Cox Reps Generations Project

Generations Presentation July 15th, 2016

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)

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

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

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

We are smart media
How They Access Media
• Boomers use
these apps
differently than
everyone else
Source: ComScore “Plan Metrix Key Measures” (May 2016)

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

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

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

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

We are smart media
Who are they as consumers
• 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

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.

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

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

We are smart media
Baby Boomers
Why are they valuable?
Their Size: Second largest generation 74.9 Million
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

We are smart media
Source: TFC “Infographic: Generation X” (2016)
• 1965-1980 36-51 years old
• 56.4 Million In the U.S.
• Median disposable income: $51,498
• 83% are employed
• Generally the overlooked generation,
caught between the boomers and
millennials

We are smart media
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)

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

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)

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
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 ranks the highest among Generation X

We are smart media
Internet Usage
Source: Comscore “Plan Metrix Key Measures” (May 2016)

We are smart media
Social Media Usage
Source: Comscore “Plan Metrix Key Measures” (May 2016)

We are smart media
Day Part Preference

We are smart media
TargetReach%
0%
5%
10%
15%
20%
25%
30%
35%
40%

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

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)

We are smart media
Brands that do it well

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)

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.

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

We are smart media
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

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

We are smart media
Media Platform Preference
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

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
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 :

We are smart media
TargetReach%
0%
5%
10%
15%
20%
25%
30%

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

We are smart media
Social Media Usage
Source: Comscore “Mobile Metrix Key Measures” (May 2016)

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

We are smart media
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

We are smart media
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

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

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

We are smart media
What Are They Looking For:
Brands that do it well:
Urban Outfitters
Toms Shoes
Chipotle
Forever21
Netflix

We are smart media
Millennials
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
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”

We are smart media
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

We are smart media
Demographics
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

We are smart media
• 76% Own Smartphones
• 55% Own Tablets
• 19% Own basic cellphones
• 13% Own fitness/ health/
wellness trackers
Technology Ownership

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)

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%

We are smart media
Generation Z as Consumers
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

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)

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

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.

We are smart media
Reviews
They use brands as
mirrors to express their
values and priorities

We are smart media
Generation Z Buying Inclinations
More In-Store
Purchases
Than Millennials

We are smart media
What They are Looking For:
• 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

We are smart media
Companies Who Do it Well
Disney’s DreamWorks

We are smart media Source: AdvertisingAge, “Stung by Millennial Misses, Brands Retool for Gen Z” (2015)
Taco Bell

We are smart media Source: Under Armour “I Will What I Want” (2016)
Under Armour

We are smart media
Generation Z
Their Size: 78 Million (26% of the US Population)
largest generation and growing
Their Purchasing Power: topping $80 Billion
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
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

We are smart media
Generations in Comparison
Baby Boomers Generation X Millennials Centennials
70-52 51-36 35-20 19-0

We are smart media
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
Size of Generations (in millions)

We are smart media
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

We are smart media
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

We are smart media
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

We are smart media
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)

Cox Reps Generations Project

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