Cox Reps Generations Project

Generations Presentation July 15th, 2016

Baby Boomers

We are smart media

Who Are These People:

• 74.9 Million (25% of the population)

• 1946-1964 (52-70)

• The Baby Boom • Men and Women, eager

to start new chapters in their lives, with money to spend along the way

SOURCE: The Futures Company, “Demographic trends, Baby Boomers” (2016)

We are smart media SOURCE: The Futures Company, “Demographic trends, Baby Boomers” (2016)

Who Are These People:

• Idealistic, anti-authority, pursued individuality

• Unique personalities

• Don’t settle for anything

• Youthful mindset

We are smart media

Who Are These People

SOURCE: Media Post, “Stores Should Take their Millennial Myopia” (2016)

• Optimistic

• Changed the meaning of retirement

• 13% are even delaying retirement

• Technologically savvy

We are smart media

Demographics

Source: Simmons NHCS, Simmons Winter 2016 12-month study, daily digital activites excludes email and other

Non-Hispanic White79%

African-American13%

Asian-American5%

Hispanic3%

Ethnicity

Non-Hispanic White African-American Asian-American Hispanic

COLLEGE - 4 YEARS (GRAD-

UATED)19%

GRADUATED COLLEGE OR

MORE36%

HIGH SCHOOL - 12 YEARS

(GRADUATED)41%

SOME GRADE SCHOOL - 8 YEARS

OR LESS4%

Education Level

COLLEGE - 4 YEARS (GRADUATED)

GRADUATED COLLEGE OR MORE

HIGH SCHOOL - 12 YEARS (GRADUATED)

SOME GRADE SCHOOL - 8 YEARS OR LESS

Retired23%

Working77%

Retirement Status

Retired Working

We are smart media

How They Access Media

• Boomers use these apps differently than everyone else

Source: ComScore “Plan Metrix Key Measures” (May 2016)

We are smart media SOURCE: Simmons NHCS, SimmonsLocal (Houston) Spring 2015 12-month study, daily digital activites excludes email and other

Daily Media Mix

44%

12%

11%

19%

13%

Social networking

Internet video

Internet radio

Gather information on products/services

Purchase products/services

The top 3 daily digital activities for baby boomers Include: social networking, information gathering, and overall product or service purchasing

National0%

25%

50%

75%

100%

4%9%

13%

29%

45%

Daily media share

TV Internet Radio Newspaper Magazine

Baby boomer spend the majority of their media time with TV and internet

Daily share of internet activities

We are smart media

Targ

et R

each

%Hour by hour media usage

SOURCE: Experian Simmons NHCS Winter 2015 (Full Year); Base: all Pizza Patrons / Target: Adults 25-49

Strategically place and time your messaging for contextual relevance

6a-7a 7a-8a

8a-9a 9a-10a

10a-11a 11a-12p

12p-1p 1p-2p

2p-3p 3p-4p

4p-5p 5p-6p

6p-7p 7p-8p

8p-9p 9p-10p

10p-11p 11p-12a

12a-6a0%

10%

20%

30%

40%

50%

60%

Watching TV Using Internet (on PC) Listening to Radio Reading Newspaper

We are smart media

Who Are they As Consumers

SOURCE: Pew Research, “Millennials overtake baby Boomers as Americas largest generation”(2016)

• $3 trillion purchasing power

• $15 trillion inherited by 2020• 70% of disposable income• 50% of all CPG dollars and overall spending in 119 of 123 markets• 80% of all money in savings and loan associations is owned

by boomers

We are smart media

Who are they as consumers

• 70% of boomers think that their current home is not the best they can get

• Only generation to increase discretionary spending from 25% to 35%

• Marketing campaigns targeting boomers are twice as likely to be successful as those targeting millennials


We are smart media

Who are they as consumers


• Recently became the top vehicle buyers

• Targeted by 5%-10% of marketing

• Extremely brand loyal

• Millennials focus on word of mouth, while Boomers focus on CPG spending

We are smart media

Day Part Preference

SOURCE: Simmons Winter 2016 (Full Year)

NCIS and The Big Bang Theory are the most watched shows for boomers in Prime time.

We are smart media

What Baby Boomers Want

Source: Contently, “4 Tips for Marketing to Baby Boomers in the Digital Age” (2014)

• Perception is everything: • Ex: Fisherman sells musical instruments

and uses actors in there 40’s and 50’s to market to customers who are 60 and older

• Ex: Bucket list concept

• Stand for something meaningful: • Ex: Consumer Values

• Engage and realize who they are:• Ex: Technology

• Maintain trust/keep promises: • Ex: Strong Customer service

We are smart media

What Brands do it Well

Source: Type pad, “Levi’s, Harley-Davidson, and Iconic Baby Boomer brands” (2015)

• Levi • Home Depot • Harley Davidson

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjm8d_KjOTNAhXBcz4KHVuCBlwQjRwIBw&url=http://tommytoy.typepad.com/tommy-toy-pbt-consultin/2011/05/baby-boomers-love-brands-with-personality-a-brands-image-is-the-personality-it-projects.html&psig=AFQjCNH-RPSvAvwgdaOOUg4bdHTKhebD-g&ust=1468075218448241

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjKyejAtuTNAhUKeT4KHTI2ApIQjRwIBw&url=https://brittanyrennick01.wordpress.com/2012/11/28/harley-davidson/&bvm=bv.126130881,d.cWw&psig=AFQjCNE-JG-ImKWYq9VoLHOLYbS2YPUB4w&ust=1468086490514679

We are smart media

Baby BoomersWhy are they valuable?

Their Size: Second largest generation 74.9 Million (25% of the population)

Their Purchasing Power: Most affluent- purchasing power 3 trillion (looking to spend their money) will have even more purchasing power come 2020 (15 trillion)

Traditional mediaRead the most printed media and newspapers than any other generation

TVAdvertise on prime time, 20% watch TV during prime time hours

65% receive their news from TV

Social Media75% are found on Facebook

MessagingPhrases like “You’ve still got it” or “A life-reimagined” avoid making them old

Guidelines to advertisingCaring, simplistic, and cheap

Opportunity Extremely brand loyal, but willing to be adventurous

in their shopping in order to stay and feel youthful

Life events have shaped their characteristics as consumers (Idealistic, anti-authority, pursued individuality)

Research Driven: Don’t take the easy way out, they research and find out everything they need about a product.

Overlooked Ages 52-70: huge market being untouched Only targeted by 5-10 % of marketing Will control 70% of the nation’s disposable income in 5 years Twice as likely to start a business in the next year compared to millennials Targeting campaigns for boomers are much more successful than for other generations

How to approach them successfully

Generation X

We are smart media


Source: TFC “Infographic: Generation X” (2016)

• 1965-1980 36-51 years old

• 56.4 Million In the U.S. (18% of the population)

• Median disposable income: $51,498

• 83% are employed

• Generally the overlooked generation, caught between the boomers and millennials

We are smart media


Source: TFC “Infographic: Generation X” (2016)

• Pragmatic (very practical workers)

• Self-reliant (they do not trust as much as the other generations and rather do things on their own)

• Savvy (they were growing up during the start of the internet therefore they had to learn how to use it)

We are smart media

Demographics

Source: Simmons NHCS, Simmons Winter 2016 12-month study, daily digital activites excludes email and other


African-American13%

Hispanic12%

Asian-American4%

Native American1%

Ethnicity

Non-Hispanic White African-American HispanicAsian-American Native American

MALE50%

FEMALE50%

Gender Breakdown

MALE FEMALE

COLLEGE - 4 YEARS (GRADUATED)

23%

HIGH SCHOOL - 12 YEARS (GRADUATED)

30%GRADUATED COLLEGE OR

MORE42%

SOME GRADE SCHOOL - 8 YEARS OR LESS

5%

Education Level

COLLEGE - 4 YEARS (GRADUATED)HIGH SCHOOL - 12 YEARS (GRADUATED)GRADUATED COLLEGE OR MORESOME GRADE SCHOOL - 8 YEARS OR LESS

We are smart media

Who Are They as Consumers

• $125 billion in purchasing power

• 72% are homeowners

• 90% of Gen Xers research products online and 36% consume content posted by brands on social media

• Gen X-ers are much more skeptical of brands and advertising than people in their twenties

Source: ITBusiness "The ABC’s of Marketing to Generation X." (2016)

We are smart media SOURCE: Simmons NHCS, Simmons Winter 2016 12-month study, daily digital activites excludes email and other

Daily Media Mix

41.2%

13.4%

16.3%

15.7%

13.4%

Social networking

Internet video

Internet radio



Social Networking and researching products and services top the charts for this generation

National0%

25%

50%

75%

100%

3%4%

17%

35%

41%

Daily media share


TV ranks the highest among Generation X

We are smart media

Internet Usage

Source: Comscore “Plan Metrix Key Measures” (May 2016)

We are smart media

Social Media Usage


We are smart media

Day Part Preference


We are smart media

Targ

et R

each




6a-7a 7a-8a

8a-9a 9a-10a

10a-11a 11a-12p

12p-1p 1p-2p

2p-3p 3p-4p

4p-5p 5p-6p

6p-7p 7p-8p

8p-9p 9p-10p

10p-11p 11p-12a

12a-6a0%

5%

10%

15%

20%

25%

30%

35%

40%


We are smart media

Favorite Shows on Primetime

Source: Nielsen Ratings “Average with custom ranges” (May 2016)

• Reality Competition shows generated high ratings with this age group for this year

We are smart media

What they are looking for

• Campaigns that leverage nostalgia in fun, yet meaningful ways can really hit home with Gen X

• For example: Michael Jackson’s Thriller, or the Breakfast Club.

• Stir emotional memories of Gen Xers’ childhoods while showing that advertisers ‘get’ the modern concerns those Gen X viewers now have today

• Xers are looking to brands to show they care

Source: Market Place “Brands Amp up Their Generation X Appeal” (2013)

We are smart media

Brands that do it well


We are smart media

Brands that stand out

Market Place “Brands Amp up Their Generation X Appeal” (2013) & AdAge “MillerCoors Seeks Sales Pop From Gen-Xers With Hard Soda” (2016)

We are smart media

Advertising Strategies

AdWeek “5 Reasons Marketers Have Largely Overlooked Generation X” (2016)

• Appealing to the desire for authenticity, imagery featuring realistic events that may occur or have occurred in the lives of Gen Xers is likely to resonate.

• Ads can connect with Gen X’s women by using sentimental milestone events.

• To connect with men, companies would want to tap into their masculine sensibilities.

We are smart media

Generation XWhy Are They Valuable?

Their Size: 56.4 Million in the U.S. (18% of the population)

Their Purchasing Power: $125 billion in purchasing power, Median disposable income: $51,498

TV24% watch primetime

MessagingEmotional appeal, authenticity, resonating life events, nostalgia

Guidelines to AdvertisingUnderstand they are pragmatic and self-reliant, more skeptical.They stalk more than they buy

Smartphones60% use smartphones

Social media75% use social networks

Internetinternet dominant, 29% prefer the computerOpportunity:

72% are homeowners

74% are parents

90% of Gen Xers research products online

36% consume content posted by brands on social media, so they’re informed and influential consumers

42% share or repost social content, if (your brand) resonates with them, there’s an echo effect

Overlookedthey are in there peak spending stage, untapped market


Millennials (Generation Y)

We are smart media


Source: The Futures Company, "Monitor Download: Millennial" (2016)

• Born: 1981- 1996 (20-35)

• Size: 77 Million (24% of US population)

• Only 44% of Millennials will call themselves millennials

• Only 30% believe that the label applies to them

We are smart media

Demographics

Source: The Futures Company, "Monitor Download: Millennial" (2016)


Hispanic21%

African-American14%

Asian-American9%

Other1%

Ethnicity

Non-Hispanic White Hispanic African-American Asian-American Other

Married or Part of Unmarried Couple Living Together

63%

Have Never Been Married38%

Marrige Status

Married or Part of Unmarried Couple Living Together

Have Never Been Married

Head of Household88%

Child in Household12%

Position in Household

Head of Household Child in Household

We are smart media

How They Access Media Media Platform Preference


29%prefer internet

(computer)

19% prefer

smart phone internet/apps

18% prefer

watching TV

57% more likely to stream

internet radio

43% more likely to visit social media sites

We are smart media SOURCE: Simmons NHCS, Simmons Winter 2016 12-month study, daily digital activites excludes email and other

Daily Media Mix

43%

16%

17%

12%

12%

Social networking

Internet video

Internet radio



The top 3 daily digital activities for Millennials include social networking, streaming internet radio, and streaming internet video

National0%

25%

50%

75%

100%

2%3%

17%

39%

40%

Daily media share

TV Internet Radio Newspaper Magazine Daily share of internet activities :

We are smart media

Targ

et R

each




6a-7a 7a-8a

8a-9a 9a-10a

10a-11a 11a-12p

12p-1p 1p-2p

2p-3p 3p-4p

4p-5p 5p-6p

6p-7p 7p-8p

8p-9p 9p-10p

10p-11p 11p-12a

12a-6a0%

5%

10%

15%

20%

25%

30%


We are smart media

Internet Usage


We are smart media Source” Comscore “Mobile Metrix Key Measures” (May 2016)

Social Media Reach

• Facebook- 85%

• Instagram- 57%

• Twitter- 25%

• LinkedIn- 20%

• Pinterest- 17%

• Spend an average of 3.1 hours on their mobile devices a day

We are smart media

Social Media Usage

Source: Comscore “Mobile Metrix Key Measures” (May 2016)

We are smart media

Day Part Preference

Source: Simmons Winter 2016 (12 Months)

• Critical of news media

• Only 27% say the news has a positive impact

We are smart media


Source: The Future’s Company, INC, Business Insider

• Purchasing Power: $200 Billion of direct PP and $500 Billion of indirect spending

• By 2020 Millennials will spend 1.4 Trillion annually

• Millennials are the most loyal generation

• 50.5% Say they are extremely loyal or quite loyal to their favorite brand

We are smart media


Source: Bloomberg, “Are You Ready For Another Millennial Survey” (2016)

• 75% of Millennials say the financial crisis was influential in shaping their beliefs about personal finance management

• Use Social Media such as Facebook and Twitter to research products before buying them

• 62% of millennials are more loyal to notice brands that engage directly with customers on social media

We are smart media Source: MediaPost, “Millennial’s Relationship to Brands: Earn My Loyalty” (2016)

What they are looking for:

Companies must:

• Use digital tools and unique incentives at their disposal to keep them engaged for the long term

• Boast customer service and efficiency

• Get Personal• 47% of Millennials say they pay more attention

when viewing personalized ads

We are smart media

What Are They Looking For:

Source: US Chamber of Commerce Foundation “The Millennial Generation Research Review” (2016)

• A brand must show they care

• Millennials connect to a brand with an affiliation to a cause

We are smart media

What Are They Looking For:

Brands that do it well:Urban OutfittersToms ShoesChipotleForever21Netflix

We are smart media

MillennialsWhy Are They Valuable?

Their Size: 77 Million (24% of the US Population) largest consuming generation

Their Purchasing Power: $200 Billion of direct Purchasing Power but influence $500 Billion of indirect spending; $1.4 Trillion by 2020

TV23% watch primetime

MessagingBrand must show they care, Millennials Connect to a brand with affiliation to a cause

Guidelines to AdvertisingMore likely to be loyal if approached directly on social media, Personal ads are successful, they are highly educated, career-driven, and politically progressive

Internet29% prefer the computer

Radio57% more likely to stream internet radio

Social media85% Facebook, 57% Instagram, Snapchat 41%

Smartphones87% have smartphones, 62% have tablets

Opportunity: 50.5% Say they are extremely loyal to their favorite brand

62% of millennials are more loyal to brands that engage directly with customers on social media

47% of Millennials say they pay more attention when viewing personalized ads

35% of Millennials hold a bachelor’s degree or higher (compared to 28% of Xers and 29% of Boomers) , The most educated generation in American history

Overlooked

Advertisers must develop a more diverse approach The last majority Non-Hispanic White generation, 21% of Millennials are Hispanic,

14% are African-American, 9% are Asian-American, and 1% are “Other”


Centennials (Generation Z)

We are smart media


Source: The Futures Company, "Monitor Download: Centennial" (2016):

• Born: 1997- Present (19 YO)

• Size: 78 Million (26% of US population)

• Moving the country toward Polycultural America

We are smart media

Demographics

Source: The Futures Company, "Monitor Download: Centennial" (2016)


Hispanic24%

African American14%

Asian American5%

Other5%

Ethnicity

Non-Hispanic White Hispanic African American Asian American Other

Millennials44%

Xers46%

Baby Boomers9%

Parents Of Centennials

Millennials Xers Baby Boomers

Urban32%

Suburban47%

Rural21%

Urbanicity

Urban Suburban Rural

We are smart media

How They Access Media

• 76% Own Smartphones

• 55% Own Tablets

• 19% Own basic cellphones

• 13% Own fitness/ health/ wellness trackers

Technology Ownership


We are smart media Source: Power Reviews, “Centennial Shopper Study” (2015)

FOMO is a thing…• Must be in constant contact

• The average Gen Zer has the attention span of about eight seconds

• While Millennials use three screens on average, Gen Zers use five: a smartphone, TV, laptop, desktop, and iPod/iPad.

• Use every social media, and not just the big 4, (vsco and phhhoto)

We are smart media

Just Live+ DVR/Time Shifted TVSource: Nielsen, “The Total Audience Report” (Q1 2016)

Ages: 2-17

Weekly time spent in hours: 35:51

Number of users- monthly reach: 61,195,000

Percentage of users- monthly reach: 93%

We are smart media

Generation Z as Consumers Source: The Futures Company, "Monitor Download: Centennial" (2016)

Technology Ownership

• Purchasing Power: Topping $80 Billon

• They were raised during the Great Recession

• The oldest was 11 years when the Recession struck

• Teen spending in 12-19 YO has fallen 31% in the last 18 years

We are smart media

Consumers Continued

• Receives $16.90 per week in allowance - $44 billion a year

• Gen Zers influence $600 billion of family spending

• By 2020 Generation Z will account for 40% of all consumers

Source: AdvertisingAge, “Stung by Millennial Misses, Brands Retool for Gen Z” (2015)

We are smart media

What Generation Z Wants

Source: The Futures Company, “Live Spotlight: Are You Ready for Centennials” (2016)

A company must be agile, transparent, and inventive

We are smart media

Browsing Methods

Source: Power Reviews, “Centennial Shopper Study” (2015)

A laptop/ Desktop and mobile phones are the primary ways centennials browse for products.

We are smart media

Reviews


They use brands as mirrors to express their values and priorities

We are smart media

Generation Z Buying Inclinations


More In-Store Purchases Than Millennials

We are smart media

What They are Looking For:


• Realism - Grounded and realistic expectations

• Resilience - Hard work, grit, and scrappiness are all keys to success• However, networking over qualification

• Openness - Give permission to be difference

3 Core Values: Realism, Resilience, Openness

We are smart media

Companies Who Do it Well


Disney’s DreamWorks

We are smart media Source: AdvertisingAge, “Stung by Millennial Misses, Brands Retool for Gen Z” (2015)

Companies Who Do it WellTaco Bell

We are smart media Source: Under Armour “I Will What I Want” (2016)

Under ArmourCompanies Who Do it Well

We are smart media

Generation ZWhy Are They Valuable?

Their Size: 78 Million (26% of the US Population) largest generation and growing

Their Purchasing Power: topping $80 Billion


Social mediaall over social media

MessagingTo gain a Centennial buyer a company must be agile, transparent, and inventive,

3 Core Values: Realism, Resilience, and Openness

Guidelines to AdvertisingA laptop/ Desktop and mobile phones are the primary ways centennials browse for products, they value reviews from peers, more likely to purchase in store, they use brands as mirrors to express their values and priorities

Smartphones76% Own Smartphones

Opportunity:

They are the most diverse generation in history, By 2019 they will be a majority minority

Use every social media, and not just the big 4, vsco, and phhhoto

Most technology advanced generation

Not yet in their prime spending years

We are smart media

Generations in Comparison

Baby Boomers Generation X Millennials Centennials

70-52 51-36 35-2019-0

We are smart media


7%

25%

18%24%

26%

Make up of Population

Silent Generation Baby Boomers Generation XMillennials Generation Z

Baby Boomers Generation X Millennials Centennials0

10

20

30

40

50

60

70

80

90

74.9

56.4

77 78

Size of Generations (in millions)

We are smart media


Source: Simmons, The Future’s Company

Baby Boomers Gen X Millennials Centennials

3,000,000

125,000 200,000 80,000

Spending Power

In millions of dollars

Gen X Millennials Centennials

125,000

200,000

80,000

In millions of dollars

Enlarged view

We are smart media


Non-Hispanic White Hispanic African-American Asian-American0

10

20

30

40

50

60

70

80

90

79

3

13

5

70

12 13

4

55

21

149

52

24

14

5

Ethnicity Comparison

Baby Boomers Generation X Millennials Centennials

We are smart media


Source: Simmons

Baby Boomers Generation X Millennials0%

25%

50%

75%

100%

4% 3% 2%9%4% 3%

13%17% 17%

29% 35% 39%

45% 41% 40%

Daily media share


We are smart media


Source: Nielsen “The Facts of Life: Generational Views About How We Live” (2015)

TV Online TV News Sites Social Media Sites Print Newspaper Radio0

10

20

30

40

50

60

7065

14

20

28

18

53

16

27

19

13

48

18

41

14

9

45

15

47

129

News Source Comarison

Baby Boomers Generation X Millennials Centennials (15-19)

Documents

Cox Reps Generations Project