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LOLLOL

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POSPOS

TODAY’S PRESENTATION

»Why they matter

»How they came to be

»Who they are

»Millennials are changing shopping

»What appeals, what you can do

»Why they matter

»How they came to be

»Who they are

»Millennials are changing shopping

»What appeals, what you can do

GEN Y

IM GENERATION

BLING GENERATION

GENERATION ME

ECHO BOOMERS

GEN Y

IM GENERATION

BLING GENERATION

GENERATION ME

ECHO BOOMERS

» Studied 72 Millennials over an 8-week period: one-on-one interviews, in-home video diaries, online focus groups, eye tracking

» Incorporated quantitative data by JupiterResearch, Harris Interactive, Forrester, MTV, etc.

» Reviewed topical books: Millennials Rising, Pop Culture, and Generation Me

OUR APPROACH

OUR DIGITAL MILLENNIALS

» 14-24 years old

» Digital lifestyle focus

»10 hours online/week

»30 min mobile phone/day

»6-10 text/IM day

»Social networking

» Distribution of age, race, gender, spending and geography

Why they matterWhy they matter

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US Census Bureau, March 2005

MILLENNIALS’ SIZE MIRRORS BOOMERS’

US Census Bureau, March 2005

MILLENNIALS’ SIZE MIRRORS BOOMERS’

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MILLENNIALS INFLUENCING ALL OTHERS

US Census Bureau, March 2005

SPENDING POWER OF MILLENNIALS

»$200,000,000,000+

»15%-17% spent online

INFLUENCING HH PURCHASES

Harris Interactive, 2006

OFFLINE PURCHASING DRIVEN BY ONLINE

Learn about products online, and then buy

them at a store

Online behavior drives offline purchasing per

capita($ spent annually)

Harris Interactive, 2006

ONLINE PURCHASING HAS TRACTION

»65% purchased online (18-24 year olds)

JupiterResearch, 2006

ONLINE PURCHASING HAS TRACTION

JupiterResearch, 2006

CATEGORIES STILL EMERGINGJupiterResearch, 2006

BARRIERS TO ONLINE SHOPPING

Harris Interactive, 2006

How they came to beHow they came to be

Strauss and Howe, 2006

ERA OF THE CODDLED CHILD

NO LOSERS, JUST WINNING-CHALLENGED

BORN AT THE KEYBOARD

»Popularization of the PC

»Apple II launch

»Cable TV channel explosion

BORN AT THE KEYBOARD

» Internet commercialized

» Email popularized

» Cell phones go mainstream

» MP3 boom

» IM catches hold

»Popularization of the PC

»Apple II launch

»Cable TV channel explosion

» Birth of the iPod

» TiVo and DVR takes off

» Networked gaming popularized

» Xbox launches

» Growth in VOIP membership

» Ringtones become a billion dollar business

» 100M videos viewed daily on YouTube

» Social network sites redefine social order

BORN AT THE KEYBOARD

» 68% percent of 8-18 year olds have a TV in their bedroom

» 65% have a portable music device

» 55% have handheld video game players

» 54% have VCR/DVD player

» 49% have a video game player

» 31% have a computer

PROSPERITY FUELS TECH-RICH LIFESTYLE

Kaiser Family Foundation, 2005

SPOT THE DEFUNCT DEVICESPOT THE DEFUNCT DEVICE

Who they areWho they are

PERPETUALLY CONNECTEDPERPETUALLY CONNECTED

DEFINING TRAITS:DEFINING TRAITS:

DIVERSE ACTIVITES ONLINE

JupiterResearch, 2005

81% of teens use or own a mobile phone. Consumer Electronic Association, 2006

College kids typically dash

off 20-30 text messages a day. Vibes Media, 2005

38% of 13-21 year olds go online before or during breakfast.Harris Interactive, 2006

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EVERYONE’S “A FRIEND”

32% chose cell phone when asked to imagine a fake law stipulating only one form of communication. Virgin Mobile USA, 2006

3-5C.O.T.

Dozens – HundredsOnline friends

5-25Social tribe

Thousands – Tens of thousands

Boundless network

In-person, mobile, text, IM, SN, email

IM, mobile,text, SN, in-person

SN, IM, in-person

SN

3-5C.O.T.

Dozens – HundredsOnline friends

5-25Social tribe

STRATIFIED COMMUNICATIONS

Thousands – Tens of thousands

Boundless network

EMAIL USAGE IS FLAT—NOT PREFERRED

Harris Interactive, 2006

I facebooked her.I facebooked her.— Micky, 16

MULTITASKING AND “PRODUCTIVE”MULTITASKING AND “PRODUCTIVE”

DEFINING TRAITS:DEFINING TRAITS:

MULTIPLE THREADING IS ENGAGING

STARSKY & HUTCH (ANY EPISODE)STARSKY & HUTCH (ANY EPISODE)

THE SOPRANOS (EPISODE 6)THE SOPRANOS (EPISODE 6)

Steven Berlin, 2006

24-HOUR MEDIA CONSUMPTION

Harris Interactive, 2006

Millennials consume 20 hours of media per day, but within 7 hours of clock time.MediaWeek, June 21, 2006Unstructured free time has decreased by 37% since 1981. Strauss and Howe, 2006

61% of young consumers feel that video ads are too long and occur too often.Forrester, 2006

FILTERING FOR IMMEDIACY AND CONTROL

FILTERING FOR IMMEDIACY AND CONTROL

DEFINING TRAITS:DEFINING TRAITS:

PROCESS INFO UP TO 5X AS FAST AS ADULTS

»Dwell on the first 1-2 words of text

»Don’t read across lines of text

»More inclined to notice images, videos, moving objects

Pop-ups are the devil.Pop-ups are the devil.

— Anna, 15

37% of 18-24 year olds feel their review should be posted and unedited. JupiterResearch, 2006

72% of DVR users (HH’s) fast-forward through TV ads. CNW Marketing Research, 2006

23% of 18-24 year olds pick up in-store to ensure product availability.JupiterResearch, 2006

NEED MULTIPLE PERSPECTIVES AND VIEWS

JupiterResearch, 2006

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SELF-EXPRESSIVE YET ASSIMILATIVE

SELF-EXPRESSIVE YET ASSIMILATIVE

DEFINING TRAITS:DEFINING TRAITS:

68% play music.

47% paint or

draw.

30% keep a

journal.Virgin Mobile USA, 2006

38% of Gen Y

(18-26) use social networking sites. Forrester, 2006

52% rely on social networks for purchase advice. Forrester, 2006

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Together Everyone

Achieves More

Together Everyone

Achieves More

T.E.A.M.T.E.A.M.

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OPTIMISTIC AND SELF-ENTITLEDOPTIMISTIC AND SELF-ENTITLED

DEFINING TRAITS:DEFINING TRAITS:

31% of American teens believe they’ll become famous. MTV, 2006

58% of teens think it’s legal to copy a friend’s purchased DVD, video or music.LA Times/Bloomberg, 2006

76% think it’s important to ask their opinions about what teens really like.Harris Interactive, 2005

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— Matthew, 21

I will influence more people than you can imagine so

show me what I want and then you’ll be just fine.

I will influence more people than you can imagine so

show me what I want and then you’ll be just fine.

Millennials are changing shoppingMillennials are changing shopping

OLD PURCHASEPROCESS: FUNNELOLD PURCHASE

PROCESS: FUNNEL

FROM FUNNEL TO FISH

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What appeals, what you can doWhat appeals, what you can do

KEEP IT REAL.KEEP IT REAL.

01

KEEP IT REAL: Razr

»Authentic to the brand with both genders

»Maintains street cred through constant updates

KEEP IT REAL: eBay

»Authentic to the brand

»Perception of a “deal”

»Self-policing

»Constantly fresh

HEAR ME OUT.HEAR ME OUT.

02

HEAR ME OUT: Amazon

»Easy to read and post reviews

»Tip: need to solicit and delineate by affinity group

HEAR ME OUT: Levi’s

»Motivating involvement with customizable viral tools

»Crowdsourcing for next face of the brand

»Inspiring creation and sharing of ringtones (UK)

»Motivating involvement with customizable viral tools

»Crowdsourcing for next face of the brand

»Inspiring creation and sharing of ringtones (UK)

HEAR ME OUT: Levi’s

BE ORIGINAL OR DON’T BE.BE ORIGINAL OR DON’T BE.

03

BE ORIGINAL OR DON’T BE: Converse

»Making available limited edition merchandise

»Voice is synchronized with the offering

BE ORIGINAL OR DON’T BE: Threadless

»Fans help create the assortment

»Weekly refreshes invite repeat visits

BE ORIGINAL OR DON’T BE: AE

»In context

»On-body, 360° rotation

»In context

»On-body, 360° rotation

BE ORIGINAL OR DON’T BE: AE

»In context

»On-body, 360° rotation

BE ORIGINAL OR DON’T BE: AE

MY WAY…NOW.MY WAY…NOW.

04

MY WAY…NOW: iTunes

»Can buy product in any combination

»Can sample the assortment

MY WAY…NOW: Best Buy

»Preorders for guaranteed availability

»In-store pick-up for quick access

ENTERTAIN ME.ENTERTAIN ME.

05

ENTERTAIN ME: Funny and Fun

ENTERTAIN ME: bCODE (Australia)

»Fun way to use texting

»Personalize for occasions and events

»Sender-initiatedpayment

stimulatestimulate» Develop fresh news and ever-evolving merchandising stories

» Produce viral events that drive PR

» Create branded media that is entertaining, malleable and pulls in the network

» Develop fresh news and ever-evolving merchandising stories

» Produce viral events that drive PR

» Create branded media that is entertaining, malleable and pulls in the network

engageengage» Become more searchable on the site and on the web

» Zoom all views and invite more involvement

» Enable online reviews by affinity group

» Ensure rapid screen refreshes and loads

» Test user-initiated mobile communications

» Become more searchable on the site and on the web

» Zoom all views and invite more involvement

» Enable online reviews by affinity group

» Ensure rapid screen refreshes and loads

» Test user-initiated mobile communications

purchasepurchase» Accept payment alternatives

» Incentivize wish list and cart-sharing to foster action

» Provide in-store pick up for immediate gratification

» Provide economical overnight and 2nd day shipping

» Accept payment alternatives

» Incentivize wish list and cart-sharing to foster action

» Provide in-store pick up for immediate gratification

» Provide economical overnight and 2nd day shipping

empower /re-engageempower /re-engage

» Develop members-only privileges

» Create real or perceived exclusive events

» Provide cool tools to influence social network

» Develop members-only privileges

» Create real or perceived exclusive events

» Provide cool tools to influence social network

Envisioned futureEnvisioned future

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WHAT’S NEXT?Summer 2007

WHAT’S NEXT?Summer 2007

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