Marketing to Millennials

Agenda

• What is Generational Marketing?

• Who THEY Are

• Why THEY Became Important

• How THEY Changed Media Consumption

• Our Field Research

• Examples

• The Workforce Culture Clash

• The Affect of the Economic Crisis

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WHAT ISGENERATIONALMARKETING?

JUST A FAD?

IMPORTANT

YOUTH MARKETING?

TRENDS CUSTOMIZESHIFT HAPPENS

PERSPECTIVE

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Don’t Be THAT Guy

“You know what I like

about marketing to

teenagers? My

BRAND gets older,

but they stay the

same age.”

* Matthew McConaughey does not endorse this PowerPoint

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http://www.youtube.com/watch?v=ItbBWXesGpg&feature=related

AMBITIOUS

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WHO THEY ARETREND-SETTERS

HIGHLY CONNECTED

LAZY

SELF-CENTERED

SPOILED / CODDLED

THE FUTURE

INFLUENCERS

YOUR KIDS

DIGITAL NATIVES, NOT IMMIGRANTS

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Connected

• 97% of college students own a computer

• 94% own a cell phone

• 75% have a Facebook account

• 60% own a portable music device

• They are using 3-5 pieces of technological equipment at the

same time

• Not a brand or trend that they don’t know about

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Protected and empowered

• Protected with car seats, bike helmets, knee pads, etc.

• Parents negotiating everything from pre-school to college to employment opportunities

• “Adolescence” is now extended into the 20’s

• They have been given every choice imaginable, every possible advantage

• They demand choice, personalization, the world on their terms

• Passionate desire of parents to bear and raise them

• Name their mother as their number one role model, and their family as the most important thing to them

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Accepting and diverse

• Although 80% of Boomer describe themselves as “White”, only 55% of Millennials refer to themselves as “White”

• Defined not by color of their skin or religion affiliation, but by the content on their iPod

• Music and fashion are more significant aspects of their identity than race, nationality

• Unconcerned with skin color and nationality; don’t think of themselves that way

• Acceptant of gay marriage, interracial relationships

• Gender differences less pronounced - men interested in fashion, fitness and grooming and women interested in sports, adventures and careers

• Enjoy being around people from ethnic or racial groups other than their own (African Americans 92%, Hispanics 89%, Non-Hispanic Whites 96%)

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Source: 2007 PEW research

2

3

4

1987 1997 2007

Younger Cohorts Less Socially Conservative

Pre-Boomer

Boomer

Gen X

Gen Y

*Number of conservative responses on six values items

Source: 2007 PEW research

0

10

20

30

40

50

60

70

80

18-29 30-49 50-64 65+

When something is run by the government, it is usually inefficient and wasteful

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WHY THEY’RE BUYING POWER

INFLUENCERS

YOUR NEXT CUSTOMER

IMPORTANTBUZZ MAKERS

THE FUTURE

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Data: Department of Health and Human Services, National Center for Health Statistics, web: www.dhhs.gov

Graph: Outlaw Consulting

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Influential

• Involved in all family decisions since about the age of 4

• Influence everything from food choices, family vacations or

family vehicles

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Influence Purchases – Harris Interactive (2007)

Medium PercentClothing / Apparel 90%Movie Video / DVDs 85%Groceries 83%Video Games / Systems 80%Music CDs / Cassettes 78%Books / Magazines 77%Vacation 71%Sports Equipment 70%Computer Software 69%Stereo Equipment 67%TV Set 65%Cell Phones 63%DVD Players 62%Computers 60%Furniture 49%Vehicles 49%VCR 48%

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Buying power

• “Prematurely affluent generation”

poised to become the next great luxury

consumers

• Last year teen spending along totaled

$179 billion

• Purchased by and for children 4-12

tripled during the 1990’s

• Always on the lookout for the newest

thing that they want NOW

18,81320,330 20,206 20,259

22,507

27,12029,057

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2000 2001 2002 2003 2004 2005 2006

Amount Income Before Tax for Heads of Households Under 25

Millennial Generation Spending Power

Source: Bureau of Labor Statistics Consumer Expenditures Study

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CHANGES IN

MEDIAC TO IPMUSN ON

TIVO

MEDIA SNACKING

YOUTUBE

SKYPEHULU

138 Channels and nothing on

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Changes in Media Behavior

• Media snacking and the fragmentation of the media landscape - end of primetime

discussion, seeking entertainment in new, shorter formats

• “It is clear that Millennials are influencing digital content and technology in general on a

broad, international scale” Ed Moran, Deloitte, Director of Innovation

Change this to black

background

Changes in media consumption

News Work Primetime

In 1965, 80% of 18-49 year-olds in

the US could be reached with

three 60-second TV spots.

In 2002, it required 117 prime-time

commercials to do the same.” (Jim Stengel, Global Marketing Officer, P&G)

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MEDIUMAge

18-24

Magazines 60%

TV/Broadcast 45%

Newspapers 30%

TV / Cable 55%

Face-to-Face 49%

E-Mail Advertising 37%

Direct Mail 26%

Radio 31%

Internet Advertising 41%

Outdoor 16%

Top 10 Media that Trigger an Online Search

Source: BIGresearch , July 2007, for the Retail Advertising & Marketing Association (Sample Size: 15,430, age 18+)

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L IEVI T,IN TTO U ES

INTERACTIVE

IT’S A LIFESTYLE

IT’S NOT JUST A TOOL!

DIGITAL NATIVES, NOT IMMIGRANTS

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Engauge Video Study:

Live It, Not Use It

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E UO IV L TONTALKING

OF

A NEW KIND OF SOCIAL ANIMAL

INVOLVEMENT

FEEDBACK

RELEVANCY

CONNECTEDOPENNESS

TMI

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Engauge Video Study:

Evolution of Talking

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Influencing Behaviors of Other Demographics

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BE AUTHENTIC

CHANGE HOW YOU TALK

REACH OUT THROUGH NEW CHANNELS

EXAMPLESKEEPING A PULSE ON TRENDS

ABOUT YOURSELF

BE IN A SITE, NOT ON

A SITE

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TALKING TO

CONSUMERS IN A

NEW WAY

THE BOOTY CALL

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NSFW

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Source: www.babycenter.com

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CHANGE HOW YOU

TALK ABOUT

YOURSELF

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Source: www.herbalessences.com

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Source: www.herbalessences.com

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REACH OUT

THROUGH NEW

CHANNELS

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Source: www.twitter.com

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USE THE NETWORK

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Source: www.facebook.com

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BE OPEN

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Source: www.mystarbucksidea.com

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BE AUTHENTIC

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Source: www.in-n-out.com

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KEEPING A PULSE

ON TRENDS

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Source: www.facebook.com

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BE IN A SITE, NOT

ON A SITE

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Source: www.facebook.com

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Source: www.facebook.com

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Source: www.facebook.com

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WORKFORCECULTURE

LC SA H

ENTITLED

AMBITIOUSNEED POSITIVE FEEDBACK

CONNECTED

IMPATIENT

YOUR EMPLOYEES

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Changing Corporate America

• Because of their life experiences, Millennials

have new expectations when entering the

work force

• Expect company provided PC (76%), mobile

phone (48%), internal company instant

messaging (50%), access to social

networking sites (40%), company provided

virtual meetings (42%)

• 91% state that being able to work with “never,

innovative technologies” in the workplace

would make them more likely to consider a

potential job opportunity

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UH OH!!

WAS IT ALL A DREAM?

WHAT HAPPENS NOW?!

ECONOMIC

WHAT WILL I DO NEXT?

HOW THE

MAY IMPACT THIS GENERATIONCRISIS

Source: PEW, How Young People View Their Lives, Futures and Politics: A PORTRAIT OF “GENERATION NEXT”

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Source: PEW, How Young People View Their Lives, Futures and Politics: A PORTRAIT OF “GENERATION NEXT”

Thank you.