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- New York Bans Youth Algorithmic Feeds, Generational Marketing, and How Allbirds Took Flight
New York Bans Youth Algorithmic Feeds, Generational Marketing, and How Allbirds Took Flight
October 3, 2024 - Edition #20
Dia Creative
October 03, 2024
October 3, 2024 - Edition #20
This week you'll learn:
🚨 NYC’s Algorithm Crack Down
👨👩👧 Generational Marketing
👟 How Allbirds Took Flight
⚡️ Quick Hits: Gen Z's Purchasing Power, TikTok Shop's Impressive Sales Growth, and YouTube Ad Blockers
New York Seeks to Ban Algorithmic Feeds for Teens
Image Source: The Wall Street Journal
New York is introducing new legislation, the Stop Addictive Feeds Exploitation (SAFE) for Kids Act, in an attempt to protect young users from the risks of personalized, algorithm-driven social media feeds. This law will require parental approval for users under 18 to access these feeds.
These "addictive feeds" use advanced machine learning algorithms that create content to maximize the user's engagement, often at the expense of their well-being. The legislation requires that platforms offer non-algorithmic versions of their apps for teen users and prohibits them from sending notifications to minors from midnight to 6 AM.
The bill reflects growing concerns about the negative impacts of social media on younger users' mental health. Without federal guidelines, states like Florida and Maryland are creating various child protection laws, potentially complicating compliance for social platforms.
What It Means
As states push for changes, there's a growing need for national rules to better control social media features like algorithm use and age checks for young users. The Senate should take note of the frustrations driving these state-level actions.
Using Generational Marketing for Social Media Success
Image Source: Sprout Social
Demographic data is crucial for defining target audiences on social media. Incorporating generational marketing insights influences brand connections from awareness to advocacy.
Understanding Generational Marketing
Building relationships across age groups begins with understanding how each generation interacts with social media.
Generational marketing segments audiences by age and targets them based on their unique values and experiences. This approach tailors strategies to make them relatable to different generations, helping craft messages that truly resonate.
By understanding generational insights, brands can promote loyalty and relevance while also effectively reaching new age demographics.
Reaching the Different Generations
To reach these different generations, you must understand their quirks.
Gen Z: Highly active on social media, they value personalized, customer-centric experiences. They favor brands that engage directly and prioritize human interaction over AI.
Millennials: Use social media to communicate, discover trends, and stay informed. They appreciate original content and responsive engagement from brands.
Gen X: Seeks authenticity and favors brands that take creative risks. They are very active on social media platforms.
Baby Boomers: Primarily uses Facebook, YouTube, and Instagram, and are open to exploring new methods of communication on these platforms.
Putting it all together
Once you understand how your audience thinks, you can begin to engage them.
To reach Gen Z, prioritize interactive content and quick responses. Millennials appreciate online communities, such as Facebook groups related to your product. Gen X learns from others in their generation, making Gen X influencers necessary for sharing your product. Use post-performance data to tailor your approach when it comes to Boomers.
Social media is vital for engaging all age groups. By using generational insights and social data, brands can create targeted, effective strategies that resonate with diverse audiences.
Allbirds' Billion-Dollar Success Story
Image Source: Allbirds
Allbirds emerged as a game-changer in the competitive footwear industry, achieving a $1.7 billion valuation in just four years by offering a unique alternative to established giants like Nike and Adidas.
Co-founders Tim Brown and Joey Zwillinger share their journey of launching Allbirds, focusing on simplicity and sustainability in a market dominated by complexity and constant product releases.
Differentiating from Competitors
Brown's decision to innovate in the footwear category stemmed from his observation of overcomplicated shoe designs. "The initial idea of Allbirds was all about the reduction of the shoe down to its simplest form, which is the opposite of the streetwear model, with small changes and a million different models."
This insight led to their catalog featuring just three running shoe styles in limited colors, aligning with their mission to provide comfortable, eco-friendly footwear.
Investing in Marketing and PR
Building a footwear brand in a saturated market is daunting. Allbirds' approach involved:
Focused Product Line: They maintained a limited catalog, contrasting with competitors' expansive offerings.
Strategic Marketing Investment: Despite a tight budget, they allocated nearly 20% to marketing and PR.
Sustainability Focus: They emphasized eco-friendly materials and processes, appealing to conscious consumers.
"Brand, PR, and product. Those are the areas where we said there's absolutely zero skimping on investment," Zwillinger explained.
Leveraging Word-of-Mouth Marketing
While social media played a role in Allbirds' success, the driving force behind their growth has been word-of-mouth marketing through affiliates. Allbirds adopted a two-pronged referral strategy:
Social Ambassadors: Promoted the brand through social media outlets like TikTok, YouTube, and Instagram.
Content Creators: Featured Allbirds in publications, blogs, and podcasts.
This approach allowed them to benefit from both social media referrals and the power of PR. Dozens of media publications highlighted Allbirds' commitment to comfort and sustainability, helping the company connect with conscious consumers.
Broadening Perspectives
The immediate success of their initial product line revealed a larger opportunity in the sustainable footwear market, positioning Allbirds as a leader in eco-friendly fashion.
By identifying an overlooked opportunity, overcoming industry challenges, thriving as a direct-to-consumer brand, and expanding their vision, Allbirds has transformed from a startup to an industry disruptor without losing sight of their goal: to revolutionize the footwear industry through simplicity and sustainability.
⚡️ Quick Hits
Gen Z's Purchasing Power will surpass millennials by 2030.
AI Enhances Social Media as over 84% of marketing leaders use it to boost efficiency and effectiveness.
TikTok Shop Insights show US social commerce sales could double to $144.5 billion by 2027.
YouTube Counters Ad Blockers with server-side ad injections.
Snap introduced a generative AI lens for real-time AI-generated visuals.
What we’re working on right now
Have you listened to our Podcast yet? Pioneering Perspectives: A Dia Creative Podcast 🎙️
Ready to break new ground in marketing? In this podcast, we crack the code of marketing within regulated industries. Join real industry leaders as they navigate the unique challenges and share their groundbreaking strategies for success in the marketing field. Our goal is to inspire and equip you to conquer the frontiers of marketing in a complex landscape. Click here to listen to the episode of Pioneering Perspectives with Philip Pisa.
Philip Pisa, a seasoned pharmaceutical industry veteran, has a proven track record in driving innovation and digital transformation. With a background spanning global roles at Roche, including Director of Digital, Marketing, and Innovation, Philip is passionate about leveraging technology to improve patient outcomes.