The Gen Y Factor CADM EF Academic Update May 13 th, 2005.
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The Gen Y Factor CADM EF Academic Update May 13 th , 2005
Transcript of The Gen Y Factor CADM EF Academic Update May 13 th, 2005.
The Gen Y FactorCADM EF Academic Update
May 13th, 2005
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Who is Gen Y?
• Baby Boomers (1946-1964): 78,000,000
• Gen X (1965-1976): 43,000,000
• Gen Y (1977-1994): 73,000,000
Source: US Census Estimates
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Who is Gen Y?
• Often called Millennials or Echo Boomers
• Currently, 11-28 years old
• 1 in 3 non-Caucasian
• 1 in 4 from single parent home
• 3 in 4 have working mothers
Source: BusinessWeek 2/15/99; Microsoft Small Business Center, Retail Traffic Magazine 4/1/04
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Biggest Power Since Baby Boomers
• ¼ of all Americans is part of Gen Y
• $100/week of disposable income
– Not used on needs but wants
– Purchases (and life) dictated by celebrities and entertainment
• Representing $150B in annual spending
– Influence on the spending of others can be as much as 5x
– Unrivaled spending power
• No mortgage, loans, credit card debit, dependents
Source: BusinessWeek 2/15/99; Microsoft Small Business Center, Retail Traffic Magazine 4/1/04
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What Makes Them Unique as Consumers
They are more socially-conscious than any previous generation
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What Makes Them Unique as Consumers
• National traumas have shaped their outlook
– OJ
– Monica
– Columbine
– 2000 Election
– 9/11
– Iraq 03/04
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What Makes Them Unique as Consumers
• Accepting of alternative lifestyles
– Same sex
– Inter-racial
• Diversity is a fact of life
– De-sensitive to racial tensions
• Outwardly accepting of religion
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What Makes Them Unique as Consumers
• Morally complex
– Aim for integrity
– Apologies equals a clean slate
– Desire trust and respect vs. get rich quick
– Value companies/brands/products that support good causes
– Spirituality heightened, in touch with self
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
– Computers in Nursery school
– 100s of cable channels
– 9 out of 10 have personal computers
– 50% of 12-17 have own cell phones
– ¼ of 18-24 year olds have Internet-enabled phones
– Estimated $20B spent online
Source: BusinessWeek 2/15/99; Microsoft Small Business Center, Retail Traffic Magazine 4/1/04
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology– “Hubs” select the Internet when they want
to learn about breaking news or find out about what the latest products are. It’s the key source of information keeping them current
– “Chic Geeks” tend to choose the Internet when they want to rebel or meet someone new who is really different from them. They will take social risks online that they wouldn’t dream of taking in their offline life
– “Miss Insulars” are looking for information about celebrities or to verify that the information they have is accurate. They also seem to use the Internet to investigate purchases, although they are apt to spend offline and not online
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology– “The ‘Now’ Crowd” prefer the Internet
when the objective is immediacy – when they want to find something to do right now
– “The IQ Crew” tend to select the Internet for practical activities – to research for school, to learn details about products, to verify information, or to research purchases
– “Alter-ego.coms” seek to find acceptance online. They want to be entertained online, but also like to show off things they have done, or discover new things to do in their spare time
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
Source: Harris Interactive “Born to be Wired” 2003
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What Makes Them Unique as Consumers
• 1st Generation to grow up with technology
– A recent study of college students found:
• 97% have a cellphone
• 68% sent text messages with their cellphones
• 14% sent instant messages with their cellphones
• 50% listed instant messaging as their top choice in communicating
• 44% said they couldn't live at college without instant messaging
• 66% log on to instant messaging programs several times a day
• 56% spend an hour or more daily sending instant messages
Source: Chicago Tribune, “Campus Cellphone Ads Fall on Deaf Ears” 5/9/05
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What Makes Them Unique as Consumers
• 20 year age-range makes for multiple sub-groups/niches
– Not a only stop shop for advertisers
• Pre-high school
• High school
• College
– Change is rampant as they move from trend to trend
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What Makes Them Unique as Consumers
• Stressed for success
– Acutely aware that the stakes are higher
• Coopetition amongst friends
• Only as good as last report card/grade
• Every second counts…
– Hyper-tasking
– Brand Me: filter to create own personality and image
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Five Key Factors for Marketers
1. It’s about badge brands not the biggest brands
2. Don’t talk down to them but with them at the same level
3. Activate the communal connection
4. Embrace technology because they do
5. Extend to new places in new ways
