Marketing to Millennials

PAG

E 1

CONFIDENTIAL

WWW.MARQETA.COM

2015

MARKETING TO MILLENNIALS MARCH

PAG

E 2

CONFIDENTIAL

PAG

E 3

CONFIDENTIAL

Who are these Millennials?

PAG

E 4

CONFIDENTIAL

Millennials by the Numbers

9.0% Emerging

16.9% iGeneration

24.5% Millennials

15.4% Gen X

23.6% Baby Boomers

10.5% Swing/WWII

Median household income

Average annual expenditures

$51,017

$51,442

$30,604

$31,411

$51,381

$49,544

64 million Millennials 18-24 and 42 million 25-34 in the US

Source: Us Census Bureau, Current Population Survey, Annual Social And Economic Supplement; Consumer Expenditure Survey, Us Bureau Of Labor Statistics, September 2013/Mintel

PAG

E 5

CONFIDENTIAL

Screens. Screens. And More Screens.

55% Watch video several times a day on different devices

72%

Visit 5 different sites per day to watch

video content

Want to connect news

across all devises

Source: Gen Wifi Study 2013, Global Video Study 2013, Yahoo Gen Y News Property Study, 2013

PAG

E 6

CONFIDENTIAL

More than 74 percent feel that new technology makes their lives easier, and 54 percent feel new technology helps them be closer to their friends and family.

PAG

E 7

CONFIDENTIAL

Don’t call me. Friend me. Millennials are checking in socially between 20 and 21 hours each month.

Younger Millennials access social media sites more on their laptops.

Older Millennials log in more on mobile apps.

PAG

E 8

CONFIDENTIAL

Brand Affinity

45%

Millennial respondents

35%

25%

Adults ages 35-54

Adults ages 50+

Source: Havas Hastag Nation 2014

PAG

E 9

CONFIDENTIAL

Brands we

Source: Moosylvania 2015 Millennial Ranking Report

PAG

E 10

CONFIDENTIAL

Important Brand Characteristics

•  High Quality Products

•  Fits their personality

•  Socially responsible

•  Shares similar interest

•  Says important things

•  Engages in a conversation

VERY HIGH

MEDIUM

HIGH

HIGH

VERY HIGH

MEDIUM

Source: Moosylvania 2015 Millennial Ranking Report

PAG

E 11

CONFIDENTIAL

What They Want From Branded Content

Informative/educational 46%

Unique 47%

Relevant to who they are 46%

Fresh/new 48%

Funny 51%

Entertaining 53%

Brief 54%

Source: Yahoo Content Marketing Ingestion Study, 2013

PAG

E 12

CONFIDENTIAL

Brand Advocacy

46% Notice branded content consume it.

1/3

Use direct word of mouth advocacy. 57%

Share it.

Advocate while shopping. 54% While buying online. 48%

Embrace the brand lifestyle. 44%

Subscribe via email. 40% Are loyal. 36%

59% 20%

Source: Yahoo Content Marketing Study, 2013

PAG

E 13

CONFIDENTIAL

Expectations & Desires

Millennials expect: •  Immediacy. 77% expect real time interactions •  Peer Recommendations. 71% listen to peers •  Authentic relationships with brands that offer good value •  Engagement anywhere, anytime especially on mobile devices •  Emotional connection

Millennials want: •  Transparency. Marketing is ok, but don’t try to hide it. •  Something for their data. 67% believe data will be more valuable than their

possessions. •  To trade up (indulgences) and trade down (value spending) •  Want more enriching experiences. •  To easily manage their money and like prepaid products •  Rewarding experiences

PAG

E 14

CONFIDENTIAL

So what works, what doesn’t?

A few examples.

PAG

E 15

CONFIDENTIAL

PAG

E 16

CONFIDENTIAL

PAG

E 17

CONFIDENTIAL

It’s all about creating a

relationship.

PAG

E 18

CONFIDENTIAL

Tips for Marketers

•  Be authentic.

•  Connect with universal human experiences.

•  Be an outlet for discovery.

•  Be imaginative, creative and playful.

•  Inform with how-tos, lifehacks and content that makes them feel smarter.

•  Taps into millennials’ desire for discovery.

•  Be real and responsive.

•  Leverage all content formats to connect.

•  Help them save on the things they buy everyday so they can splurge on the

things they really want.

PAG

E 19

CONFIDENTIAL

Millennials and Money

PAG

E 20

CONFIDENTIAL

A Decreasing Trust in Banks Consumer confidence in banks has seen a sharp drop-off since the 2007-2008 Financial Crisis.

PAG

E 21

CONFIDENTIAL

Millennials are even more distrustful.

PAG

E 22

CONFIDENTIAL

A Growing Prepaid Market

$5 $10 $17 $33

$52

$78

$125

$148

$184 $194

$205 $219

$236

$254

$119

$141 $159

$179 $188

$198

$231

$263

$299 $309

$317 $326

$334 $343

$0

$50

$100

$150

$200

$250

$300

$350

$400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Open Loop

Closed Loop

Amount Loaded onto Cards ($Billions)

Source: Mercator Advisory Group, 2013

PAG

E 23

CONFIDENTIAL

Why Millennials Like Prepaid Quantitative and qualitative research support these customer experience benefits

Prepaid customers want to be smart about money and manage their accounts on their mobile phones. They want to stay out of debt and avoid interest charges that come with credit cards.

MANAGE MONEY ONLINE

Unlike cash, reloadable prepaid cards may offer zero liability in case of fraud or a lost card.

SAFETY

For consumers whose alternative is cash, they’re looking for a way to pay when they shop online. A prepaid card can be used for online payments or for paying bills over the phone.

SHOP ONLINE or PAY OVER THE PHONE

“My prepaid card helps me manage my money”

Nearly 50% of young adults incur overdraft fees, according to the FDIC. Prepaid cardholders report being willing to pay fees so long as they are expected.

LOW TRANSPARENT FEES

PAG

E 24

CONFIDENTIAL

Dispelling the Myths of Prepaid Customers

Do not want a credit card Of people with incomes of $100,000 or higher report

having a prepaid card

Had a credit card Of Millennials use GPR

49% 27%

66% 45%

A large majority of prepaid card users are experienced with other financial products.

Sources: Philadelphia Fed 2014; First Data 2013; Pew 2014; Aite 2011

“People used to think of [prepaid cards] as cards for people who didn’t have a lot of money, whereas today they’re becoming much more common for a variety of uses and a variety of demographics.”

-- Beth Robertson, Director of Payments Research for Javelin

PAG

E 25

CONFIDENTIAL

What features attract consumers?

Convenient card loading options

Minimal Monthly fees

Free Direct Deposit

Retail networks or online connections

Widely accepted Flexible ways to spend and pay bills

Top Prepaid cards have these common features:

PAG

E 26

CONFIDENTIAL

Top of Wallet What makes a payment card a “Top of Wallet” card?

Fuel Redemption Flight Rewards Cash Back

Social Networking Minimizes interest payments Real-time Incentives

REWARD PROGRAMS

MOBILE WALLET

PAG

E 27

CONFIDENTIAL

Deals actually account for 31 percent of their shopping dollars, and many of the top apps used by Millennials are either retail or discount focused.

PAG

E 28

CONFIDENTIAL

Introducing Perk

PAG

E 29

CONFIDENTIAL

A suite of apps designed to accommodate the digital habits of the Millennials, and to reward them by providing an exchange

of “money” for their time and data

WHAT IS PERK?

PAG

E 30

CONFIDENTIAL

BANKS ARE INCREASINGLY NOT RELEVANT

Perk.com Inc. | Proprietary and Confidential

Millennials have time, not money.

PAG

E 31

CONFIDENTIAL

SO…WHAT DO THEY DO WITH THEIR TIME?


Millennials spend their time on Mobile in these KEY areas:

Gaming Content Local/Social

PAG

E 32

CONFIDENTIAL

SHOPPING

SEARCH

VIDEO BROWSING

GAMING

COUPONS

AGGREGATION

MULTIPLE DEVICES MILLENNIAL MOBILE “HABITS”

MULTIPLE PRODUCTS MULTIPLE PLATFORMS

LOCK SCREENS Our Mission – Become THE source for payment

and rewards for Millennials

MUSIC

AT THE CENTER OF ALL THINGS MILLENNIAL

PAG

E 33

CONFIDENTIAL

PERK APPS

PAG

E 34

CONFIDENTIAL

PERK TV


Perk TV awards users for watching popular and entertaining videos.

PAG

E 35

CONFIDENTIAL

PERK LIVE TV


PAG

E 36

CONFIDENTIAL

PERK SCREEN PAYS FOR YOUR LOCK SCREEN


PAG

E 37

CONFIDENTIAL

HOW DOES PERK WORK?


PERK MEMBER INTERACTS WITH PERK APPS BRANDS PAYS PERK PERK PAYS USER

PAG

E 38

CONFIDENTIAL

MEMBER GETS PAID IN PERK WALLET


•  Digital Wallet Holds Perk Member’s Points, Cash, and Gift Cards

•  Over $100k Per Month Deposited

PAG

E 39

CONFIDENTIAL

OR ON PERK PLASTIK

PAG

E 40

CONFIDENTIAL

PERK PLASTIK IN PERK WALLET

PAG

E 41

CONFIDENTIAL

SOCIAL MEDIA

PAG

E 42

CONFIDENTIAL

Marketing to Millennials

Marketing

confidential page

confidential millennials

confidential screens

confidential brands

experiences page

confidential dont

confidential tips

mintel page