Marketing to Millennials – Don’t Phail!Joe KoufmanVP of Business Development and Marketing

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What are Millennials?

Born from 1985-2000 (currently ages 9-24)

Millennials are the first generation to grow up digital – coming of age in a world where computers, the internet, videogames, and cell phones are common, and where expressing themselves through these tools is the norm.

- Jonathan Fanton, President, MacArthur Foundation

Agenda

• What is Generational Marketing?

• Who THEY Are

• Why THEY’RE Important

• How THEY Changed Media Consumption

• Our Field Research

• Reaching THEM

• Trends for Discussion

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WHAT ISGENERATIONALMARKETING?

JUST A FAD?

IMPORTANT

YOUTH MARKETING?

TRENDS CUSTOMIZESHIFT HAPPENS

PERSPECTIVE

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Don’t Be THAT Guy:

“You know what I like about marketing to teenagers?

My BRAND keeps getting older, but they stay the same age.”

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AMBITIOUS

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WHO THEY ARETREND-SETTERS

HIGHLY CONNECTED

LAZY

SELF-CENTERED

SPOILED / CODDLED

THE FUTURE

INFLUENCERS

YOUR KIDS

DIGITAL NATIVES, NOT IMMIGRANTS

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Protected and Empowered• Protected with car seats, bike helmets, knee pads, etc.

• Parents negotiating everything from pre-school to college to employment opportunities

• They have been given every choice imaginable, every advantage

• They demand choice, personalization, the world on their terms

• Passionate desire of parents to bear and raise them

• Name their mother as their number one role model, and their family as the most important thing to them

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Connected• 97% of college students own a computer

• 94% own a cell phone

• 75% have a Facebook account

• 60% own a portable music device

• They are using 3-5 pieces of technological equipment at the same time

• Not a brand or trend that they don’t know about

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Accepting and Diverse• Although 80% of Boomers describe

themselves as “White”, only 55% of Millennials refer to themselves as “White”

• Defined not by color of their skin or religious affiliation, but by the content on their iPod

• Acceptant of gay marriage, interracial relationships

• Gender differences less pronounced - men interested in fashion, fitness and grooming and women interested in sports, adventures and careers

• Enjoy being around people from ethnic or racial groups other than their own (African Americans 92%, Hispanics 89%, Non-Hispanic Whites 96%)

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Less Religious

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Less Conservative

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Trusting of Government

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WHY THEY’RE BUYING POWER

INFLUENCERS

YOUR NEXT CUSTOMER

IMPORTANTBUZZ MAKERS

THE FUTURE

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Large Population

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Influential

• Involved in all family decisions since about the age of 4

• Influence everything from food choices, family vacations or family vehicles

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Influence Purchases – Harris Interactive (2007)

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Buying Power

• “Prematurely affluent generation” poised to become the next great luxury consumers

• Last year teen spending along totaled $179 billion

• Purchased by and for children 4-12 tripled during the 1990’s

• Always on the lookout for the newest thing that they want NOW

Millennial Generation Spending Power

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CHANGES IN

MEDIAC TO IPMUSN ON

TIVO

MEDIA SNACKING

YOUTUBE

SKYPEHULU

138 Channels and nothing on

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Changes in Media Behavior• Media snacking and the fragmentation of the media landscape

• End of primetime discussion, seeking entertainment in new, shorter formats

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In 1965, 80% of 18-49 year-olds in the US could be reached with three 60-second TV spots.

In 2002, it required 117 prime-time commercials to do the same.”

- Jim Stengel, Global Marketing Officer, Proctor & Gamble

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MEDIUMAge

18-24Magazines 60%

TV/Broadcast 45%

Newspapers 30%

TV / Cable 55%

Face-to-Face 49%

E-Mail Advertising 37%

Direct Mail 26%

Radio 31%

Internet Advertising 41%

Outdoor 16%

Top 10 Media that Trigger an Online Search

Source: BIGresearch , July 2007, for the Retail Advertising & Marketing Association (Sample Size: 15,430, age 18+)

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L IEVI T,IN TTO U ES

INTERACTIVE

IT’S A LIFESTYLE

IT’S NOT JUST A TOOL!

DIGITAL NATIVES, NOT IMMIGRANTS

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E UO IV L TONTALKING

OF

A NEW KIND OF SOCIAL ANIMAL

INVOLVEMENT

FEEDBACK

RELEVANCY

CONNECTEDOPENNESS

TMI

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Likely to use new communications tools

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Influencing Behaviors of Other Demographics

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BE AUTHENTIC

CHANGE HOW YOU TALK

REACH OUT THROUGH NEW CHANNELS

REACHINGKEEPING A PULSE ON TRENDS

ABOUT YOURSELF

BE IN A SITE, NOT ON A SITE

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Marketing Executives Say:

1. TALK IN A NEW WAY

THE BOOTY CALL

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NSFW

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2. CHANGE HOW YOU TALK ABOUT YOURSELF

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3. REACH OUT THROUGH NEW CHANNELS

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4. USE THE NETWORK

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5. BE OPEN

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6. BE AUTHENTIC

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7. KEEP A PULSE ON TRENDS

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8. BE IN A SITE, NOT ON A SITE

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Ways to reach Millennials:

1. Talk to in a new way

2. Change how you talk about yourself

3. Reach out through new channels

4. Use the network

5. Be open

6. Be authentic

7. Keep a pulse on trends

8. Be in a site, not on a site

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WORKFORCECULTURE

LC SA H

ENTITLED

AMBITIOUSNEED POSITIVE FEEDBACK

CONNECTED

IMPATIENT

YOUR EMPLOYEES

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Changing Corporate America

• Because of their life experiences, Millennials have new expectations when entering the work force

• Expect company provided PC (76%), mobile phone (48%), internal company instant messaging (50%), access to social networking sites (40%), company provided virtual meetings (42%)

• 91% state that being able to work with “newer, innovative technologies” in the workplace would make them more likely to consider a potential job opportunity

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UH OH!!

WAS IT ALL A DREAM?

WHAT HAPPENS NOW?!

ECONOMIC

WHAT WILL I DO NEXT?

HOW THE

MAY IMPACT THIS GENERATIONCRISIS

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Millennials respect American business

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Email: jkoufman@engauge.comLinkedIn: LinkedIn.com/in/JoeKoufmanTwitter: @GumboShowJoeText: ‘Engauge’ to 50500

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Thank you!