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A Marketer's Guide to Millenials

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A Marketer's Guide to Millenials

  1. 1. The group on every brand’s mind.
  2. 2. What do we know so far?
  3. 3. What is Their Background? Born after 1981,Millennials are a big piece of the pie – 77 million strong, larger than their Boomer parents. They make up nearly 25%of the U.S. population. Millennials Boomers Top Markets by Concentration
  4. 4. What is Their Background? Millennial Heritage Millennials Generation X Baby Boomers % of Population Index % of Population Index % of Population Index White 57% 83 62% 89 74% 107 Black/AfricanAmerican 13% 119 11% 104 11% 102 Asian/Other 9% 150 7% 122 5% 82 Hispanic 21% 149 20% 139 10% 72 Millennials are more likely than any other generation to have diverse ethnic and racial backgrounds; 43% of Millennials identify as a race or ethnicity other than white as compared with 38% of Generation X and 26% of Baby Boomers.
  5. 5. Who Are They?
  6. 6. Type of Millennials Most Likely to be Found Typical Jobs Average Salary The Boomerang Baby In Parent’s Basement • Part-time server • Office temp $0-10/hr The Perpetual Intern Juggling coffees while running to the office at 7am • PR Intern • Researcher $0-16/hr The Grad Student Grading a stack of uninspired essays • Teaching Assistant $3,200/year The Idealist Pledging money to the latest kick-starters campaign • Power Blogger • AmeriCorps Member $12,000-49,000/year The Young Householder Searching Interest for new home decor • Graphic Designer • Photographer $29,000-50,000/year The High-Tech Multitasker Sleeping in a tent outside Apple for the latest iMust-Have • Social Media Strategist • Mobile App Developer $45,000-100,000/year The Startup Kid Selling her third business to Google • Tech Company CEO $250,000+ 7 Types of Millennials
  7. 7. Millennials in Segments 29% Hip-Ennial “I can make the world a better place” Demographics • Female dominated • Below average employment (students and homemakers) Consumer Profile • Cautious consumer • Charitable Characteristics • Globally aware • Information hungry Social Media/Tech • Greatest user • Doesn’t push content Millennial Mom “I love to work out, travel and pamper my baby ” Demographics • Female, older • Highest income Consumer Profile • High social • Information hungry Characteristics • Family-oriented • Confident • Can feel isolated from others because of routine Social Media/Tech • Digital savvy • High online intensity Anti-Millennial “I’m too busy taking care of my business to worry about much else ” Demographics • Slightly more female • More likely to be Hispanic • Live in Western U.S. Consumer Profile • Doesn’t spend more for Green Products • Seeks comfort and familiarity over excitement, change, interruption Characteristics • Conservative • Locally-minded Gadget Guru “It’s a great day to be me” Demographics • Male, single • Above average income Social Media/Tech • Wired • Greatest device ownership • Pushes social content Characteristics • Successful • Free-spirited, confident • At ease • Feels this is his best decade Clean & Green “I take care of myself and the world around me” Demographics • Male • More Hispanic • Full-time student Social Media/Tech • Greatest contributor of social content Characteristics • Impressionable • Healthy • Positive Consumer Profile • Cause-driven • Green Old School “Connecting on FB is too impersonal. Let’s meet up for coffee instead ” Demographics • Older • More Hispanic Social Media/Tech • Not weird • Spend least time online Characteristics • Charitable • Confident • Independent • Self-directed Consumer Profile • Cautious-consumer 22% 16% 13% 10% 10%
  8. 8. • Pragmatic • Idealistic • Inclusive • Consensus Driven • Risk Averse • Optimistic • Technology Failure Millennial Generation Behavior • Media options • Shared attention • Consensus • Customization Increasing Decreasing • Gender gap • Network TV • Living on their own • Risk taking
  9. 9. Millennials are not changing their lifestyles to fit parenthood; they are changing parenthood to fit their lifestyle. Millennials’ defining traits don’t disappear when they become parents. They aren’t giving up smartphones or shunning adventure. They are still using technology, but now they are using technology to simplify parenthood’s challenges. Millennials have been delaying previously significant life stages such as marriage and procreation, but that does not mean they will never seal the deal. They Are Parents
  10. 10. Technology affects how Millennial Parents socialize, communicate and, more importantly, purchase items for themselves and their families. To reach the influential Millennial Parent means engaging with relevant dialogue that she can access with any electronic device, so your product or brand will capture her attention and purchase power while she is sitting in the cafe. Meanwhile, new parenthood opens up a range of priorities, raising the potential for brand movement in a variety of categories from food and beverage and cleaning products to financial services, fashion and consumer electronics.  Messaging to parents is no longer messaging to the homemaker. Millennials aren’t just parents. They are role models. They Are Role Models
  11. 11. What do they Value?
  12. 12. Health:Millennials want to engage medical professionals in a different kind of relationship (online, video, time scheduling etc.). Millennials Engage and Interact with Verticals Retail:Millennial shoppers are looking for a different kind of retail experience. The key is the offline, analog, retail experience. Auto:Millennials are owning fewer cars but are still interested in the car as the primary form of automotive travel. Finance: Millennials are turning to alternative payment providers like Paypal, Venmo, Credit Clubs or Mutual Societies. Travel:From Couchsurfing to Airbnb, Millennials are bringing new business models to the market. No longer is travel a solitary pursuit but a shared experience between friends.
  13. 13. They Pursue Wellness Exercising more, eating healthier, and smoking less. Millennials are now turning to their mobile apps to track their progress and discover health-conscious foods around them. This is one market in which they are eager to spend. For Millennials, being healthy does not just refer to not being sick. It is a long term commitment to exercising and eating properly.
  14. 14. It’s not just homes. Millennials have been reluctant to buy goods such as cars, music, and luxury items. Instead, they are turning to a new set of services that provide access to products without the attachment of ownership. Thus, an emergence of what is being referred to as a “sharing economy.” Originally conceived as a way to fix market inefficiencies between supply and demand, the sharing economy became a $15 billion market. Millennials Value Access, Not Ownership
  15. 15. Fashion tech Luxury brands have been looking to enter the wearable market in a variety of ways. Successful products have been able to incorporate fashion into the design of the product. Department store chain Barneys New York recently highlighted its forward-looking approach with the release of the Opening Ceremony and Intel wearable smart bracelet online and in select storefronts. What to wear The current wearable market is dominated by passive wearable electronics that are designed to collect data and send it to a different device such as a smartphone or computer. The passive wearable cannot be used without the additional device. Autonomous wearable, on the other hand, can be used on their own without the aid of an additional device (ex: Google Glass and Apple Watch). Millennials Emanate Fashion
  16. 16. Affluent Millennials and Luxury Brands Affluent Millennials are digital shoppers, with 59% of well-funded young adults likely to participate in online ratings and review sites compared to 47% for non-affluent Millennials. Over one-third of affluent Millennials regularly post on brand and product sites compared to 26% non-affluent.    Affluent Millennials, those 6.2 million or so Americans making an annual household income of $100,000 or more, will become the dominant group in the luxury consumer market between 2018 and 2020.
  17. 17. Millennials Rethink Luxury: H.E.N.R.Y’s A growing sub-set is not only finally tackling their student debt and moving out on their own, but have disposable income and a propensity to spend on luxury items, services and experiences. This group even has an acronym: H. E.N.R.Y’s, as in “High Earners, Not Rich Yet.”  The key here is functional luxury. H.E.N.R.Y’s have significant, sustained cash flow without true, accumulated wealth yet. They seek to use and experience luxury without needing to own luxury. 
  18. 18. How Do They Connect?
  19. 19. How Millennials Get News Much concern has come from data that suggest Millennials do not visit news sites, read print newspapers, watch television news, or seek out news in great numbers. This generation, instead, spends more time on social networks, often on mobile devices. The worry is that Millennials’ awareness of the world, as a result, is narrow, their discovery of events is incidental and passive and that news is just one of many random elements in a social feed. 85% Say keeping up with the news is at least somewhat important to them 86% Usually see diverse opinions through social media 69% Get news daily 45% Regularly follow five or more “hard copy” topics 40% Pay for at least one news-specific service, app, or digital subscription
  20. 20. Millennials have an entirely new perspective on ownership. They’re not seeing the benefit of owning lots of “stuff.” Whether it is music, friends, or transportation, the things that matter most to Millennials are no longer limited in terms of time or place. Living life in the cloud extends their “safe space” beyond the confines of their home, giving them the freedom to explore with minimal risk. In familiar CPG categories, this means they’re willing to forego product loyalty in favor of continued experimentation. Millennial's Life on the Cloud
  21. 21. Identity: Things about them (Who, What, Where, Why, When, How They Are) They watch and share Identity videos because it allows us to better understand ourselves and those around them. Thus, making it easier to tell those around them who we are. They care about feeling joy as well. This is the root of human connection. Creating Content for Others Information/Utility: Things about their life Videos are centered around things that are typically external. Informational and utility videos are often transactional in nature, where information is exchanged from one party to another. They watch and share informational/utility content because it has value in the form of better understanding the physical world around them, along with educating them and the people in their lives. Emotional Gift: Things That affect how they feel Videos have to do with things that evoke emotional responses. This content is both internal and external as it typically factors to affect us internally. They watch and share Emotional Gift content because when they feel an emotion, like joy, they want the people.
  22. 22. Example: Millennials Snap to Chat On Snapchat, one of the most popular apps among Millennials, vertical videos have become the norm. Snapchat is about 7% the size of Facebook. With closer to 200M users and 2 billion videos shared daily, Snapchat’s content closely follows Facebook’s 1.4 billion video shares with 1 billion shared daily. Snapchat’s popularity shows that Millennials create contents for their identity and emotion and utility. The mobile and first-person nature of Snapchat has proved appealing for live events. Up to eight times as many Millennials in the US opt to view Snapchat’s live stories rather than TV for similar events.  Millennials prefer watching videos on the go that are tall and narrow instead of short and wide. Millennials embrace and adapt.
  23. 23. What Does This Mean To Marketers?
  24. 24. How Can You Reach Them? In a Word, Online They don’t mind sharing their online space with brands • 66% follow brands on social media, but only 41% of those said they enjoy interacting with the brands • 38% said brands are more trustworthy and accessible when they use social, rather than traditional advertising • 60% follow brands to hear about coupons While they are most often online, they expect brands to be channel agnostic • 60% said the consumer experience should be consistent across online, store, and mobile • 58% would rather have full control over how they engage with brands How often are they online? • 82 million Millennials consume online content monthly in the U.S. alone. • By 2020, Millennials will total more than $1.4 trillion in spending power. Why do they connect with brands? • 31% of Millennials are more likely to buy if the brand delivers interesting content that teaches them something. • 70% say their main reason for sharing content is because it makes them laugh. • 83% connect with brands on different social media platforms.
  25. 25. Millennials need to know they’re “winning” at shopping. They seek validation for their decisions through instant and immediate rewards, which make even the most routine choices fun and surprising. Sometimes it’s less about the win and more about getting to the next level or scoring the next point. Little wins at the store shelf are the perfect way for brands to help shoppers jump to the next level and ultimately reward Millennials for making it as an adult. What’s More: Millennials As Consumers
  26. 26. Ways that Millennials Want to Engage with Brands It is a great opportunity for brands to focus on rewards that are relevant and meaningful to the audience they target. • 44.8% would favor earning points for visiting a Web site or watching a video • 59.5% of Millennials are willing to earn loyalty points in exchange for engaging with brands. • Some 67.9% of Millennials said they don’t earn points for engaging with a brand through such means as tweeting, posting comments or reviews, opening and clicking emails, or checking-in. • Millennials are 18.6% more likely than baby boomers to want to earn points for engaging in a loyalty program. • 43.3% said they would like to earn points for opening and reading emails from a brand.
  27. 27. Leverage Millennials on Their Turf Share bite-sized information that will resonate with this demographic Millennials tend to have limited attention spans and do not want to spend more time than necessary on any given task. Therefore, if a message is too long and complicated to comprehend, this audience will most likely ignore it. Encourage them to share their stories In order for a brand to create an effective conversation with fans and followers, it needs to prompt them to join the chatter and share their stories on a given topic. Respond to Millennials in real-time — and every time — to create a one-on-one conversation and experience. Everyone wants to feel as though their questions and comments are being heard, especially Millennials.
  28. 28. Millennial Consumers and Video Millennials watch more video content than any previous generation. They love movies, TV shows, and short-form video. And while this sounds like great news for advertisers, the trouble is, millennials aren't watching video content on their living room TVs anymore.   Compared to Baby Boomers, millennials are 150% more likely to comparison shop with video while in-store and 146% more likely to watch a video on a company’s website while shopping online.   Millennials are 264% more likely to share videos about a product, service or company while shopping online than Baby Boomers.
  29. 29. The Millennial Parent & Brands The millennial parent engages with brands differently then their peers. 1. Millennial parents are people, too. They aren’t all about diapers and baby products. 2. Millennials put more importance on being a good parent than on a successful marriage. They are questioning whether marriage has anything to do with children.  3. Messaging to the mom is no longer messaging to the homemaker. Millennials aren’t just parents. 4. Millennials are growing up and bringing with them old-fashioned pragmatism.  5. They expect fairness among genders, races, ages and other demographic categories. 6. They expect fairness with brand messages; specifically, authenticity and transparency. 7. Millennial parents will instill an unprecedented sense of individual tolerance and social responsibility in their children. 8. Millennial parents will support brands that reflect their values and that think beyond profits. 9. They will require brands to solve problems. 10. They will expand the idea of the “participation economy.”
  30. 30. Case Study: 3 Strategies for Marketing to Millennials Moms 1. Inspire her This generation believes it can change the world and in many ways it already has. TOMS has created the neplus ultra of big, inspirational business ideas. TOMS is a brand beloved by Millennials because it speaks to one of their core values: making a difference in the world. 2. Think visually Good design has become an expectation for Millennials. They are drawn to sharing pictures of the things they find attractive. The Apple effect or Target effect tells us that design can no longer be separated from Marketing strategy. 3. Build Age “Elasticity” Millennials women are the burgeoning epicenter of brand influence. Home Depot may not be the first place that springs to mind when you say, “children,” and yet an astonishing 300,000kids participate in the company’s Kids Workshops every month, alongside a parent or caregiver who presumably will not leave the store empty handed.
  31. 31. Target Millennials & Luxury • Integrate multiscreen, mobile-enabled marketing approaches to reach HENRYs at all stages of their journey – from dreaming, browsing, planning, shopping and even while traveling • Create campaigns built on moments and experiences that speak to the aspirational themes of the HENRY demographic and are easy to share across their digital worlds  • Focus not on your brand name – which carries comparatively little weight with this generation – but on your story of quality, craftsmanship, authenticity and citizenship • Put the audience at the center of the campaign and give them control of the experience, such as through interactive videos • Make the most of visual ways to engage, with social media mechanisms such as Twitter’s “Flock-to-Unlock” where specific content or promotions are only revealed once brand followers cross certain “share” thresholds
  32. 32. • Today, 89% of adult Americans would rather consider switching brands to one associated with a good cause, if price and quality were equal. In 1990, before Millennials, only 66% would do the same. • 75% of Y&R’s spend shifters, mostly Millennials, make a point of buying from brands who “share their values.” Align to Millennial Values or Lose Your Market
  33. 33. In the End…
  34. 34. Millennials need constant engagement. Once you have honed in on your brand identity and the type of content your digital solution provides, making sure that your content is consistently and continuously engaging & providing value is the way to engage Millennials. Dynamic storytelling continues the conversation as your brand identity evolves and grows. Fresh content is the key component in driving Millennial traffic to your brand, day in and day out. Fresh Content is Key
  35. 35. • Millennials are misunderstood, in large part, because they aren’t approaching adulthood the same way that previous generations have. Millennials grew up in an expanding world of choice and options for just about everything they ever needed or wanted. Because of this, they view life very differently. They don’t see just see one path available to them—they see limitless possibilities to make their life their own. • Capitalize on Growth: Millennials are the largest generation in US history. As they reach their peak working and spending years, their influence on the economy is going to be huge. NOT understanding them, NOT finding ways to be relevant or engaging to them, NOT adapting to their new expectations— it’s the easiest way for a brand to fail. • Make it Easier for Consumers to Take Action: They’re the first generation of digital natives, and their attachment to technology helps shape how they consume. Understand their realistic lifestyles and experiences and find ways to amplify their reality. Make sure they feel informed and involved, not just marketed to. Key Takeaways