This document discusses marketing strategies for Generation Y (Millennials). It provides demographic data on Gen Y, including their size, age range, racial composition, priorities, spending habits, and media usage. The document also offers recommendations for communicating with and reaching Gen Y, such as using word-of-mouth marketing, viral campaigns, social media, and cause marketing. Authenticity, quality, and experiences are keys to appealing to Gen Y consumers.

1. Marketing to Generation YMarketing to Generation Y
1

2. Marketing to Generation YMarketing to Generation YMarketing to Generation YMarketing to Generation Y
 Demographic Trends Slides 7-14
 Marketing Communications Slides 15-23
 Spending Patterns Slides 24-31
 Media/Technology Usage Slides 32-36
2

3. A great deal has been written aboutA great deal has been written about
‘Generation Y’ since the term was‘Generation Y’ since the term was
first coined in 1993 byfirst coined in 1993 by
Advertising AgeAdvertising Age magazine.magazine.
A great deal has been written aboutA great deal has been written about
‘Generation Y’ since the term was‘Generation Y’ since the term was
first coined in 1993 byfirst coined in 1993 by
Advertising AgeAdvertising Age magazine.magazine.
3

4. The term refers to the last generationThe term refers to the last generation
toto
be born wholly in the twentieth century.be born wholly in the twentieth century.
This group is also known asThis group is also known as
“echo boomers,” the “millennials”“echo boomers,” the “millennials”
or often “generation why.”or often “generation why.”
The term refers to the last generationThe term refers to the last generation
toto
be born wholly in the twentieth century.be born wholly in the twentieth century.
This group is also known asThis group is also known as
“echo boomers,” the “millennials”“echo boomers,” the “millennials”
or often “generation why.”or often “generation why.”
4

5. While the youngest Generation Y isWhile the youngest Generation Y is
onlyonly
10 years old, marketers are focused on10 years old, marketers are focused on
those who are currently 15-30 yearsthose who are currently 15-30 years
old.old.
In the US, Generation Y is 70+ millionIn the US, Generation Y is 70+ million
people strong, almost double the sizepeople strong, almost double the size
of ‘Generation X,’ its predecessor.of ‘Generation X,’ its predecessor.
While the youngest Generation Y isWhile the youngest Generation Y is
onlyonly
10 years old, marketers are focused on10 years old, marketers are focused on
those who are currently 15-30 yearsthose who are currently 15-30 years
old.old.
In the US, Generation Y is 70+ millionIn the US, Generation Y is 70+ million
people strong, almost double the sizepeople strong, almost double the size
of ‘Generation X,’ its predecessor.of ‘Generation X,’ its predecessor.
5

6. Generation Y in ContextGeneration Y in ContextGeneration Y in ContextGeneration Y in Context
 This is a generation who never knew life without AIDS,
never felt the chill of the Cold War, who learned about
the birds and bees from President Clinton’s well-
publicized antics, wore designer kids clothes, never went
to a library for research and can’t imagine life without
ATMs, DVDs, DVRs, IM, AOL and SUVs.
 Generation Y has always lived in a multimedia world and
has an innate ability to decode brand symbolism and
iconography.
 The Gen Y world is one of contradictions that it
completely embraces. Young people can switch on
CNN and see disasters and then escape from it all
on an iPod.
6
Source: Brand Strategy

7. Demographic TrendsDemographic TrendsDemographic TrendsDemographic Trends
7

8. Generation Y Represents the FutureGeneration Y Represents the Future
Market For Most Consumer BrandsMarket For Most Consumer Brands
Generation Y Represents the FutureGeneration Y Represents the Future
Market For Most Consumer BrandsMarket For Most Consumer Brands
 Gen Ys according to Census data were born between 1977
and 1994, making this segment ages 15–32.
 There are approximately 70 million Gen Y consumers.
 By 2010, Gen Ys will outnumber Baby Boomers.
 Gen Ys will make up 50% of the 18-49 demo by 2010.
 The number of Gen Ys will grow to nearly 90 million
by 2020.
 This generation – sometimes called the Net Generation –
is the most technology-savvy group of Americans.
8
Source: U.S. Census Bureau
Generation Y or Millennials are crucial consumers for all kinds
of businesses because of the size of this generational
segment.

9. Adult Internet Population by GenerationAdult Internet Population by GenerationAdult Internet Population by GenerationAdult Internet Population by Generation
Percent
Gen Y (18-32) 30%
Gen X (33-44) 23%
Younger Boomers (45-54) 22%
Older Boomers (55-63) 13%
Silent Generation (64-72) 7%
G.I. Generation (73+) 4%
9
Source: Pew Internet & American Life Project, Generations Online 2009 1/28/09
Percent of Internet users (does not include teens)

10. U.S. Population DataU.S. Population DataU.S. Population DataU.S. Population Data
U.S. Census Bureau population estimates for 2009:
 2009 U.S. Population 307 million 100.0%
 Birth – Age 18 74,548,215 24.3%
 Age 18 – 24 30,412,035 9.9%
 Age 25 – 44 83,096,278 27.1%
 Age 45 – 64 79,379,432 25.9%
 Age 65 and over 39,570,590 12.9 %
10
Source: U.S. Census Bureau Population Estimates for 2009

11. Percent Distribution of Total PopulationPercent Distribution of Total PopulationPercent Distribution of Total PopulationPercent Distribution of Total Population
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Source: U.S. Census Bureau Population Estimates for 2009
Total U.S. Population=
307 million
45-64
Years
25.9%
65+ Years
12.9%
25-44 Years
27.1%
Birth-18 Years
24.3%
18-24
Years
9.9%

12. Gen Y Racial and Ethnic CompositionGen Y Racial and Ethnic CompositionGen Y Racial and Ethnic CompositionGen Y Racial and Ethnic Composition
 Non-Hispanic White Alone 60%
 Non Hispanic Black Alone 14%
 Non-Hispanic Asian Alone 4%
 All Other Races 3%
 Hispanic (Any Race) 19%
12
Source: U.S. Census Bureau, National Population Estimates and Projections.
Cited in MetLife Mature Market Institute 2009

13. Family Life and Gen YFamily Life and Gen YFamily Life and Gen YFamily Life and Gen Y
As young adults, many Gen Yers consider marriage to be an
essential component of the American Dream.
13
Source: U.S. Census Bureau, DataFerrett, Current Population Survey, March Supplement, 2009. Cited in MetLife Mature Market
Institute 2009.
Marital Status Males Females
Married 21.3% 27.9%
Widowed 0.0% 0.3%
Divorced 2.0% 3.2%
Separated 1.3% 2.1%
Never Married 75.3% 66.5%

14. Gen Y’s PrioritiesGen Y’s PrioritiesGen Y’s PrioritiesGen Y’s Priorities
 Gen Y places tremendous emphasis and precedence
on the following arenas:
14
Source: Millennials:” Confident, Connected. Open to Change”- Pew Social &
Demographic Trends 2/24/2010

15. Marketing CommunicationsMarketing Communications
to Gen Yto Gen Y
Marketing CommunicationsMarketing Communications
to Gen Yto Gen Y
15

16. Marketing to Gen Y Grows in ImportanceMarketing to Gen Y Grows in ImportanceMarketing to Gen Y Grows in ImportanceMarketing to Gen Y Grows in Importance
Advertisers are looking at creating new ways of
targeting Gen Y for several reasons:
 This consumer segment (or generational cohort) is
harder to reach with traditional media.
 Gen Y is a collection of different psychographic groups,
each with its own motivations and preferences.
 The Gen Y audience is very diverse and fragmented and
consequently more accepting than their predecessors
of diversity.
 Advertising to the traditional, mass audience frequently
does not have appeal for the younger cutting-edge
consumers.
16

17. Reaching Gen Y with Effective MarketingReaching Gen Y with Effective MarketingReaching Gen Y with Effective MarketingReaching Gen Y with Effective Marketing
 They are family and friend oriented. This is why cell phones
and two-way paging are so attractive to them.
 Word-of-mouth marketing is very powerful with this group
because they are so friend conscious.
 Viral marketing as a popular and effective medium- go where
they are in order to reach them.
 They are very optimistic and have a positive outlook on
the world.
 Non-profit sponsorships and cause marketing efforts will get a
positive response.
 They are tenacious doers; offer products that help them
become better.
 Make sure your marketing also reaches parents of Gen Y, for
they are close to their children, and still buy things for them.
17
Source: refresher.com

18. Generation Y Places High Value On…Generation Y Places High Value On…Generation Y Places High Value On…Generation Y Places High Value On…
 Connection
 Diversity
 Living first
 Time with friends
 Civic activities
 Taking care of the environment
 Authenticity
 Quality
 Access to information
 Ongoing learning
 Career development
 Freedom to travel
18
Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields, 12/25/2008

19. Communicating with Gen YCommunicating with Gen YCommunicating with Gen YCommunicating with Gen Y
 Know that there are more media outlets for Gen Y to be aware of,
and there are more opportunities for advertisers to reach them.
 Create effective communication via events, the Internet (instant
messaging), blogs, sponsorships, billboards.
 Plan strategically targeted messages.
 Follow the grassroots approach, and promote products at places
teens gather.
 High-pressure selling is out. These consumers are used to buying
online- without pressure.
 They research the Web. They understand transparency in prices
and technical information- don’t talk down to them in the technical
terrain.
 Associates have to know more than these consumers have learned
about the products on the Web.
19
Source: brandchannel.com

20. Generation Y Replacing Generation XGeneration Y Replacing Generation XGeneration Y Replacing Generation XGeneration Y Replacing Generation X
 What this means is that the purchasing power is going to
be largely transferred from Baby Boomers, who are retiring,
down to their children and grandchildren.
 Generation Y was born with a cell phone and a laptop in
their crib. To be “plugged in” 24/7 has almost become a
natural extension of their being.
 This is the most optimistic generation to ever walk the face
of the planet. They care about the earth and servicing theit
community.
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Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields 12/25/08

21. Gen Y Consumers Are OptimisticGen Y Consumers Are Optimistic
About FutureAbout Future
Gen Y Consumers Are OptimisticGen Y Consumers Are Optimistic
About FutureAbout Future
 According to a survey by StrategyOne for Pepsi in
November 2008, people born 1980-1990 remain
confident about the future despite the falling economy.
 Four out of five Millennials are hopeful about 2009.
 95% agree that it is important to maintain a positive
outlook on life.
 77% have a strong sense of optimism about their
careers.
 74% find that supporting causes makes them feel more
optimistic.
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Source: Center for Media Research, MediaPost 12/31/08 (Latest data available)

22. So, How Do We Market To Gen Y?So, How Do We Market To Gen Y?So, How Do We Market To Gen Y?So, How Do We Market To Gen Y?
In order to successfully market to Gen Y, we must first
recognize the four areas Gen Y considers before
purchasing a product or service:
 Cheap cost
 Good quality
 Fast service
 An “experience”
22
Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields, 12/25/08

23. Where Can We Reach Gen Y?Where Can We Reach Gen Y?Where Can We Reach Gen Y?Where Can We Reach Gen Y?
 Concerts (Gen Y loves live music).
 Extreme sporting events (skateboarding, snowboarding,
BMX).
 Movies
 Hiking events (Gen Y love the outdoors).
 Video games and video game competitions
 Mashups
23
Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields 12/25/08

24. Spending Patterns of Gen YSpending Patterns of Gen YSpending Patterns of Gen YSpending Patterns of Gen Y
24

25. Gen Y currently spends over $200Gen Y currently spends over $200
billion, and they drive many adultbillion, and they drive many adult
purchasing decisions.purchasing decisions.
Gen Y currently spends over $200Gen Y currently spends over $200
billion, and they drive many adultbillion, and they drive many adult
purchasing decisions.purchasing decisions.
25
Source: Fast Company Magazine 6/19/08 (latest data available)

26. General Gen Y ExpendituresGeneral Gen Y ExpendituresGeneral Gen Y ExpendituresGeneral Gen Y Expenditures
Under 25 25-34
Food and Alcohol $4,895 $6,720
Housing 9,975 17,218
Apparel and Services 1,351 1,965
Transportation 5,464 8,699
Health Care 682 1,737
Entertainment 1,608 2,766
Personal Insurance and Pensions 2,283 5,510
Cash Contributions 427 1,036
Education 1,691 759
Miscellaneous 949 1,650
Average Annual Expenditures $29,325 $48,159
26
Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey, 2008. Cited in MetLife Mature
Market Institute.
Average Annual Expenditures

27. U.S. Total Annual Income by Generation,U.S. Total Annual Income by Generation,
2007, 2012 & 2017 (Trillions)2007, 2012 & 2017 (Trillions)
U.S. Total Annual Income by Generation,U.S. Total Annual Income by Generation,
2007, 2012 & 2017 (Trillions)2007, 2012 & 2017 (Trillions)
27
Source: Javelin Strategy & Research cited in eMarketer 11/3/08 (Latest data available)
$2.96
$4.20
$3.48
$3.29
$3.91
$2.37
$3.44
$3.67
$1.89
Baby Boomers
Generat ion X
Generat ion Y
2017 2012 2007

28. Gen Y Advertising & Brand PreferencesGen Y Advertising & Brand PreferencesGen Y Advertising & Brand PreferencesGen Y Advertising & Brand Preferences
The College Explorer survey of college students ages 18-30,
conducted by Alloy Media & Marketing revealed:
 41% of respondents prefer socially responsible brands.
 Important issues for determining socially responsible
corporations (69% of respondents) were donating money to a
cause or charity or using eco-friendly business practices.
 68% said the criteria for socially responsible corporations was
fair labor practices, 46% said supports diversity in the
workplace.
 49% said that social messages incorporated into advertising
have an effect.
 93% say they are less likely to ignore an ad that promotes a
brand’s partnership with a cause.
28
Source: Alloy Media & Marketing.com 8/4/08 (Latest data available)

29. Gen Y New-Car Buyers Seek VehicleGen Y New-Car Buyers Seek Vehicle
Safety, Security and DurabilitySafety, Security and Durability
Gen Y New-Car Buyers Seek VehicleGen Y New-Car Buyers Seek Vehicle
Safety, Security and DurabilitySafety, Security and Durability
 Strategic Vision’s New Vehicle Experience Study
shows that Gen Y is not that different from older car
buyers.
 79% of Gen Y buyers said their most important
considerations are safety, security and durability
rather than how fun a new vehicle is to drive.
 40% of Gen Y buyers said they definitely would buy
Toyota, and 36% said they same of Honda.
 Gen Y consumers constitute about 10% of the total
new-vehicle market.
29
Source: MediaPost Publications 10/30/08 (Latest data available)

30. Gen Y Are More Likely to Make Their OwnGen Y Are More Likely to Make Their Own
Investment Decisions Than Other GenerationsInvestment Decisions Than Other Generations
Gen Y Are More Likely to Make Their OwnGen Y Are More Likely to Make Their Own
Investment Decisions Than Other GenerationsInvestment Decisions Than Other Generations
 According to Scottrade, an online investing firm, 51% of Gen y
makes their own investment decisions compared with 40% of
the total population.
 Only 5% of Gen Y has someone else making their investment
decisions, compared with 10% of the total population.
 34% of Gen Y investors say their investment decisions are
better than average, compared with 25% of the total
population.
 79% of Gen Y investors are using financial websites to get
information, compared with 48% of the total population.
 Scottrade is enhancing educational components of its online
offerings for the Gen y consumer, and anticipating more
mobile investing.
30
Source: Marketing Daily, MediaPost 11/12/08 (Latest data available)

31. Gen Y Driving the Trend forGen Y Driving the Trend for
Environmentally Friendly ClothingEnvironmentally Friendly Clothing
Gen Y Driving the Trend forGen Y Driving the Trend for
Environmentally Friendly ClothingEnvironmentally Friendly Clothing
 Research from Iconoculture shows that 20-28-year-olds are
willing to pay more for organic and fair-trade products.
 Iconoculture’s research describes four distinct shopping
types:
 The Living Green consumer who has embraced the concept of
the environmental lifestyle and is driven by dedication, purity and
awareness.
 The Core Fashionista who is looking to build up the green in her
fashion portfolio and redefining her sense of eco-chic.
 The Walking Green consumer who is driven by wanting to
belong to a greater community and is a trend follower.
 The Spending Green shopper who buys green clothes because
that sense of exclusivity and entitlement are important to her,
and buying green connotes luxury.
31
Source: MediaPost Publications 4/7/08 (Latest data available)

32. Media/Technology UsageMedia/Technology UsageMedia/Technology UsageMedia/Technology Usage
32

33. The Media Consumption of CollegeThe Media Consumption of College
StudentsStudents
The Media Consumption of CollegeThe Media Consumption of College
StudentsStudents
 According to conclusions from Alloy Media + Marketing’s 9th
annual College Explorer Survey, anticipated annual
technology spending among college students (ages 18-30)
has reached an all time high at $6.5 billion, ranking 3rd
in
overall discretionary spending.
 The study found that students are spending an average of
12 hours daily engaged with some type of interactive
media.
 Additionally, students are spending twice as much time on
their computers as compared to television viewing.
33
Source: Alloy Media + Marketing 9th
annual College Explorer Survey

34. The Media Consumption of CollegeThe Media Consumption of College
StudentsStudents
The Media Consumption of CollegeThe Media Consumption of College
StudentsStudents
 33% of 18-24 year old students have increased their
consumption of webisodes or user-generated videos since
last year.
 30% of 18-30 years olds report frequent video viewing on
social networking sites.
 61% of students are watching movies on computers vs.
76% on their television.
34
Source: Alloy Media + Marketing 9th
annual College Explorer Survey

35. College Students Adopt New TechnologiesCollege Students Adopt New Technologies
to Engage, Connect and Entertainto Engage, Connect and Entertain
College Students Adopt New TechnologiesCollege Students Adopt New Technologies
to Engage, Connect and Entertainto Engage, Connect and Entertain
Alloy Media & Marketing’s 8th College Explorer survey
of college students ages 18-30 revealed:
 Seven in ten students now own a laptop.
 The college student, on average, consumers 1.9 hours
of MP3 usage.
 5.0 hours of computer contact.
 Growing numbers of students use their cell phones for
communication, entertainment and web access.
35
Source: Alloy Media + Marketing College Explorer, 2009

36. Generational Differences in OnlineGenerational Differences in Online
ActivitiesActivities
Generational Differences in OnlineGenerational Differences in Online
ActivitiesActivities
36
Younger Older
Online Activity Gen Y Gen X Boomers Boomers
Source: Pew Internet & American Life Project, Generations Online 2009 1/28/09
Watch videos 72% 57% 49% 30%
Buy something 71% 80% 68% 72%
Use social networking sites 67% 36% 20% 9%
Make travel reservations 65% 70% 69% 66%
Get info about jobs 64% 55% 43% 36%
Send instant messages 59% 38% 28% 23%
Download music 58% 46% 22% 21%
Bank online 57% 65% 53% 49%
Play games online 50% 38% 26% 28%
Read blogs 43% 34% 27% 25%
Download podcasts 25% 21% 19% 12%
Create a blog 20% 10% 6% 7%
Visit a virtual world 2% 3% 1% 1%

37. Thank You!Thank You!Thank You!Thank You!
37