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8095 ® REFRESHED The evolving role of brands for the world’s largest and most impactful generation
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8095 Refreshed

Aug 19, 2014

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The evolving role of brands for the world's largest and most impactful generation.
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8095® REFRESHEDThe evolving role of brands for the world’s largest and most impactful generation

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Continuing the 8095® Conversation

Edelman 8095® is an insights group studying the Millennial generation, born between 1980 and 1995, to understand their evolving relationship with brands.

In 2012, we refreshed our research with a survey of 4,000 Millennials in 11 countries.

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• Millennials in 2013• Why Millennials Matter To Marketers• Global Trends• 8095® – Where We’ve Been• 8095® 2.0

• New data and insights• Implications for marketers

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The Millennial Generation Goes By Many Names

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Millennials in 2013• The oldest are 33 years-old, the

youngest are 18

• Life defining moments include the Global Recession, 9/11, Asian Tsunami, Arab Spring, Facebook, smart phones

• First generation that may be worse off economically than their parents

• Most diverse and educated generation in history

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Their World Is Smaller, More Connected

of Millennials across all 11 markets surveyed see their country as being influential on the world stage.

*(Edelman Berland 8095 2.0 Survey 2012)

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Why Millennials Matter To Marketers

BIG: The largest generation alive today• 1.8 billion globally1 (out of 7 billion world population)

• 75% of workforce by 20252

INFLUENTIAL: Impact purchase decisions of peers & parents• Will outpace Boomer earnings by 2018 ($2.5+ trillion spending power)3

• 74% say they influence purchase decisions of other generations4

UNIQUE: The first inherently digital generation• Don’t know a world without the Internet or smart phones

1. (U.S. Census Bureau International Database 2012)2. (Business and Professional Women’s Foundation 2011)3. (Harris Interactive and Deloitte study 2011)4. (Edelman Berland 8095 2.0 Survey 2012)

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Millennials are more likely to recommend products and start trends…more involved in pop culture and activities that would compel them to try new products and recommend them to friends.

-MINTEL, WORD OF MOUTH AND VIRAL MARKETING

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Trends That 8095ers Are Leading Today

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Global UrbanizationFor the first time in world history, more

people live in cities or suburbs than rural locales1.

ImplicationMillennial identities will be closely tied to the cities they live in, and marketers need

to customize and target engagement.

1. United Nations Department of Economic and Social Affairs/Population Division World Urbanization Prospects: The 2011 Revision

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Experiences Over StuffThe economy is forcing Millennials to

delay purchases and demand a new level of value from the brands they buy.

ImplicationMarketers must demonstrate how their

products or services enable life experiences and deliver value.

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Rise (or fall) of the Millennial DadTraditional gender roles are shifting.

Six in 10 college students are female1, and men are taking over more household and

purchasing responsibilities.

ImplicationMarketers should lessen the focus on gender and other traditional audience

segmentation. Appeal to the new blended nature of humanity and to the audiences

influencing your target.1. (Digest of Education Statistics, 2010)

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Where We’ve Been

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In 2010, Edelman launched 8095®, an insights group founded on an eight-country study of the Millennial generation, born between 1980 and 1995.

The goal? To understand their relationship with brands, the actions they take on behalf of brands and how those actions create new opportunities for marketers.

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8095®

The benchmark 8095® study in 2010 revealed four insights.

Brands are a partnership and form of self-expression

Information is a key to influence

Taking action on behalf of brands is a core value

There is a reverberation effect taking place online, offline and increasingly on mobile devices

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is the #1 personal identifier Millennials are willing to share online.

Brands are a Partnership and Form of Self-Expression

1 in 3 look for brands to make a positive impact on the world.

*(Edelman Berland 8095 Survey 2010)

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Of Millennials consult four or more sources of information when making brand purchase decisions.

Information is a Key to Influence

*(Edelman Berland 8095 Survey 2010)

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Taking Action on Behalf of Brands is a Core Value

take action on behalf of their trusted brands.

are brand loyal and keep purchasing brands they like.

*(Edelman Berland 8095 Survey 2010)

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Average number of text messages young Millennials send every month1.

Reverberation Effect Taking Place Online, Offline And Increasingly On Mobile Devices

1. The Nielsen Company, 2010 2. Keller Fay Groups TalkTrack, U.S. July 2010 – June 2011

Weekly volume of word-of-mouth impressions. Of which, 13.5 billion are offline and 1.2 billion are online2.

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8095® 2.0In October 2012, Edelman 8095® and research partner Edelman Berland surveyed 4,000 Millennials in 11 countries

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A Caveat

A challenge in defining Millennials is that they are progressing through fundamentally different life stages.

Millennials are not a monolithic bloc. The best Millennial study is directional rather than absolute, and digs deep into the behaviors and cultural nuances of Millennials in individual countries.

8095 attempts to give a snapshot of commonalities that tie the generation together.

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8095® 2.0The rise of realism, with a twist.

Compared to the 2010 study, we see a shift in the ways Millennials perceive their lives and future. While idealistic and optimistic, there is a new measure of realism.

Millennials are growing up, and so too are their views of success. Their aspirations are surprisingly traditional, but coming of age in the global recession has forced them to push back typical stages of adulthood and has created a new breed of entrepreneurs.

For brands to matter to Millennials, “average” is no longer enough. A whole new level of engagement, authenticity and purpose is necessary.

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The Global Recession has Created a Mix of Traditional and Non-Traditional Values for Millennials, Sparking a New Type of Consumer

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DEFINED BY DEBTAverage $28,500 in student loans1

WEAK JOB PROSPECTSUnemployment rates for Millennials are typically double the national average.

• In the U.S., Millennial unemployment is 12+% (7.9% is national average)2

• In Spain, Millennial unemployment is 48% (22% is national average)3

LOW NET WORTHIn the U.S., median net worth of people under 35 fell 37% between 2005 and 2010; those over 65 took only a 13% hit.4

1. (Institute of Education Science 2012)2. (U.S. Department of Labor) 20123. (National Statistics Institute of Spain 2012)4. (U.S. Census 2012)

The economy sucks for most, and it’s devastating to Millennials

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Millennials Have a PR Problem

If you follow recent headlines, Millennials are lazy, self-entitled, or worse.

We believe much of the criticism is undeserved. They are coming of age during one of the hardest economic and social environments the world has seen.

They are blazing new paths and finding a new way through life.

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Despite Challenges, They Remain Optimistic, and Their Aspirations Surprisingly TraditionalWhat are your most important life goals?

*(Edelman Berland 8095 2.0 Survey 2012)

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Entrepreneurial

of Millennials say that owning their own business

is a top life goal

76% in Turkey 65% Brazil 61% China

44% US

*(Edelman Berland 8095 2.0 Global Survey 2012)

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SensibleWhat products or services are Millennials willing to pay a premium for? Health-related items rule. Beauty and Apparel don’t.

*(Edelman Berland 8095 2.0 Global Survey 2012)

0% 100%

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Implications for Marketers• Millennials aren’t kids anymore. The oldest are 33, the youngest 18. They

are not the next frontier, they are the here-and-now consumer target influencing the purchase of EVERY brand.

• Shift away from traditional segmentation. Diversity is everywhere and gender lines are blurred. Speak to your target AND their influencers.

• Marketers need to think about how they assist the generation’s new life goals and revised timeline of life events.

• Think about how your brand can help Millennials in other parts of their lives.

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Millennials are Alpha-Influencers

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Alpha-Influencers

of Millennials think they influence the purchase decisions of peers and those in other generations

*(Edelman Berland 8095 2.0 Survey 2012)

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Like Daughter, like Mother

• Children have a strong influence over the purchase decisions of items used by their family, such as cars, food and vacations1.

• New research2 also suggests children influence goods their parents use for themselves, such as clothing. Many mothers intentionally mimic their daughters style.

1. (Mintel “Kids as Influencers” U.S. study 2010)2. (Journal of Consumer Behavior study, 2011)

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Shopping is a Social ActivityFor Millennials, shopping is a social activity, and many won’t makea purchase their friends disapprove.

of Millennials typically shop with friends, family or significant other

*(Edelman Berland 8095 2.0 Survey 2012)

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Two-Way Dialogue

Millennials think it’s their responsibility to share feedback with companies after a good or bad brand experience.

*(Edelman Berland 8095 2.0 Survey 2012)

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Alpha-Influencers

use at least one outside source for guidance

use four or more sources of information

Millennials crowd-source to make brand purchase decisions.

*(Edelman Berland 8095 2.0 Survey 2012)

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Inherently Digital, But Craving Offline ConversationMillennials most often go to search engines as a source to help them make brand purchase decisions, but face-to-face engagement with friends and family are the second and third most used sources.

*(Edelman Berland 8095 2.0 Survey 2012)

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Implications for Marketers

• Every brand needs to consider Millennials as a core target, or at least a significant influencer for their target.

• As masters of crowd-sourcing to make purchase decisions, engage Millennials in surround sound. Online and offline.

• Help Millennials become an expert on your brand, purpose and story. They have a strong desire to share and learn. Sell unique and real product benefits and you will drive reverberation.

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Millennials Are Surprisingly Open To Brand Engagement and Advertising, But Only If Brands Have the Right Approach.

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Willing to Engage With Brands

While skeptical of brand messages, they are open to engaging with brands, but…

1. Brands must act and engage differently to get attention and loyalty. We are in an age of surprise-and-delight. If you don’t, they will tune you out.

2. Authenticity rules. Focus on selling unique and real product benefits. Millennials want to share and learn. Give them messages that show value and are worth repeating.

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Willing to Engage With Brands

of Millennials think all advertising is boring

*(Edelman Berland 8095 2.0 Survey 2012)

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8 in 10 Millennials want brands to entertain them.How do they want to be entertained?

Allow me to influence your products (co-creation)

Answer my questions/comments in real time via social media

Connect me to the other fans of the brand/company

Sponsor entertaining events

Create online content such as videos, photos, games and blogs

Partner with a celebrity or public figure I admire

I don’t expect brands/companies to entertain me

*(Edelman Berland 8095 2.0 Survey 2012)

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Millennials want brands to help them in other areas of their lives. How do they want brands to help them?

Provide me with financial assistance (e.g., grants, scholarships)

Provide me with the opportunity for more life experiences (e.g., send me on trips, give me lessons in something I have an interest in)

Provide me with a mentor who can help guide me

Allow me to use your audiences (e.g., Facebook pages, ads, etc.) to connect with others with similar interests and ideas

Allow me to use your audiences (e.g., Facebook pages, ads, etc.) to share my message/story with a wide group

*(Edelman Berland 8095 2.0 Survey 2012)

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Humor, Value & Engagement RuleWhat is the most effective way for a company to capture your attention?

*(Edelman Berland 8095 2.0 Global Survey 2012)

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Implications for Marketers• It’s not your brand anymore. It belongs to your customers. Be

agile, collaborative and prepared for the worst and best

• Experiences over stuff. Focus on how your brand enables life experiences. They want to buy into new ideas and share them with friends and family. Be social and enable sharing.

• “Smart and funny is the new rock and roll.” Business is often serious, but don’t always take yourself so seriously.

1

1. (Nick Shore, Strategic Insights & Research at MTV)

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Continuing the Conversation

edelman8095.tumblr.comOur blog for all things 8095.

twitter.com/edelman8095Updates and insights in 140 characters or less.

t.sina.com.cn/edelman8095Updates and insights in 140 characters or less.

Survey conducted by Edelman Berland and consisted of online interviews in 11 countries among 4,000 adults born between 1980 and 1995.

The survey was conducted in the following countries: Australia (N= 300), Brazil (N=300), Canada (N=300), China (N=300), France (N=300), Germany (N=300), India (N=300), Turkey (N=300), United Arab Emirates (N=300), United Kingdom (N=300), United States (N=1,000) with weighting to ensure equal representation from each country.

The survey has an overall margin of error of ±1.55% at the 95% level of confidence.

8095 2.0 Survey Methodology

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The iGeneration/Generation Z is now fully formed, with their oldest

turning 17 years-old. They will soon become the new “it”

generation.

If we can’t understand Gen Y, we’ll never get Gen Z.

A Final Reason Millennials Matter

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