10.28.2008

Research Insights: Brands that Connect With Millennials

Understanding how and why brands connect with Gen Y is critical to Millennial marketing, but research on the subject can be hard to come by. Primary brand research is often closely guarded. That makes figuring out what Millennials want now and, more important, will want in the future a challenge for those without money to spend on getting out and talking to them. Here are three great, free resources on Millennial brands:

1. Outlaw Consulting Trend Reports: Outlaw specializes in researching Millennial trendsetters. They have been doing this longer than anyone I know and provide great content on their site in the form of their in-depth newsletters. These newsletters are full blown reports. Last year, they profiled the top 15 brands.

2. Businessweek recently shared their list of brands with global girl appeal ("How Brands Become Girl Approved", 9.18.08) as part of an overall survey of global brands. There were the usual suspects: Coca-Cola, Apple, Starbucks, and Google. But there are also a few surprises -- Ford, Citi, H&M, Motorola. Actually, I am not so sure about the surprises and neither are they. But what I especially liked was the slide show, the synopsis of what each brand means to girls and suggestions for what it could mean.

3. Graham Brown also has a long record of understanding youth culture, especially mobile marketing to youth. His blog, mobileyouth.org contains a wealth of data and links to slide presentation on youth culture and mobile marketing. For a sample, check out this presentation to Vodaphone on slideshare:

I especially value the links to four slideshare presentations on the Gen Y appeal of four specific brands: Scion, Jones, EA games and Red Bull. He describes these as 'brands with uncommon sense'. Here is the Red Bull presentation.

10.25.2008

New Mobile Media Apps Keep Millennials Moving

In past blog posts I have pointed out that Millennials are big users of radio, the original 'mobile media' (9.09.08, Millennial Media: Radio and Magazine Deserve a Second Look). Last year, time spent with radio by 14-24 year olds increased 11% while time spent listening to iPods decreased 13% (Age Age, 10.20.08). Now I read that Microsoft's Zune is partnering with the radio industry to leverage the popularity of both FM radio and MP3 players. The idea, called 'song tagging', is very cool. An FM radio tuner is incorporated into a cell phone or MP3 player so when consumers hear a song on the radio, they can buy it right from their device. So far, it has rolled out to just 450 stations nationwide, but there is a push to sign up more.

Whether Apple adds FM and social tagging to the iPod and iPhone remains to be seen. However, according to digital media expert, Adam Broitman of Crayonville, new apps for the iPhone that leverage the social media capabilities of the PHONE itself are coming. Broitman writes this week in imediaconnection article, "The Best Branded iPhone App Available", that Obama Team hit all the core elements an iPhone App should posses: Added Value Content, Localized Content, Localized Social Networking and use of the phone's core functionalities like GPS and text. Here's what Broitman has to say:

"The Obama application allows users to call other people (from within the application itself) in order to urge people to vote for Obama. The application records the number of calls made and displays them in the app and on the web. It integrates your phone book right into the app, truly exploiting the most basic function of the iPhone—making calls. Seeing this application was and “ah-ha” moment, as well as “duh-why didn’t I think of that” moment. With the coming of Android applications and the growth in the social networking sector, we are going to see a great deal of innovation in the space—keep an eye on it." (Adam also blogs at amediacircus )
What, you may ask, is an 'Android' application? Android is a year old open mobile software platform that has been subscribed to by 34 handset manufacturers. I also saw it mentioned by Antonio Lucia, CMO of Visa. "...Some of the first reiterations of the user interface will be featured with Android." Android is the basis of the G1 "Google Phone" introduced last week by T-Mobile. I also hear Android mentioned in a report this morning on NPR and in an article about Visa in last week's Ad Age. Get ready for a flood of more articles showing how Android is supporting Millennials' desire for extreme mobility.

Millennials' Biggest Issue and What It Means

What is the most important national issue for Millennials? Harvard Institute of Politics posed this open-ended question in its 15th annual poll among 2,400 18-24 year olds in September/October 2007 and again in 2008. (Thank you! John Della Volpe at Social Sphere for sending this!) The answer (see chart) is the state of the economy (53%). The economy trumps the war (9%) and healthcare (5%) by a wide margin. This is not a surprise, given that the poll was conducting during the financial crisis and two economy-focused presidential debates. The surprise is how different things looked a year ago, when the war was the top issue and the economy was mentioned by only 5%. Admittedly, my priorities have shifted a bit as well, so this is not solely a Millennial phenomenon. But it's interesting to explore how this new awareness is affecting Gen Y, beyond the presidential election. In this regard, nothing has really changed: according to the poll, 18-24 year olds choices are pretty pretty much the same as they were before crisis.

I have firsthand evidence they are thinking about the crisis. I asked a young man I met in the Dallas airport last week who attends Farragut HS in St. Petersburg whether they were discussing the crisis in his economics class. He replied with a grin, "It's ALL we talk about."

My daughter who is a college freshman reports her friends are concerned about their parents ability to pay tuition and that scholarships and loan availability will be affected by the new economic reality.

On the job front, business schools are reporting an uptick in enrollment. According to a report, Grads Fear Gloomy Job Prospects, by Medill at Northwestern, there is additional pressure on students college career centers . (Check out the great video of students across the country talking about their job prospects). We are about to conduct a series of focus groups among recent alumni on behalf of Notre Dame's Alumni Services; I expect to hear there is extra pressure on young employees to perform, making the already stressful transition from college to work even more taxing.

Here are some other predictions:

High school students will begin to defer going to college in favor of jobs or to wait until older siblings have graduated. Applications may be down this year for the first time in many years, despite the demographic bulge for the class of 2013. Others who normally would go for a 4-year school will opt for community college.

We will see parents become even more important to young graduates. Already 50% of men and 33% of women 18-29 live with their parents. Look for this to increase, with no increase in raised eyebrows.

We may even be relieved from hearing more whining about Millennials' unrealistic workplace expectations over the next few years.

Finally, Millennials' civic mindedness may also combine with necessity to drive more to public service. Many may prefer underemployment that helps 'make a difference' to unemployment. The Harvard Institute poll I referenced earlier confirms other studies in this regard, and goes on to specifically outline what they might do to serve:

"Three-in-five (59%) of America’s youngest citizens (18-24 year olds) say that they are personally interested in engaging in some form of public service to help the country -- 19 percent very interested....In addition, the subgroups that seem most intense in their interest to engage in national service are African Americans (25% very interested) and Hispanics (24% very interested). Among the 59 percent who say that they are interested, following are the ways in which they would consider engaging: • 75 percent, part time in their community • 47 percent, work for the federal, state or local government • 32 percent, use the Internet to collaborate with government • 32 percent, get involved in a political campaign • 25 percent, join the foreign service • 23 percent, join national service program full-time like Teach for America or City Year • 17 percent join the military, and • 17 percent run for political office.
Those are some impressive figures. If Millennials follow through, there could be a silver lining to the crisis after all.

10.22.2008

Why Digital Media Hasn't Replaced TV Yet

As the Car Guys say, I just 'wasted another 30 perfectly good minutes.' This time I was enjoying nine of the most popular viral videos selected my friend Jim Nichols for his blog at imediaconnection.com. Jim is senior partner, strategist at Catalyst:SF. We have been friends a long time and are currently competing for oldest surviving relic of what are now considered the 'good old days' in advertising. Jim also blogs daily about digital media at www.oldestliving.com. We can recall when you argued vigorously over whether the strategy was 'good taste that's good for you' or 'good tasting goodness', prepared three commercials and headed for the bar. (This was after the Mad Men era by about 15 years, but I was trained by those guys. It is uncannily accurate in substance and detail.)

I am currently pondering the question Jim posed to me in an email a few days ago. Here it is:

As you know, digital’s share of brand marketing dollars is far smaller than the share of time consumers now spend with digital media. Are brands lagging, or is digital lagging in providing actionable solutions for brand marketers?

Mmm. It's easy to say it's because today's marketers aren't embracing new media, but I don't think that would be right. The numerical case for digital media is too compelling. Millennials spend much more time online than watching TV. Yet TV is still the 800 pound gorilla. Why?

The more likely answer is that digital media has a hard time competing with TV as a branding medium, and branding is the main reason for using TV. Historically branding is not as accountable for immediate short term results, so TV often gets a free pass on ROI.

Before you jump on me about digital being a branding medium, I have seen the research, and let me be clear, I am not saying digital can't be used for branding. It's just that TV is/was so perfect: Captive audience, full sight, sound and motion. High production value. Trusted information source. Tremendous reach. Digital media, is well-targeted but lacks the reach and emotional impact of a full screen TV.

Digital media will get there. Search is already maturing as a medium. Online video is getting there. Social media which is now more social than media will develop some best practices that will attract the early adopters and late adopters, especially once word of mouth measurement systems become more standardized. Meanwhile, I wasn't in advertising when there was still a 'TV department' and broadcast operations was done by admins, er secretaries, in their spare time. But Mad Men is a good reminder that this isn't the first time advertisers have had to come to grips with something new.

Meanwhile, here is my favorite viral video from Jim's list. If you want to waste, ahem, spend, 30 perfectly good minutes of your own, I recommend visiting his blog post today! It won't be time wasted!

10.20.2008

The Word of the Day: "It's Generational"

"There's no doubt that we represent the kind of change Senator Clinton can't deliver on. And part of it's generational," Barack Obama on Fox News November 2007.
"I think we need a transformational figure. I think we need a president who is a generational change and that's why I'm supporting Barack Obama, not out of any lack of respect or admiration for Senator John McCain." -- Colin Powell on Meet the Press Sunday.
Obama's Gen Y appeal has accelerated public awareness that Millennials are not just younger versions of their Boomer parents and Gen X siblings, but the result of a massive generational shift. Obama was named "Marketer of the Year" by Ad Age today largely because of his savvy use of his knowledge of Millennials. I agree with Winograd and Hais that Millennials are not politically motivated this year because of the appearance of Obama. They would have been involved regardless. But Obama's marketing has been pitched perfectly to this group in everything from message to medium, and that is not an accident. Team Obama did careful research, created focused brand messages and showed clear strategic understanding that Millennials matter. Here is what Winograd and Hais, authors of Millennial Makeover, had to say on their blog Oct 8:
...the political attitudes and identifications of Millennials were clearly evident long before the Obama candidacy gained widespread visibility. A Pew Research Center survey conducted in March 2007 indicated that Millennials identified as Democrats over Republicans by nearly a 2:1 ratio (52% vs. 30%). And, a study conducted at about the same time by the Millennial Strategy Program of communication research and consultation firm Frank N. Magid Associates showed that Millennials were the first generation since at least the GI Generation to contain a greater number of self-perceived liberals than conservatives. All of this at least raises the possibility that the high level of Millennial political involvement is significantly based on the Democratic and liberal affinities of the generation and would be strong even without Obama's strong candidacy....Millennials are intent on working together to create a better America than the one Boomers have left them as an inheritance. Their confidence, political activism, and unity will begin to initiate that change on Election Day this year thanks to a record turnout of young voters. The 1.7 million vote plurality given to John Kerry by young voters in 2004 will grow to between 8 and 10 million for Barack Obama when this involved and unified generation goes to the polls on November 4.

10.19.2008

The Biggest Youth Marketing Campaign of 2008

The undecided bloc has shrunk from 14% to 7% and the polls are showing Obama ahead by a furlong as the race rounds the final bend. Both sides know that the biggest risk to Obama's election is youth voter complacency. We are about to see the the biggest youth marketing campaign of the year: Get Out the Vote. Many of these efforts rely on celebrity influence: Comedienne Sarah Silverman is asking young voters to visit or call their relatives in an imaginative effort called The Great Schlep. Her video calls for young people to visit their relatives in Florida and convince them to vote for Obama. If you can't visit, call (mini-Schlep). The Great Schelp was featured on Sunday Morning with Charles Osgood and on Facebook. Hip hop artists, The Beastie Boys, are staging a series of get out the vote concerts featuring Sheryl Crow, Norah Jones, Ben Harper and Crosby & Nash. The concerts will be held in three swing states: WI, MN and VA. T.I., Ludacris and Ne-Yo will tour the country to educate potential young voters for two special episodes of 106 and Park that are scheduled to air in October. A MySpace- and HeadCount-sponsored contest among colleges to see which can sign up the most voters. Death Cab will perform on the winning campus.

Will all this effort make a difference? We won't know until election day. What is apparent is that getting out the vote could make the difference in who wins.

Gallup figures released today (10.19.08) look at the race according to two scenarios. In the traditional approach, voters' intention to participate in the current election as well as their voting history in previous presidential elections is considered. This method shows Obama leading McCain by just three points, 49% to 46%. The second approach considers only voters' self-professed likelihood to vote in 2008, and does not factor in whether they voted in past elections. This approach assumes new registrants and infrequent voters will turn out on Election Day to a greater extent than has been the case historically. Using this approach, Obama leads by seven points, 51% to 44%, twice the margin as the first scenario. No wonder Obama is concerned about complacency, despite his clear lead in the polls.

10.17.2008

You're Doing Great! Keeping Millennials Happy at Work

On Wednesday I gave a speech on Millennials to an audience of advertising professionals and students in McAllen, TX in the Rio Grande Valley. The topic that sparked the most conversation by far was intergenerational conflict in the workplace. Younger and older audience members both nodded in enthusiastic agreement when I described Millennials as less time-bound, needing more feedback, more flexibility and more frequent rewards. But they disagreed on whether or not this was something the workplace was really ready -- or willing -- to provide.

As a parent and a college professor, I can offer some perspective on why young people come to the workplace with such different expectations. High school learning, and grades, are based on highly structured learning approaches. Educators call this 'duality' -- a student's job is to learn what teachers know. It's about getting the 'right' answer in the right format. Think of students as teacups with teachers pouring the tea and you will understand duality. One of the earliest transitions college students need to make is to a more 'relativistic' learning approach, where students collaborate more in the learning experience and there is less clarity about one right answer or format. I have often watched students struggle when I am unable to tell them there is a right answer, and right number of pages for their essay, a correct format. The final phase is 'commitment' - they understand that some answers are more right than others but it is important to remain open to other possibilities. Being sure is a sure sign you are probably not on sure ground. By the time they get to the workplace, Millennials are masters of all three modes of learning. They are good at figuring out the rules so they can get it right (dualistic) but also sense that they may have a righter answer than their boss.

So what does that mean for bridging the generation gap at work? There is a lot written on this very topic and I won't reiterate it here. But the heart of it all is structure and feedback. Millennials want to know what it takes to be successful, and where they stand at all times. Detailed guidance on job performance standards with frequent helpings of feedback along the way -- not just in a 6 month review -- are the surest way to keep Gen Y workers happy. The Wall Street Journal, "Employers Rethink How They Give Feedback", Oct 13, reports:

"In a recent survey, 65% of "Generation Y" workers at Ernst & Young said "providing detailed guidance in daily work" was moderately or extremely important, compared with 39% of Baby Boomers. An overwhelming 85% of Gen Y employees said their age-group peers want "frequent and candid performance feedback," while only half of Boomers agreed.There's a difference between the generations in how to provide feedback," says Ben Rosen, a professor of organizational behavior/strategy at the University of North Carolina who worked on E&Y's survey. "Gen Y wanted a lot of feedback -- from their immediate bosses and anyone else." These younger workers "grew up where everyone gets a trophy," Mr. Rosen says. Managers say younger workers don't mind criticism, as long as they hear something. "I've never had any trouble giving feedback to Gen Y folks," says Billie Williamson, a partner who oversees diversity and inclusiveness efforts for E&Y."
The article describes how E&Y is adapting to this need for feedback:
Ernst & Young LLP a few years ago launched an online "Feedback Zone," where employees can request or submit feedback at any time. The system prompts employees twice a year to request feedback. The accounting and consulting firm assigns every employee a mentor and offers training for supervisors who routinely give feedback. Lisa Nussbaum, 23, frequently requests feedback and advice from managers and colleagues. Ms. Nussbaum, an associate project manager in E&Y's New York office, confers weekly with her career counselor about her schedule and to request feedback.She says the frequent discussions prompt others to make suggestions. One colleague suggested Ms. Nussbaum try to improve her writing skills. Ms. Nussbaum enrolled in a business-writing course. Six months later, she says, the colleague remarked that her writing had improved."

According to the article, International Business Machines Corp. and Accenture also now offer training to hone managers' critiquing skills. Feedback has always been an important managerial tool. With Millennials, it may be critical.

10.16.2008

Millennial Resources: Gen Y Bloggers

I am not a Millennial. But I know a lot of Millennials. Here are my favorite Millennial authored blogs. Each has a marketing slant that makes it well worth putting in your NetVibes folder or Technorati favorites:

David Fallarme,

www.themarketingstudent.com Sample post: Gen Y will be the Helicopter parents from hell
"Gen Z: don’t even think about lying to your Gen Y parents, we’ll have documented evidence. Of pretty much everything you do."

Sarah Ewing, www.adage.com/gennext

Sample post: Political Advertising Should Be Held to Higher Standards
"Using the same logic that regulates the rest of the advertising industry, why should these campaigns not be regulated?"

Michael Girts, www.adage.com/gennext

Sample post: View from the Inside: Part I
I like to tell people that they gave me a corner office. It's my clever way of saying I sit in the corner. At the end of the hallway. In a makeshift cubicle. Using an in-store display featuring the Incredible Hulk. That's right, it's just me and the Hulk crammed at the end of the hallway. It's okay.
anastasia, www.ypulse.com Sample Post: 11 take home points from what teens want
"Teens today grew up taking their Keds off at the airport in case of shoe bombs. They had leashes, Baby on Board signs and eat all organic. I call this Teacup Parenting. Marketers need to be aware of how delicate and fragile these teens are. They feel like everything is a big deal and they worry a lot. This is why trust, brand building and authenticity are crucial."
Mindcomet, GenYVooDoo Sample post: Are Execs on point with Millennial Marketing?
"Unsolicited text messages I find a nuisance, but I suppose if I signed up to receive some sort of offer through text message it would be less bothersome."

Jeff Taylor, MillennialMarketer.com

Sample post: Microsoft vs. Apple: Competing for Gen Y's Digital Lifestyle
"I am writing to give you an inside look on how marketing and advertising efforts targeted at Gen-Y are seen by us."

10.15.2008

Millennial Market: SlideShare Resources

Hola! Today I am in McAllen, Texas in the Rio Grande Valley to share a presentation on Millennials with the AAF Club. It's hot, and the food is great. I also have a better sense of what a market with an average age of 28 looks like. The slides were uploaded to SlideShare (link below). If you also want the text of the speech, contact me and I will send it to you. Meanwhile, I have I've included links to two other Millennial-focused presentations you may want to check out. Warning: They are very heavy on social media. Tomorrow: Blog resources. Adios!

10.14.2008

Millennial Marketing: Commonalities More Important Than Differences

Segmentation has its limits as a marketing tool. As marketers we are trained to look to focus on the differences, but unless the differences are meaningful, overreliance on segmentation can lead to a lot of wasted effort. It may not be as sexy, but searching for the universal, common ground can lead to even more profound insights, and more impactful and efficient marketing.

The power of the universal is the point of a new book, Metaphoria, from Gerry Zaltman and Lindsay Zaltman. They maintain that focusing on surface level differences and "ignoring alikeness as an important driver of thought and behavior leads to depth deficits in strategic thinking." (p. 8). In other words, we are 'deeply alike' and strategies built on commonalities are more powerful than those built on differences.

I believe this insight is especially true of Millennial marketing. As a generation, Millennals cherish their individuality, but are secure enough in who they are that they have no problem identifying strongly with a larger group, ethic or brand, especially if that group, ethic or brand shares their values; they like being part of something bigger than themselves. I can easily see this generation becoming more attached to their colleges as alumni and to other causes and institutions they support than previous generations.

Millennials share a set of common values that has enabled a few brands to deeply connect with a broad range of young consumers: Google, Apple, Heroes, and Teach for America come immediately to mind. These connections are based more on similarities among Millennials than differences. Those similarities can be traced to common upbringing that stressed team work, embracing of diversity (which is quite different from tolerance), respect for institutions, and the importance of 'making a difference' (i.e., or as Google famously said, 'do no evil'). Millennials also share a faith in technology as tool for connection and productivity. Perhaps most significantly, it shares a deep belief in its own capacity for bringing about positive change. This belief is what underlies their strong will to be 'heard'. With Obama perhaps now less than a month from what is looking like a Millennial-inspired victory, we may be hearing more from and about Millennial universals in the near future.

10.13.2008

Role Reversal? Marketing to Millennials Through Their Parents

Every marketer knows parents' purchase decisions in everything from breakfast cereal to cell phones are often strongly influenced by their children. Wise marketers have leveraged this by marketing directly to their kids, even though they are not the ultimate decision-maker. With close relationships between hovering parents and young adults increasingly the norm, the opposite strategy may start to make sense: influence young adults' decisions through their parents.

Colleges have long known the importance of parents to the application and decision process. Now HR managers are also directly addressing parental concerns after noticing parents were helping their adult children negotiate pay and benefits, angle for promotions and evaluate job offers. According to BNet, Office Depot is planning to include a reassuring message to parents on its web site; Merrill started sponsoring a Parents’ Day in 2006. The company flies parents and caretakers of diversity students to Manhattan, teaches them about the business, provides a tour of the Big Apple, and emphasizes company support and benefits, such as free meals and transportation for employees working overtime. The program has been so successful they are considering expanding it. Last year only one student whose parents attended the event didn’t accept the firm’s subsequent job offer.

Millennials are just beginning to make their first significant adult purchases -- automobiles and appliances, student loans, health and life insurance, a home, financial investments, and automobiles. As they make these decisions for the first time, they will turn to their parents for advice. Smart marketers will anticipate the influence parents are likely to have in these decisions. After all, 50% of 18-24 year old men and 33% of women still live at home, and many continue to receive financial support from their parents. Increasingly, consumer decisions may look more like corporate 'buying center' decisions, with multiple influencers and lack of clarity around who is the true decision-maker.

10.10.2008

The Gen Y Digital Divide: Natives vs. Immigrants

Millennials are different in ways large and small -- in upbringing, values, beverage and leisure preferences, work habits, social attitudes and more. But perhaps the difference that is most important for marketers is information savvy. Millennials prefer to think of themselves as the Internet Generation. Gen Y members could operate a mouse before they could read. They absorb each new innovation with lightening speed, speeding the innovation cycle to dizzying levels. They don't value information per se, because information is free. Instead, they value the ability to organize, create and share information. They don't search, they expect relevant information to come to them. Ultimately, technology may be the underlying driver of all the other differences. The Journal of Brand Management, in an insightful 2008 editorial eloquently described this generational divide:
"The under thirties 'are more savvy, more materialistic, more media-saturated and more impatient than any generation that's preceded them. Gen Y-- the so-called options generation -- wants the freedom to exercise choice. ... But the picture is more complicated than this: it isn't simply that the young are savvy and the old aren't. Indeed, many in the older generation are savvy and technologically sophisticated. Moreover, older consumers are striving to be younger....Perhaps the real difference between the generations is Gen Y and Gen M take digital, interactive technologies for granted -- they are cyberspace natives -- whereas older generations are like immigrants who have at differing rates and with differing abilities, had to learn about this brave new world. Superimposed on these generational differences are variations in gender socio-economic status, access to technology, educational attainment and ability -- the components that go to create, on the one hand, digital communities, and, on the other hand, digital divides."

Despite all my attempts to stay technologically current (hey, I use Twitter!), I was reminded of my 'immigrant' status yesterday in a conversation with Millennial, Connor McCue of Generation Think Tank in Boulder, CO. Connor had urged me to add an RSS feed to this blog, which I did and thanked him for suggesting. I went on to brag that I had also added bookmarking capability, but rather than being impressed, he asked me a few questions about my own use of technology that made it clear to me that I am still speaking pidgen Internet, relative to Gen Y, regardless of how fluent I may appear to others my age.

Here is the point: even the least technologically sophisticated Millennial is probably well beyond the skill level of the most sophisticated 50 year old. When building brand relationships, it is now critical to use access to and comfort with technology as a segmentation dimension, in addition to the usual behavioral and attitudinal factors. The technological factors may be more important to engaging with brands than demographics. This complicates the marketing challenge, but will lead to more nuanced marketing.

Media That Moves Millennials

Millennials are famous for ignoring advertising, so it is no small matter to find data on what moves them to action. BIGresearch (July 2008) data show 18-24 year olds self-report that magazines and TV are effective in getting them to initiate an online search (see chart). 60% say this is true of magazines and 55% say TV can stimulate them to search online, the highest figures for any medium including online. We noted in a past post that Millennials index high for the original 'mobile media' (magazines and radio) and certain TV channels (MTV, Adult Swim) (see 9/9 post). Likewise, we reported that they rely on TV for election news (see 9/22 post).

All of this data suggests it would be unwise to overlook traditional media when attempting to reach Millennials and drive them to act. But before we get carried away --or you suspect that I am actually working for the Magazine Publishers of America -- it should also be noted that the same pattern holds for most other age cohorts. The biggest takeaway is the old notion that it's all about the mix -- put your GRP's in multiple media baskets.

Media research has consistently shown that multiple platform advertising not only increases reach, it also improves the likelihood that a target will act on the message. Last summer, Integrated Media Measurement (IMMI) reported a study of 3000 panel members who recorded all ads (TV, radio, in-cinema, Internet, TIVO Showcase) they had seen for new Fall TV shows, then tracked what shows they actually watched (conversion). The study confirmed the more different ways a target encounters the message, the more likely they are to act. Of the six shows that ran significant TV and radio campaigns prior to the season premiere, a siginfcantly higher number of panelists who saw ads in multiple media watched the promoted show than those who only were only exposed to one media type.

In each case studied, the data showed that exposure on television-only drives less of the target behavior than exposure on another platform in addition to television. Because the result is consistent across the board, the report concludes that there is value in constructing multiple platform campaigns that goes beyond simply maximizing reach.

While this research was not Millennial focused, I have no doubt it holds true for Millennials, who are media savvy and heavy media consumers. Bottom line? Diversification works!

10.09.2008

How Red Bull Leverages Social Media

While there are many contenders, Red Bull may be the ultimate Millennial brand. As Millennials became increasingly sleep deprived, energy drinks thrived. In 2007, 34% of all 12-24 year olds say they 'regularly drink energy drinks' (Mintel, July 2008). The reason given most often for drinking is 'for energy' and 'to stay awake', far out-pacing the number who say they mix it with alcohol.The energy drink category has more than quadrupled to $5 Billion in 2008 (est), up from $1 Billion in 2003. There can be no doubt that it is immensely profitable, at $2.27/16 oz vs. $.53 for sports drinks and $.36 for soft drinks.

Energy drinks are a Millennial-driven phenomenon, and with a 42% share, Red Bull is the driver. 61% of 18-24 year old energy drink users drink Red Bull, outpacing Monster Energy by a factor of 2:1.

Since its beginnings, Red Bull has shown that it 'gets' Millennials and especially their desire for a dialog with the brands they consume. This blurring of the social with channels of brand marketing is what NYT columnist,Rob Walker , dubbed 'murketing' in his great book, "Buying In: The Secret Dialog between What We Buy and Who We Are". He maintains that modern branding involves complicity between consumer and consumed, an embracing of commerical culture, not commercials. Red Bull was among the first to recognize and leverage "murketing", with its extreme sports competitions in extreme locations. Red Bull is also a great example of why Millennial-targeted brands should forgo making claims in favor of building affinity. Who knows or cares what guanine is, anyway? Certainly not my students.

Red Bull's Facebook group shows how effectively they have leveraged murketing online. The group boasts 282,286 fans. There is free music, a contest to find the next great hip hop artist, a webisode series, photos from events, profiles of Red Bull athletes, links to other great 'procrastination' sites, and many more ways to connect with Red Bull web sites. Perhaps the most unique feature is Red Bull's sharing of drunken phone messages they have received. Here is one of the top rated (yes, you can rate and share them): "Hi, I really like Red Bull a lot. Right now I'm pooping. In my parents bathroom. And I really like Red Bull a lot." Try that Monster Energy. While much of the same content can be found on Red Bull's web site, it doesn't have the same energy as when presented in social media. Count me in as a fan.

10.08.2008

Millennial Spirits: Make Mine Sophisticated

My Millennial friends tell me they are more likely these days to open a bottle of wine with friends than a six pack of beer. The data suggests they are right on trend. Overall, sales gains for wine and spirits are outpacing beer. And within the beer category, growth in imports and microbrews is outpacing regular beer. This trend, like so many, appears to reflect a growing sophistication in the tastes of young drinkers.

In June, Mintel released two new reports, one on drinking at home and another on drinking away from home. Both reports show similar trends by age: young people are increasingly opting for wine and vodka over beer. 32% of 21-25 year olds say they are 'drinking more liquor/spirits than last year'. The average number of microbrewed beers drunk by 21-24 year old microbrew drinkers increased from 3.0 in 2005 to 3.8 in 2007. And a full 38% of 21-24 year old drinkers say vodka is their top spirits choice in a restaurant or bar.

Diageo, a close watcher of Millennial trends, is among the first to really capitalize on the sophisticated appeal of vodka. Today, a new campaign is breaking for their new ultra premium vodka, Ciroq. Here's what Mediapost says about the new campaign, called "The Art of Celebration" featuring Sean "Diddy" Combs:

"Shot in black and white at one of Sinatra's former California homes, the 15- and 30-second commercials depict Combs as a high-spirited host amidst a chic crowd during an impromptu private house party. Combs is serving Cîroc, one of the world's only vodkas made from grapes, while engaging with his modern-day "Rat Pack" entourage. Sinatra, along with Dean Martin, Peter Lawford, Joey Bishop and Sammy Davis Jr., were the original packers. In the spots, Combs mingles, dances and jokes during the intimate party, before finally stealing a private moment to gaze into the night as the crowd enjoys a fun-filled evening inside. The spot represents a continuation of the brand's commitment to defining "sophisticated celebration"--a concept Combs embodies and cultivates both personally and professionally as a lifestyle and entertainment icon. During the holiday season, the campaign will evolve to focus on safety."
The combination of high style, celebrity and music is likely to appeal to Millennials, who are most likely less interested in 'luxury' than in what wine Fat Bastard calls 'Livin' Large'. As we have noted before, Millennials do not think of themselves as well-off, despite their relatively high disposable incomes. They do, however, see themselves as discerning consumers who value authenticity and quality. This campaign seems to hit the mark in both respects.

10.07.2008

Millennial to Marketers: Be Meaningful, Be Quick, Be Shiny

I just read an amazing article from Marketing (May 26, 2008) by Naomi Wohl, a young strategic planner at Ogilvy in Toronto. Millennials have a unique sense of timelessness. They want it now, and 'forever' has little meaning. Naomi explains why. It's a little long, but I want to share most of it as it was written. I hope you enjoy it as much I did. She captures an essential truth of this generation that I haven't heard expressed this well anyplace else. Enjoy!
The concept of forever is lost-literally. Timelessnessgone. Moments that will last a lifetime-MIA. We are in the Age of The Here and Now. The Age of Moment to Moment. The Age of ADD. ....Nothing creates fleeting experiences like our current culture of technology. Why buy a car when you can lease it? Why sign a cellphone contract when you can pay as you go? The newest iPod and flat-screen TV models are being designed just as their predecessors arrive on shelves. We buy in anticipation of getting the upgrade. We revel in the current model's inadequacies because we're so amazed at how quickly they can be improved. We live in a time in which lifetime warranties are meaningless. ...

And who bears the brunt of this phenomenon? It's the very same people engineering it-Generation Y. We are aged 18 to 28, and possess or have access to amazing stores of knowledge -- though it is matched by an even greater indifference. We are a generation of silent overachievers (pretending we don't really care), genetically and culturally encoded to think fast, want more, and crave new. We were built for this time; an ephemeral culture created by us, for us.

We repel things that last longer, and as a result, our attention span is getting shorter. I'm emotionally attached to my PVR. My high-speed Internet isn't fast enough; I've had to upgrade to "Extreme." I multi-task. I have developed an uncontrollable jittering knee when other things and people move too slowly. Do I sound anxious? Irritable? Maybe some pharmaceutical company is working on the drug for my Gen Y disease. Dear marketers, if you want to reach me, you'll have to catch me. And please be quick about it.

For us, the concept of friendship has even changed from terms like "BFF," to join my entourage on Facebook. As for relationships, the success and growth rate of online dating sites suggests we're searching not for the partner who is a fit forever, but for the partner who is a fit nght now.

And yet, despite our current transient attitude, we are desperate to make the moment last. For those of us who want to try our hand at singing, dating, dancing, fashion designing, modeling, inventing, cooking or 5th grade math-prime-time programming can make us famous. In the wake of impermanence, fame enablers like reality TV, YouTube videos, or even Guitar Hero, give us a chance to be a rock star. Even if you only get to enjoy the fame for a moment, there's a chance to make that moment last.

And last and last. Because thanks to the environment, all of a sudden forever matters again to Gen Y. Our long-term temporary thinking has led us into a permanent crisis, scrambling to reverse our hardwired non-committal nature with an undying pledge to preservation and conservation. The environment is the quintessential cause rallying the masses today. Never have we collectively been so dedicated to sustainability. We can fill the blue box at home, join the MySpace group for alternative energy and buy organic. If everything else in our lives is so temporary, why is this cause so captivating? Maybe we long for something to matter. Maybe we fear our lives will come and go as inconsequentially as all the fleeting experiences that filled them. We're desperate to make something last. So we'll endorse the cause and work to create a world that will never know we were even here.

For you marketers, trying desperately to grab my Gen Y attention as I rush by, here are some tips.

Firstly, your brand needs to be the new transformer of our time-capable of renewal and regeneration while demonstrating that essential I-can't-live-without-you shiny feature. Next, don't linger. Tell me what you want to tell me, but tell me quickly, because I'm already looking in someone else's direction. And finally, be meaningful. Be the inside joke that only Gen Y gets; self deprecating but not insulting. Be Optimus Prime. Be my hero, and I'll be your rock star.

Why Millennials Matter

After 74 posts on the values, purchase habits and preferences of Millennials, it's probably worth a short post on what I hope should be obvious by now: why it matters what Millennials think. Not only is this generation similar in size to the Boomers, they have enormous purchasing power. Today's 18-29 year old has an average income of $29,000, and their earning power is growing faster than for other age cohorts. Most important, Millennials are meaningfully different in their values. Those differences will increasingly come to define products, marketing approaches and politics for the entire country. (p. 209)

Let's start with politics. In their terrific (and prescient) book, Millennial Makeover, Winograd and Hais write:
"Political behavior resarch has consistently indicated that once most individual, and hence most generations, take on a party identification, they maintin it throughout their lives. As sociologist J.V. Namenorth noted, "Value orientations do not change much during a generation's life time. Committed during its early stages a generation most often carried its value commitments into the grave". If the Democrats can maintain this initial generational allegiance during the next two presidential elections, they should gain a decisive electoral edge for decades to come."
Likewise, marketers know that brand affinities established early in a consumer's life can persist for decades. This is why Bride's magazine stays so fat year after year.

With so much at stake tomorrow, it's little wonder marketers need to find what moves Millennials today. Some of their lifetime values are already becoming clear: Tolerance, the environment, authenticity, family, global perspective, team-work, immediacy, ethics. Others are still emerging. It remains to be seen how the current financial crisis will shape their career aspirations and life goals. Certainly there are fewer MBA's looking for a career in investment banking this week, than a month ago. And the dream of homeownership may not be as compelling for today's young people as for Gen X.

10.05.2008

Millennials: A Product of their Upbringing?

It's widely conceded Millennials are unique from previous generations. What caused them to be so different? Was it the times they grew up in -- unprecedented prosperity, the uncertainty of terrorism, the dawning of the Internet Era? Or was it something about the way they were raised?

While environment no doubt played a role, I think it has more to do with earnestness with which their Boomer parents took their parenting responsibilities, revolutionizing what it meant to be a 'good parent' just as they revolutionized so many other aspects of our culture.

Millennials were raised with doting parents who were attentive to every detail of their development and education, and often brought enormous personal energy and wealth to bear on task. I don't remember my parents taking such an interest in every aspect of my schooling, friends and overall development as I have with my own two children. Millennial kids have been closely supervised, carpooled, sports-leagued and lessoned, sometimes to the detriment of free play time. They have spent time in organized groups since they were babies. David Brooks described the phenomenon brilliantly in his book, "On Paradise Drive": "The entire weekend economy of small town America seems to depend on prepubescent sports tournaments with boxing bout names." (p.144). Last week, the Wall Street Journal examined the ends to which some parents go to create exceptional kids ("Under Pressure", WSJ, Oct 4, 2008).

As a result of their large numbers and parental advocacy, classes for Millennials became smaller, teachers used more active learning styles, and new opportunities for learning outside the classroom opened up. The result of all this focused attention on their every need is a generation that, at worst, feels 'entitled'. At best, it is a generation that is better prepared and more confident than ever before.

Millennials are skilled negotiators; they thrive in team settings. They are optimistic and trust in institutions. They can talk to adults like peers and have more worldly experience to draw on at a younger age. They effortlessly know how to use technology to organize their lives and get work done by the time they leave high school. Little wonder Millennials feel ready to take on any challenge. (What Boomer parent has not lamented they would like to come back in their next life as their own child?)

I am often asked precisely when is the definitive cutoff for a Millennial -- 1978 or 1982? I believe it has less to do with the birth year, than upbringing. Gen X'ers, who grew up in the 70's and 80's with distracted career oriented parents, know they did not enjoy the lavish attentions of the Millennials. And therein lies the difference.

10.03.2008

Heroes: The Ultimate Millennial Fantasy?

I have already nominated several fictional characters as the ultimate Millennial persona: Andy Sachs, heroine of Devil Wears Prada, Harry Potter and his friends, the ensemble cast of Hamlet2. The common theme is the ability of seemingly ordinary kids to conjure up hidden talents or even hidden powers to accomplish something very difficult, usually beyond the capabilities of adults. Now we have NBC's smash hit, Heroes, which seems to fully capture the essence of this 'wait til you see the real me' fantasy in full. Here is how the Heroes wiki site describes two of the show's key characters:
Claire Bennet is a high school student formerly of Odessa, TX where she used to be a cheerleader. She lives with her adoptive family in Costa Verde, CA. Claire discovers she has the ability to heal seemingly any wound, nearly instantaneously.
Peter Petrelli worked as a common hospice nurse while living in New York City. Peter appeared to his family as a witless dreamer, who believed he had a greater place in life than just saving one life at a time. He discovered he was an evolved human who had the ability to absorb and use the powers of other evolved humans. Peter has since decided to use his abilities to save the world.
The show is wildly popular among Millennials, and given Millennials' passion for making a difference in the world, it's easy to see why the show is so appealing. Marketers would do well to tap into this fantasy, with products that help Millennials be more the person they know they were meant to be, and make a greater impact for good. NBC is leveraging this insight well, with a create your own hero contest and animated online series. Superpowers for ordinary mortals of course is not a new theme. but what makes Potter nd Heroes different from, say Superman, is the unique generational angle. It's not just about having unique talents, it's about being YOUNG and having unique talents. That is what makes these characters remarkable in their worlds and appealing in the world of Millennails.

10.02.2008

Millennial Marketing: Fun and Games

When David Carson at Mediapost said this week the "Nintendo Wii ad for "Wario-Land Shake It" on YouTube is the best ad I've seen all year, in any medium", it reminded me I have yet to address the topic of gaming among Millennials. (BTW, it really is a great ad, click here to see it.) I admit one reason I haven't written about gaming is tht we are not really a gaming household. Yes we have a Wii, Playstation 2, and PSP, but they don't seem to get much use. We just never got the heavy-duty gaming bug, aside from passing addictions to Bejeweled2, the Sims and Spider Solitaire.

My 14-year old son is atypical. 44% of The gaming statistics, especially for males are staggering; 44% of 12-17 year old males say playing video games is one of the 'favorite activities' (Mintel, 3.07, see chart). That makes games big business; the Sims alone has sold 100 million copies, worth about $4 Billion (Fast Company, 9.08). The upcoming release of Spore is a media event that rivals the biggest blockbuster movies.

From a marketing perspective, it is important to note that up until now, gaming has been largely a male phenomenon, most likely due to the high levels of violence in many games. This is a problem Spore's marketers hope to change. Spore is reportedly more about creating and building than destroying. (Right now, young women are much more likely to blog, while both sexes are equally likely to be spending time social networking.) This makes gaming an especially targeted medium for marketers trying to reach young men. Little wonder product placement in video games is hot and getting hotter.

10.01.2008

Millennial Target: Fat Bastard

With their above average earnings and sophisticated tastes, Millennials are an untapped market for 'luxury' goods -- you just can't call them luxuries. French Millennials are forgoing wine; U.S. Millennials are embracing it in large numbers. According to Nielsen, beer drinking among 21-30 year olds dropped 12 percentage points in the last 10 years, twice as much as those over 30. (Beer still accounts for 83% of Gen Y alcoholic beverage purchases, so don’t expect Beer Pong to lose popularity anytime soon.) Why are Millennials embracing wine? Well, it’s not because its hip or cool – wine is considered too elite to be cool. The answer is that Millennials have sophisticated tastes, a function of early exposure to the finer things in life by their boomer parents. (Most Millennials who like wine say they were introduced to it by their parents).

This is a huge opportunity for winemakers, and Fat Bastard is among the first to jump on it. Their irreverent web site does its best to take out the mystery and put in the fun:

The theme, “Are you Livin’ Large?”, strikes just the right note of luxury that doesn't take itself too seriously. The fifties motif gives the site a retro feel.

The 'hippo' logo is enough of an non-sequitur that it works to heighten the sense of whimsy; this is a wine brand that doesn't take itself too seriously. The hippo logo is nice extended into 'Hippo Couture' t-shirts and 'Hippo Culture'.

The site provides many opportunities to engage: a short fun survey, an invitation to 'share your story' and a contest to design a summer t-shirt. The tone is light and witty: "Tell us how you have reveled and regaled friends and family with the Fat bastard. Send photos of you and your fellow partygoers, enjoying Fat bastard in any lively (and legal!) scenario. Share with us your thoughts and impressions of the Fat bastard."

There is the obligatory advice on food pairings, recipe ideas and restaurant recommendations.

There's even a nice Breast Cancer cause marketing effort with $.25 donated for each bottle sold.

Above all, the site gives us a plausible back story for the product as well as the implausible brand name:

Thierry Boudinaud, a renowned winemaker who had crafted wines from California to France, from Chile to South Africa was sitting in a cold damp wine cellar one winter day when the door burst open. It was Guy Anderson his dear friend from London who had just arrived to sample the recent vintage. “It’s cold enough to freeze the balls of a brass monkey” Guy was a rebel in the wine industry believing that quality was paramount in a wine but that the average consumer hated the traditional intimidation heaped on them by most of the wine industry..... Thierry thought he would have Guy try an experimental wine he had in a few barrels in the back of the cellar. “Dis is a experiment wine we left it on de lees. We try it no?” “Sure Thierry, you know how hard it is to get me to try a new wine.” Both friends had no idea that leaving the wine in barrel on the lees (yeast cells) would result is such a dramatic difference from the wine they tried the day before. It had a wonderful color and rich, round palate. Both men stood and stared at each other for what seemed like five minutes until Thierry exclaimed “now zat iz what you call eh phet bast-ard” Guy laughed with a belly laugh you could clearly hear in the neighboring town. He had used the expression Fat bastard often to describe things that were great but hearing it in a French accent made it so much funnier.