Marketing to Millennials - US - March 2010

SCOPE AND THEMES
What you need to know
Data sources
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Millennials are diverse, mostly single, and the next bulge in buying power
Millennial generation defined by technology
Self-expression is taken to a new level with technology and pop culture
Political and economic events are still shaping who Millennials will be
The internet is at the center of Millennial culture
Internet and mobile technology as the backbone of modern life
Marketers overcome resistance to social media advertising with innovation
Twitter still catching on but has already produced incremental sales
Millennials more likely to use technology for socializing and entertainment
Millennials focus on family and friends during economic difficulty
Millennials less cynical in trusting corporations and more passionate about a free internet
Millennials more concerned with social image and trends
Health is not a big concern for Millennials but organic sells
INSIGHTS AND OPPORTUNITIES
Internet as a new form of television doesn’t work for Millennials
Social media campaigns must add value
Entertainment value
Practical value
Giving brands an online face
INSPIRE INSIGHTS
Prove It
What's it about?
Implications
DEMOGRAPHIC DRIVERS
Millennials represent the next generational bulge
Figure 1: U.S. population, by generation, 2009
Millennials are more diverse than previous generations
Figure 2: U.S. population share, by age, by race/Hispanic origin, 2005-15
Millennials are more likely than prior generations to be single
Figure 3: Marital status of 18-28 year olds, by generation, 1963-2009
CULTURAL DRIVERS
Millennial generation defined by technology
Self-expression is taken to a new level with technology and pop culture
Millennials are more accepting of differences
High voter turnout demonstrates the power of Millennial hype
Millennial optimism is tested by the toughest job market in decades
NEW MEDIA MARKETING CHANNELS
The internet replaces television as primary source of entertainment
Figure 4: Use of select media, by age, December 2009
Figure 5: Attitudes toward television and the internet, entertainment and socializing, by age, June 2009
Internet is the first source of consumer information
Figure 6: Impact of internet on obtaining product information and shopping, by generation, February 2008-March 2009
Social networking users avoid obvious commercialization
Figure 7: Interaction with brands on social networking sites, by age, June 2009
Twitter
Mobile web access
Figure 8: Attitudes toward cell phone advertisements, by age, June 2009
Newspaper readers move online but decline overall
Figure 9: Newspaper readership, print vs. web, by generation, 2006 vs. 2008
INNOVATION AND INNOVATORS
Spotlight: Gap furthers reach of cheer campaign through YouTube
Viral component
Spotlight: IKEA campaign uses basic Facebook function to go viral
Spotlight: Obama campaign goes full throttle on social media
TELEVISION ADVERTISING
Internet and mobile technology as the backbone of modern life
Figure 10: Apple——iPhone 3G apps, May 2009
Figure 11: Dell——Inspiron, March 2009
Non-tech marketers remind Millennials of a simpler time
Figure 12: The Gap——Plaid Anti-Tech, November 2009
Figure 13: Coca-Cola——Bottle as Cell Phone, March 2009
High-energy self-expression counteracts negative corporate connotations
Figure 14: Nike——Delicious Training, August 2009
Figure 15: Red Bull——Break-dancer, March 2009
SOCIAL MEDIA ADVERTISING
Millennials are especially annoyed by online advertising
Figure 16: Attitudes toward advertising, by age, December 2009
Facebook faces attitudinal barriers in commercializing
Very few product brands make the Facebook Top 30
Figure 17: Product brands among the Top 30 Facebook Fan Pages, January 2010
Twitter still catching on but has already produced incremental sales
Live tweets in a static campaign
Third-party companies
TECHNOLOGY
Generational gap on the internet is wider in entertainment
Figure 18: Attitudes toward internet use, by age, December 2009
Millennials more enthusiastic about technology as personal expression
Figure 19: Attitudes toward electronic devices and smartphones, by age, December 2009
FINANCIAL CONDITIONS AND CONCERNS
Younger respondents more concerned about quality time with friends and family
Figure 20: Financial concerns, by age, December 2009
Millennials already worrying about debt and retirement
Figure 21: Primary financial concerns: Millennials indexed to total population, June 2009
SOCIAL AND ETHICAL ISSUES
Millennials less cynical in trusting corporations
Figure 22: Attitudes toward consumer and corporate ethics, by age, December 2009
Millennials believe strongly in a free internet
Figure 23: Importance of social issues, by age, December 2009
LIFESTYLE CONCERNS
Millennials more concerned with social image and trends
Figure 24: Attitudes toward social appearances, by age, December 2009
Millennials seek personal expression and social connectivity
Figure 25: Attitudes toward social interactions, by age, December 2009
ENTERTAINMENT
Millennials thrive on digital media and shop as a habit
Figure 26: Forms of entertainment, by age, December 2009
HEALTH AND DIET CONCERNS
Appeal of organic label is stronger among Millennials
Figure 27: Dietary habits, by age, December 2009
Younger Millennials are less likely to smoke
Figure 28: Wellness activities, by age, December 2009
RACE
Black Millennials more concerned about financial security
Figure 29: Financial concerns, by race, December 2009
Figure 30: Popularity of wellness activities, by race, December 2009
Black Millennials less likely to watch online video
Figure 31: Attitudes toward internet use, by race, December 2009
Figure 32: Attitudes toward advertising, by race, December 2009
Black Millennials less averse to processed foods
Figure 33: Popularity of dietary habits, by race, December 2009
CLUSTER ANALYSIS
Pragmatists
Demographics
Characteristics
Opportunity
Laggers
Demographics
Characteristics
Opportunity
Wholesomes
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 34: Marketing to Millennials clusters, December 2009
Figure 35: Attitudes toward electronic devices and smartphones, by marketing to Millennials clusters, December 2009
Figure 36: Attitudes toward consumer and corporate ethics, by marketing to Millennials clusters, December 2009
Figure 37: Importance of social issues, by marketing to Millennials clusters, December 2009
Figure 38: Dietary habits, by marketing to Millennials clusters, December 2009
Cluster demographics
Figure 39: Marketing to Millennials clusters, by gender, December 2009
Figure 40: Marketing to Millennials clusters, by age, December 2009
Figure 41: Marketing to Millennials clusters, by race, December 2009
Figure 42: Marketing to Millennials clusters, by Hispanic origin, December 2009
Cluster methodology
OTHER USEFUL CONSUMER TABLES
Race/ethnicity
Figure 43: Attitudes toward corporate ethics, by race, December 2009
Figure 44: Importance of social issues, by race, December 2009
Figure 45: Attitudes toward social appearances, by race, December 2009
Figure 46: Attitudes toward social interactions, by race, December 2009
Figure 47: Forms of entertainment, by race, December 2009
CUSTOM CONSUMER GROUPS
Millennial males are early adopters and trendsetters for internet and mobile tech
Figure 48: Attitudes toward social appearances, by age and gender, December 2009
Figure 49: Attitudes toward internet use, by age and gender, December 2009
Figure 50: Attitudes toward electronic devices and smartphones, by age and gender, December 2009
Figure 51: Forms of entertainment, by age and gender, December 2009
Millennial males exhibit a stronger interest in corporate responsibility
Figure 52: Importance of social issues, by age and gender, December 2009
Figure 53: Attitudes toward corporate ethics, by age and gender, December 2009
Figure 54: Attitudes toward social interactions, by age and gender, December 2009
Figure 55: Popularity of dietary habits, by age and gender, December 2009
APPENDIX: TRADE ASSOCIATIONS