8095 REFRESHED -...

8095® REFRESHED The evolving role of brands for the world’s

largest and most impactful generation

Continuing the 8095® Conversation

Edelman 8095® is an insights group studying

the Millennial generation, born between 1980

and 1995, to understand their evolving

relationship with brands.

In 2012, we refreshed our research with a

survey of 4,000 Millennials in 11 countries.

• Millennials in 2013

• Why Millennials Matter To Marketers

• Global Trends

• 8095® – Where We’ve Been

• 8095® 2.0

• New data and insights

• Implications for marketers

The Millennial Generation Goes By Many Names

Millennials in 2013

• The oldest are 33 years-old, the

youngest are 18

• Life defining moments include

the Global Recession, 9/11,

Asian Tsunami, Arab Spring,

Facebook, smart phones

• First generation that may be

worse off economically than

their parents

• Most diverse and educated

generation in history

Their World Is Smaller, More Connected

of Millennials across all 11 markets surveyed see their

country as being influential on the world stage.

*(Edelman Berland 8095 2.0 Survey 2012)

Why Millennials Matter To Marketers

BIG: The largest generation alive today

• 1.8 billion globally1 (out of 7 billion world population)

• 75% of workforce by 20252

INFLUENTIAL: Impact purchase decisions of peers & parents

• Will outpace Boomer earnings by 2018 ($2.5+ trillion spending power)3

• 74% say they influence purchase decisions of other generations4

UNIQUE: The first inherently digital generation

• Don’t know a world without the Internet or smart phones

1. (U.S. Census Bureau International Database 2012)

2. (Business and Professional Women’s Foundation 2011)

3. (Harris Interactive and Deloitte study 2011)

4. (Edelman Berland 8095 2.0 Survey 2012)

Millennials are more likely to

recommend products and start

trends…more involved in pop

culture and activities that would

compel them to try new products

and recommend them to friends.

-MINTEL, WORD OF MOUTH AND VIRAL MARKETING

Trends That 8095ers

Are Leading Today

Global Urbanization For the first time in world history, more

people live in cities or suburbs than rural

locales1.

Implication Millennial identities will be closely tied to

the cities they live in, and marketers need

to customize and target engagement.

1. United Nations Department of Economic and Social Affairs/Population Division

World Urbanization Prospects: The 2011 Revision

Experiences Over Stuff The economy is forcing Millennials to

delay purchases and demand a new

level of value from the brands they buy.

Implication Marketers must demonstrate how their

products or services enable life

experiences and deliver value.

Rise (or fall) of the Millennial Dad Traditional gender roles are shifting.

Six in 10 college students are female1, and men are taking over more household and

purchasing responsibilities.

Implication Marketers should lessen the focus on gender and other traditional audience

segmentation. Appeal to the new blended nature of humanity and to the audiences

influencing your target.

1. (Digest of Education Statistics, 2010)

Where We’ve Been

In 2010, Edelman launched 8095®, an insights group founded on an eight-country study of the Millennial generation, born between 1980 and 1995.

The goal? To understand their relationship with brands, the actions they take on behalf of brands and how those actions create new opportunities for marketers.

8095®

The benchmark 8095® study in 2010 revealed four insights.

Brands are a partnership and form of self-expression

Information is a key to influence

Taking action on behalf of brands is a core value

There is a reverberation effect taking place online, offline and

increasingly on mobile devices

is the #1 personal

identifier Millennials are

willing to share online.

Brands are a Partnership and

Form of Self-Expression

1 in 3 look for

brands to make a

positive impact on

the world.

*(Edelman Berland 8095 Survey 2010)

Of Millennials consult four or

more sources of information

when making brand purchase

decisions.

Information is a Key to Influence

*(Edelman Berland 8095 Survey 2010)

Taking Action on Behalf of

Brands is a Core Value

take action

on behalf of their trusted brands.

are brand loyal and

keep purchasing brands they like.

*(Edelman Berland 8095 Survey 2010)

Average number of text messages young

Millennials send every month1.

Reverberation Effect Taking Place

Online, Offline And Increasingly On Mobile Devices

1. The Nielsen Company, 2010

2. Keller Fay Groups TalkTrack, U.S. July 2010 – June 2011

Weekly volume of word-of-mouth

impressions. Of which, 13.5 billion are

offline and 1.2 billion are online2.

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8095® 2.0

In October 2012, Edelman 8095® and

research partner Edelman Berland

surveyed 4,000 Millennials in 11 countries

A Caveat

A challenge in defining Millennials is that they are progressing

through fundamentally different life stages.

Millennials are not a monolithic bloc.

The best Millennial study is directional rather than absolute, and digs

deep into the behaviors and cultural nuances of Millennials in

individual countries.

8095 attempts to give a snapshot of commonalities that tie the

generation together.

8095® 2.0

The rise of realism, with a twist.

Compared to the 2010 study, we see a shift in the

ways Millennials perceive their lives and future.

While idealistic and optimistic, there is a new

measure of realism.

Millennials are growing up, and so too are their

views of success. Their aspirations are surprisingly

traditional, but coming of age in the global

recession has forced them to push back typical

stages of adulthood and has created a new breed of

entrepreneurs.

For brands to matter to Millennials, “average” is no

longer enough. A whole new level of engagement,

authenticity and purpose is necessary.

The Global Recession has Created a Mix of

Traditional and Non-Traditional Values for

Millennials, Sparking a New Type of Consumer

DEFINED BY DEBT

Average $28,500 in student loans1

WEAK JOB PROSPECTS

Unemployment rates for Millennials are typically double the national average.

• In the U.S., Millennial unemployment is 12+% (7.9% is national average)2

• In Spain, Millennial unemployment is 48% (22% is national average)3

LOW NET WORTH

In the U.S., median net worth of people under 35 fell 37% between 2005 and

2010; those over 65 took only a 13% hit.4

1. (Institute of Education Science 2012)

2. (U.S. Department of Labor) 2012

3. (National Statistics Institute of Spain 2012)

4. (U.S. Census 2012)

The economy sucks for most, and it’s

devastating to Millennials

Millennials Have a PR Problem

If you follow recent headlines,

Millennials are lazy, self-entitled, or

worse.

We believe much of the criticism is

undeserved. They are coming of

age during one of the hardest

economic and social environments

the world has seen.

They are blazing new paths and

finding a new way through life.

Despite Challenges, They Remain Optimistic,

and Their Aspirations Surprisingly Traditional What are your most important life goals?

*(Edelman Berland 8095 2.0 Survey 2012)

Entrepreneurial

of Millennials say that

owning their own business

is a top life goal

76% in Turkey

65% Brazil

61% China

44% US

*(Edelman Berland 8095 2.0 Global Survey 2012)

Sensible

What products or services are Millennials willing to pay a premium for?

Health-related items rule. Beauty and Apparel don’t.

*(Edelman Berland 8095 2.0 Global Survey 2012)

0% 100%

Implications for Marketers

• Millennials aren’t kids anymore. The oldest are 33, the youngest 18. They are not the next frontier, they are the here-and-now consumer target influencing the purchase of EVERY brand.

• Shift away from traditional segmentation. Diversity is everywhere and gender lines are blurred. Speak to your target AND their influencers.

• Marketers need to think about how they assist the generation’s new life goals and revised timeline of life events.

• Think about how your brand can help Millennials in other parts of their lives.

Millennials are Alpha-Influencers

Alpha-Influencers

of Millennials think they

influence the purchase

decisions of peers and

those in other generations

*(Edelman Berland 8095 2.0 Survey 2012)

Like Daughter, like Mother

• Children have a strong influence over the

purchase decisions of items used by their

family, such as cars, food and vacations1.

• New research2 also suggests children

influence goods their parents use for

themselves, such as clothing. Many

mothers intentionally mimic their

daughters style.

1. (Mintel “Kids as Influencers” U.S. study 2010)

2. (Journal of Consumer Behavior study, 2011)

Shopping is a Social Activity

For Millennials, shopping is a social activity, and many won’t make

a purchase their friends disapprove.

of Millennials typically shop with friends, family or significant other

*(Edelman Berland 8095 2.0 Survey 2012)

Two-Way Dialogue

Millennials think it’s their responsibility to share

feedback with companies after a good or bad brand experience.

*(Edelman Berland 8095 2.0 Survey 2012)

Alpha-Influencers

use at least one outside

source for guidance

use four or more sources of

information

Millennials crowd-source to make brand purchase decisions.

*(Edelman Berland 8095 2.0 Survey 2012)

Inherently Digital, But Craving Offline Conversation

Millennials most often go to search engines as a source to help them

make brand purchase decisions, but face-to-face engagement with

friends and family are the second and third most used sources.

*(Edelman Berland 8095 2.0 Survey 2012)

Implications for Marketers

• Every brand needs to consider Millennials as a core target, or at

least a significant influencer for their target.

• As masters of crowd-sourcing to make purchase decisions,

engage Millennials in surround sound. Online and offline.

• Help Millennials become an expert on your brand, purpose and

story. They have a strong desire to share and learn. Sell unique

and real product benefits and you will drive reverberation.

38

Millennials Are Surprisingly Open To Brand

Engagement and Advertising, But Only If

Brands Have the Right Approach.

Willing to Engage With Brands

While skeptical of brand messages, they are open to

engaging with brands, but…

1. Brands must act and engage differently to get attention

and loyalty. We are in an age of surprise-and-delight. If

you don’t, they will tune you out.

2. Authenticity rules. Focus on selling unique and real

product benefits. Millennials want to share and learn. Give

them messages that show value and are worth repeating.

Willing to Engage With Brands

of Millennials think all

advertising is boring

*(Edelman Berland 8095 2.0 Survey 2012)

8 in 10 Millennials want brands to entertain them.

How do they want to be entertained?

Allow me to influence your products (co-creation)

Answer my questions/comments in real time via social media

Connect me to the other fans of the brand/company

Sponsor entertaining events

Create online content such as videos, photos, games and blogs

Partner with a celebrity or public figure I admire

I don’t expect brands/companies to entertain me

*(Edelman Berland 8095 2.0 Survey 2012)

Millennials want brands to help them in other areas of their lives.

How do they want brands to help them?

Provide me with financial assistance

(e.g., grants, scholarships)

Provide me with the opportunity for more life experiences (e.g., send

me on trips, give me lessons in something I have an interest in)

Provide me with a mentor who can help guide me

Allow me to use your audiences (e.g., Facebook pages, ads, etc.)

to connect with others with similar interests and ideas

Allow me to use your audiences (e.g., Facebook pages, ads, etc.)

to share my message/story with a wide group

*(Edelman Berland 8095 2.0 Survey 2012)

Humor, Value & Engagement Rule What is the most effective way for a company to

capture your attention?

*(Edelman Berland 8095 2.0 Global Survey 2012)

Implications for Marketers

• It’s not your brand anymore. It belongs to your customers. Be

agile, collaborative and prepared for the worst and best

• Experiences over stuff. Focus on how your brand enables life

experiences. They want to buy into new ideas and share them

with friends and family. Be social and enable sharing.

• “Smart and funny is the new rock and roll.” Business is often

serious, but don’t always take yourself so seriously.

1

1. (Nick Shore, Strategic Insights & Research at MTV)

Continuing the

Conversation

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Survey conducted by Edelman Berland

and consisted of online interviews in 11

countries among 4,000 adults born

between 1980 and 1995.

The survey was conducted in the

following countries: Australia (N= 300),

Brazil (N=300), Canada (N=300), China

(N=300), France (N=300), Germany

(N=300), India (N=300), Turkey (N=300),

United Arab Emirates (N=300), United

Kingdom (N=300), United States (N=1,000)

with weighting to ensure equal

representation from each country.

The survey has an overall margin of error

of ±1.55% at the 95% level of confidence.

8095 2.0 Survey

Methodology

The iGeneration/Generation Z is

now fully formed, with their oldest

turning 17 years-old. They will

soon become the new “it”

generation.

If we can’t understand Gen Y,

we’ll never get Gen Z.

A Final Reason

Millennials Matter