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The evolving role of brands for the world's largest and most impactful generation.

The evolving role of brands for the world's largest and most impactful generation.

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  • 8095, named for the years in which the Millennial generation was born (1980 to 1995), is an insights group that focuses on the Millennial generation and their relationship with brands. Following the launch of our benchmark study in 2010, Edelman 8095 has refreshed the research in October 2012 with a new study of 4,000 Millennials in 11 countries.
  • The Millennial generation goes by many names.
  • They are not kids anymore. Many in this group are parents, have careers and an incredible amount of spending power. They are also coming of age during one of the most turbulent economic times in history.
  • The world today is smaller and Millennials are more global-minded than ever. Millennials in all of the 11 countries surveyed see their country as playing a key role on the world stage.
  • The median age of the world population is 28
  • Their mentality of change and action translates to their relationship with brands. They have powerful influence and demand two-way dialogue with companies. They drive popular culture.
  • Today, 50% of the world population lives in cities or suburbs. By 2050 that number will swell to 70% globally. In the U.S., for the first time in more than a century, more people are moving to cities than suburbs, and this trend is led primarily by Millennials.
  • The recession and new social norms have led more Millennials to delay traditional purchases, like homes and cars. The rise of social buying and rent/share businesses are also shifting purchasing behavior. To stand out and be relevant, brands will need to show how they enable life experiences and allow Millennials to buy into new ideas.
  • More men are confidently taking on traditional female roles in terms of parenting and purchasing household products. More women are confidently taking on traditional male roles in terms of being the main earner in the family and going to college/university.
  • The 2010 study revealed four insights that remain highly relevant today.
  • In other words, brands help Millennials define their personal “brand”
  • Millennials are crowd-sourcing in amazing ways to help them make brand purchase decisions, and they look first to friends and family for advice.
  • Millennials are less resistant to branding than other generations, and they will take action for brands, but they demand authenticity, transparency, to be entertained and for your brand to contribute to the greater good in this world.
  • Reverberation, or word-of-mouth sharing, is taking place online and via mobile devices for sure, but many people forget that most WOM is shared offline, in face-to-face discussions. Keller Fay Group tracked chatter in the U.S. and finds 14.7 billion WOM impressions EVERY WEEK, with the large majority of those taking place offline. Regardless of medium, the main point is that there is an incredible amount of sharing and crowd-sourcing taking place, online and offline,
  • Their aspirations are surprisingly traditional. They want a meaningful career, to own a home and to get married and have children.
  • American Millennials say the #1 person who defines their generation is Mark Zuckerberg, the founder and CEO of Facebook. Nearly half of Millennials aspire to own their own company. In the down economy, they realize that an entrepreneurial spirit is likely their best path to success.
  • When it comes to buying luxury items, Millennials are quite sensible. When you average all 11 countries in the survey, they are most likely to pay a premium for health-related goods and services, followed by electronics. They are least likely to pay a premium for beauty-related items of apparel. Chinese Millennials are most willing to pay a premium for all of the items in this chart, but they too ranked health-related items the highest. French Millennials were least likely to pay a premium for the categories collectively.
  • 3 in 4 Millennials across our 11 markets say they influence the purchase decisions of peers and those in older generations.
  • The influence of parents on Millennials is astounding. Millennials overall have a different and more friendly relationship with their parents than most past generations. The influence goes both ways, with parents heavily influencing their children, and children influencing their parents.
  • Consider these statistics. What they mean is that when a Millennial goes to the grocery store (for example), they are typically going with friends or family. And, they since many won’t make a purchase their friends don’t approve of, they need to justify why they are choosing items off the shelf. They need to be able to tell their friends why they are buying that product – they need a back-story. It’s our job as marketers to give them that back-story.
  • Most Millennials see it as their responsibility to share feedback with brands. They are more likely to share positive feedback than negative feedback, which is counter to most assumptions.
  • Information is a key to influence for Millennials. They crowd-source to make brand purchase decisions. Compared to our 2010 data, more Millennials are crowd-sourcing in 2012 (up 19 points), but they are using slightly fewer sources of information today.
  • Many marketers think that the only way to reach Millennials is through social media. Not true. Search engines rule, but then face-to-face communications with friends and family are #2 and #3 respectively. The vast majority of Word-Of-Mouth happens offline (90%).

Transcript

  • 1. 8095 REFRESHED ®The evolving role of brands for the world’slargest and most impactful generation
  • 2. Continuing the 8095 Conversation ®Edelman 8095® is an insights group studyingthe Millennial generation, born between 1980and 1995, to understand their evolvingrelationship with brands.In 2012, we refreshed our research with asurvey of 4,000 Millennials in 11 countries.
  • 3. • Millennials in 2013• Why Millennials Matter To Marketers• Global Trends• 8095 – Where We’ve Been ®• 8095 2.0 ® • New data and insights • Implications for marketers
  • 4. The Millennial Generation Goes By Many Names
  • 5. Millennials in 2013• The oldest are 33 years-old, the youngest are 18• Life defining moments include the Global Recession, 9/11, Asian Tsunami, Arab Spring, Facebook, smart phones• First generation that may be worse off economically than their parents• Most diverse and educated generation in history
  • 6. Their World Is Smaller, More Connected of Millennials across all 11 markets surveyed see theircountry as being influential on the world stage. *(Edelman Berland 8095 2.0 Survey 2012)
  • 7. Why Millennials Matter To MarketersBIG: The largest generation alive today • 1.8 billion globally1 (out of 7 billion world population) • 75% of workforce by 20252INFLUENTIAL: Impact purchase decisions of peers & parents • Will outpace Boomer earnings by 2018 ($2.5+ trillion spending power)3 • 74% say they influence purchase decisions of other generations4UNIQUE: The first inherently digital generation • Don’t know a world without the Internet or smart phones1. (U.S. Census Bureau International Database 2012)2. (Business and Professional Women’s Foundation 2011)3. (Harris Interactive and Deloitte study 2011)4. (Edelman Berland 8095 2.0 Survey 2012)
  • 8. Millennials are more likely torecommend products and starttrends…more involved in popculture and activities that wouldcompel them to try new productsand recommend them to friends. -MINTEL, WORD OF MOUTH AND VIRAL MARKETING
  • 9. Trends That 8095ersAre Leading Today
  • 10. Global Urbanization For the first time in world history, more people live in cities or suburbs than rural locales1. Implication Millennial identities will be closely tied to the cities they live in, and marketers need to customize and target engagement.1. United Nations Department of Economic and Social Affairs/Population Division World Urbanization Prospects: The 2011 Revision
  • 11. Experiences Over Stuff The economy is forcing Millennials to delay purchases and demand a newlevel of value from the brands they buy. ImplicationMarketers must demonstrate how their products or services enable life experiences and deliver value.
  • 12. Rise (or fall) of the Millennial Dad Traditional gender roles are shifting. Six in 10 college students are female1, and men are taking over more household and purchasing responsibilities. Implication Marketers should lessen the focus on gender and other traditional audience segmentation. Appeal to the new blended nature of humanity and to the audiences influencing your target.1. (Digest of Education Statistics, 2010)
  • 13. Where We’ve Been
  • 14. In 2010, Edelman launched 8095®,an insights group founded on aneight-country study of theMillennial generation, bornbetween 1980 and 1995.The goal? To understand theirrelationship with brands, theactions they take on behalf ofbrands and how those actionscreate new opportunities formarketers.
  • 15. 8095 ®The benchmark 8095® study in 2010 revealed four insights. Brands are a partnership and form of self-expression Information is a key to influence Taking action on behalf of brands is a core value There is a reverberation effect taking place online, offline and increasingly on mobile devices
  • 16. Brands are a Partnership and Form of Self-Expression 1 in 3 look for brands to make a positive impact on is the #1 personal the world. identifier Millennials are willing to share online.*(Edelman Berland 8095 Survey 2010)
  • 17. Information is a Key to Influence Of Millennials consult four or more sources of information when making brand purchase decisions.*(Edelman Berland 8095 Survey 2010)
  • 18. Taking Action on Behalf of Brands is a Core Value take action on behalf of their trusted brands. are brand loyal and keep purchasing brands they like.*(Edelman Berland 8095 Survey 2010)
  • 19. Reverberation Effect Taking Place Online, Offline And Increasingly On Mobile Devices Average number of text messages young Millennials send every month1. Weekly volume of word-of-mouth impressions. Of which, 13.5 billion are offline and 1.2 billion are online2.1. The Nielsen Company, 20102. Keller Fay Groups TalkTrack, U.S. July 2010 – June 2011
  • 20. 20
  • 21. ®8095 2.0In October 2012, Edelman 8095® andresearch partner Edelman Berlandsurveyed 4,000 Millennials in 11 countries
  • 22. A CaveatA challenge in defining Millennials is that they are progressingthrough fundamentally different life stages.Millennials are not a monolithic bloc.The best Millennial study is directional rather than absolute, and digsdeep into the behaviors and cultural nuances of Millennials inindividual countries.8095 attempts to give a snapshot of commonalities that tie thegeneration together.
  • 23. 8095 2.0 ®The rise of realism, with a twist.Compared to the 2010 study, we see a shift in theways Millennials perceive their lives and future.While idealistic and optimistic, there is a newmeasure of realism.Millennials are growing up, and so too are theirviews of success. Their aspirations are surprisinglytraditional, but coming of age in the globalrecession has forced them to push back typicalstages of adulthood and has created a new breed ofentrepreneurs.For brands to matter to Millennials, “average” is nolonger enough. A whole new level of engagement,authenticity and purpose is necessary.
  • 24. The Global Recession has Created a Mix ofTraditional and Non-Traditional Values forMillennials, Sparking a New Type of Consumer
  • 25. The economy sucks for most, and it’sdevastating to MillennialsDEFINED BY DEBTAverage $28,500 in student loans1WEAK JOB PROSPECTSUnemployment rates for Millennials are typically double the national average. • In the U.S., Millennial unemployment is 12+% (7.9% is national average)2 • In Spain, Millennial unemployment is 48% (22% is national average)3LOW NET WORTHIn the U.S., median net worth of people under 35 fell 37% between 2005 and2010; those over 65 took only a 13% hit.41. (Institute of Education Science 2012)2. (U.S. Department of Labor) 20123. (National Statistics Institute of Spain 2012)4. (U.S. Census 2012)
  • 26. Millennials Have a PR ProblemIf you follow recent headlines,Millennials are lazy, self-entitled, orworse.We believe much of the criticism isundeserved. They are coming ofage during one of the hardesteconomic and social environmentsthe world has seen.They are blazing new paths andfinding a new way through life.
  • 27. Despite Challenges, They RemainOptimistic, and Their Aspirations SurprisinglyTraditionalWhat are your most important life goals?*(Edelman Berland 8095 2.0 Survey 2012)
  • 28. Entrepreneurial of Millennials say thatowning their own business is a top life goal 76% in Turkey 65% Brazil 61% China 44% US *(Edelman Berland 8095 2.0 Global Survey 2012)
  • 29. SensibleWhat products or services are Millennials willing to pay a premium for?Health-related items rule. Beauty and Apparel don’t.0% 100% *(Edelman Berland 8095 2.0 Global Survey 2012)
  • 30. Implications for Marketers• Millennials aren’t kids anymore. The oldest are 33, the youngest 18. They are not the next frontier, they are the here-and-now consumer target influencing the purchase of EVERY brand.• Shift away from traditional segmentation. Diversity is everywhere and gender lines are blurred. Speak to your target AND their influencers.• Marketers need to think about how they assist the generation’s new life goals and revised timeline of life events.• Think about how your brand can help Millennials in other parts of their lives.
  • 31. Millennials are Alpha-Influencers
  • 32. Alpha-Influencers of Millennials think they influence the purchase decisions of peers and those in other generations*(Edelman Berland 8095 2.0 Survey 2012)
  • 33. Like Daughter, like Mother• Children have a strong influence over the purchase decisions of items used by their family, such as cars, food and vacations1.• New research2 also suggests children influence goods their parents use for themselves, such as clothing. Many mothers intentionally mimic their daughters style.1. (Mintel “Kids as Influencers” U.S. study 2010)2. (Journal of Consumer Behavior study, 2011)
  • 34. Shopping is a Social ActivityFor Millennials, shopping is a social activity, and many won’t makea purchase their friends disapprove. of Millennials typically shop with friends, family or significant other*(Edelman Berland 8095 2.0 Survey 2012)
  • 35. Two-Way Dialogue Millennials think it’s their responsibility to sharefeedback with companies after a good or bad brand experience.*(Edelman Berland 8095 2.0 Survey 2012)
  • 36. Alpha-InfluencersMillennials crowd-source to make brand purchase decisions. use at least one outside source for guidance use four or more sources of information *(Edelman Berland 8095 2.0 Survey 2012)
  • 37. Inherently Digital, But Craving Offline ConversationMillennials most often go to search engines as a source to help themmake brand purchase decisions, but face-to-face engagement withfriends and family are the second and third most used sources.*(Edelman Berland 8095 2.0 Survey 2012)
  • 38. Implications for Marketers• Every brand needs to consider Millennials as a core target, or at least a significant influencer for their target.• As masters of crowd-sourcing to make purchase decisions, engage Millennials in surround sound. Online and offline.• Help Millennials become an expert on your brand, purpose and story. They have a strong desire to share and learn. Sell unique and real product benefits and you will drive reverberation. 38
  • 39. Millennials Are Surprisingly Open To BrandEngagement and Advertising, But Only IfBrands Have the Right Approach.
  • 40. Willing to Engage With BrandsWhile skeptical of brand messages, they are open toengaging with brands, but…1. Brands must act and engage differently to get attention and loyalty. We are in an age of surprise-and-delight. If you don’t, they will tune you out.2. Authenticity rules. Focus on selling unique and real product benefits. Millennials want to share and learn. Give them messages that show value and are worth repeating.
  • 41. Willing to Engage With Brands of Millennials think all advertising is boring*(Edelman Berland 8095 2.0 Survey 2012)
  • 42. 8 in 10 Millennials want brands to entertain them.How do they want to be entertained? Allow me to influence your products (co-creation) Answer my questions/comments in real time via social media Sponsor entertaining events Create online content such as videos, photos, games and blogs Connect me to the other fans of the brand/company I don’t expect brands/companies to entertain me Partner with a celebrity or public figure I admire*(Edelman Berland 8095 2.0 Survey 2012)
  • 43. Millennials want brands to help them in other areas of their lives.How do they want brands to help them? Provide me with financial assistance (e.g., grants, scholarships) Provide me with the opportunity for more life experiences (e.g., send me on trips, give me lessons in something I have an interest in) Provide me with a mentor who can help guide me Allow me to use your audiences (e.g., Facebook pages, ads, etc.) to connect with others with similar interests and ideas Allow me to use your audiences (e.g., Facebook pages, ads, etc.) to share my message/story with a wide group *(Edelman Berland 8095 2.0 Survey 2012)
  • 44. Humor, Value & Engagement RuleWhat is the most effective way for a company tocapture your attention?*(Edelman Berland 8095 2.0 Global Survey 2012)
  • 45. Implications for Marketers • It’s not your brand anymore. It belongs to your customers. Be agile, collaborative and prepared for the worst and best • Experiences over stuff. Focus on how your brand enables life experiences. They want to buy into new ideas and share them with friends and family. Be social and enable sharing. • “Smart and funny is the new rock and roll.”1 Business is often serious, but don’t always take yourself so seriously.1. (Nick Shore, Strategic Insights & Research at MTV)
  • 46. Continuing the 8095 2.0 Survey Conversation Methodology Survey conducted by Edelman Berland and consisted of online interviews in 11edelman8095.tumblr.com countries among 4,000 adults bornOur blog for all things 8095. between 1980 and 1995. The survey was conducted in the following countries: Australia (N= 300),twitter.com/edelman8095 Brazil (N=300), Canada (N=300), ChinaUpdates and insights in 140 (N=300), France (N=300), Germanycharacters or less. (N=300), India (N=300), Turkey (N=300), United Arab Emirates (N=300), United Kingdom (N=300), United States (N=1,000) with weighting to ensure equalt.sina.com.cn/edelman8095 representation from each country.Updates and insights in 140characters or less. The survey has an overall margin of error of 1.55% at the 95% level of confidence.
  • 47. A Final Reason Millennials Matter The iGeneration/Generation Z isnow fully formed, with their oldest turning 17 years-old. They will soon become the new “it” generation. If we can’t understand Gen Y, we’ll never get Gen Z.