generation Y is saddled with student loan debt and will be less likely to emerge as a substantial economic powerhouse until this debt is reduced.

11. Culture: Generation Y is procrastinating on major life decisions, like marriage and starting a family, compared to previous generations.

12. Generation Y are corporate and political skeptics who believe that big business will have a staggering negative impact on society as a whole. Its appeal, from a marketing point of view, will be to get rid of corporate branding, which is a turnoff for this group, rather than more personal and niche branding.

There will be growth at the younger end of the age spectrum as Generation Y reaches mainstream household formation. Marketing to this demographic will be challenging as their mindset approaches because they are radically different from previous generations, as evidenced above. By 2017, they will comprise 44% of the economic clout in the US Additionally, since 1980 the number of Hispanic households has grown 5 times faster than the rest of the population. 70% of net US population growth is the result of immigration, with 50% coming from Hispanic immigration, a trend that is likely to continue over the next two decades.

By 2015, nearly half of the population under the age of 25 will be non-white (45%), and the effects of this evolution have touched every aspect of our daily lives and will continue to change the landscape of America. Generation Y will be very interconnected where nothing is private; text messages are their main means of communication, verbal communication skills have diminished to the point of being a lost cause. They place a high level of importance on individualism, self-actualization, and narcissism.

What should be learned and how do you structure your marketing strategy for this emerging demographic? Consider the following areas of marketing emphasis:

1. Vision begins with a clear understanding of the future, 2015 and 2017 are not that far off, structuring your sales and marketing plan today to target this demographic will require some creative thinking.

2. Generation Y will not begin to produce any measurable economic impact until 2015.

3. Put your ad dollars into social media and technology to engage Gen Y, where they will look for your message. Commitment: A member of Gen-Y rarely goes offline. Build relationships on the social networks they frequent, and don’t forget to optimize your website for interactive discovery.

4. Loyal Customer Relationships – Find the right balance between giving too much and not giving enough. You want real Gen Y customers spending money, not good-timers looking for a gift.

5. Traditional notions are unpopular with Millennials; they prefer cheap costs, good quality and a product experience.

6. Generation Y is transparent and narcissistic; your marketing message should be the same.

7. Get rid of your corporate image and develop brands specifically aimed at the expectations of Generation Y and the expectations of millennials.

8. Finally, understand that Generation Y is politically, competitively, and philosophically neutral, unlike anything you have encountered in the past.

9. Gen Y likes music (concerts), extreme sporting events (snowboarding, etc.), the outdoors (hiking), movies and video art experiences, tattoos (36% have at least one).

10. Don’t forget to include the Hispanic culture as part of your marketing strategy.

Consider which companies have been successful in marketing their product or service to Generation Y: Apple, Trader Joes, Red Bull, Jet Blue, to name a few. These companies offer a good product or service at an affordable cost. Look at your marketing campaign and consider the dynamics of your message and presentation, for example, Apple hit the nail on the head with $0.99 music downloads.

So what does all this mean to you?
It means you can’t directly market them until you buy them, until you value their outlook on life, even if it’s radically different from what we’re used to seeing. So while other experts are out there giving Gen Y marketing “tricks,” I’m here telling them to STOP marketing to them and START listening to them. Understand their unique culture, accept it and hang out with them. Experience life with them. Respect them. If you do, your outlook on life will change you and your company. You will begin to behave differently, take on some new values, and begin to live more of yourself. When you do that, you’ll find your audience within this Gen Y demographic.