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.

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!

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.

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.

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.