Connecting with Millennials and Gen Z has become a significant challenge for across industries. However, many companies are not using a strategy that aligns with key deciding factors for this demographic. Millennials and Gen Z aren't just looking for quality products or services; they demand that companies demonstrate a genuine commitment to social good.

But despite the growing importance of corporate social responsibility (CSR) and environment, social, and governance (ESG), many brands are still missing out on leveraging these powerful marketing tools. Let’s talk about why this gap exists along with how to address it for more effective marketing and advertising efforts for consumers under 45.

We at Fraser Communications know firsthand how successful social impact campaigns are for brands today. If you want guidance on how to launch these effective campaigns, contact us for a free consultation.

Why Does Social Impact Matters to Millennial & Gen Z Consumers?

Millennials and Gen Z are digitally savvy generations that have grown up in a world where information is at their fingertips. They are well-informed about global issues and tend to align themselves with brands that reflect their values.

In fact, a McKinsey study revealed that from 2018 to 2023, brands that made ESG-related claims experienced a 28% cumulative growth rate, compared to a 20% growth rate for brands without such claims. Additionally, products with ESG claims accounted for 56% of all market growth during this period, underscoring the significant impact of these initiatives on brand performance.

However, these consumers don’t just make decisions based on brands with eco-friendly materials or advertising that champions diversity—it's about integrating these principles into the core of their business practices and effectively communicating this commitment to their audience.

The Gap in Current Marketing Strategies

Despite the current research, many companies still treat social responsibility as an afterthought or a box to check. They fail to realize that for younger consumers, social impact is not an add-on—it's a deciding factor.

This disconnect in not using ESG-related initiatives, marketing, and advertising often results from a lack of understanding about how deeply Millennials and Gen Z care about these issues, or a failure to communicate a brand’s efforts authentically and transparently. Let’s talk about how to address this gap.

How Do You Demonstrate ESG Commitment Effectively?

There are several strategies to connect with socially conscious, younger consumers. At Fraser Communications, we realize that social impact needs to be communicated with these four factors in mind.

• Authentic storytelling. Showcase real stories about how your brand is making a positive impact within your advertising. This could be through community projects, sustainability initiatives, or how your products are made with ethical practices. Use platforms that these demographics frequent, like Instagram, YouTube, and TikTok, to tell these stories creatively and engagingly.
• Engage rather than advertise. Encourage interaction through campaigns that allow consumers to participate in your CSR efforts. This could be through social media challenges, partnerships with influencers who advocate for social causes, or interactive events that bring your community efforts to life.
• Transparency is key. Be open about what your brand is doing and also about where there is room for improvement. Young consumers value honesty and are more likely to forgive a brand that admits its shortcomings but shows a genuine effort to improve.
• Align ESG with core business operations. Integrate your social responsibility with your business model. For example, if you’re a clothing brand, ensure your supply chain is sustainable and ethical from start to finish. This integration shows that you are not just using social good as a marketing tool, but that it is a fundamental part of your business.

To put these strategies into action, let's look at how we implemented them in our marketing and advertising campaign for Toyota, emphasizing their commitment to eco-friendly hybrid vehicles.

Case Studies: Elevating Brands with ESG Principles

Fraser Communications leveraged ESG considerations into a successful digital campaign for Toyota, focusing on the RAV4 Hybrid and Camry Hybrid. Under the theme "We Are ALL Hybrids," the campaign emphasized the synergy of dual power sources in hybrids—merging efficiency with performance to mirror the multifaceted potential of consumers.

This narrative was amplified by partnering with Katya Echazarreta, the first Mexican-born woman in space, whose personal achievements underscored the campaign’s message about the power of hybrid qualities.

The advertising campaign strategically utilized various digital platforms, achieving over 169 million impressions and 7 million video completions, indicating a high engagement level. This approach not only highlighted Toyota's innovative hybrid technology but also aligned with the increasing consumer interest in sustainable and socially responsible brands.

Want to Learn How You Can Better Tap Into the Most Powerful Marketing Tool for Reaching Millennials and Gen Z?

As the buying power of Millennials and Gen Z continues to grow, brands cannot afford to overlook the importance of social good in their marketing and advertising strategies. By authentically integrating ESG into your business and communicating your efforts effectively, you can build a loyal customer base that values not just what you sell, but what you stand for.

Are you ready to tap into the most powerful marketing tool for reaching Millennials and Gen Z? Contact Fraser Communications for a free consultation today and let us help you transform your brand into a beacon of social responsibility that resonates with today's conscientious consumers.