next-now-presentation-ipg media lab

The Millennials are coming to power. Now what?

© 2013 IPG Media Lab. Proprietary & Confidential

Agenda• Introduction •Overview•What they understand that your brand doesn’t•Who they are (and aren’t)•Trends to capitalize on•How to connect and engage•The future, for now

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IPG Media LabAn Introduction

© 2013 IPG Media Lab. Proprietary & Confidential

For ten years we have been listening, learning; and sharing with

•Technology partners•Brands and agencies•Media owners

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© 2013 IPG Media Lab. Proprietary & Confidential

We live at the hub of opportunity

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© 2013 IPG Media Lab. Proprietary & Confidential

We innovate and create audience based solutions, by making media

• Innovation• Research• Creative• Thought Leadership

and addressing media owner challenges around:

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© 2013 IPG Media Lab. Proprietary & Confidential

New advertising formats

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Technology consulting

© 2013 IPG Media Lab. Proprietary & Confidential

Lab workshops

Next-gen research

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Technology has revolutionized the media experience…

Source: MAGNA GLOBAL estimates based on syndicated and public sources

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…and how we measure itAttention

Where are consumers focusing their attention?

ExcitementDo consumers show physical signs of

excitement? And when do they take place?

EmotionAre consumers enjoying what they see?

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Overview of Millennials

So, why is it so hard to reach them?A failure to communicate, based on what Millennialswant as digital natives and how they find information and accomplish tasks

A true “personal problem” for brands and marketers in not focusing on the core behaviors and beliefs of the audience12

They don’t trust you…According to Nielsen’s latest Global Trust in Advertising report, which surveyed more than 28,000Internet respondents in 56 countries

• of consumers say they trust earned media, such as recommendations from friends and family, above all other forms of advertising.

92%

• of global consumers surveyed online indicate they trust messages from online consumer reviews, an increase of 15% in four years.

70%

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…or anyone else for that matter

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The way that Millennials do things confuses us……hopefully the following information will help set the stage better for all of us

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DateWhat they understand that your brand doesn’t

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They understand true value exchange

Business CustomersValue Exchange

Value as access

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Value as time & information

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They know the Internet of Things by nature

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Their life is more important than your brand

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Who they are (and aren’t)

They are mostly digital natives

Generation Y (Millennials) 1980-2000The oldest were 4 when Apple

released the Macintosh personal computer

From Statista,-source: ITU Oct, 18, 2013

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They aren’t lazyThey want to do it all

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workingsslf .com– Rebecca Fraser Thill

They are diverse

Image: smoorenburg (Flickr)

They aren’t fickle, just choosy

2013 Badgeville “Rise of the Millennials

They are voracious media consumers, spending more than 18 hours a day with some form of content

They aren’t wealthy

• Dubbed the “renter generation”, only 37% of those under 34 are home owners

• Nearly two-thirds of 25-to-34 year olds say they get help from family to make ends meet

Sources: US Census, American Institute of CPAS, The Ad Council, Pew Research Center, Fidelity Investments, Experian

• Their average student loan debt is $35,200, the highest ever

They are socially active and want brands to participate with them

2013 Badgeville “Rise of the Millennials

Trends to capitalize on

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Devices are getting smarter, talking to each other and creating new ecosystems

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Don’t worry we are not here yet

though

Most of consumption and creation is mobileThat makes opt-in data essential to gather insights

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• of Millennialsaccess the Internet from their phone

75% +

• of Millennialsspend time on mobile devices sending and receiving messages

90%

Pew Research 2013

Increased use of wearables track fitness, social, and content engagement allows marketers access to even more data

Content must be mobile and compact

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Explosion of mobile messaging activity to carve out private spaces on the web

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Development of visually oriented experiences self curated by Millennials

Information is becoming more visual and passive

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Streaming is now happening across ALL devices with ANY type of content

In the U.S., car buying is now a communal project, where Millennials can leverage their group to upgrade product

Social media talent targeted at Millennialsare featured with world leaders

See the Pep Talk #kidpresident

How to connect and engage

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Close the current gap for brands and marketers for communication with Millennials• Work in the

speed and scale of digital

• Understand that you never get a second chance to make a first conversion

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Natural reactions are more predictive of future behavior

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So we will look there to find solutions

What happens when advertisers engage with consumers by providing instant gratification through branded rewards?

What differentiates rewards & ads?Ads…

• Often provide little benefit to

consumers• Present

regardless of on-screen events

• Can feel intrusive

Rewards…

• Connect brands to consumers during

moments of achievement

• Offer direct benefits

• Complement game play and do not

intrude

versus

1013

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Ads Game Play RewardsElectro-Dermal Activity

Average % of Time Expressing Excitement While Exposed

Ads (n=47), Game Play (n= 54); Rewards (n= 47)© 2013 IPG Media Lab. Proprietary & Confidential

Rewards generate excitement!Excitement Measured During Game Play With Biometric

Bracelet On-Screen Example: Reward At Moment of

Achievement

*Statistically significant difference between Control and Test at 90% confidence or greater

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701 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 106 109 112 115 118

Surpr

ise

Quarter Seconds of Game Play

Consumers also show more surprise…

© 2013 IPG Media Lab. Proprietary & Confidential

…and positive feelings

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0

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41 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121 126 131 136 141 146 151 156 161 166 171 176 181

Valen

ce

Quarter Seconds of Game Play

© 2013 IPG Media Lab. Proprietary & Confidential

∆2%

∆-4%

∆1%

∆-1%

∆-1%

∆3%

∆13%

∆8%

∆7%

∆8%

∆7%

∆6%

-10% -5% 0% 5% 10% 15% Is a premium brand

Is a brand I respect

Is a brand I would pay more for

Is a quality brand

Is a brand on its way up

Is a modern brand

Brand Attributes(Delta From Control) Physical

RewardAds

Sample sizes for participants who started assigned app Any.do: physical reward n=171; banner ad n=171; control n=189

Which translate into positive brand perceptions

© 2013 IPG Media Lab. Proprietary & Confidential

And ultimately a stronger impact on intent to purchase the brand

1%

14%

Ads Rewards

Purchase IntentDe

lta Fro

m Cont

rol

Sample sizes for participants who started assigned app: Control n=245; Ads n=276; Rewards n=425

© 2013 IPG Media Lab. Proprietary & Confidential

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Allows brands to use other messaging tactics in context to:• maintain and drive

loyalty• Leverage cause

marketing• lead with humor to give

insight

Get Millennials to engage with relevance and timing

The future, for now

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Technology changes, people don’t. Be relevant and timely to Millennialsschedules, not your brand’s Relevancy• Deliver messages in

the right place, at the right time

• Provide options people can act on in the moment

• I Like You, If You Like Me:• Leveraging fandom paid off in 18% lift on response for digital banners when involved with a Super Bowl study

• Mobile Couponing Preserves Brand Value• Smartphone imparts a halo of cool on offers and is an easy way to reuse a key conversion asset for retail

Learning from the Lab

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Be willing to experiment to surprise and delight MillennialsExperiment

• Optimize message and offer by screen for best impact

• Think small to get started• Break things; learn and do

better next timeSurprise and Delight• Extend the lifecycle of live TV

and events online, by engaging the audience with extended content on gaming and other platforms

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Exchange value for customer data

Value• Give reasons to

contribute and engage

Utility• Provide utility and

ask for inclusion together and see a lift in results

• “Thanks for letting us watch where and when we want— no more illegal streams for me.”

Quote from a Millennial sports panel attendee at SXSW 2014

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Use technology to enhance actions for consumer-centric engagements

Customize immersive experiences like shoppablevideo

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Native content gives the ideal window to do this:

• Native ads are viewed 52% more than banner ads

• Native ads attract & hold as much attention as webpage content

• Works best with including real-time information

• Stocks, current weather, or Twitter posts

• Instagram and Pinterestimages

Include them in your brand’s conversation with the world

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Research studies to ask us about Latest articles @ ipglab.comApple Showcases CarPlay

• http://ipglab.com/2014/03/03/apple-showcases-carplay/

Teens Love Messaging Apps• http://www.ipglab.com/2014/03/11/sxsw-2014-danah-boyd-

explains-why-teens-love-messaging-apps/SXSW putting the audience front and center• http://www.ipglab.com/2014/03/10/sxsw-2014-putting-the-

audience-front-and-center/

Sports Mastering Social• http://www.ipglab.com/2014/03/11/sxsw-2014-how-sports-have-

mastered-social/Rise of Connected Devices• http://www.ipglab.com/2014/03/08/sxsw-2014-rga-techstars-

and-the-rise-of-connected-devices/Twitch goes mobile• http://www.ipglab.com/2014/03/05/twitch-goes-mobile/Branded Stickers continue growth• http://www.ipglab.com/2014/03/03/branded-stickers-continue-

growth/

Content• Branded content

Real Time• Real-time ads

Multi-Screen• Bridging TV data to better target digital• Are all screens created equal ?

Things to review from the Lab on Millennials

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If you want to learn even more, get in touch:ipglab.com@ipglabinfo@ipglab.com

Muito obrigado!