Cox Reps Generations Project
- 1. Generations Presentation July 15th, 2016
- 2. Baby Boomers
- 3. 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)
- 4. 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
- 5. 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
- 6. We are smart media Demographics Source: Simmons NHCS, Simmons Winter 2016 12-month study, daily digital activites excludes email and other Non-Hispanic White 79% African-American 13% Asian-American 5% Hispanic 3% Ethnicity Non-Hispanic White African-American Asian-American Hispanic COLLEGE - 4 YEARS (GRADUATE D) GRADUATE D COLLEGE OR MORE 36% HIGH SCHOOL - 12 YEARS (GRADUATE D) 41% SOME GRADE SCHOOL - 8 YEARS OR LESS 4% Education Level COLLEGE - 4 YEARS (GRADUATED) GRADUATED COLLEGE OR MORE HIGH SCHOOL - 12 YEARS (GRADUATED) SOME GRADE SCHOOL - 8 YEARS OR LESS Retired 23% Working 77% Retirement Status Retired Working
- 7. We are smart media How They Access Media • Boomers use these apps differently than everyone else Source: ComScore “Plan Metrix Key Measures” (May 2016)
- 8. 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 4%9% 13% 29% 45% 0% 25% 50% 75% 100% National 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
- 9. We are smart media TargetReach% 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 0% 10% 20% 30% 40% 50% 60% Watching TV Using Internet (on PC) Listening to Radio Reading Newspaper
- 10. 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
- 11. 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 SOURCE: Pew Research, “Millennials overtake baby Boomers as Americas largest generation”(2016)
- 12. We are smart media Who are they as consumers SOURCE: Pew Research, “Millennials overtake baby Boomers as Americas largest generation”(2016) • 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
- 13. 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.
- 14. 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
- 15. 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
- 16. We are smart media Baby Boomers Why 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 media Read the most printed media and newspapers than any other generation TV Advertise on prime time, 20% watch TV during prime time hours 65% receive their news from TV Social Media 75% are found on Facebook Messaging Phrases like “You’ve still got it” or “A life-reimagined” avoid making them old Guidelines to advertising Caring, 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
- 17. Generation X
- 18. We are smart media Who Are These People 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
- 19. We are smart media Who Are These People 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)
- 20. We are smart media Demographics Source: Simmons NHCS, Simmons Winter 2016 12-month study, daily digital activites excludes email and other Non-Hispanic White 70% African-American 13% Hispanic 12% Asian-American 4% Native American 1%Ethnicity Non-Hispanic White African-American Hispanic Asian-American Native American MALE 50% FEMALE 50% Gender Breakdown MALE FEMALE COLLEGE - 4 YEARS (GRADUATED) 23% HIGH SCHOOL - 12 YEARS (GRADUATED) 30% GRADUATED COLLEGE OR MORE 42% SOME GRADE SCHOOL - 8 YEARS OR LESS 5% Education Level COLLEGE - 4 YEARS (GRADUATED) HIGH SCHOOL - 12 YEARS (GRADUATED) GRADUATED COLLEGE OR MORE SOME GRADE SCHOOL - 8 YEARS OR LESS
- 21. 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)
- 22. 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%0 Social networking Internet video Internet radio Gather information on products/services Purchase products/services Social Networking and researching products and services top the charts for this generation 3% 4% 17% 35% 41% 0% 25% 50% 75% 100% National Daily media share TV Internet Radio Newspaper Magazine TV ranks the highest among Generation X
- 23. We are smart media Internet Usage Source: Comscore “Plan Metrix Key Measures” (May 2016)
- 24. We are smart media Social Media Usage Source: Comscore “Plan Metrix Key Measures” (May 2016)
- 25. We are smart media Day Part Preference SOURCE: Simmons Winter 2016 (Full Year)
- 26. We are smart media TargetReach% Hour by hour media usage SOURCE: Simmons Winter 2016 (Full Year) Strategically place and time your messaging for contextual relevance 0% 5% 10% 15% 20% 25% 30% 35% 40% Watching TV Using Internet (on PC) Listening to Radio Reading Newspaper
- 27. 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
- 28. 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)
- 29. We are smart media Brands that do it well SOURCE: Simmons Winter 2016 (Full Year)
- 30. 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)
- 31. 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.
- 32. We are smart media Generation X Why 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 TV 24% watch primetime Messaging Emotional appeal, authenticity, resonating life events, nostalgia Guidelines to Advertising Understand they are pragmatic and self-reliant, more skeptical. They stalk more than they buy Smartphones 60% use smartphones Social media 75% use social networks Internet internet 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 Overlooked they are in there peak spending stage, untapped market How to approach them successfully
- 34. We are smart media Who Are These People 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
- 35. We are smart media Demographics Source: The Futures Company, "Monitor Download: Millennial" (2016) Non-Hispanic White 55% Hispanic 21% African-American 14% Asian-American 9% Other 1% Ethnicity Non-Hispanic White Hispanic African-American Asian-American Other Married or Part of Unmarried Couple Living Together 62% Have Never Been Married 38% Marrige Status Married or Part of Unmarried Couple Living Together Have Never Been Married Head of Household 88% Child in Household 12% Position in Household Head of Household Child in Household
- 36. We are smart media How They Access Media Media Platform Preference SOURCE: Simmons Winter 2016 (Full Year) 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
- 37. 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 Gather information on products/services Purchase products/services The top 3 daily digital activities for Millennials include social networking, streaming internet radio, and streaming internet video 2% 3% 17% 39% 40% 0% 25% 50% 75% 100% National Daily media share TV Internet Radio Newspaper Magazine Daily share of internet activities :
- 38. We are smart media TargetReach% Hour by hour media usage SOURCE: Simmons Winter 2016 (Full Year) Strategically place and time your messaging for contextual relevance 0% 5% 10% 15% 20% 25% 30% Watching TV Using Internet (on PC) Listening to Radio Reading Newspaper
- 39. We are smart media Internet Usage Source: Comscore “Plan Metrix Key Measures” (May 2016)
- 40. 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
- 41. We are smart media Social Media Usage Source: Comscore “Mobile Metrix Key Measures” (May 2016)
- 42. 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
- 43. We are smart media Who Are They as Consumers 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
- 44. We are smart media Who Are They as Consumers 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
- 45. 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
- 46. 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
- 47. We are smart media What Are They Looking For: Brands that do it well: Urban Outfitters Toms Shoes Chipotle Forever21 Netflix
- 48. We are smart media Millennials Why 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 TV 23% watch primetime Messaging Brand must show they care, Millennials Connect to a brand with affiliation to a cause Guidelines to Advertising More likely to be loyal if approached directly on social media, Personal ads are successful, they are highly educated, career-driven, and politically progressive Internet 29% prefer the computer Radio 57% more likely to stream internet radio Social media 85% Facebook, 57% Instagram, Snapchat 41% Smartphones 87% 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” How to approach them successfully
- 50. We are smart media Who Are These People 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
- 51. We are smart media Demographics Source: The Futures Company, "Monitor Download: Centennial" (2016) Non-Hispanic White 52% Hispanic 24% African American 14% Asian American 5% Other 5% Ethnicity Non-Hispanic White Hispanic African American Asian American Other Millennials 44% Xers 47% Baby Boomers 9% Parents Of Centennials Millennials Xers Baby Boomers Urban 32% Suburban 47% Rural 21% Urbanicity Urban Suburban Rural
- 52. 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 Source: The Futures Company, "Monitor Download: Centennial" (2016)
- 53. 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)
- 54. We are smart media Just Live+ DVR/Time Shifted TV Source: 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%
- 55. 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
- 56. 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)
- 57. 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
- 58. 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.
- 59. We are smart media Reviews Source: Power Reviews, “Centennial Shopper Study” (2015) They use brands as mirrors to express their values and priorities
- 60. We are smart media Generation Z Buying Inclinations Source: Power Reviews, “Centennial Shopper Study” (2015) More In-Store Purchases Than Millennials
- 61. We are smart media What They are Looking For: Source: The Futures Company, "Monitor Download: Centennial" (2016) • 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
- 62. We are smart media Companies Who Do it Well Source: The Futures Company, "Monitor Download: Centennial" (2016) Disney’s DreamWorks
- 63. We are smart media Source: AdvertisingAge, “Stung by Millennial Misses, Brands Retool for Gen Z” (2015) Companies Who Do it Well Taco Bell
- 64. We are smart media Source: Under Armour “I Will What I Want” (2016) Under Armour Companies Who Do it Well
- 65. We are smart media Generation Z Why Are They Valuable? Their Size: 78 Million (26% of the US Population) largest generation and growing Their Purchasing Power: topping $80 Billion How to approach them successfully Social media all over social media Messaging To gain a Centennial buyer a company must be agile, transparent, and inventive, 3 Core Values: Realism, Resilience, and Openness Guidelines to Advertising A 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 Smartphones 76% 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
- 66. We are smart media Generations in Comparison Baby Boomers Generation X Millennials Centennials 70-52 51-36 35-20 19-0
- 67. We are smart media Generations in Comparison 7% 25% 18% 24% 26% Make up of Population Silent Generation Baby Boomers Generation X Millennials Generation Z 74.9 56.4 77 78 0 10 20 30 40 50 60 70 80 90 Baby Boomers Generation X Millennials Centennials Size of Generations (in millions)
- 68. We are smart media Generations in Comparison Source: Simmons, The Future’s Company 3,000,000 125,000 200,000 80,000 Baby Boomers Gen X Millennials Centennials Spending Power In millions of dollars 125,000 200,000 80,000 Gen X Millennials Centennials In millions of dollars Enlarged view
- 69. We are smart media Generations in Comparison 79 3 13 5 70 12 13 4 55 21 14 9 52 24 14 5 0 10 20 30 40 50 60 70 80 90 Non-Hispanic White Hispanic African-American Asian-American Ethnicity Comparison Baby Boomers Generation X Millennials Centennials
- 70. We are smart media Generations in Comparison Source: Simmons 4% 3% 2…9% 4% 3% 13% 17% 17% 29% 35% 39% 45% 41% 40% 0% 25% 50% 75% 100% Baby Boomers Generation X Millennials Daily media share TV Internet Radio Newspaper Magazine
- 71. We are smart media Generations in Comparison Source: Nielsen “The Facts of Life: Generational Views About How We Live” (2015) 65 14 20 28 18 53 16 27 19 13 48 18 41 14 9 45 15 47 12 9 0 10 20 30 40 50 60 70 TV Online TV News Sites Social Media Sites Print Newspaper Radio News Source Comarison Baby Boomers Generation X Millennials Centennials (15-19)