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Engaging across generations Global Webinar Presentation February 2017

AdReaction Gen X, Y and Z - Engaging across generations

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Page 1: AdReaction Gen X, Y and Z - Engaging across generations

Engaging across generationsGlobal Webinar Presentation February 2017

Page 2: AdReaction Gen X, Y and Z - Engaging across generations

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About AdReaction AdReaction studies have been conducted since 2001, delivering insights on perceptions of advertising, particularly digital formats. The last two AdReaction campaigns (Video Creative in a Digital World and Marketing in a Multiscreen World) are still available.

This latest global study explores generational attitudes to ads, with a particular focus on the new, emerging Gen Z cohort.

In this webinar we will cover:• Challenges in connecting with Gen Z through advertising• What each generation thinks of different ad formats• Strategies for overcoming ad avoidance

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What generational insights does this study provide?

How do generations differ in their media attitudes and behaviours?

What do the generations think of different ad formats?

What makes the generations more receptive to advertising?

How are audiences avoiding ads?

Why can ads perform better/ worse among younger/ older people?

How should we be adapting our media plans to connect with younger people?

How do I know if branded content will be effective for my target audience?

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Understanding new generations is (always has been) important

Tastes change, fashions change, and the advertiser has to change with them. An idea that was effective a generation ago would fall flat, stale, and unprofitable if presented to the public today. Not that the idea of today is always better than the older idea, but it is different – it hits the present taste.”

Thomas J. Barratt"the father of modern advertising”, in 1907!

Page 5: AdReaction Gen X, Y and Z - Engaging across generations

5 Formative influences provided by Kantar Futures. Also note, that Gen Y may also be referred to as Millennials and Gen Z as Centennials and that age definitions may vary slightly.

Age breaks reflected in this survey are to ensure global consistency across the 39 countries where this study was fielded.

Who is Gen Y? Who is Gen X?

Formative influences:• 9/11 and the War on Terror• Environmental uncertainty • Email and increasing digital capabilities

Formative influences:• Economic recessions• AIDS epidemic• Introduction of cable TV and PCs

Who is Gen Z?

Formative influences: • Financial crisis and economic volatility• Political polarization• Specter of terrorism• Mobile from birth; hyper-connected world

35-49 year olds 20-34 year olds 19 years old and under

Haile Gebrselassie (1973)

Zhao Wei (1976) Sachin Tendulkar (1973)

Justin Trudeau (1971) Mark Zuckerberg (1984) Lionel Messi (1987)

PewDiePie (1989) Jennifer Lawrence (1990)

Simone Biles (1997) Malala Yousafzai (1997)

Sasha Obama (2001)James Charles (1999)

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The study comprised three distinct research elements which have been combined in this report.

• Conducted in 39 countries.• Average 600 interviews per country.• Total sample size = 23,907 interviews

- Gen Z (16-19 year olds) = 7,087 - Gen Y (20-34 year olds) = 8,490 - Gen X (35-49 year olds) = 8,330

QUANTITATIVE• 31 ads tested in 10 countries• Total sample size = 8,986 interviews• Approximately 100 Gen Z, 100 Gen

Y, 100 Gen X per ad- (11 TV, 8 Facebook video, 12

YouTube video)

AD TESTING• IDEABLOG online forums in 3

countries (US, Germany & China)• 30 participants per country.

QUALITATIVE

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GENERATION Z ARE A CHALLENGEGen Z are hard to engage (more likely to avoid ads), and less accessible via many traditional media. They also refuse to live up to simple stereotypes.

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It’s very hard to get Gen Z to engage

Q. What actions have you taken to block or avoid ads on your desktop computer/ in your web browser/ on your mobile phone?

16-19 20-34 35-49

52 50

41

Claimed: “Changed settings / installed plug-in / app”

Base: Gen Z 7087, Gen Y 8490, Gen Z 8330

Gen Z are more likely to use blocking technology

16-19 20-34 35-49

50 47

38

Claimed: “do something else / look away”

Base: Gen Z 7087, Gen Y 8490, Gen Z 8330

Gen Z are more likely tophysically avoid ads

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It’s very hard to get Gen Z to engage

Q. What actions have you taken to block or avoid ads on your desktop computer/ in your web browser/ on your mobile phone?

16-19 20-34 35-49

9.510.9

12.6

Observed: Skip time among skippers (seconds)

Based on 12 YouTube ads

Gen Z click fast... And they click often...Attitude: “I skip ads whenever I can”

Base: Gen Z 7087, Gen Y 8490, Gen Z 8330

Gen Z

Gen Y

Gen X

56

50

49

Gen Z

Gen Y

Gen X

47

40

37

Desktop:

Mobile:

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This often means that even very involvingand distinctive ads can engage Gen Z less

Geico “Spy”

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0%

20%

40%

60%

80%

100%

Video percentage

0% 20% 40% 60% 80% 100%

Gen XGen YGen Z

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Gen Z attitudes can’t easily be stereo-typed… but there are a few attitudes which set them apart

XYZ labels signify 90% significant differences

Gen Z similar Gen Z Gen Y Gen XI'm very careful with the information I share in social media, I really value my digital privacy 44 Y 41 47 ZY

I embrace diversity and individuality 43 YX 40 41

I only enjoy content that feels honest and real 40 Y 37 40 Y

Gen Z differentI like to have always-on access to music via digital platforms 43 YX 30 X 25

I like to share my activities, interests and hobbies online with my friends 29 YX 24 X 22

Others' opinions of me are as important as my own 27 YX 21 20

I love selfies 23 YX 15 X 9

Page 12: AdReaction Gen X, Y and Z - Engaging across generations

12MC1AB. Total Hours Watching Television (not Online)MC1AB. Total Hours Reading Magazines (not Online)MC1AB. Total Hours Reading Newspapers (not Online)MC1AB. Total Hours Listening To The Radio (not Online)

MC1AB. Total Hours Travelling Or Walking Out And AboutMC1AB. Total Hours Using The Internet On A Laptop Or PC For Something Other Than EmailMC1AB. Total Hours Using The Internet On A Mobile Device For Something Other Than EmailXYZ labels signify 90% significant differences

Gen Z are more likely to spend time on mobile devices, less likely to spend time with TV and radio

One hour or more per day Gen Z Gen Y Gen X

Laptop 75 75 78ZY

Mobile 74YX 66X 55

TV 51 59 74ZY

Outdoor 58X 57X 55

Radio 22 30Z 36ZY

Magazines 9 13ZX 11Z

Newspapers 8 13Z 12Z

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WHAT THE GENERATIONS THINK OFDIFFERENT AD FORMATSAll generations prefer traditional ads. Gen Z are most discriminating: damning of invasive online formats but most positive towards skippable, innovative and interactive formats.

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Hierarchy of ad receptivity is similar across generations;all prefer traditional. Gen Z generally less positive.

Q: How would you describe your attitude towards each of the following formats of advertising?

Base: Without Doesn't know XYZ labels signify 90% significant differences

Row AverageHigher than row average

Lower than row average

Stat testing at 90% confidence level: Net +ve % Gen Z Gen Y Gen X

Billboard/Outdoor ads 43 44 X 44

Magazine ads 40 44 Z 48 Z

Newspaper ads 37 42 Z 46 ZY

Cinema ads 34 YX 33 X 29

TV ads 26 33 Z 36 Z

Radio ads 16 27 Z 31 Z

Product placements in movie or shows 16 X 14 X 10

Direct mail (postal) -1 6 Z 10 Z

Online search ads -3 10 ZX 7 Z

Online display ads (laptop or PC) -5 4 ZX -1

Online display ads (mobile) -13 -3 ZX -9

Video ads (laptop or PC) -13 -2 ZX -7 Z

Video ads (mobile) -19 -8 ZX -14

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Gen Z audiences are receptive to well-designed traditional ad formats. They baulk at invasive digital formats but like innovative approaches.

China Germany US

Traditional

“Ads on billboards are well designed and attractive. It’s a relaxing moment to see these ads while waiting for bus or someone.”

“Billboard ads can be quite funny, I like to look at them every now and then. It does not force itself on you. You can just walk past it and if it is interesting you can stop and look at it.”

“I feel as though a lot of effort goes in to making [TV ads] exciting and interesting and they generally accomplish their task. I often find myself interested in something on TV purely because of the quality of the ad and not because of the product.”

Digital

“Ads on video sites are the most disgusting among all. I have watched a 20-min animated video which contains an ad of 120s and one more 20s ad in between. Only registering to be member can skip that.”

“Sponsored lenses are fun to play around with and to unwind, pass time”

“Even though [mobile rewards] are ad[s] it's still giving you something in return for taking the time out of your day to look at it”

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All generations prefer video formats which provide control;Gen Z are the most discriminating

Q: How would you describe your attitude towards each of the following formats of online video advertising?

Base: Without Doesn't know XYZ labels signify 90% significant differences

Row AverageHigher than row average

Lower than row average

Stat testing at 90% confidence level: Net +ve % Gen Z Gen Y Gen X

Mobile app reward 41 YX 32 X 25

Social click-to-play 20 X 19 X 10

Skippable vertical video 18 X 15 X 9

Skippable pre-roll 15 YX 12 X 8

In-banner click-to-play 14 14 12

Skippable mobile app pop-up 5 X 4 X -2

View to play -5 X -3 ZX -12

Social auto-play -22 -15 ZX -22

In-banner auto-play -27 -17 ZX -24 Z

Non-skippable pre-roll -36 -26 ZX -32

Mobile app pop-up -42 -31 ZX -39

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Beyond basic information, Gen Z particularly like to interact with campaigns

Q: Are you more positive towards ads when you can…?

XYZ labels signify 90% significant differences

32

31

28

27

22

20

17

16

14

14

31

25

25

22

23

19

16

15

15

15

35

22

25

17

23

16

12

13

15

11

Types of interactivity:

Find out more about the brand (e.g. link to website)

Vote for something to happen

Choose my favorite among several options

Take decisions (about the ending, the story, the characters)

Like, share or comment on the ad

View supplementary content (e.g. making of, or longer version )

Interact via an assignment (upload a photo, create a video)

Contribute (e.g. online forum to discuss issues raised in the ad)

Sign up for more content from the brand

Join a conversation about the campaign (e.g. via a hashtag)

Y

Y

Y

X

X

X

X

YX

YX

X

X

X

X

X

YZ

X Z

Z

Gen Z Gen Y Gen X

Z

X

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CREATIVE DEVELOPMENT: WHAT KIND OF ADS DO GEN Z PREFER?Though expressions of it vary across cultures, the same elements are expressed globally: humour, music, design

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Humour helps capture and hold attention of Gen Z

This ad is cool and fun. It shows that everyone is not perfect either physically or with his character. Everyone can find a boyfriend / girlfriend thanks to Meetic” (female 16-19)

Liked: the false notes of the woman who sings. imperfection of man with his socks and his big belly. Liked least: the embrace of women” (male 16-19)

0%

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60%

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100%

Gen Z Gen Y Gen X

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Meetic “Imperfections”

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Music is a defining characteristic of good ads for Gen Z

The tone is good, it is dynamic, it is young, he is flamboyant, incredible fiction!!” (male 16-19)

The obvious reference to the cult 80s movie ‘Flashdance’ is quite nice because the music is good and the choreography pleasant to watch” (female 35-49)

0%

20%

40%

60%

80%

100%

Gen Z Gen Y Gen X

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hare

Video percentage

0% 20% 40% 60% 80% 100%

Cillit Bang “Mechanic”

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Design matters more to Gen Z

I absolutely loved the ad. The music, the animations, everything is very engaging and loveable, as well as being very different from most of the biscuit commercials out there. I'm not particularly a big fan of Oreo, but this ad even made me want to try it.” (male 16-19)

Very cool ad, the cartoon style catches attention, the drawings and music fit well together and are very cute. Congratulations to the brand. A very nice commercial to see.” (female 16-19) 16-19 20-34 35-49

35%

26%

18%

Love it Oreo “Wonderfilled”

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However, age is just one part of the equation.The key is often not age, but attitudes.

I LOVE IT. SO BEAUTIFUL TO WATCH IT. A beauty brand making a commercial like that is to get a standing ovation. Congratulations. Besides showing that women are  worth more than flowers, it talks about Valentina who is a wonderful woman. It was beautiful, congratulations” (female 16-19)

I find this politically correct way of inserting gays in our daily life very boring. Transgenders are not women! Do not put them in the same category. Having this ad on YouTube where the audience is mainly of teenagers is not responsible. They have the right to be what they want to but we should not glamourize it. If everyone becomes gay one day we'll have the end of humanity and L'Oreal won't have any one to sell to” (female 20-34)

16-19 20-34 35-49 Very open

minded

Not open minded

3532

34

43

13

% Enjoyed it a lotL’Oreal “Transgender” -

YouTube

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Implications and recommendations

For media planners: • Don’t under-estimate the power of traditional media to reach Gen Z; they are reached by and open to billboards, and they

are still more open to TV ads than digital ads, even though they spend more time online.• Stop using invasive, non-skippable online formats which are hated by all generations, especially Gen Z.• Start experimenting with more innovative online formats such as mobile rewards video & sponsored lenses. • For Gen Z, make it mobile(-friendly), make it interactive.

For creative developers:• If Gen Z are part of your target audience, pay particular attention to humour, music, and design.• For video, ensure your ad delivers early impact and intrigue to avoid being skipped.• Identify the shared attitudes and values you want to use to connect with people of all ages.

To overcome the challenge of engaging across all generations….

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The online deliverable containing free country-level data is here: www.millwardbrown.com/adreaction

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Contact us if you need help with the challenges raised by this study

Marketer Challenge #1:

CREATIVE

Developing creative and content that will resonate with different

generational audiences

RELATED SOLUTIONS:• Pre-Link™ • Link for Digital Portfolio• Link for TV• Link for Video

Marketer Challenge #2:

MEDIA

Executing an efficient media strategy to reach audiences in the right mindset, moment and place

RELATED SOLUTIONS:• Connected Life• Brand Lift Insights• CrossMedia

Page 26: AdReaction Gen X, Y and Z - Engaging across generations

Engaging across generationsGlobal Webinar Presentation February 2017