Engaging Millennials: How Marketers Can Break Through

'What will break through?' is a question I am often asked. My very first post on this blog in ("A Collective Chill", 4.28.08) reported about the comments of a Millennial panel at a marketing conference I attended in New York last Spring:

The audience was ANA members gather to discuss "Innovations in Marketing". The panel was impressive, brand managers from Mercedes, Unilever and Lincoln Financial. But their answers to questions about their media use sent a collective chill through the room. They don't watch TV other than NCAA Finals. They don't see online advertising thanks to blocking software. They don't want ads on their mobile devices, facebook pages or IM. They don't even like ads. This should not be news to anyone. However, it was shocking coming from Millennial Marketers. They seemed as stumped as the moderator as to how marketers could reach them most effectively. Ah.....with relevant content? Reaching Millennials with messages they want to hear, in the format they want to hear it is going to be a challenge!

After nearly two years of thinking about this question, I have distilled my advice to one not-so-easy-to-accomplish formula:

Engaging Millennials = Enabling Discovery + Energizing Experience + Encouraging Advocacy

Of course, this formula presumes you have a relevant product and positioning. If not, you have more problems than simply breaking through. But assuming for a moment you have cleared the Product, Placement and Pricing hurdles, how should you go about Promoting your brand to Millennials? Let's unpack this formula a bit:

Enabling Discovery

No one wants to be told what to do, what to like and what to think. That is especially true of Millennials, who have an instant aversion to anything that smacks of 'marketing'. They want to believe that they have uniquely discovered the things they like. That's not to say that mass brands are not appealing, as Obama can tell you. But mass brands don't start with any advantage. The ideal way for a Millennial to first experience a product or service is to discover it for themselves. Think of 'Stumbleupon' as the model.

This feeling of 'discovery' underlies the success of Dr. Horrible's Sing-A-Long Blog and Tom's Shoes. Discovery is social currency, you can spend it with friends (or wider) and increase your personal brand. Discovery is the dynamic that drives marketing for restaurants, music, wine and microbrews. (For more on the social dynamic behind wine's growing popularity, see my earlier post, "A Perfect Pairing").

Achieving a sense of 'discovery' is no accident. It means creating events where Millennials can meet the brand, as Red Bull has done so successfully. Or creating a smash viral video. Social media, social media, product placement, and sampling are all good 'discovery' media.

Energizing the Experience

This is literally having a brand experience worth writing home about, one that not only meets the minimums for efficiency, personalization and value, but that goes over and above expectations. Success with Millennials requires being distinctive; they love 'shiny' things.

Marketers at Apple, Nike, Zappos, Jamba Juice, Red Bull, Zipcar, Vogue magazine and other beloved, 'iconic' Millennial brands understand that to be remarked upon, you must literally be remarkable for something inherent in the user or customer experience. This can be accomplished through customization, design, ease of access, or price (free works especially well). However it is accomplished, it must be both authentic and fresh to overcome the impressive filters Millennials have perfected. The experience must be fun, compelling or unique or you will never get to the third and final step of the formula: advocacy.

Encouraging Advocacy

If this was a real formula, 'advocacy' is the variable that would have an exponent after it. Advocacy is the thing that makes Millennial marketing unique today, and is likely to be the biggest change to mainstream marketing in the future.

Yesterday I had a wonderful conversation with Sarah Newton, a radio celebrity, Twitter friend, and author of the blog, GenYGuide.com. Sarah lives in Northampton, England. Despite the being oceans apart, we agreed on many things, above all that Gen Y is unique. We also speculated the thing that makes them unique, perhaps in all history, is access to platforms to broadly communicate and share their ideas. This ability alone may make the gap between Gen Y and earlier generations more striking than any previous gap, or possibly any to come (profound thought isn't it?). A new global study of 9000 -27 year olds by YouGovStone reached a similar conclusion: "The digital revolution has not only given this generation of young people access to knowledge and information on an unprecedented scale, but it has also given them massive influence."

Mobilizing that influence requires making it easy to access and share information with peers. Facebook, YouTube, Twitter, topic-specific blogs, and opinion sites like Yelp are all ways to encourage Millennials to talk to each other about your brand. Of course, talking about brands is not something Millennials are inclined to do without good reason. That's why so many brands have found success by associating with worthy causes, or highlighting their support of environmental or humanitarian initiatives. Advocacy efforts take many forms, both long term and short term promotions (Starbucks Project Red, Taco Bell Feed the Beat). For more immediate sharing, brands are experimenting with mobile applications and widgets, like DryncWine.com. However it's done, advocacy via social media is now a critical part of any youth marketing effort.

My final words of advice on reaching Millennials is much simpler: take time to get to know them. If you are over 30, the worst mistake you can make is thinking they think like you do. Listen to Millennials, at home and in the office. They will give you the best advice about how to reach others like them.

Why Social Media Matters (in Less than 3 minutes)

This video by Tampa Bay agency, 22squared, is the cleverest explanation I have seen on how social media helps consumers find brands -- and how brands find consumers. While this post (my 200th!) isn't strictly about Millennials, it expresses an essential truth of Millennial marketing - what your friends think matters, and now it's far easier to know what your friends think.

Three Reasons Gen Y Doesn't Get Twitter

I love Twitter, but, my 18-year old daughter still insists she doesn't "get it". She explained it to me yesterday this way: for her, Facebook functions as a general organizing tool, much as Outlook does for me. Facebook is her calendar, contact book, and primary messaging platform. Any communication gaps are filled by GoogleTalk, text messaging, and if all else fails, dialing. Twitter adds nothing meaningful to this mix -- especially since her friends don't use it. Twitter is a hard sell, and I have finally given up.

The data has consistently shown 18-24 year olds lagging in Twitter adoption. Earlier this year we did focus groups among Millennials on Social Media usage ("The Millennial View of Social Media: Why Should I Be Your Friend?". We were especially interested in talking to Twitter users - but they were hard to find. I suspect if we repeated the study today, they would be equally hard to find.

A CNN article by an intern, Sharon Vaknin, titled "Generation Y: We're Just Not That Into Twitter" provides another view. Vaknin agrees with my daughter that Twitter has nothing to add over Facebook, but suggests a second theory for the lack of interest. Picking up on the Theory of Millennial Narcissism, Vaknin says Twitter offers little opportunity for 'self-branding':

Twitter's microblogging platform is what many Gen Y's may describe as "like Facebook, but just the status update." What is the point of that? We like to consolidate, so Nemeth explains that he doesn't "want to join another community, just tell people what (he's) doing." We have everything we need on Facebook. Based on Twenge's theory, a good explanation of my generation's lag in joining the Twitter mania is that there isn't an obvious way to achieve a self-brand on Twitter.Participating on Twitter requires a fan base that knows why you are unique, special, and deserve attention. Fan base aside, the Web site's interface paves a short path for cyberstalking--there is nothing to find past a user's status.

For example, Sally went to a great party last weekend, but where are the photos? Who went with her? These features, which Gen Y's value so much, are missing. As much as I like to know what my friends are doing, updates on Twitter happen so fast there really isn't time to react. More importantly, my friends don't have time to react to my activities.

Largely as a result of the digital communication tools on which we were raised, a big part of my generation wants to know what the cyberworld thinks of us, and we want its inhabitants to pay attention to us. How can they do this if they're following 300 other people? For the Millennials to make the move, Twitter will have to find a way to integrate the self-branding features MySpace gave birth to and Facebook nurtured. Even if they're packaged in 140 characters or less.

I have a third theory for Millennial disinterest. Millennials aren't accustomed to making online friends. For years, parents warned kids and teens against talking to strangers online. The origins of Facebook were that unlike MySpace, you could only have one identity on Facebook and it required a .edu email address. That meant it was 'safer'. The very idea that I am sharing my email address and phone number with people I only know from their 'tweets' is a little creepy to those who were warned from an early age of online predators. How do you know they are who they say they are? Suddenly, it's okay to make friends with people you don't know?

I have no answer for this, and I am a little surprised at the personal risks I have taken. But in my defense, unlike email and online chat rooms, Twitter seems spam-free and offers an unusually civil level of discourse. After all you have control over who you follow and block others from following you (although I have had no real need to do this yet).

Whatever the reason, it is clear that until Twitter offers a compelling value proposition, it is not going to attract younger users. Long live Facebook!

Observing Teen Media Use in its Natural Habitat

I have two Millennial-age kids, one in high school and another is a college student. This summer they exhibit the sleep habits of nocturnal wild animals. If they were dropped into Hong Kong tomorrow, they would experience no jet lag.

Technology knows no time zone and is hard to quit once you start. Combine entertainment with social connection and you have a sticky brew. My son dramatically removed the TV from his room during final exam week, but has yet to restore it. I now see why: he doesn't need it! His laptop functions as super-functional TV/DVD/ player with communication built in.

New research from OTX (and conversations with other parents) assures me my kids are fairly typical. Andy Pipes, in blog post titled "Technology, Kids and Telly", summarized the OTX findings on 12-24 year-olds like this:

* They personally own 8 devices (including MP3 player, PC, TV, DVD player, mobile phone, stereo, games console, and digital camera)

* They frequently conduct over 5 activities whilst watching TV

* 25% of them agree that “I’d rather stay at home than go on a holiday with no internet or phone access”

* A quarter of young people interviewed text or IM (instant message) friends they are physically with at the time

* They have on average 123 friends on their social network spaces

* And the first thing the majority of them do when they get home is turn on their PC

Although the research is from London, all of these findings ring true with my experience, including the points about vacation and texting friends sitting next to you. According to the OTX report, youth’s obsession with technology is less about the technology and more connection and communication.

"Young people’s immersion in these devices and the time spent on them is not due to an obsession with the technology per se, but largely due to the gadgets’ ability to facilitate communication and to enhance young people’s enjoyment of traditional pursuits. For most, the focus of their passion is not so much the device itself, but more about how it can help them connect, relax or have fun. The technology itself is “invisible” to the young consumer.

How is all this 'communication' affecting offline relationships with friends and family? According to the Annenberg research (reported this week by AP) Internet time is more likely to cut into family time than time with friends."

In 2000, when the center began its annual surveys on Americans and the Internet, only 11 percent of respondents said that family members under 18 were spending too much time online. By 2008, that grew to 28 percent....In the first half of the decade, people reported spending an average of 26 hours per month with their families. By 2008, however, that shared time had dropped by more than 30 percent, to about 18 hours."

The OTX research aligns with this finding. Here is Andy Pipes again:

>"These activities seem to be making up for not spending as much physical time with their friends as they’d like - which seems to be most of the time. On the weekends, when typical young adults have the most free time, they are still spending more time hanging out with their mates and watching television than any other activity - the difference is that this generation tends to be engaging with their connected devices a lot more whilst doing those cherished activities."

I suppose i can take some comfort in that. Meanwhile, I don't miss hearing the refrain of summers past: "Mom, I'm bored. There's nothing to do!"

Connecting Millennials to Causes with Social Media

While they individually are not significant donors (60% give $100 or less a year), collectively Millennials represent a significant source of new revenue for not-for-profits. Here's evidence: 3 million donors made a total of 6.5 million donations online to Campaign Obama, which added up to a total of more than $500 million. Of those 6.5 million donations, 6 million were in increments of $100 or less.

Gen Y is are literally 'pre-wired' to support causes. First, they are connected. According to Harris Interactive, 75% of Millennials have a Facebook account, 29% check it every day (or more frequently) and 8% use Twitter. Second they are motivated. Gen Y's volunteer rates are unprecedented, with 80% of high school seniors volunteering their time. They are passionate about preserving the environment, enhancing educational opportunities, serving the needy, and 'giving back'. Little wonder professional fundraisers are taking a close look at social media as a means of mobilizing supporters.

Here are ten suggestions for connecting Gen Y with causes via social media. :

1. Invite them to join the Team.

Millennials relate to heroes and young people with ideas. (Think 911, NBC's Heroes, Harry Potter). DO: Show them how they can get involved and contribute in ways other than money. Like other segments, Millennials are more likely to give when they have a personal connection. Feature team members who are having an impact.

2. Give them a Voice.

Generation Y wants to be heard so help them tell their story. Make it easy to join the conversation. DO: Use blogs to encourage two-way conversation. Blogs are usually less formal and more dynamic than a regular websites. Good blogs invite comments and discussion and repeat visits. DON’T FILTER: Allow the negative and positive comments to remain.

3. Make It Personal.

Millennials use social media to connect to people, not institutions. DO: Feature real people. Be authentic. DON’T: Don’t be afraid to be transparent and have a little fun.

4. Use Facebook with Caution.

Facebook is about connecting with friends, not making friends. Use Facebook to continue a conversation you started someplace else. DO: Create a company page or a group or a fan page for your organization or event. Use Facebook to seek volunteers, donors and fundraisers (who find other donors). DON’T OVER DO IT: When people join your group or become your fans, you can send them messages, but not too many. Make them useful.

5. Embrace Twitter.

Twitter an ideal place to to begin cultivating future donors. Do: DO: Start ‘following’ people!! Participate – ask questions and respond. Don’t: Underestimate Twitter. Yes, it's true that Millennials are underrepresented among Twitters 17 million users (Techcrunch, 5.12). Yet we don't think it will be long before they start to literally and figuratively 'get it.' Nearly one in five online adults ages 18 to 34 have ever used Twitter or another microblogging platform. The number of users is doubling every month.

6. Offer lots of ways to contribute.

According to Yankelovich Monitor, 50% of Millennials agree that regularly donating your time to help others in need is a sign of success and accomplishment. DO: Make it easy and fun to participate – flexibility is key. Don’t Over-organize: Millennials will tell you what they want –think Twestivals and ‘groundswells’ vs. big events.

7. Enable directed giving.

Millennials want to know that their giving, whatever the size, matters. Do: Provide options that allow Millennials to ‘customize’ their giving. One size fits all is not appealing. Personalize the appeal. Don’t: Expect them to contribute to the general fund. Don’t put them on the spot. Avoid direct appeal phone calls or too persistent requests.

8. Emphasize quantity over quality.

Focus on building long-term supportive relationships. DO: Re-orient to a model that encourages thousands of $25 gifts, rather than twenty-five $1,000 gifts. Don’t: Wait for them to pay off their college loans – they can make small gestures now.

9.Tailor the media to the target.

Know your audiences (current and future) and ‘court’ them appropriately using multiple touch points, including both conventional and social media. DO: Have a strategy that fits the media to the target. If you neglect conventional media, you might leave out your core supporters. Social media is for the most ‘techie’. Don’t: Over-rely on social media or expect immediate results. You may never see results. Even Twitter hasn’t figured out how it’s going to make money yet.

10. Market with them, not to them.

Think of your efforts as multiplying and activating advocates. Do: Work for ‘retweets’ - Encourage donors and fundraisers to publicize their support and progress to their friends. Find ways to give them ‘social currency’ to spend with their friends. Don’t: Wait until you have it all figured out. Put your advocates to work on your behalf. They are in the best position to know how to talk to their peers.

Marketing to Millennials in a Recession

At first it was 'a financial crisis' but now everyone calls it a 'recession'. With only 19.7% of new college grads who apply for jobs getting them and 65% moving into Mom's basement, the reality of the 'new frugality' has finally settled in with Millennials. However, new research from JWT (see chart) shows, the recession hasn't yet affected spending across the board. For adults 18-29, some things are indispensible (Internet), others less critical (dining out), and some are completely forgettable (magazines).

Marketing to Millennials now is not fundamentally different from any other time, because Gen Y has always considered itself cash strapped. (I am always amused to hear my students complain about how poor they are). Now, as they graduate and get jobs, Millennials continue to see themselves as careful shoppers, even as they outspend other generations on everything from cell phones to wine. They wouldn't think of making a major purchase without careful and exhaustive research, online and via word of mouth. One of my favorite Gen Y blog posts declared that if you are not Gen Y, you probably overpaid.

With money dearer now, and the tools for discovering preferences of friends becoming ever more accessible and powerful, I expect they will become even more careful in the future.

Of course, it's not just Millennials who are affected. According to new IRI research, the recession has created what they call the "Downturn Generation", a "new generation of Americans adopting practices similar to Depression-era shoppers, implemented both to weather the recession and to keep a close eye on spending long after the recession ends." The strategies characteristic of this 'new generation' sound a lot like practices Millennials have been implementing for years. Here's a sample:

"Consumers are becoming more resourceful and strategic when planning their purchases for meals, wardrobe, home and automobile maintenance and personal care. New approaches identified include consumers turning to the plethora of information available on the Internet to help prepare for purchases, clip online coupons and research reviews, commentary and opinions on products and services before making a purchasing decision. In fact, more than 44 percent of shoppers are using online resources to find coupons today, and 55 percent of them plan to continue this practice into the future."

How do we market to a generation of tight wads who are programmed to avoid impulse shopping? Very carefully.

According to the JWT study, "77 percent of young adults, people18-29, feel nervous and anxious about the impact of the recession."

Extra reassurance is needed for each decision, and that reassurance will be trusted most if it comes from a friend or neutral party. The key is to make sure they find the right information, not necessarily make your brand per se the go to source for the information. In other words, it’s very important to allow them to market to each other. Information is a form of social currency. Give Millennials information they value and they will share it with their friends. According to the article mentioned above, authored by Northwestern Medill Journalism student, Inyoung Hwang, here's how it could work in video games:

Morris Levy, senior at the University of New Hampshire, said even if a new product like a video game sparked his interest, he would hold off on purchasing it until he understood it better. “I’d look into it more – look at reviews online, ratings from different companies and news sources,” he said. Gary Rudman, the president of GTR Consulting, a market research firm, said video game companies will sometimes provide free clips of games to websites like IGN Entertainment. It’s a simple but successful word-of-mouth strategy that allows young people to feel like they’re finding things on their own and then talk to friends about it. “It doesn’t feel like a marketer is forcing something down your throat,” he said. “You’ve gone to a place to find it, you’ve discovered it, and you share it with the world.” Very successful brands understand there’s nothing better than having something “bubble up from the bottom,” according to Rudman.

Music and movie marketers have used this approach to reach Gen Y for years. If it is that effective for entertainment, imagine how powerful it could be for restaurants, wine, automobiles, financial services, higher education, and more.

Social Media Case Study: Urbane Apartments

Social Media: Marketing the Millennial Way

View more presentations from Mike Whaling.

Everyone knows by now that the way to reach Millennials is to go where they are, which is Facebook, MySpace, blogs, and other social media. In theory, the cost is low and the ROI potential is high, but figuring out exactly how to do it can be daunting.

Eric Brown, landlord at Urbane Apartments in Royal Oak, Michigan outside Detroit, spent the last six months cracking the code. Using the insight "no one cares about your apartments", he worked with Mike Whaling of 30 Lines to build community, reduce paid listings, enhance reputation and increase sales. No small order. The campaign (description starts page 22 of the slide share presentation embedded above) left no social media stone unturned: Facebook, Myspace, blogs, Flickr, VIP passes, logo merchandise, text messaging and more. The creative is hip and fun and gives extra meaning to the word 'community'.

The results are impresive -- 65% increase in web traffic, 4300% increase in blog traffic and a 100% increase in lease conversions. With no paid media for 6 months, Urbane is in third position on a google search for 'Royal Oak Apartments'. Most impressive, Whaley reports low manpower cost - 2 employees at 1-2 hours a day plus a few paid resident bloggers.

This case demonstrates the incredible power of social media to flatten the playing field for marketers. What I like about it is that it shows how anyone can use these tools to increase business performance if they have imagination and understand that social media is ultimately about customer service and community. Eric Brown was featured as one of four social media innovators in BusinessWeek in February. Thanks, Mike, for sharing the details.

Social Media: Time Suck or Time Well Spent?

New research by Ohio State reports a link between time spend on Facebook and academic performance. ("Facebook Use Linked to Less Textbook Time", USA Today). Students who said they used Facebook reported grade-point averages between 3.0 and 3.5; those who don't use it said they average 3.5 to 4.0. Also, Facebook users said they studied one to five hours a week, vs. non-users' 11 hours or more. Students who spend their time accumulating friends, chatting and “poking” others on the site may devote as little as one hour a week to their academic work.

There's no question that effective use of social media requires an enormous amount of time. 65% of the students in the Ohio State study who use Facebook reported using using it at least once every day, and many were accessing it multiple times. A new study of marketers who are using social media says nearly two-thirds (64%) of are using social media for five hours or more each week, with 39% using it 10 or more hours weekly. 10% are spending more than 20 hours each week with social media. In my own work, I find that 'social media creep' has set in. I now devote several hours a day to two blogs and Tweetdeck. I've been blogging for about a year now, and I devote more time to it every month. According to this study, I am pretty typical:

The survey found that there is a direct relationship between how long marketers have been using social media and their weekly time commitment. For people just beginning with social media, the median weekly time commitment is two hours per week. However, for those who have been at it for months, the median jumps to 10 hours per week. For those who report social media marketing use for years, the median is 20+ hours each week.

So what is the ROI on all that precious time that's being invested? Is it 'worth it'? I suppose it depends on what kind of reward you are looking for.

At the most basic level, social media is entertainment, that's why it's called 'media'. Does entertainment need an 'ROI'? If it replaces other entertainment like TV, sports or and video games, I would say 'no'. However, if it eats into study or work time, the answer is 'yes'.

There are more productive ways to develop social skills (see the Dentyne campaign for examples). According to my Millennial daughter, "there are plenty of people completely lacking social skills on Facebook, that's why they're on facebook rather than interacting and using said social skills." The skills students are developing in 'personal branding' also should be considered a poor tradeoff when thousands of dollars are being spent on education. But for marketers, boomers, and other professionals, the answer may depend on how social media 'rewards' are measured.

Accenture surveyed 3000 adults of all ages on their adoption of various technologies. The findings show there has been a very rapid adoption of blogging, podcasts and other social media among older consumers over the past year -- and a leveling off among Millennials. In fact, Accenture's research found "boomers increased their uptake of popular consumer technology applications at an average of 50 percent last year, nearly 20 times faster than Generation Y."

* Boomers increased their rate of reading blogs and listening to podcasts by 67 percent year-over-year. That's nearly 80 times faster than Gen Y (1 percent).

* Boomers posted a 59 percent increase in use of social networking sites, more than 30 times faster than Gen Y (2 percent).

* Boomers increased watching/posting videos on the Internet by 35 percent,while Gen Y usage decreased slightly (-2 percent).

Marketers appear to be happy with the rewards of their social media activities. 81% say their social media efforts have generated exposure for their businesses. At least two in three participants found that increased traffic occurred with as little as 6 hours a week invested in social media marketing, while those who have been doing this for years reported better results. The study also found more than half of participants reported a rise in search engine rankings. Improved search engine rankings were most prevalent among those who’ve been using social media for years, with nearly 80% reporting a rise. Though about one in two found social media generated qualified leads, only about one in three said social media marketing helped close business, and this number goes up as high as 61% for those using SM longer. Finally, most strongly agree that marketing costs dropped when social media marketing was implemented.

For non-marketing types, the rewards also appear to be worth the time. According to Accenture, "they are likely adding life-enriching experiences that they see the younger generation adopting, and striving to remain intellectually and technologically literate, versatile and job-skill competitive." Not bad for something that is also entertaining. No wonder newspapers and TV are having a hard time competing in the attention game!

In the end, how you measure 'worth it' may depend on what activity is being displaced. In my case, it is sleep. I think most Millennials would agree that is a reasonable tradeoff.

Where Millennials Get Their News

In 2003, I recommended to my client, Purdue North Central University, that they stop trying to reach prospective students with newspaper ads. Why? I didn't know anyone under the age of 25 who read a newspaper. Little did I realize how quickly this pattern would spread to other age groups.

The 2009 Pew Project for Excellence in Journalism report tells the rest of the story, and it is a bleak one for newspapers:

Newspaper ad revenues have fallen 23% in the last two years. Some papers are in bankruptcy, and others have lost three-quarters of their value. By our calculations, nearly one out of every five journalists working for newspapers in 2001is now gone, and 2009 may be the worst year yet.

The reason, of course, is a dramatic shift toward getting news online. This shift is apparent for all age groups, but is especially pronounced among Millennials.

"I get my news almost exclusively online."

"Constantly connected. Way too much so. I check the news sometimes more than it is updated."

"I usually get my news from multiple sources.I think I saw a newspaper in a museum once."

"TV stations are for old people worried about the weather."

The top three online news sites, Yahoo, CNN and MSN, all show large jumps in audience size between 2007 and 2008. Each enjoys over 35 million unique viewers a month. Two organizations that track online behavior closely, Pew and Annenberg, each shed extra light on how quickly audiences have shifted their news orientations online:

Pew: In December, 40% of Americans said they got most of their national and international news online, up 67% from 2004, when the number was 24%. That put the web ahead of newspapers (35%). Only television, cable, local and network combined, ranked higher (70%).

Annenberg: Eighty percent of Internet users age 17 and older consider the Internet to be an important source of information for them -- up from 66 percent in 2006 -- and higher than television (68 percent), radio (63 percent), and newspapers (63 percent).

As dramatic as these changes are, they are eclipsed by the larger drama of the changes in where and how people access online news. Mobile viewing, sharing stories on social networks and video sites, e-mail and RSS all make it easier for consumers to customize their news. In becoming their own 'news editors' and 'repackagers' Millennials are leading the way. Social media offers a way for Millennials to control and shape their news by filtering it through friends or reporters they trust.

“I get the news filtered from my friends.” Scott K

“Top stories is good for facebook… but not necessarily what everyone is reading… cause that's that pop stuff… I want editing… ” – Ben T

“It would be nice to be able to customize what news you want to see on facebook.”- Holly H

“Editing is very important.”—Kelsey L

As news organizations search for a business model to replace the advertiser-supported model, they could learn from Millennials who would trust a 'friend' over a news organization. By creating news around specific reporters, personalities or 'personna's', they may create value worth paying for.

Why Brands Make Poor 'Friends'

Millennials use social media -- broadly defined as Facebook, text messages, Twitter, and blogs -- to connect with other people. Each is characterized by a different degree of intimacy, with texting the most personal and Twitter the least. But they are all about people interacting with other people.

Brands and social media are not natural partners. It's not that brands are unwelcome, they just don't seem to belong. That makes them easy to ignore, like a guest who has stumbled into the wrong wedding reception. Here's how young adults described their feelings about friending brands on Twitter and Facebook in two online focus groups March 5:

"Brands that show up on facebook often look like your parents when they (unsuccessfully) try to act cool."

"Seeing a brand on facebook makes me just think is spam mail or a scam.” - Bree

“Yeah I don't really pay attention to the ads on the side of facebook. A lot of them aren’t even accurate.” – Kelsey L

“I've never clicked on the ads on the side on fbook or gmail - not out of principle, but they've just never grabbed me.” – Chris S

“I mean, I think people use it as a user-to-user network. I mean, you call your connections "friends." I don't think I've ever joined a brand's FB group -- unless you count maybe a sports teams, though those are usually fan generated …There's something really offputting about a big brand sending you a facebook group invite. I'd never accept it.” – Mike G

“I think there is a sniff test people give brands when they use such tactics. And I'm not sure what the formula is for passing it” – Courtney S

“I really enjoy being able to "friend" indie rock bands for their music, but I don't really friend any product company, or brand. I always feel like most brands are scamming you in some way when they want to be your friend.”—Andrew A

Brands are working hard to find a place on social networks. And social networks drive a lot of traffic to branded sites. According to Forrester, (Ad Age, 3.17.09) PerezHilton.com and Dlisted get more traffic from social media than from Google. But this traffic has little to do with paid marketing campaigns, and everything to do with the personalities behind them. In contrast, brands seem to have little of value to give back. Millennials are keenly aware of the motivation behind brand communication is to 'sell shit', which is an automatic turnoff.

"If it looks like you’re getting an ad, it’s a turn-off."

"I don’t need incentives … I see that as a front … I want to see that they are run by humans and I can relate to them."

I don’t think I’d friend one unless there was some explicit benefit to being its friend.

“I would want added value from a brand if they are going to connect with me. It has to be worth it. If they added value that they normally didn't because they were on social media then it would make sense.”

There is evidence that Millennials do want to connect with brands as long as the connections are genuine and of value. One study even suggested Millennials would welcome a separate channel for 'friending' brands. Research by Pace University indicates 51% of Gen Y respondents saying they’d "join a separate social network dedicated to managing brand interactions." Until such a channel comes along, marketers will continue to try to find ways to connect with Millennials and Facebook and Twitter. Here is our advice:

1. Act and Sound like a Real Person

"They need to surprise me with their content or genuine nature or candor."

"I think a possibility for twitter posts and facebook pages for companies would be to have actual people doing them – to have entertaining personalities or something."

"If you get the stars of the shows doing it it would work."

2. Interact.

"One cool use of Twitter is with starbucks where they have a person at corporate who will communicate back to you."

"Yeah Comcast has their customer service reps on twitter actually helping people."

3. Make it worth my while.

"Make me feel special."

"Yeah exclusive deals are always good, makes you feel special, get you more engaged."

"Good deals catch my attention too, especially for stories I like!"

"Two for one tickets to events always grab my attention, but again, that’s more locally oriented.

"Yea if products and brands to be my friend I want something like … 89 percent off everything."

"Make me feel smart for buying your shit."

Word of Mouth: Millennials Talk About Social Media

Over past few weeks the buzz about social media, and especially Twitter, has outbuzzed the loudest of buzz campaigns. Much of the noise seems to originate from marketers. According to Pete Blackshaw (Ad Age, 3.11.09), “nearly 30,000 Twitter users self-identify as marketers. Nearly 8,500 use the term "PR," and another 8,000 use the term "social media."

With so many marketers talking about marketing to other marketers, we wondered, ‘is anyone else really listening?’ To get beyond the marketing hype, we conducted two online focus groups to see what Millennials think of social media. We confirmed that they are not as gaga for Twitter as marketers -- just half use Twitter despite our efforts to include tweeters in the groups. And those that do were still figuring it out, although we had one enthusiast.

“I have yet to get a twitter, but I'm on the fence with it”.—Andrew A

“Twitter for news and deals, facebook for friends, I read digg to laugh at what people think is an important news article. Though I don't tweet enough.” – Dustin H

“I haven't gotten into twitter yet. I'm afraid of it. I am afraid it will consume me.” – Justin D

“I have not ventured into the land of twitter yet.” – Courtney S

“I'm a little frightened to use Twitter... it's like, should everyone know exactly what I'm doing all the time?” – Mike G

Millennials define social media very broadly as anyting where you interact with other people. That includes message boards, text messaging, Skype, and blogs in addition to Facebook, YouTube, Flickr and Twitter. It even includes Amazon Reviews and video games.

“Social media is that media that connects you socially with friends mainly and some family. it makes it social because a large percentage of your friends relative and colleagues use it too.” – Courtney S

“facebook - friends, twitter - interesting people/networking, linkedin - ponzi scheme (I don't think real networking happens this way)… I agree with Chris--amazon reviews are def social media and have big pull on influencing my purchase decisions – Dan S

“Facebook, it's learning about culture and stuff through visiting the personal profiles of people in your area, or who you know.” – Kelsey L

“When I think of social media I think of points of view… social media is media that illicits me to talk, not just take in info.” – Ben T

Instant messaging seems to have fallen into disuse, a victim of text messaging.

“I used to use AIM all the time, but I don't know very many people who use it anymore.” – Holly H

“I can't believe Yahoo! is even up there. Does anyone even use Yahoo! anymore?" – Justin D

In fact text messaging appears to be the preferred way to connect personally, relegating Facebook to the place to maintain less immediate or personal ties with distant or long ago friends.

“I also text, but only my close friends....my casual friends I message facebook.” – Bree

“Well facebook keeps me updated on their lives, but it doesn't feel very personal. I'm more of a texting person when it comes to that - Kelsey L

“Yeah, I’m with Kelsey. The internet is a tool I'm likely to use to reach old friends or casual acquaintances. People that I don't see on the day-to-day.”- Mike G “I'm also much more connected now with old friends than I ever was before e-mail and now with facebook (which seems to have replaced e-mail as the stay-in-touch-with-friends application.” – Chris S

“If I want to be more connected I call or text.” – Natalie B

While it’s theoretically possible to be ‘too’ closely connected online with friends, in practice Millennials feel they have it under control. Most Millennials say they are as connected online as they want to be -- about a 6 on a 10 point scale. Control appears to underly some of the appeal of Facebook.

“prob a 6, which is where I want to be--we have the choice to be less connected if we want--every once in a while I check out for a week or two and go on a subconscious Facebook fast and read a book or two.” – Dan S

“A 5 - not too connected, except with some who have bad facebook habits but I can turn their exposure down if I want.” - Chris S

“Yeah, I think online can keep you disconnected sometimes. It lets you keep a "safe distance" that's not there if you have to pick up the phone. – Mike G

“It's fine because I can set the terms.”- Scott K

What Would a Millennial Do? A Millennial Designed Campaign

As Millennial marketers struggle to create social media campaigns for Millennials, it is worth taking a moment to look at Millennial designed efforts.

Jen Corbett is studying creative advertising at the axis adschool, part of Media Design School in Auckland NZ. I was intrigued by her blog post today which features a team-created campaign responding to a brief to "enhance brand recognition by promoting the unique aspects of Google's “i’m feeling lucky” button. Here's Jen's description of the assignment and the team did to bring it to life:

"The brief required us to develop a film, attach a product and then amplify using strategies to invite involvement. This entire project evolved from a “secret word” brief we were given on Monday afternoon of Day 1. We were asked to develop an idea, storyboard, film, edit and present it that Friday. The emotional theme needed to be concise and effective to deliver the “word” to the viewer within the commercial time limit of 30 seconds. This had to be done without written communication of the word. We then needed to attach a product or service to it and come up with ways to generate interest in the video through amplification. We came up with “I’m Feeling lucky” and created otherbutton.com. The final edit of the video can be viewed below. At 3 weeks since conception, we’re about to wrap up the first segment of this project; but I expect we’ll be called on to evolved and adapt it throughout the year."

As part of this we created:

a youtube account with a channel for related videos

a blog where we posted various images and stories

a live auction on NZ auction site trademe

a strategy to place “I’m feeling Lucky” stickers placed near buttons (lift, pedestrian, atm etc) in the CBD

a facebook group set up to attract followers to website / video

a profile on twitter set up to attract followers to website / video

a concept for flyers “not this button” / “this button”

What I love about this campaign is how it leverages social media to get the message out. I visited each of these sites and the whole effort is striking in several ways:

1. Highly Integrated and Cross referenced: The Twitter feed appears on the blog, the Facebook group invites you to join the twitter feed. Twitter posts feature YouTube videos.

2. Invitational: The blog and facebook group invite you to submit stories of getting lucky, research on luck, adventures inspired by the campaign. I love this story:

"Dear team, after 12 long years, I have been reunited with my first love via the "I'm feeling lucky" button. If it were not for trying my luck with this other button, I would not have found him so easily. He moved all the way to Germany, and I was googling his name about a month ago. He's got a website, and it took me directly to him. If it was not for the button, we would have never reconnected - Rebecca Hobson"

3. Non-commercial: Other than a few pitches to buy "I Feel Lucky merchandise" or stickers, there is no overt sales pitch other than to use the I feel lucky button.

4. Video: Video is integral to the campaign.

5. Upbeat and Fun: The idea is happy and so is the campaign.

Dead Letters: Email Marketing to Millennials

I receive and send hundreds of emails a day and use four different email accounts to keep my personal, professor, business and consumer identities separate. In generational terms, I am a digital Neanderthal. The average high school or college student uses 2.4 emails a day according to eROI. Students, on average, read marketing emails on a "rarely to never" basis, with 61% falling into this category, says the report. Only 16% are reading marketing emails on a frequent basis, while 66% of students rarely or never take action on marketing emails.

I completely change my habits when communicating with Millennials. To reach my daughter and son quickly, text is the only way to go. My teaching assistants? Facebook messages. I once sent my TA's Amazon gift certificates to their email address. It took a suggestion to their Facebook account to look for it before they even noticed.

So what are those two emails a day about? According to eROI, it's probably got something to do with their parents. 81% got an email address for communicating with family. Students are now using email primarily to sign up for social networking sites (25%) and receive email alerts (36%) to keep up to date on what's happening on their social networks. What's clear is that email for marketing to this generation is dying, dead and buried. And who can blame them, with Cisco's latest Annual Security Report showing that 90% of email is spam.

New research among Millennials from Pace University says there may be a way to make email marketing more relevant by making it more like, well, social media.

The study of Generation Y consumers - also known as Millennials, finds that this age group would potentially welcome direct brand interactions through email, but wants more ability to control, organize and manage the interactions. Gen Y consumers are eager to see “innovative services” that allow them to better control, organize and manage email coming from brands. 78% would like their email client to automatically categorize and delete expired promotional messages. 62% would like communicate directly with retailers about their favorite products in exchange for getting the best prices from them. 44% say they’d subscribe to an email service that collected and summarized multiple offers of interest to them. 32% say they’d share promotional email offers with members inside a social network and open emails from others."

Personally, I wonder if email is the right place for 'organizing brand interactions'. Social media seems more flexible and has more sharing potential. The Pace research seems to confirm this may be more appropriate, with 51% of Gen Y respondents saying they’d "join a separate social network dedicated to managing brand interactions." This sounds like a major opportunity for marketers. Anyone listening?

Fast Food Marketers Target Missing Millennials

Everyone is cutting back on eating out these days, but Millennials are leading the way in frugality. As of March last year, 18-24 year olds visited fast food restaurants an average of 3.0 times a week, down from 3.7 times in 2007. Even more telling, 18-24's were the only group to show a decline. We expect that number to drop even farther by March of 2009.

What are QSR marketers -- other than high profile Burger King -- doing to win back this important segment? A lot it turns out.

1. Pizza Hut: Pizza chains are among the hardest hit by the recession (WSJ, "A Smaller Piece of the Pie", 2.23.09). Pizza Hut is taking direct aim at Millennials with its "Pizza Hut Interface" launched October 2008. The Interface allows Facebook users to order their Pizza Hut favorites without ever leaving Facebook. According to AllFacebook, Pizza Hut is the first national pizza chain to offer this method of ordering. In 2008, Pizza Hut awarded $50 gift cards to Pizza Hut friends on Facebook on a weekly basis. Currently, Pizza Hut is running a “Passport to Italy Sweepstakes” through its Facebook page to celebrate the launch of new Tuscani Lasagna. According to Bob Kraut, VP of Marketing Communications, Pizza Hut is pleased with the results.

In the last month, we’ve gone from 700,000 fans to 750,000 fans, which makes us the largest restaurant fan page on Facebook. We want to strike a fine balance between communicating with our fans and giving them meaningful offers, without overcommunicating to them and becoming a nuisance. We want people to see our Facebook page not as something they become a fan of and then forget about, but a place they come back to on a regular basis for the latest news and deals from Pizza Hut. To have a live measurement of the number of fans we have interacting with our brand and the ability to create an ordering application within the site makes Facebook an extremely effective online channel for us. We’re very pleased with the results we’ve seen so far.

2.Culvers: Last month Culver's launched its first ever national ad campaign, starting with E!'s pre-Academy show. The premise is that there is an 'outbreak of niceness' at Culver's. While this is not Millennial-specific message, it is definitely Millennial-friendly. (Pepsi, anyone?) The campaign includes social media: a Twitter feed and Facebook page, although only the eClub sign up is on their home page and the effort is not as integrated as the Pizza Hut effort. Company vice president Chris Contino: "We still aren't sure that it works for quick-service restaurants, because so much of the buying is impulse, but we're hoping to hit on something that makes sense."

3. Arby's: Arby's is betting on new products, especially an "All-American Roastburger" sandwich positioned against hamburgers. Launched in February, it will sponsor an NCAA tournament bracket on Facebook through CBS SportsLine. Arby's spokeswoman: "Facebook engages more than 80 million active users, and 1.5 million people signed up for Facebook NCAA tournament brackets in 2008." Online ads on CBS SportsLine and NCAA.com this month will support the effort, along with March Madness network TV and radio (CBS, Sirius). A PR program for called "Change Your Clock/Change Your Burger" on March 8 will promote a free Roastburger with the purchase of a soft drink. It will be interesting to see how (whether) they leverage the 'news' value of daylight savings on Twitter...

4. Taco Bell: Taco Bell is the second favorite fast food restaurant among 18-24 year olds, right behind McDonalds. Millennials love Taco Bell for their ingenuity in mixing the same basic 7 ingredients into a constant stream of 'new' products (Crunch Wrap Supreme, Fully Loaded Nachos). This gives them a constant stream of 'news', which combined with lots of items for $.79, $.89 and $.99 makes for a experience you can enjoy frequently. Taco Bell has smartly leveraged their late night hours to connect with Millennial bands and their fans with their 'Fourth Meal' promotion, "Feed the Beat".

Social Media: Why Twitter Matters to Marketers

One of my Twitter buddies, Stuart Robertson (aka 'designmeme'), tweeted me this bit of wisdom yesterday:

@carol_phillips Facebook is the backyard BBQ, Twitter is the Convention, MySpace is the NightClub, LinkedIN is the Job Finding Club. :)

I promptly 'retweeted' his idea to my 179 'followers'. That ended an exchange that started like this yesterday morning:

designmeme: How To Turn Twitter Followers Into Friends http://tr.im/gQmg

carol_phillips: @designmeme Not sure I want followers as 'friends'. That's what I have Facebook for. Twitter brings me acquaintances with common interests.

This exchange illustrates what I have discovered to be Twitter's primary attraction, which is to have "conversations" with people you would otherwise never meet. designmeme is on the faculty and web manager for University of Guelph-Humber. We are unlikely to have met anywhere other than cyberspace. We don't care about what each of us had for lunch or even want to know any details of each other's lives. I didn't even know or care what his real name was until I started writing this post. But I like what Stuart has to say, and I must have said something that caught his attention, as well. And this is precisely the reason I think Twitter will be more important than Facebook: Twitter is not about friends, it's about strangers.

The first lesson I learned about Twitter is to refrain from answering the prompt,what you are doing? No one, outside of those who love you, cares two tweets about what you are doing. But acquaintances and your larger network just might care about what you are reading, thinking and talking about. And that's where Twitter comes in. Twitter is about ideas; you don't need to be 'friends' to want to share ideas. In that sense, designmeme is right, Twitter is a convention, a virtual watercooler where interesting conversations are happening day and night. The conversations are easy to find and make little demands. You can just listen, or you can chime in.

In contrast, Facebook is the backyard BBQ. You can't stand silent on Facebook you have to participate; Facebook is where you connect with people you know and like, aka, your friends. The in-house sociologist at Facebook, Cameron Marlow, revealed that most users actually communicate with a relatively small circle of friends. While many people have hundreds friends on Facebook, they still only actively communicate with a few.

The average male Facebook user with 120 friends: Leaves comments on 7 friends’ photos, status updates, or wall Messages or chats with 4 friends

The average female Facebook user with 120 friends: Leaves comments on 10 friends’ photos, status updates, or wall Messages or chats with 6 friends

The average male Facebook user with 500 friends: Leaves comments on 17 friends’ photos, status updates, or wall Messages or chats with 10 friends

The average female Facebook user with 500 friends: Leaves comments on 26 friends’ photos, status updates, or wall Messages or chats with 16 friends

I prefer Twitter to Facebook because I have other ways to connect with friends.

Most Millennials I know have yet to use Twitter. They prefer to talk to their friends online and Facebook is perfectly designed to do just that.It therefore comes as no surprise that the average Twitter user (Twitterer?) is older than the average Facebook user.

Which brings me to my point (yes, I have one): While they are lumped together as 'social media', LinkedIN, Facebook, Twitter and Myspace are fundamentally different in ways that will be increasingly important for marketers to understand.

Because Facebook is intimate, it is inherently unfriendly to commercialization and marketers will continue to struggle to find a way to leverage it effectively. (The exception will be 'events, such as Starbucks 'Red' event in December. Advertising a specific event (party) on a specific day makes perfect sense.) Because Twitter is about anonymity and connecting with people you don't know very well, it is inherently much more friendly to breaking news, self-promotional messages, causes and ideas. I predict Twitter will surpass Facebook fairly quickly as a marketing medium.

Marketers: Start your tweeters.

Millennial Target: Ford Fiesta

Ford just announced it is seeding 100 German-built Fiestas with hand-selected Millennial 'agents'. In exchange for this largesse, the agents will be expected to Twitter, Facebook, Blog and Flickr their experience to their friends. According to the press release, the cars are rolling off the line today. Starting this spring, the agents will perform monthly 'missions' and report on them to their friends and to Ford for six months via social media.

Ford is the only one of the big three U.S. car-makers who is not looking to the government for bail out loans, which appears to be a good business decision. According to today's Wall Street Journal (Ford Benefits as GM Chrysler Tumble), they are also the only U.S. car-maker who has grown share in the past four months.

The car is designed to appeal to younger, Ecologically Conscious and Economically Challenged drivers. The giveaway effort is intended to both build buzz as well as provide Ford with feedback prior to the 2010 official launch. Ford claims to have already received 1500 applications on its www.fiestamovement.com web site. The application asks applicants to submit a two to five minute video explaining why they want the opportunity to become part of the Fiesta Movement. Applications will be accepted through March 13, 2009.

We’re looking for an elite crop of drivers to take the wheel: people with a strong presence on the web, an ability to craft a compelling story through video, and a hunger for adventure. As a driver, you’ll receive monthly secret assignments from Ford Mission Control that will take you to places you’ve never been, to meet people you’ve never met, and to experiences you’ll never forget. And you’ll bring your friends and followers along for the ride. We’ll hand you the keys to your own Fiesta for a six month period, and we’ll even handle the gas and insurance for you, too.

Is this move into 'social media marketing' a smart move? A lot depends on execution, but the strategy seems sound. There are no guarantees that Ford will pick the right Millennials, that the missions will be of interest to other Millennials, and that they will even like the car. But, assuming $10,000 per car (a guess) the effort probably costs about what it would cost to make a commercial -- in other words, a pretty good deal and worth the risk.

Resume for Millennial Strategist Position

Scott Kelly wanted to apply for the Millennial Strategist position at IBM. here is the position desscription:

Millennial Strategist description:

This position is to increase the number of IT professionals from the millennial generation actively using developerWorks as their primary source for technical information, community, and learning. This position requires first hand knowledge of the millennial generation, their learning patterns and behaviors, and community preferences as well as an academic background in statistical analysis and marketing to consume market intelligence, combine it with first hand knowledge, and develop marketing plans to recruit and engage this generation of IT professionals in developWorks and get them using IBM technology in their jobs.

Scott created this video in response. Here is his cover letter:

Hello PK, After seeing the Millennial Strategist position, the following question came to mind, "How would a true Millennial Strategist apply for this position?" In answer to that question I have created a Blog entry seeking comments, YouTube video, Tweet on Twitter, LinkedIn Group, and Facebook group. While those channels are powerful in getting my message to you (and the world), the real power is in the public's ability to respond. So in that spirit I invite those who have worked with me to comment on my ability to add value as a Millennial Strategist. I appreciate your feedback.

I think he should get the job, don't you, PK?

The Facebook Juggernaut

This week I lost another kid to Facebook. Like most Millennials, my 18-year old daughter has been addicted for years, but my son, who just turned 15, had so far found it uncompelling. No longer. This week, he went from just a handful of friends to over 140 friends. Like his sister, he now spends hours uploading photos, posting remarks on friends' walls and making new connections.

According to Gallup poll data, there are dramatic differences in amount of time spent on the internet by age group. Those spending at least one hour a day drops steadily with each successive age group, from 62% for Millennials to 24% for their grandparents. (See chart) If my kids are any indication, the 'Facebook Effect' is a large part of the difference. (My dad likes his computer, but doesn't know what else to do once he's done with email).

According to Nick Burcher, who follows Facebook and other social media site usage, Facebook's U.S. user base grew from 27.8 million users in July to 42.0 million in December, a 51% jump. Internationally, its user base grew even faster. Altogether, Facebook added an eyepopping total of 47 million new users in the last 6 months of 2008. The largest non-US user bases are in the English speaking Canada and UK. (For more on international use of Facebook relative to Twitter, see Brendan Mitchell's Jan 11 blog post.)

There is no doubt that Facebook dominates the lives of many Millennials, but whether this pattern will continue indefinitely is still up for debate. In our research among young adults we are starting to hear some reservations about Facebook as the end all be all social network application. While Twitter is not really registering yet among young professionals we talk with, we are hearing that they think of Linked In for professional use, and fear that their Facebook profiles may come to haunt them as they advance in their lives and careers.

Big News! Millennials Disproportionately Influential

Okay, so it's not big news. The Obama win shows how influential young voters are in politics. Research from Rubicon Consulting group shows how influential they are in marketing. Rubicon's report, "Online Communities and their Impact on Business: Ignore at Your Peril" provides these statistics on just how important they are:

About 80% of the user-generated content on the web, including comments and questions, is created by less than 10% of web users, a group we refer to as the most frequent contributors (MFCs). The rest of the web community sits back and watches the interactions as a mostly-passive audience that only occasionally injects a few comments"

Half of all MFCs are under the age of 22.

MFC's look a lot like Millennials: They're more ethnically diverse; more technically skilled; more likely to be single; more likely to work in technology, entertainment, or communication companies; and more likely to be Democrats.

The Rubicon report emphasizes that far from being a problem to be solved, the fact that most web communities are dominated by a few active voices and a lot more 'voyeurs' is something marketers can leverage by targeting MFC's. There really are influencers - a lot of people are reading the opinions of MFC's and using them in their purchasing decisions across a variety of product categories, especially electronics, vacations, movies, restaurants and jobs. The chart below shows that this is especially true for Millennials. For nearly every category, the influence of online word of mouth is strongest for those 18-22.

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.