Millennials: The Gen Y Tsunami is Here | DMW Reports

8/14/2019 Millennials: The Gen Y Tsunami is Here | DMW Reports

1/12

D M W R E P O R T S consumer insight report: 1.0146.SP

MillennialsT h e G e n Y T s u n a m i i s H e r e


2/12

D M W R E P O R T S

TheMillennialsComeoAgeWhetheryoucallthemMillennialsorGenerationY,

individualsbornbetweenabout1978and1993areaconsumerorcetobereckonedwithmore

than75millionyoungadultswithdistinctly

dierentoutlooks,values,andpreerencesthan

theirolderGenXsiblingsortheirBabyBoomer

parents.Andwithinthis75million,wendanew

levelodemographicandethnicdiversity

(38percentothemarenon-Whiteaccordingto

BradSago),portendinganintegrationoculture-

drivenvaluesandviewpointsthatmaysignicantly

redenewhatitmeanstobeanAmerican.

TheoldestotheMillennialsbegangraduating

romcollegeinthespringo1999andare

nowintheirearly30s,whiletheyoungestare

approachingcollegeeligibility.Regardlesso

theirage,thisgroupstandsdistinctlyapartrom

othergenerations.Theyveinheritedvaluesand

viewpointsromtheirBoomerparentsandGenX

siblings,butputaspinonthemthatreectstheir

ownuniqueexperienceset.Theyvewatchedtheir

worldgothroughboomsandbusts,grownup

amidaseeminglyendlessseriesoarmedconicts,

andassimilatedinormationromamultitudeo

sourcesincludingmediachannelsthatsupport

communications innovation, personal content

development,andsharingamongpeersand

colleagues.

Formarketers,theMillennialsrepresentamulti-

acetedchallengethatdeeseasycategorization.

Beyondtheirdemographicdiversity,marketers

needtorecognizedistinctbehaviors,preerences,

attitudes,andvaluesthatsetthisgroupapartrom

therest.Weneedtorealizethatconsumer-driven

marketingintegrationisnotadreambutacritical

reality.Andthisstartswithunderstandingwho

theseyoungadultsreallyare.

MillennialsTheGenerationotheChildMillennialsarethedarlingsotheirBoomerparents.Theyhavecloserelationships

withtheirparentsandcomeromastructuredliestylethatmovedthemrom

activitytoactivitywithewbreaksinbetween.Thewordentitledisotenused

todescribethisgroup.Theyarethemosthovered-overgenerationever,withtheir

parentsearningthetitleohelicopterparentsduetounprecedentedparental

supervisionandadvocacy.Butevenwiththisintenseinvolvementontheparto

theirparents,theyareanachievinggeneration,withstronggoalsandaspirations.

Likeotherearliergenerationalcohorts(anaggregationoindividualswho

experiencethesameeventwithinthesametimeinterval),Millennialshavebeen

shapedbytheirowntimesandexperiences.Muchothisshapingoccursintherst

20yearsolie,aterwhichtimetheinuenceoexternalactorsbeginstodecrease.

ClaireRaines(consideredthenationsleadingexpertonGenerationX),listseight

ltersthroughwhichindividualsviewtheworld.FortheMillennials,theseare:

u Focusonchildrenandamily

u Scheduled,structuredlives

u Multiculturalism

u Terrorism(includingColumbine&9/11)

u Heroism

u Patriotism

u Parentadvocacy

u Globalism


3/12

GreenConsumersMillennialsdescribethemselvesasgreen,thinkingandactingwithenvironmentalconsiderationsandmodelingtheirpurchasing

behavioronthesevalues,accordingtoGreen Teens,aJuly2007whitepaperauthoredbyDavidCard,VPoResearchandSeniorAnalyst

orJupiterResearch.Thepaperrevealsthat38percentoteens[ages13-17]onlineareconcernedabouttheenvironment,with

15percentconstitutinganespeciallycommittedgroupoGreenTeens.Thissmallerhardcoreelementisespeciallyresponsivetoonline

communications(MediaPostsMediaDailyNews).Thisshouldnotcomeasasurprisetoanyonewhospendstimewithteensand

20-somethingswhoruntheirlivesincyberspaceandotenresenttheintrusionopaper.

Theirlivesarealsoshapedbytechnology.Theyarewellpreparedorauturewithsmarter

appliances,cars,andmore.Mobilityintermsocommunicationswillbecommonplace.

Contentcreationwillexplode.Andonlinesearchwillbebettermorecontextualandsocial.

Marketerswillbeabletoreachcustomersandprospectswherevertheyareonlineor

ontheroadwithcontentregardingeverythingromsciencetoanynumberospecic

products.TheMillennials(andsubsequentgenerations)willalwaysbeintouchwithyou

andyourcompetition.

TheycombinetheteamworkethicotheBoomersandthecan-doattitudeothe

veteransandthetechnologicalsavvyotheXers.Atrstglance,andevenatsecondglance,

GenerationNextmaybetheidealworkorceandidealcitizens(GenerationsatWork).

MiLlennial


4/12

D M W R E P O R T S

Goingastepurther,Millennialsarealsoattracted

bycorporatecause-relatedinitiatives.Accordingto

theConeStudy:

u 83%willtrustacompanymoreiitis

socially/environmentallyresponsible

u 74%aremorelikelytopayattentiontoa

companysmessageithecompanyhas

adeepcommitmenttoacause

u 69%consideracompanyssocialand

environmentalcommitmentwhen

decidingwheretoshop

u 89%arelikelyorverylikelytoswitch

romonebrandtoanother(priceand

qualitybeingequal)ithesecondbrand

isassociatedwithagoodcause

Whatthismeanstodirectmarketersisthat

consumersmayeelkindlytowardsthose

companiesbelievedtobeworkinghardtoward

becominganenvironmentallyriendly,paperless

workplaceineverythingromInternet

marketingtoonlineapplicationsand

customerservice.

Causemarketingwillbeanimportantparto

themarketingmix,establishingasharedvalues

connectionwithMillennialsthattranscends

product.Donecorrectly,italignssocialand/or

environmentalawarenesswithkeybrand

promises.Andwalkingthetalkresonateswiththis

generation.Butpickyourcauseswisely.Usuallythe

widertheappeal,thebetter.

Accordingtotheresearch,Millennialshave

shownthattheywillresearchthebrandsand

thecompaniestheyuseandarewillingtomove

romonebrandtoanotheritheyeeloneismore

devotedtothecausestheysupport.

TechnologyMillennialsaretherstgenerationtopossesstechnologicalcapabilitiessuperior

totheirownparentsromadisconcertinglyyoungage.Theygrewupwith

ever-advancingtechnologiesandnaturallyassimilatedtheseintotheirliestyles.

TheyaredevotedtotheInternet,usingittoresearchproductsandservices,doing

comparisonshopping,andcontactingtheirsocialnetworkoradviceandguidance.

TheirtechnologyismobileandlikeatechnoStevenStills,itheycantbewith

thedevicetheylove,theylovethedevicetheyrewith(Pew).

Atthesametime,theMillennialsarealsodeeplyimpactedbytheDigitalDivide.

Neverhasthegapbetweenthehavesandthehave-notsbeensogreat.ThereisawholegroupoMillennialscomingoageseparateromtheexperience(Raines).

Thepointormarketersisclear:Whiletechnologywillbeacriticalpartothemedia

mix,itcannotentirelyreplacemoretraditionaltechniquesevenorthe

wiredMillennials.

However,thosewhoareconnectedareactiveInternetbuyers,andareevenmore

activeintheiruseotheInternetasaresearchtoolbothtoresearchtheproduct

andtoasktheirriendsabouttheirexperiences.


5/12

MediaChoicesAccordingtoaYahoo!andCaratInteractivestudy,

Millennialseachweekspend,onaverage:

u

6hoursreadingbooksandmagazines(notorschool)

u 13.6hourswatchingTV

u 12hourslisteningtotheradio

u 7.7hourstalkingonthephone

u 16.7hoursontheInternet

(notcountinge-mailing,which

clearlyincreasesthistime)

Thesenumbersarechangingdailyasprint

publicationsdisappearromdrivewaysand

newsstandsandsmaller,aster,andcheaper

technologiesbecomethenorm.Theresno

questionthatthelandscapewillbeverydierent

injustaveryewyears,andkeepingupcanmake

yourheadspin(atleastiyourenotaMillennial).

Thetech-andashion-orwardconsumer

segmentwillleadustoaworldoplatorm-

agnosticcontent,uidmobilityomedia

experiences,individualizedpricingschemes

andanendtothetraditionalconceptorelease

windows(IBM,TheEndoTVaswe

Knowitstudy).

MiLlennial

Televisiontraditionallytheworkhorseobroadmarketadvertisingischangingtoo.Whenaskedwhichcompetitivechallengestheyexpecttobe

mostsignicantinvetosevenyears,networkexecutivesworldwidecited

nontraditionalthreatslikeInternetportals(suchasGoogle,Yahoo!,andAOL),and

contentownersgoingdirect.Whilethedegreetowhichmainstreamuserswill

watchinternetTVisdebatable,itisclearthatmorelosteyeballstranslatesinto

urtherweakeningothetraditionalmedianetworkmodel.(IBM)

Onatypicalday,ayoungpersonselectsrom200+cabletelevisionnetworks,

5,500consumermagazinetitles,10,500radiostations,30million+Websites,and

122,000newlypublishedbooks.Therearecurrently240milliontelevisionsetsintheU.S.2millionowhichareinbathrooms!(BorntobeWiredstudy).

MillennialswatchTVdierentlythantheirpredecessors.Eighty-sevenpercento

millennialswhohaveaDVRsaytheyregularlyastorwardthroughcommercials

andaremorelikelytobeswitchingchannelsandmulti-taskingwhilethe

televisionison,indicatingtheyarelessocusedthanboomers(Cynopsis:Digital).

Theydowatchtelevisionshowsbutotennotonatelevisionset.They

turntotheirever-presentcomputer,scanaolderodownloadedcableand

networkprogramming,maketheirselection,thensitbackandenjoy.Millennials

areweanedondigitaltechnologyandmediaconvergence(andskipping

commercials).ThereisashittowardanincreaseinInternetconsumption

andawayromscheduledprogramming.Thishastremendousimplications

ordirectresponsetelevision(DRTV),mostimportantlydemonstratingthe

needtodevelopalong-termstrategyorTVinwhichexibilityisthekeyto

accommodatingever-changingtechnology.


6/12

D M W R E P O R T S

GiveMillennialsthetoolstheyneedtothrive.Theymaydreamolivinglarge,but

thesedreamsarebalancedbypragmatism.Theyknowtheyneedtoolstomake

dreamsareality.Financialproductsandservices,orinstance,canbepositionedto

helpthemachievetheirdreamsonancialsecurity.

Whereverandwheneverpossible,allowMillennialstointeractandprovideinput.

Theyexpecttobeheard.UsetheInternet.Handoutashdriveswithaclear,

targeted,andenvironmentallysoundmessage.Computers,instantmessaging,

e-mail,interactivemedia,andcellphonesprovideinstanteedbackandinstantinormation.Andtheyrewaitingormessages24/7.Millennialshavethetoolsand

theinclinationtoeditandcustomizecontent,andthemoreacompanyisableto

alloworandembracethisinput,thebetter.

ThenumberoalternativemediaembracedbyMillennialsromcellphonesto

iPodstoblogstoTwitterpresentsarealchallengetomarketers.Thegoodnews

isthatmostothesemediaarereeintermsodistribution,unlikedirectmailand

othermoretraditionalmedia.Thechallengehoweveristointegrateeachmedia

withinanoverallstrategydesignedtoreachbusinessgoals.

SocialnetworksareparamountinthelivesotheMillennials,providing24/7access

totheirriends,amilies,andlikely,yourcompany.Whatshardtomeasure,and

whatweretryingtomeasure,istheimpactogroupthink,ogroupmentality,

andthetendencyowhatwemightcallthedemocratizationosocialinteraction

andhowthatchangesthisgenerationsrelationshipwithalmosteverythingthey

comeincontactwith,saysJackMcKenzie,seniorvicepresidentorFrankN.Magid

Associates,amarketresearchandconsultingrmspecializinginthenewsmedia

andentertainmentindustries.McKenzieheadsthermsMillennialsStrategyGroup.

NowWhat?AsurveybyHarrisInteractiveandKidPower

Xchange(2004)askedmarketerswhoworkinyouth

eldstocompareMillennialstoyoungpeopleatthe

sameage10to15yearsago.Othesemarketers:

u 91%considerMillennialsmorepowerul

asconsumers

u 84%saidMillennialsaremore

demandingasconsumers

u 79%viewedMillennialsasmoresavvy

consumers

u 60%saidMillennialsaremoreinuential

onthedecisionsoothers

u Only47%thoughtMillennialsaremore

likelytopesterotherstobuythings

Sohowdowegettothesesmart,savvy

consumers?

OneYankelovichMonitordiscussedtheleading-

edgeMillennialsthosewhostartedturning

27in2006andlabeledthemtheyoungadult

Echoes.Ina2006YankelovichMonitortitled

EchoBoomers16-26,theysuggest:

u Letemmashitup:Echoesexpectto

haveavoiceintheproductsandservices

theyconsume.

u Avoidhypeinanyshapeorormthey

willreactbadlyandtelltheirriends

andneverorgetthat,incyberspace,

messagescanreachmillionsinseconds.

u Never,nevertrytoimposestylerom

theoutsideindividualitytrumpsconormity.

u Connectionsareeverythingandtheyare

otenvirtual.Imaginewaystoleverage

yourbrandsabilitytobringtheright

peopletogetherandcreateaspecial

community.Shoppinghastraditionally

beenasolitaryeventoratmost,aday

outorasmallgroup.Thisis,quitesimply,

nolongertrue.


7/12

MiLlennial

Whatwereseeingisawholedierentrelationshipwithmarketingandadvertisingwhichobviouslyhasrippleeects

throughtheentireeconomy,saysMcKenzie.ForMillennials,relianceandtrustinnontraditionalsourcesmeaning

everydaypeople,theirriends,theirnetworks,thenetworktheyvecreatedaroundthemhasamuchgreaterinuenceon

theirbehaviorsthantraditionaladvertising.

Withregardtotelevisionadvertising,theIBMstudysuggeststhatGiventhemarketimperativesandheightenedoperating

complexities,weexpectvaluetoshitthroughouttheindustrycreatingnewwinnersandlosersandtheuturewillonly

avorthosewhopreparenow.


8/12

buckswasusedinsteadodollars.Thiscareullytailoredoernaturallyappealstoa

youngeraudience,andalternativemedicinecanresultincostsavingsortheinsurer

awin-winsituation.

Becausethespotistargetingayounger,Web-savvyaudience,theBluesWeb

addressisprominent.Toappealtotheyoungerprospect,too,thecommercialstrays

romtraditionalBlueCrossBlueShieldormats.ThemusicisupbeatwithaSeineld-

liketune,andthecameracutsarequickandrequent.Theultimatemessageis

tocallorvisittheWebsiteoradditionalinormationabasic,buteective,lead

generationeort.

Asistrueinusingtelevisionorree-standinginsertstotargetanolderaudience,

targetingayoungergrouprequirescontinualtestingtodetermineacontrol

position.Thegoalousingabroad-reachingmediumistohaveyoungerprospectscost-eectivelysel-select.Usingthisapproach,itispossibletoreachandinuence

ayoungerprospectoryourproductorservicewhereleadshavebeentraditionally

difculttoreach.

Millennialsarejustbeginningtomaketheirmark.Gainingaootholdinthe

Millennialmarketisnotonlysmartbusinessintheshortterm,itisastrategythat

willholdacompanyingoodsteadasthelietimevalueotheseyoungconsumers

growsoverthedecades.

CaseinPointOneBlueCrossandBlueShieldplanreporteda15

percentjumpinsubscriberssinceitbeganairing

directresponsetelevisionspotstargetedatthe18-

to34-year-oldmarket.Thespotswereaimednot

onlyatrecruitingnewhealthcaresubscribers,but

atrebrandingthehealthinsurersnameandimage

orayounger,hippermarket.

Leveragingtheactthatmanyyoungerpeople

todayrespecttheopinionsotheirparents,the

spotmakesthepointthatthisisthecoverage

trustedbyyourmomanddad.Theinsurerknows

thatthisyoungeraudienceshouldrecognizethe

nameandcorporatelogoandasaresulto

rebrandingeortspresentsanopportunity

torelatethemtoamoreinnovativeandexible

healthcareoption.

Tohelpthisyoung,healthymarketrealizethat

healthcoverageisbothneededandaordable,

theplanoeredwasdesignedspecicallytobe

low-priced(about$66permonth)andtoocus

heavilyonalternativemedicinesuchasyoga,

massagetherapy,andacupuncture.Languagewas

careullytargetedtoappealtoayoungeraudience;

orinstance,themonthlypremiumwascompared

tothepriceoconcerttickets,andtheword

D M W R E P O R T S


9/12

MiLlennial

Reerences/ForMoreInormationAkalin,Burak,Perormance Improvement or the New Generation,WorkorcePerormanceSolutions:TheBusinessoTalentManagement,

May2006.

Hunter,Warren,UsingDirectResponsetoMarkettotheInvincibles,Health Insurance Underwriter,December2005.

Jayson,Sharon,TheMillennialsComeoAge,USA Today,June29,2006.

Raines,Claire,ManagingMillennials,GenerationsAtWork:TheOnlineHomeoClaireRainesAssociates,2002.

Strauss,William&NeilHorn,Millennials Rising,VintageBooks,2000.

Tresser,Tom,WhattheWorldMightLookLikeWhentheMillennialsRunIt,www.alternet.org,August2,2007.

ZellerJr.,Tom,AGenerationServesNotice:ItsaMovingTarget,New York Times,January22,2006.

The End o TV as we Know it An Industry Perspective,studybyIBMInstituteorBusinessValue,2006.

(www-935.ibm.com/services/us/index.wss/ibvstudy/imc/a1023172?cntxt=a1000062&re=endotv)

BoomersandMaturesMixMediaUsage,The eMarketer Daily Newsletter,December17,2007.

The Millennial Generation: Pro-Social and Empowered to Change the World,2006ConeMillennialCauseStudy.

(www.solsustainability.org/documents/toolkit/2006%20Cone%20Millennial%20Cause%20Study.pd)

Younger Online News Consumers Are Not Newspaper Readers,TheCenterorMediaResearch,March20,2008.

Decoding Generational Dierences: Fact, fction or should we just get back to work?,SpecialEditionintheTalentMarketSeries,Deloitte,

2008.(www.deloitte.com)

The Online Shopping Psychology and Expectations o Millennials,BradSago,D.B.A.,presentedatthe16thAnnualEducatorsConerence

DirectMarketingEducationalFoundation,August4,2004.

Lie Online: Teens and technology and the world to come,LeeRainie,Director,PewInternet&AmericanLieProject,speechataPublicLibraryAssociationannualconerenceinBoston,March23,2006.

Born to Be Wired: The Role o New Media or a Digital Generation,commissionedbyYahoo!andCaratInteractive(researchconductedby

HarrisInteractive),2003.

10 Things: Echo Boomers,YankelovichMONITOR,2006.

The Millennials are Coming,CBSNews,November11,2007.

Young Invincibles OK with risk o no insurance,www.cnnhealth.com,March20,2009.

Websites o Interest

www.current.com(AlGorescreation)

www.generations.com

www.labelnetworks.com


10/12

WhoAretheMillennials,a.k.a.GenerationY?

Demographicsu Nodenitiveagreementonbirthyears;experts

saysomewherebetween1978and1995;

mostsay1981to1993

u ChildrenotheBabyBoomers

u YoungersiblingsoGenXers

u Largestgeneration(75million)aterthe

Boomers(80million)comparedtothe

GenXers(40million)

u 38%oMillennialsidentiythemselves

asnon-White

u Positionedinhistorytobethenext

herogeneration

Characteristicsu Techno-savvy

u Connected24/7

u Sel-condent

u Optimistic

u Hopeul

u Independent

u Comortablysel-reliant

u Determined

u Goal-oriented

u Success-driven

u Liestyle-centered

u Diverse

u Inclusive

u

Global-,civic-,andcommunity-mindedu Pullingtogether

u Service-oriented

u Entrepreneurial

Source:DeloitteConsulting

D M W R E P O R T S


11/12

theyareanachievinggeneration,withstronggoalsandaspirations.

MiLlennial


12/12

Call-outs Boomershavegiventhemthecondencetobe

optimisticabouttheirabilitytomakethingshappen,and

Xershavegiventhemjustenoughskepticismtobecautious

Iyouwanttorememberjustonekeywordtodescribe

Millennials,itsrealistic.(LynneC.LancasterandDavid

Stillman,When Generations Collide)

thoseage18-24are38percentmorelikelythanaverage

tonotreadaprintnewspaperatallduringatypicalweek.

(ResearchBrieromtheCenterorMediaResearch)

Thetech-andashion-orwardconsumersegmentwilllead

ustoaworldoplatorm-agnosticcontent,uidmobility

omediaexperiences,individualizedpricingschemesand

anendtothetraditionalconceptoreleasewindows

Companiesmustgetinrontochangeorconsumers

threatentoleavethembehind.(TheEndoTVaswe

Knowit,IBMBusinessConsultingServices)

likeatechnoStevenStills,itheycantbewiththedevice

theylove,theylovethedevicetheyrewith.(Pew)

AboutDMWDirect

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The ECHO Award-winning agency which ranks

among the top 50 in the prestigiousAdvertising Age

Top 50 Direct Marketing Agencies list provides

strategic planning, creative, data analytics, broadcast,

media, production, ulfllment, and Internet multi-channel

direct response marketing solutions. Industry experience

includes insurance, fnancial services, consumer products,

B2B, and non-proft. DMWs Chairman and CEO, Warren

Hunter, can be reached at 877.744.DMWW or via e-mail

at [email protected]. Visit DMWs Website at

www.dmwdirect.com.

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Millennials: The Gen Y Tsunami is Here | DMW Reports