Marketing to Millenials with overview of generational marketing, the evolution of talking, and key points with real world examples of how to reach this market with your brand. Initially presented by Raghu Kakarala for Engauge in Atlanta on January 28th, 2009.

1. Marketing to Millennials

2. 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

3. SHIFT HAPPENS
CUSTOMIZE
TRENDS
WHAT IS JUST A FAD?
GENERATIONAL
MARKETING?
IMPORTANT
PERSPECTIVE
YOUTH MARKETING?
3

4. Don’t Be THAT Guy
“You know what I like
about marketing to
teenagers? My
BRAND gets older,
but they stay the
same age.”
4
* Matthew McConaughey does not endorse this PowerPoint 

5. http://www.youtube.com/watch?v=ItbBWXesGpg&feature=related
5

6. HIGHLY CONNECTED
AMBITIOUS
LAZY
DIGITAL NATIVES, NOT IMMIGRANTS
THE FUTURE
WHO THEY ARE
TREND-SETTERS
INFLUENCERS
SELF-CENTERED
YOUR KIDS
SPOILED / CODDLED
6

7. 7

8. 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
8

9. 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
9

10. 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%)
10

11. 11

12. Younger Cohorts Less Socially Conservative
4
Pre-Boomer
Boomer
3
Gen X
Gen Y
2
1987 1997 2007
*Number of conservative responses on six values items
Source: 2007 PEW research

13. When something is run by the government, it is usually
inefficient and wasteful
80
70
60
50
40
30
20
10
0
18-29 30-49 50-64 65+
Source: 2007 PEW research

14. YOUR NEXT CUSTOMER
BUYING POWER
WHY THEY’RE
IMPORTANT
BUZZ MAKERS
INFLUENCERS
THE FUTURE
14

15. Data: Department of Health and Human Services, National Center for Health Statistics, web: www.dhhs.gov
Graph: Outlaw Consulting
15

16. Influential
• Involved in all family decisions since about the age of 4
• Influence everything from food choices, family vacations or
family vehicles
16

17. Influence Purchases – Harris Interactive (2007)
Medium Percent
Clothing / 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%
17

18. 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

19. Millennial Generation Spending Power
Amount Income Before Tax for Heads of Households
Under 25
35,000
29,057
30,000
27,120
25,000 22,507
20,330 20,259
20,206
18,813
20,000
15,000
10,000
5,000
0
2000 2001 2002 2003 2004 2005 2006
Source: Bureau of Labor Statistics Consumer Expenditures Study

20. SKYPE
TIVO HULU
CHANGES IN YOUTUBE
MEDIA
ONSUMPTION
138 Channels and nothing on
MEDIA SNACKING
20

21. 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
21

22. Changes in media consumption
Change this to black
background
Primetime
News Work

23. 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)

24. Top 10 Media that Trigger an Online Search
Age
MEDIUM
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%
Source: BIGresearch , July 2007, for the Retail Advertising & Marketing Association (Sample Size: 15,430, age 18+)
24

25. INTERACTIVE
DIGITAL NATIVES, NOT IMMIGRANTS
LIVE IT,
NOT U E IT
S
IT’S A LIFESTYLE
IT’S NOT JUST A TOOL!
25

26. Engauge Video Study:
Live It, Not Use It
26

27. A NEW KIND OF SOCIAL ANIMAL
FEEDBACK
TMI
TION
OU
EV L OF
RELEVANCY
TALKING
OPENNESS
CONNECTED
INVOLVEMENT
27

28. Engauge Video Study:
Evolution of Talking
28

29. Influencing Behaviors of Other Demographics
29

30. REACH OUT THROUGH NEW CHANNELS
BE IN A SITE, NOT ON
A SITE
BE AUTHENTIC
XAMPLES
KEEPING A PULSE ON TRENDS
CHANGE HOW YOU TALK
ABOUT YOURSELF
30

31. 31

32. TALKING TO
CONSUMERS IN A
NEW WAY
32

33. THE BOOTY CALL

34. NSFW
34

35. Source: www.babycenter.com
35

36. CHANGE HOW YOU
TALK ABOUT
YOURSELF
36

37. Source: www.herbalessences.com
37

38. Source: www.herbalessences.com
38

39. REACH OUT
THROUGH NEW
CHANNELS
39

40. Source: www.twitter.com
40

41. USE THE NETWORK
41

42. Source: www.facebook.com
42

43. BE OPEN
43

44. Source: www.mystarbucksidea.com
44

45. BE AUTHENTIC
45

46. Source: www.in-n-out.com
46

47. KEEPING A PULSE
ON TRENDS
47

48. Source: www.facebook.com
48

49. BE IN A SITE, NOT
ON A SITE
49

50. Source: www.facebook.com
50

51. Source: www.facebook.com
51

52. Source: www.facebook.com
52

53. IMPATIENT
ENTITLED
WORKFORCE
CULTURE
CLA H
S
YOUR EMPLOYEES CONNECTED
AMBITIOUS
NEED POSITIVE FEEDBACK
53

54. 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
54

55. 55

56. WHAT HAPPENS NOW?!
HOW THE UH OH!!
CONOMIC
CRISIS
MAY IMPACT THIS GENERATION
WAS IT ALL A DREAM?
WHAT WILL I DO NEXT?
56

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

58. Source: PEW, How Young People View Their Lives, Futures and Politics: A PORTRAIT OF “GENERATION NEXT”
58

59. Thank you.