Millennials are choosing products, services, and even retail stores based on how seamlessly these new additions fit into their lifestyle.
When it comes to tech products, Gen Y consumers tend to contradict themselves. We want a continuously expanding, cutting edge product line with advanced features and the ability for limitless customization. But from the very same products, this demographic demands extreme simplicity. Yes, it’s madness - however companies that can achieve the delicate balance of innovation + simplicity in product design will have young shoppers flocking to their stores.
Real World Example: The Future Microsoft
Microsoft has had issues with the innovation/simplicity blend in the past, and Apple capitalized on this factor with their infamous “Switch” ad campaign. Gen Yers began switching from Microsoft products to sleeker, easier-to-use Apple products.
But Microsoft knows why this is going on. They need to be the innovator again, and the company’s products must work together seamlessly if they want to crack the Gen Y market. Just as companies are accepting new ‘norms to retain Gen Y employees, Microsoft is learning to embrace the lifestyles and desires of their 20-something target market. Microsoft isn’t quite there yet, but they are on the right track.
This video shows Microsoft’s vision for their future in the youth market. It is a perfect example of how Millennials want technology to fit seamlessly into their lives. The title is fitting: it is called “Your Digital Lifestyle.”
The Hottest (Youth) Mobile Phone Brand Always Stays Ahead of the Curve
Nokia has gotten it right with Gen Y from the start. They were the first mobile phone manufacturer to capitalize on this age group’s desire to customize and personalize their experience with the product. Nokia phones with interchangeable faceplates were so popular among teens throughout the 1990s because young people could finally make their phone cool and unique - fulfilling a strong urge to differentiate theirs from the dull, gray phones owned by their parents.
In 2008, Nokia is still a brand that resonates with Gen Y. But marketing to a younger audience is no longer about custom accessories. Young buyers nowadays want to customize and control their own content. They don’t care as much about the physical device - they just care about what they can create and who they can communicate with. Because of this, Nokia is embarking on fresh campaigns to market their new N-series line of phones.
Advertising the Nokia N-series: Telling isn’t Selling
The N-series is a clean, cutting edge line of phones, which would typically be promoted by showcasing the product’s sexy design and full-fledged feature set in advertisements. BlackBerrys are promoted in this manner and it works for them - because their target demographic is the 30-50 year old market. But this promotional style will only cause Gen-Yers to press the commercial skip button on their TiVo.
Product-focused and feature-based advertising rarely grabs the attention of a Gen-Yer. Advertisers don’t need to list out product features for us; we can learn about those online if we really want to. Don’t tell me what your product can do - show me the experience I could have with it. Nokia gets this concept, and their recent marketing initiative for the new N-series is an excellent example of marketing that Gen Y will pay attention to.
So how is Nokia reaching Gen Y? Here are the details:
Teams have 48 hours to shoot and edit a 60-second commercial, all done with the Nokia phone.
The Cannes Young Lions Film Festival = Perfect Product Placement for Nokia
The result: teams of young people from all over the world created their own commercialsusing Nokia phones. The company is creating buzz by tapping into this age group’s primal desire to create, publish, and share content that is relevant to them. And it is working - the videos are unique and creative, and all of them show the N-series phones in action (without showing the phones at all). The entry from Team Italy (vid below) is my favorite.
Learning from Nokia - How You Can Reach Gen Y
For businesses that want to make meaningful connections with Generation Y, there are 2 key takeaways to consider that lead Nokia to success with their recent N-series marketing campaign:
By inviting teams from around the world to participate in the Cannes Young Lions festival, Nokia is building a reputation as a brand and company with a world view. Gen Y studies abroad, has friends living abroad, and has generally grown up in a culture that appreciates diversity. These factors cause Generation Y to weigh a company’s global actions (positive or negative) more heavily than others when making purchasing decisions.
Nokia gave their users control of the content by asking them to create advertisements. The logic behind this is simple: if you are trying to reach the Gen Y demographic, why should anyone other than a Gen-Yer design your ads?
Owning a car - your own car - has been a key part of the American Dream for 100 years now. Now fast forward to today, where $4 gas prices and urgent environmental impact concerns have people changing their attitudes. In addition, the automotive industry is coming to a stark realization that the Millennial generation “does not aspire to car ownership” like their Baby Boomer parents did. This is because owning a car used to be the key to freedom, but now younger generations are seeing car ownership as a liability that ties them down.
While many American businesses and consumers are stretching their budgets to the breaking point just to fund their cars, a company with a brilliant business model has found a way to adapt through renting cars by the hour. The company is Zipcar, and they have been incredibly successful in targeting and connecting with Generation Y drivers.
Carsharing 101
Living in the city and owning a car is a painful experience, both financially and logistically - especially when you are young and on a tighter budget. AAA now estimates the average cost of car ownership will be $8,121 for 2008. $676.75 a month? There has to be a better way to get around! This is where Zipcar comes in.
The Zipcar concept: If you live in or near a major city with public transportation available, ditch your car and engage in carsharing instead. Use public transportation, cycling, or your own two feet to commute back and forth to work. When you do need a car for going on weekly grocery store trips or driving out to visit a friend in the suburbs, rent a Zipcar by the hour. It’s easy - Zipcar includes gas, maintenance, parking and insurance. The cost to rent an average ZipCar? About $8.50/hour after a $50 annual membership fee.
This clean, simple, and affordablepricing structure is of particular appeal to the cost-conscious Gen-Yer. But this isn’t just about price…accessibility, green benefits and cool cars help seal the deal with young consumers.
18-to-25 Drivers: An Untouched Segment!
A few years ago, Zipcar made a very smart move by working with colleges around the country to park Zipcars on campuses for students to use. For a long time, the car rental industry has made it nearly impossible for college kids to rent cars. Even recent college graduates are excluded from most rental companies’ minimum rental age of 25.
ZipCar has done the opposite, however, by making their program available to anyone 21+. In early ‘08 they broadened their reach even further by lowering their minimum age to 18 for most college students.
And guess what…it is working like magic. Young people are flocking to use Zipcars while in college, and that makes this service one that they are likely to continue using after graduation as well. In a recent INC Magazine interview, Zipcar CEO Scott Griffith emphasized the importance of young consumers in building the company’s brand, stating: “We’re taking a page from the Apple playbook, really creating awareness early on.” INC Mag goes on to note that 2/3 of Zipcar’s 180,000 members are under 35.
Spreading Buzz; Building Evangelists
Could Zipcar reach their target audience of young urbanites through traditional marketing methods such as TV advertising? Not a chance. This company has followed the likes of other cult brands (like Apple and Ikea) by creating a product/service that comes with a network of others that share a common philosophy. Zipcar is not just about renting cars…there is an entire community that comes along with every membership.
Most companies that try to build a community of Gen Y evangelists around their brand fail quickly. Here is how Zipcar has made it happen:
Listening to what their customers are saying online, such as when they refunded this blogger after he rented a Zipcar to give New Yorkers free rides during a transit strike (see comment #11).
And instead of producing professional TV ads, they encourage Zipsters to create their own commercials to post online. This one from a Chicagoan tells it all:
These unique efforts to target and build the brand with Gen Y have proven to be incredibly successful for Zipcar. Their timing is also spot-on, as there is an increasing demand for carsharing as fuel prices go through the roof. It is becoming easier to see why Gen Y is choosing Zipcar in record numbers instead of owning a car.
Yet even as they grow, this company continues to connect with their customers in a personal and meaningful way. How would I know? It worked on me when I joined last month. I am one of their many evangelists - not paid or sponsored at all by the company, but so genuinely thrilled about this service that I want to spread the word.
Harnessing Word-of-Mouth with Gen Y
Implementing Zipcar-style grassroots and WOM marketing is one of the most challenging, yet most effective ways to build your brand with Generation Y. With more than 70 million members in Gen Y, Zipcar realizes that this is a group worth targeting. Smart companies understand that as a group we are incredibly social and quick to tell our peers about the brands we really love.
Gen Y’s buzz-spreading ability is a key business builder behind the scenes at zipcar, and it is evidently working well for them - 40% of new Zipcar members are referred by their friends.
If you are a marketer trying to make sense of Generation Y, start by pressing play on this video.
The following 1 hour discussion panel brings you a cross-section of 6 Gen Yers, ranging from age 16-24. This fascinating group discussion is moderated by Guy Kawasaki — a veteran silicon valley venture capitalist — and provides an inside view of how Millennials integrate technology into their everyday lives. The panel was held in late 2006, but I feel that it is still quite valuable. If you wish to jump ahead in the video, I have provided key talking points and their corresponding times below. Enjoy!
Talking Points
Introducing the panel 02:55
What are your uses of cellphones vs. landlines? 05:44
What is your use of MySpace? 12:36
How do you pay for things online? 21:39
Do you watch TV anymore? 27:34
What are your general uses of computers? 34:15
How can advertisers reach young people? 40:16
What gadget/service do you wish you had? 55:05
For further insight on this panel, take a look at Guy Kawasaki’s blog post, “Is Advertising Dead?“
“The big story is not what they buy — it’s all the influence they have on the total purchases within a household.”
The buying behavior of my own family reinforces this statement. My Dad recently decided to change our household’s internet access provider, and he put me in charge of picking the best one. At first I was surprised, but looking around our house I began to realize just how much of an impact I have on my parents’ purchasing decisions. The Harris study proves that I am not alone — parents across the country are buying with influence from their Gen Y children.
Categories Under The Influence of Gen Y Kids
Overall, it is estimated that Generation Y influences “as much as half of all spending in the U.S. Economy.” But what categories do they impact the most?
Clothing ranks highest, as Millennials are considered co-purchasers for 81% of the family’s apparel. Food is a close 2nd, with a 77% rate of influence.
The largest trend, however, is in technology-related purchases. From computers (68%) to cell phones (66%), Gen Yers have a great deal of influence on the tech gear their parents purchase. Gen Y has never known a world without computers. As a result, we are quick to adopt new technology — and we are usually the ones to teach it to our parents.
Parents Under The Influence of Gen Y Kids
This temporary role reversal, where the child is teaching the parent, creates the high level of influence children have over their parents’ tech purchases. An apparent shift in decision making power between parents and kids would baffle most members of The Greatest Generation (Gen Y’s grandparents), but it is quite common in today’s world. Breaking away from their parents’ philosophy that “children should be seen, not heard,” Baby Boomers are known for preferring a collaborative relationship with their Gen Y children.
Marketers must understand this shift, especially if they are promoting one of the more-effected product categories in the chart above.
What is the best way to win over parents and their children? Communicate your message with both of them, in the forums that they prefer:
• Gen Y rejects traditional advertising, and prefers word of mouth messages from peers, active interaction (think experiential/event marketing), and online communication.
Warning: Tailor your marketing to each demographic, but be careful not to send two completely different messages. For example, if you try to appear “edgy” to the child and “safe” to the parent, both groups will see right through you.
Target Audience: 18 - 34 year olds, those that have graduated from MTV
Content Focus: 3 - 7 minute documentaries called “pods” covering world news, current events, music, art, pop culture, and just about anything relevant to young people today. Some pods are produced by Current’s team of journalists, and the rest are made up of viewer created content.
Viewer Created Ad Messages (VCAMs)
The advertising model of this network is one of its most unique features. The ads, known as “VCAMs” in Current-speak, are created by the viewers themselves. Here is how the process works:
A company like Toyota or L’Oreal signs on with Current TV to do an ad campaign
Current TV creates an “assignment” for the ad, calling all viewers to create their own ad.
Viewers have a few weeks to submit their ads, which are posted on Current.com
The sponsor company selects 3 winners to air on Current TV. Winners also get $1,000
I chose to write about VCAMs because I caught myself watching them today. That might sound like an odd thing to say, but I hardly ever watch commercials on TV. My TiVo allows me to skip them effortlessly. As soon I sense an oncoming commercial break, my thumb is hovering over TiVo’s 30-second skip button. But not with VCAMs! They entertain me, and I am fascinated by content that my peers are creating. Take a look at the VCAM below… do you prefer this over a traditional TV ad?
A recent survey conducted by Outlaw Consulting revealed the 15 most trusted brands among the millennial generation. The brands, listed here in the left column, were identified by 100 “trendsetters” aged 21-27.
So, what do Gen-Yers look for in a brand? Take a look at their answers…
What survey respondents said about their favorite brands:
“By admitting that their clothing isn’t that expensive, H&M seems honest.”
“I like the fact that American Apparel uses real people in their ads.”
(about Trader Joe’s) “They wear these tacky Hawaiian shirts and publish that ridiculous newsletter. But it’s their own style. And it’s so much more inviting than the normal rigid grocery store.”
“I love Jet Blue’s style-for-everyone, cheaper-airlines motto.””
VW is like the Apple of automobiles. Streamlined, thoughtful of consumer needs, bringing together form and function.”
“I like a company that doesn’t feel like it’s trying too hard.”
Most Trusted Brands = Most Desirable Employers
As a Gen-Yer myself, I can identify with almost all of the brands on this list. In many ways, millennials approach a brand in the same way that we might consider a prospective employer. We look for companies that listen to us and think progressively.
Apple’s most famous advertising slogan is “Think Different.” We choose brands like Apple because their products are cutting-edge, yet still simple and approachable. These factors have made the company Generation Y’s #1 most trusted brand. It may come as no surprise that Apple ranks 6th among the most desirable MBA employers.
This Nintendo commercial has become one of the most-watched advertisements in YouTube history. With 2,100,000 views and counting, the message is still running strong months after it was last run on conventional TV.
Now that the ad has been on YouTube for 1 full year, something amazing is happening…
Consumers are continually building the brand - in the comments section!
YouTube provides an excellent forum for any company to get honest and uncensored feedback about their products.
Learn who is really using the product (Parents are enjoying it too)
Identify mistakes they may have made (launching the product with too few games)
Why This Is Important in Marketing to Gen-Y
Nintendo is getting free feedback through their YouTube video, but there is another benefit that the comments section provides…A place for young consumers to talk about the brand with their peers. As a generation, we rely heavily on the input of our peers throughout the entire buying process. We also love to use technology to research potential purchases. These factors make YouTube the perfect medium to reach this generation.
Believe it or not, if I am thinking of buying a product I will usually search for videos of it on YouTube. Such searches can reveal commercials like the Nintendo one you just watched, and the comments left by my peers give me a real view of what to expect from the product.
So if you are trying to reach Generation Y, post a video related to your product on YouTube and watch the comments section closely. Want to one-up Nintendo? Respond to the comments too.
Today I asked this question to 3 people and as you might expect, I received 3 completely different answers. To get a clear answer myself, I started with the Wikipedia article on Generation Y. It begins with:
The term Generation Y first appeared in an August 1993 magazine AD Age editorial to describe those children born between 1981–1995.[1] The scope of the term has changed greatly since then, to include, in many cases, anyone born as early as 1976 and late as 2000. There is still no precise definition of years.
This definition got me thinking. Defining the years of Gen Y is important, but it is really just a surface-level answer to a much deeper subject. As marketers, it is critical that we understand the ins and outs of Generation Y. We need the facts and numbers to tell us who this generation truly is. Numbers and research? This sounds like a lot of work! Not at all. Here, all in one place, you can dive into 5 of the best research studies on Generation Y. Enjoy!
One of the most comprehensive studies covering the whole story of Gen Y - including a great meet the millennials section, descriptions of how technology fits into their life, and an analysis of how they are changing shopping.
Source: RMG Connect (Relationship Marketing division of JWT)
Pages: 24
Powerpoint presentation with excellent focus section on what makes them unique as consumers. This report also splits the generation up into psychographic profiles such as Chic Geeks or Miss Insulars, and describes how to reach each one with brand messaging.
Solid coverage of Gen Y’s home life, including niche data on subjects such as how many children eat dinner with their parents daily. Has a pros and cons analysis of the generation, as well as information on effective hiring, training, and employment practices for employers or managers of Gen Yers.
Report from Deloitte Ireland mainly covering what Gen Y wants in the workplace. Even with the HR focus, this is an excellent source for marketers to develop a better understanding of the generation’s values.
Are you a seasoned marketing professional trying to understand Generation Y?
If so, you’re not alone.
Businesses of all shapes and sizes are eager to reach this demographic. Of course they are — at 70 million in the U.S. alone, Gen-Y holds immense purchasing power. But drawing in this influential group of consumers is no easy task. That is where I come in…I am one of them.
I created Millennial Marketer to provide you with a 23 year-olds viewpoint on what works when marketing to this “hard to reach” group.
The idea behind Millennial Marketer
People are talking about generation y today more than ever before.
This is most likely a result of millennials entering the workplace. For the first time, marketers are learning about Generation Y - not through focus groups - but by working alongside them.
This generation’s radical ways of doing things have caused companies to re-think the way they hire, train and (hopefully) retain employees.
So why not re-think marketing in the same way?
Great Idea. Lets get started.
But there is one void in the conversation. Almost all of the analysis - and the research - is coming from outsiders. A lot of this is smart research, and produces great ideas, but it needs a fresh perspective…This is where Millennial Marketer fits in. I am writing to give you an inside look on how marketing and advertising efforts targeted at Gen-Y are seen by us.
Hi I'm Jeff Taylor. I have worked as a sales rep, college tourguide, event manager for an experiential marketing agency. I now work at a social media/marketing/digital PR firm in the Washington, D.C. Metro area. My specialty is online brand management. Want to get in touch with me? Click here to view my contact info.
Overall, it is estimated that Generation Y influences “as much as 
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People are talking about generation y today more than ever before.
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