Marketing to Millennials 2016 | Page 1

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  • Marketing to Millennials 2016 | Page 1

  • Marketing to Millennials 2016 | Page 2

    MARKETING TO MILLENNIALS 2016

    Several recent studies have shown that millennials are less brand loyal than preceding generations. A recent Daymon Worldwide global study1 showed that only 29% of millennials usually buy the same brand, compared with 35% of Gen Xers. Furthermore, an Accenture study from last year showed that millennials change banks more than twice as often as other consumers.2

    As a result of this lack of brand loyalty, it is critical for marketers to understand how to reach the millennial generation. Fluent conducted a nationwide survey of 1,769 millennials and 1,191 non-millennials to better understand millennials device usage and interaction with various digital media channels, and their relationship to impacting purchasing decisions.

    1 Daymon Worldwide, The Next World: How Millennials Will Shape Retail, June 20, 20162 The Financial Brand, May 12, 20153 Daymon Worldwide, Ibid

  • Marketing to Millennials 2016 | Page 3

    While still the top network, Facebook is far less influential with millennials than it is with older generations. 43% of millennials say Facebook is the social media platform they use most often, compared with 61% of non-millennials. Among the youngest cohort of millennials, 18-24 year olds, other networks including YouTube, Instagram & Snapchat have nearly caught up to Facebook.

    Promotional emails were the most effective digital advertising medium asked about in the survey at influencing millennial purchase decisions. Over 2 in 3 (68%) of millennials said that promotional emails impacted their purchase decisions at least on a few occasions.

    Millennials show somewhat less concern about data privacy and security than older generations. There are double digit gaps between the percentage of millennials and non-millennials who are very concerned about data privacy (37% vs. 51%) and data security (42% vs. 55%), respectively.

    We hope that you will enjoy the report and welcome your feedback! The Fluent Research Team research@fluentco.com

    Smartphones are the most popular device with millennials as 7 in 8 millennials own one. They spend the highest proportion of their online time using their smartphones (51% spend all or most of their online time) and use them to make purchases as much as any other platform (49% at least monthly).

    Despite the dominance of smartphones, computers remain an important purchase device for millennials. Nearly 1 in 3 (32%) millennials use computers to make purchases at least weekly. However, younger millennials, aged 18-24, use computers less often to make purchases than their older counterparts.

    Millennials own smartwatches at nearly twice the rate of the general population. 44% say they own smartwatches compared with only 23% of non-millennials.

    Apple is the preferred device brand for millennials. Despite having less disposable income, millennials are more likely than older generations to purchase Apple products across all four device categories that we asked about.

    SOME OF THE KEY FINDINGS INCLUDE:

  • Marketing to Millennials 2016 | Page 4

    AS SMARTPHONES HAVE BECOME UBIQUITOUS, MILLENNIALS ARE ADOPTING SMARTWATCHES QUICKLY

    Smartphones are dominant devices across the entire population. 87% of both millennials and non-millennials own a smartphone. Millennials are slightly less likely to own computers and tablets, but nearly twice as likely (44% to 23%) to own smartwatches as older generations.

    % WHO OWN THIS TYPE OF DEVICE

    % WHO USE APPLE PRODUCT AS THEIR PRIMARY DEVICE IN A CATEGORY

    MILLENNIALS CHOOSE APPLE MORE FREQUENTLY

    Apple products, particularly the iPhone, are disproportionately popular with millennials.

    100%

    80%

    60%

    40%

    20%

    0

    40%

    30%

    20%

    10%

    0

    Millennials (18-34) Non-Millennials (35+)

    Millennials (18-34) Non-Millennials (35+)

    Smartphone

    Apple iPhone

    Tablet

    Apple iPad

    Computer

    Apple Mac

    Smartwatch

    Apple Watch

    87%

    38%

    18% 19%

    13%

    68%59%

    44%

    87%

    29%

    13%16%

    6%

    70%64%

    23%

  • Marketing to Millennials 2016 | Page 5

    MILLENNIALS, PARTICULARLY WOMEN, SPEND THE LARGEST SHARE OF THEIR ONLINE TIME ON THEIR SMARTPHONES

    Millennials spend the greatest portion of their online time using their smartphones, followed by computers, tablets and smartwatches.

    IF OWN DEVICE: WHICH BEST DESCRIBES WHAT PORTION OF THE TIME YOU SPEND ONLINE IS SPENT USING YOUR [DEVICE]?

    (Those who do not own device are assumed to answer none.)

    Millennial women spend a greater portion of their online time on their smartphones than millennial men.

    IF OWN SMARTPHONE: WHICH BEST DESCRIBES WHAT PORTION OF THE TIME YOU SPEND ONLINE IS SPENT USING YOUR SMARTPHONE?

    (Those who do not own device are assumed to answer none.)

    100%

    80%

    60%

    40%

    20%

    0

    100%

    80%

    60%

    40%

    20%

    0

    Smartphone

    All

    Tablet

    Men

    Computer

    Women

    Smartwatch

    Nearly allMostSomeVery littleNone

    Nearly allMostSomeVery littleNone

    24%

    24% 27% 21%

    27%

    27%34%

    22%

    22%

    22%23%

    21%

    7%

    7%5%

    8%

    20%

    20%11%

    28%

    14%

    15%

    16%

    9%

    46%

    15%

    9%

    24%

    17%

    35%

    11%

    9%10%8%

    62%

  • Marketing to Millennials 2016 | Page 6

    MILLENNIALS MAKE THE MAJORITY OF THEIR PURCHASES ON COMPUTERS AND SMARTPHONES

    Computers are about on par with smartphones as the devices used to make online purchases. Smartphones are somewhat more likely to be used at least monthly, while computers are somewhat more likely to be used at least weekly.

    IF OWN DEVICE: WHICH BEST DESCRIBES HOW OFTEN YOU MAKE PURCHASES USING YOUR [DEVICE]?

    (Those who do not own device assumed to answer once a year or less.)

    Younger millennials make purchases less frequently with computers than older millennials.

    IF OWN COMPUTER: WHICH BEST DESCRIBES HOW OFTEN YOU MAKE PURCHASES USING YOUR COMPUTER?

    (Those who do not own device assumed to answer once a year or less.)

    100%

    80%

    60%

    40%

    20%

    0

    100%

    80%

    60%

    40%

    20%

    0

    Smartphone

    All

    Tablet

    25-29

    Computer

    18-24

    Smartwatch

    30-34

    Multiple times per weekWeeklyMonthlyA few times per yearOnce a year or less

    Multiple times per weekWeeklyMonthlyA few times per yearOnce a year or less

    15%

    13% 10% 13% 17%

    13% 12% 9%

    15%

    19%16%

    18%24%

    19% 14%9%

    19%

    10%10%

    14%6%

    10%10%

    10%

    17%

    13%17%

    11% 13%

    13%9%

    8%

    34%

    45% 47% 44% 40%

    45%55% 64%

  • Marketing to Millennials 2016 | Page 7

    Millennials (18-34)

    By Age By Gender

    WHICH OF THE FOLLOWING SOCIAL MEDIA NETWORKS DO YOU USE MOST?

    WHICH OF THE FOLLOWING SOCIAL MEDIA NETWORKS DO YOU USE MOST?

    FACEBOOK NOT QUITE AS IMPORTANT FOR MILLENNIALS, BUT IS STILL THE TOP SOCIAL MEDIA PLATFORM OVERALL

    Facebook is losing share to other platforms at a greater pace among millennials than non-millennials.

    Millennials (18-34) Non-Millennials (35+)

    60%

    50%

    40%

    30%

    20%

    10%

    0Facebook LinkedIn PinterestInstagram YouTube Snapchat Twitter

    43%

    18%

    12% 9% 9% 7% 2%

    61%

    10% 11%6% 6% 4%

    2%

    18-24 25-29 30-34

    Facebook

    Instagram

    YouTube

    LinkedIn

    Pinterest

    Snapchat

    Twitter

    36%

    24%

    12%

    7%

    9%

    9%

    3%

    41%

    17%

    14%

    10%

    8%

    9%

    1%

    50%

    13%

    11%

    10%

    8%

    5%

    2%

    Women Men

    Facebook

    Instagram

    YouTube

    LinkedIn

    Pinterest

    Snapchat

    Twitter

    51%

    17%

    9%

    6%

    7%

    8%

    2%

    36%

    18%

    16%

    11%

    10%

    7%

    2%

  • Marketing to Millennials 2016 | Page 8

    OTHER SOCIAL MEDIA PLATFORMS ARE EFFECTIVELY COMPETING WITH FACEBOOK FOR MILLENNIALS

    With the sole exception of Facebook, all social media platforms are more popular with millennials than non-millennials. The largest gap between millennials and their older counterparts is with Snapchat. 1 in 4 millennials use it every day versus just over 1 in 10 (11%) among non-millennials.

    WHICH BEST DESCRIBES HOW OFTEN YOU USE [SOCIAL MEDIA PLATFORM]?% Saying Everyday

    Snapchat & Instagram are especially popular with younger millennials. At least 3 in 10 18-24 year olds use each platform every day.

    WHICH BEST DESCRIBES HOW OFTEN YOU USE [SOCIAL MEDIA PLATFORM]?

    % Saying EverydayBy Age

    Facebook now trails YouTube in the percentage of millennial men using it every day.

    WHICH BEST DESCRIBES HOW OFTEN YOU USE [SOCIAL MEDIA PLATFORM]?

    % Saying EverydayBy Gender

    50%

    40%

    30%

    20%

    10%

    0Facebook Snapchat PinterestYouTube Instagram Twitter LinkedIn

    Millennials (18-34) Non-Millennials (35+)

    41%

    35%

    29%

    51%

    36% 34%

    28%

    25%

    17% 17%13%

    49%

    20% 20%

    32%34%

    26%22%

    11% 9% 8% 7%

    50%

    40%

    30%

    20%

    10%

    0

    50%

    40%

    30%

    20%

    10%

    0Facebook FacebookInstagram InstagramYouTube YouTubeSnapchat Snapchat

    38% 36%34%

    30%

    36% 35%

    24%

    19%

    48%

    33%

    26%

    20%

    Women Men18-24 25-29 30-34

  • Marketing to Millennials 2016 | Page 9

    All of the time

    Some of the time

    DIGITAL ADVERTISING CHANNELS HAVE SIMILAR LEVELS OF INFLUENCE ON MILLENNIAL PURCHASES

    Promotional emails edge out other digital mediums in their impact on millennial purchase decisions. 68% of millennials said their purchase decisions were impacted at least occasionally by promotional emails, compared with 63% for ads on social media networks and ads on news and entertainment websites, and 56% for promotional text messages.

    HOW FREQUENTLY DO [MEDIUM] IMPACT YOUR PURCHASE DECISIONS?

    CONCERNS THAT MILLENNIALS IGNORE EMAILS ARE UNFOUNDED

    Counteracting the notion that millennials dont respond to email marketing, promotional emails influence millennials better than older generations. 10% more millennials than older generations (26% to 16%) say promotional emails are influential all or most of the time.

    HOW FREQUENTLY DO PROMOTIONAL EMAILS IMPACT YOUR PURCHASE DECISIONS?

    0 20% 40% 60% 80% 100%

    Promotional emails

    Ads on social media networks

    Ads on news and entertainment websites

    Promotional text messages (SMS)

    All of the timeMost of the timeSome of the timeOn a few occasionsNever

    Millennials (18-34) Non-Millennials (35+)40%

    30%

    20%

    10%

    0On a few

    occasionsNeverMost of the

    time

    13% 13%

    22%20%

    32%

    8% 8%

    23% 24%

    36%

    13%

    12%

    11%

    11%

    13%

    12%

    13%

    14%

    22%

    20%

    20%

    17%

    20%

    19%

    19%

    14%

    32%

    37%

    37%

    44%

  • Marketing to Millennials 2016 | Page 10

    MILLENNIALS ARE LESS CONCERNED ABOUT DATA PRIVACY THAN NON-MILLENNIALS

    Millennials are less concerned that companies will not respect privacy when using personal information than older generations. Millennial women and older millennials show greater concern than millennial men and younger millennials.

    HOW CONCERNED ARE YOU THAT COMPANIES WILL NOT RESPECT YOUR PRIVACY IN USING YOUR PERSONAL INFORMATION?

    37%

    51%

    25%

    23%

    38%

    26%

    Millennials Non-Millennials

    Very concerned Somewhat concerned Not concerned

    By Age By Gender

    18-24

    25-29

    30-34

    Women

    Men

    35%

    38%

    44%

    43%

    32%

    31%

    20%

    20%

    27%

    24%

    34%

    42%

    36%

    30%

    44%

    0 20% 40% 60% 80% 100%

    0 20% 40% 60% 80% 100%

  • Marketing to Millennials 2016 | Page 11

    Both millennials and non-millennials find that data security is somewhat more worrisome than privacy concerns. Again, millennials have fewer security concerns than non-millennials and millennial men and younger millennials have fewer data security concerns than their older and female millennial counterparts.

    HOW CONCERNED ARE YOU THAT COMPANIES WILL FAIL TO KEEP YOUR PERSONAL INFORMATION SECURE?

    Very concerned Somewhat concerned Not concerned

    Millennials Non-Millennials42%

    55%

    22%

    20%

    36%

    25%

    By Age By Gender

    18-24

    25-29

    30-34

    Women

    Men

    42%

    42%

    47%

    43%

    32%

    24%

    22%

    18%

    27%

    24%

    34%

    36%

    35%

    30%

    44%

    0 20% 40% 60% 80% 100%

    0 20% 40% 60% 80% 100%

    SECURITY IS A GREATER CONCERN THAN PRIVACY

  • Marketing to Millennials 2016 | Page 12

    ABOUT FLUENTFluent, LLC, an IDI company (NYSE MKT: IDI), is an industry leader in people-based digital marketing and customer acquisition, serving over 500 leading consumer brands and direct marketers. Leveraging a massive reservoir of proprietary audience data, as well as millions of real-time survey interactions with consumers every day, Fluent enables advertisers to more effectively target and acquire their most valuable customers, with precision, at a massive scale. The companys headquarters is in New York City, with a satellite office in Washington, DC.

    fluentco.com I sales@fluentco.com I 646.647.2966

    This Fluent survey was conducted online within the United States on August 2, 2016 among 2,960 adult US residents (aged 18 and up) including 1,769 millennials (aged 18-34) and 1,191 non-millennials (aged 35 and older). Respondents were randomly selected. Due to rounding, percentages may not always add up to 100%. Fluents proprietary ad serving technology includes a real-time survey module that was used to facilitate the data collection for this study.

    METHODOLOGY