SlideShare uma empresa Scribd logo
1 de 18
Baixar para ler offline
Next-Generation Strategies for
Advertising to Millennials
JANUARY 2012




For further information please contact:
Doug Crang, comScore, Inc.
dcrang@comscore.com
Introduction

The Millennial generation is often viewed by marketers as one of the most valuable segments of the
population, mainly due to the powerful combination of the group’s massive size and strong purchasing
power. Millennials are commonly defined as individuals born between 1981 and 2000, and there are
approximately 79 million Millennials in the U.S. This segment dwarfs the 48 million Generation Xers (born
between 1965 and 1980) and is the largest generation since the Baby Boomers (born between 1946 and
1964). The purchasing power of Millennials is estimated to be $170 billion per year, so it is no wonder
that marketers are keenly interested in better understanding this group and how to effectively reach them.


One defining characteristic of Millennials is their comfort-level with new technologies. This is the first
generation to grow up with computers in the home and in the classroom, not knowing a life without the
Internet or cell phones. They are also accustomed to accessing an endless array of entertainment
options via cable television, sophisticated gaming consoles and the worldwide web. This familiarity with
technology has allowed Millennials to easily adapt to the accelerating level of innovation in our world,
effortlessly transitioning from e-mail to instant messaging and from texting to tweeting. As Figure 1
illustrates, 93 percent of Millennials ages 18 to 34 are Internet users, compared to only slightly more than
40 percent of those age 55+.


Figure 1: Percent of Consumers Using the Internet by Age (Source: comScore, Inc.)


                         93%
                                                     88%




                                                                                 42%




                     Ages 18-34                  Ages 35-54                   Ages 55+


Beyond technology, there are other common characteristics unique to the Millennial generation. To
begin, the diversity of this group cannot be ignored. As a nation that will make its way toward minority-
majority status by the middle of the century, ethnic and cultural diversity has become the norm in the




                                                                                                        PAGE 1
U.S., making Millennials more tolerant of diversity than preceding generations. Trends in parenting, such
as delaying the childbearing years and single parenthood, have also brought unprecedented diversity to
family structures. And, as children of often hyper-competitive Baby Boomers (hence the alternative
moniker ‘Echo Boomers’), Millennials have grown up in a very child-focused environment, with
“helicoptering” parents planning for their future success, which often results in a very structured, full and
active lifestyle. The combination of this active environment along with the influence of technology has
resulted in Millennials often being characterized as ‘stimulation junkies’. In addition, this generation is
prone to extreme multitasking, usually involving some combination of social media, online entertainment,
video chatting, homework and possibly good, old-fashioned television. This need for stimulation, in
conjunction with the technological and family environments, has led to Millennials being described as
having short attention spans and a need to be constantly entertained.


In terms of education, Millennials, on average, attain a higher level than any preceding generation.
However, due to skyrocketing tuition fees, college graduates are often left with record levels of debt.
This, in combination with the outsourcing of many U.S. jobs to other countries, slow economic growth and
the high cost of living, has left this often privileged generation feeling some degree of economic hardship.
Many find themselves struggling with finances or having a difficult time securing adequate employment,
often resulting in their returning to the classroom for higher education or living with family or friends.


Study Background

Given the unique characteristics of this generation, how they perceive and react to advertising is of great
interest to marketers who wish to effectively reach and persuade this valuable audience with their
messages. This report seeks to answer questions about marketing to this generation, including:
       Are Millennials truly set apart from other generations, or are there broad commonalities which
        span generations?
       Is traditional television advertising as effective for Millennials, or is digital a better alternative?
       Regardless of the medium, are there unique ways to engage and/or persuade the Millennial
        generation?


The findings in this paper are derived from an analysis of nearly 1,000 comScore tests of the
effectiveness of TV advertising creative as well as 35 tests of digital creative that ran in the U.S. The core
metric of advertising effectiveness used in this analysis is comScore’s Share of Choice (SOC), a measure
of creative quality that is highly predictive of in-market sales results. Share of Choice is measured
through a simulated purchase exercise that quantifies the ability of an ad to influence brand preference.
The degree to which the ad lifts the SOC score predicts the in-market effect the ad is likely to have on




                                                                                                            PAGE 2
sales. (See Appendix for a detailed explanation of this measure). Ad recall, engagement and other
diagnostic measures were also included as part of the analysis.


Collectively, the study included more than 500,000 women across four generational groups: Millennials
(ages 16 – 29); Generation X (30 – 44); Baby Boomers (45 – 59); and Seniors (60+). It is important to
note that only women were included in this research. Occasionally effectiveness for an ad differs by
gender. Since women are the primary purchasers for most products, scores among women were
consistently used.


The 2011 study is the fourth iteration of comScore research on advertising across generations. The prior
studies were conducted in 1961, 1988 and 1999 (via ARSgroup, which was acquired by comScore in
2010). When relevant, findings from these studies are used as a point of comparison to the 2011 study
results. Prior iterations of the study did not include digital creative analyses, and as such, there are no
trended insights included as it relates to digital.




Millennials Response to Advertising

Trends for Television Advertising

Findings from the previous studies have consistently shown that television ads are less effective among
younger consumers than among older ones, as measured by lift in SOC (See Figure 2). These results
suggest that it is more difficult to persuade younger consumers with advertising messages than
consumers from older generations. The 1999 study, which focused on Generation X, concluded that
lower responsiveness to advertising among young consumers is at least in part a reflection of life-stage
rather than generational factors.




                                                                                                       PAGE 3
Figure 2: Average Lift in Share of Choice by Age Group – Prior Studies


                                                       13.4 13.8
                                   11.6
                                                10.5                         10.7
                            10.0
                                                                    8.5
                                                                                       Younger
                      7.3
                                                                                       Middle-Aged
                                                                                       Older




                      1999 Study*               1988 Study**        1961 Study***

*Younger: age <30; Middle-Aged: age: 30-49; Older: age 50+
**Younger: age <35; Middle-Aged: age 35-54; Older: age 55+
***Younger: age <36; Older: age 36+



The 2011 study results display the familiar stair-step pattern seen in previous studies, with average ad
effectiveness increasing with age. As expected, Millennials (the youngest generation) are more difficult to
persuade via television advertising when compared to older viewers, with an average lift in SOC
significantly lower than for Baby Boomers or Seniors.


 Figure 3: Average Lift in Share of Choice by Generation – 2011 Study



                                                              6.6
                                                 6.4

                                      5.3
                     4.6                                                     Millennials
                                                                             Generation X
                                                                             Baby Boomers
                                                                             Seniors




                                                                                                     PAGE 4
In addition to absolute levels, lift in SOC was also examined relative to the Fair Share benchmark. The
Fair Share benchmark is the expected lift in SOC for a typical ad among a particular target group given
the brand’s position in the market. It is calculated based on the group’s preference for the advertised
brand and brand loyalty in the category as well as the number of competing brands in the category. (See
Appendix for a detailed explanation of the Fair Share benchmark). Millennials have somewhat lower Fair
Share levels due to slightly higher levels of brand loyalty and share of preference versus other
generations. However, even when correcting for differing expectations, by indexing lift in SOC to the Fair
Share benchmark, average effectiveness is still much lower for the younger generations.


Figure 4: Average Lift in Share of Choice Indexed to Fair Share by Generation – 2011 Study



                                                   85           83
                                       75

                            62
                                                                                  Millenials
                                                                                  Generation X
                                                                                  Baby Boomers
                                                                                  Seniors




While these results suggest that Millennials are harder to persuade with television advertising than
members of older generations, the context of the past research suggests that this is more likely a life-
stage phenomenon rather than a fundamental generational difference.


Next, advertising recall was evaluated across generational groups. Recall measures were collected after
exposure to advertising creative in a veiled environment. Two distinct recall methodologies were used to
capture immediate and delayed recall. For immediate recall, respondents were questioned about the test
advertisement approximately 15 minutes after exposure. This method measures the ability of an ad to
break through and gain the attention of viewers. For delayed recall, respondents were contacted three
days after exposure and questioned about their recall of the test advertisement. This method measures
the ad’s ability to leave a memorable and lasting impression.




                                                                                                       PAGE 5
The trends among the generations are striking. Ad breakthrough for Millennials was substantially lower
than the other generations, which is not all that surprising given the group’s reputation for having a short
attention span and requiring attention-grabbing content. However, Millennials demonstrated a higher
propensity than other generations to retain a lasting impression of an advertisement. This trend is no
doubt driven, at least in part, by the effects of age on memory outstripping the breakthrough effect.


Figure 5: Average Related Recall Results by Age Group – 2011 Study

                                             54%           54%
                               50%
                 43%




                       24%                                                  Immediate Recall
                                     23%
                                                   21%
                                                                 18%        Delayed Recall




                Millenials    Generation      Baby         Seniors
                                  X          Boomers


Diagnostic results from the study (which involved a sub-set of ads tested, n=157) also appear to support
many of the common notions regarding Millennials. As Figure 6 illustrates, when compared to Baby
Boomers and Seniors, Millennials tend to be less interested and more difficult to connect with, capture
attention, impress, convince and entertain. This helps to explain the immediate recall results examined
above, since the greater difficulty in capturing attention would logically inhibit ad breakthrough.
Millennials also appear to be more price-sensitive, with higher levels of “Brand Costs More” than they
would expect to pay, perhaps due to lower disposable incomes. At the same time, they are no less likely
to be “Willing to Pay More” for specific brands if need be, perhaps due to a sense of brand loyalty. On the
positive side, there is an opportunity for marketers to connect with Millennials as they are more likely to
have a lot in common with other users. Figure 6 provides an illustration indicating the percentage of
respondents agreeing (based on top 2 boxes) with the statements at the left.




                                                                                                        PAGE 6
Figure 6: Average Diagnostic Results by Age Group – 2011 Study


                                                                A                      B                        C
                                                            Female
                                                                               Female Baby                Female
                                                         Millennials
                                                                              Boomers Top             Seniors Top 2
                                                          Top 2 Box
                                                                                2 Box Avg.               Box Avg.
                                                              Avg.
          Ad Interesting                                       66                    70A                        70A
          Best I've Seen                                       45                     48                        49A
          Commercial Believable                                71                    76A                        75A
          Convenient                                           76                    82A                        80A
          It Grabbed My Attention                              67                    73A                        70
          Likeability                                          57                    62A                        63A
          Easy to Relate to                                    68                    75A                        72A
          Easy to Understand                                   83                    89A                        88A
          Irritating                                         16BC                    10C                         8
          A Lot in Common with Others                         44C                    44C                        37
          Brand Costs More                                    38C                     34                        30
          Willing to Pay More                                  42                    43C                        40
          A capital letter indicates a significant difference at the 95% confidence level vs. lettered column



Trends for Digital Advertising

The same generational groups were analyzed for digital ad testing. The available digital ad testing data
for categories of general interest across age ranges and for which sufficient sample size for all age
ranges was available was relatively limited (n=35). However, it does provide an initial look at how digital
advertising performs among the different generations.


The data suggests that digital advertising performs better in relative terms among Millennials than does
television advertising. While Millennials do show the lowest average lift in SOC from digital ads among
the generations, the difference is much smaller than seen for television (See Figure 7).




                                                                                                                      PAGE 7
Figure 7: Average Modeled Lift in Share of Choice by Generation – Digital




                                                6.8
                                    6.4                     6.4
                        6.0



                                                                                 Millennials
                                                                                 Generation X
                                                                                 Baby Boomers
                                                                                 Seniors




In addition, when results are examined relative to the Fair Share benchmark, results for Millennials are at
parity with Generation X and Baby Boomers and are substantially above Seniors. This indicates that
relative to expectations, digital ads are performing among Millennials as well as or better than they are
performing among the other generations.


Figure 8: Average Lift in Share of Choice Indexed to Fair Share by Generation – Digital




               104                        106
                              103


                                                      84


                                                                          Millennials
                                                                          Generation X
                                                                          Baby Boomers
                                                                          Seniors




                                                                                                      PAGE 8
It may be Millennials’ comfort with technology and all things digital that makes them relatively more
responsive to digital advertising versus television. Conversely, Seniors may be responding poorly to
digital ads due to a lack of understanding and comfort with this medium. The middle generations respond
well to digital advertising, perhaps due to the need to stay professionally competitive, but unlike the case
for television, they are not more responsive to digital advertising than Millennials.




General Strategies for Targeting Millennials

So, given these findings, what should marketers be doing to most effectively communicate with the
Millennial generation? What are key considerations when it comes to creative and creative messaging?
How should the approach differ with Millennials versus other generations? Below are some key strategic
considerations to help address these questions, providing actionable insights to drive your marketing
campaigns.


Employ Strong Creative

Decades of copy-testing research has established that the quality of an ad’s creative has a profound
impact on the effectiveness of the campaign. In fact, comScore research has shown that over half of a
campaign’s impact on sales is due to creative strength. Additional comScore research has identified a
variety of creative advertising elements that have a significant impact on an ad’s ability to build a brand
and ultimately lift sales. This research has identified more than 200 creative elements that can have an
impact on an ad’s lift in Share of Choice, while a sub-set of these elements, called the Validated Drivers,
has been shown to have a significant impact.


For the television cases in the current study, correlations between each of the Validated Drivers and lift in
Share of Choice were compared for Millennials and the older generations (Seniors and Baby Boomers).
Across all of these content elements, there were no statistically significant differences in correlation levels
for Millennials versus the older generations. This indicates that there is some level of consistency
regardless of age in the key drivers of advertising creative that positively impacts sales.


Among the Validated Drivers are the core campaign drivers, which represent advertising content that
gives a reason to prefer the featured brand and sets it apart from the competition. As illustrated in Figure
9, the presence of each of these elements results in a large average increase in lift in Share of Choice
among Millennials. As with other consumers, Millennials respond when given a compelling reason to
choose the brand. This is not to say that the same messages will always resonate across generational




                                                                                                        PAGE 9
groups, but rather that the same underlying principles tend to be universal. For a specific implementation,
only testing can determine how an ad ultimately fares among the different generations.


Figure 9: Average Increase in Lift in Share of Choice among Millennials Due to Use of Core
Campaign Drivers




                    Brand Differentiation                                           1.3



               Competitive Comparison                                        1.1



                     New Product/
                                                                       0.9
                New Feature Information



                        Superiority Claim                           0.8




Among the other Validated Driver elements associated with higher Share of Choice scores for the general
population, several also result in an average increase of about one-half point or more in lift in Share of
Choice among Millennials. These elements suggest that Millennials respond to sufficient branding and
appropriate focus on the product, much like a general audience.


Figure 10: Average Increase in Lift in Share of Choice among Millennials Due to Use of Selected
Drivers



                    Actual Product Shown Longer                                    0.8




                Brand Name/Logo Shown Longer                                       0.8




                       More Brand Name Mentions                        0.5




                                                                                                      PAGE 10
Other content elements were examined for differences in relationship to lift in Share of Choice for
Millennials versus older generation groups. Three such elements stood out from the rest, with the
presence of each found to be more favorable for Millennials. Two of these elements, a product benefits
main message and information on results of using the brand, indicate a pragmatic streak among
Millennials. Interestingly, the 1961 study concluded: “Younger women tend to respond to logical,
‘reasons why’ demonstration more than older women…This points to the possible existence of a more
tough-minded attitude, an innate skepticism, among younger women.” The current results certainly
appear to mesh with this observation of younger women from a previous generation.


The third element is the presence of a child/infant/animal/animated character in the advertisement. This
likely reflects the need to grab the attention and engage the younger audience to avoid losing attention
and achieve breakthrough, or to provide a relevant emotional connection.


Figure 11: Difference in Lift in Share of Choice Due to Content Elements: Millennials vs. Seniors



            Information on Results of Use                                                1.1




          Product Benefits Main Message                                         0.8




            Child/Infant/Animal/Animated
                                                                          0.7
                      Character*


          *Represents importance of breakthrough and emotional connection




Place Ads around Engaging Content

comScore studies have found that the content in which an advertisement is embedded can have a
significant impact on the advertisement’s effectiveness. This is because engaged audiences amplify the
effect of the advertiser’s creative execution. The effect of this amplification is on an ad’s ability to build
Share of Choice.




                                                                                                         PAGE 11
Figure 12: Engagement Effect on Share of Choice




     120



     110



     100
                                                                               Higher Engagement
                                                                               Lower Engagement
      90



      80



      70
                                 Share of Choice



Given the importance of an engaged audience in amplifying advertising’s effectiveness, comScore
studied engagement among viewers of 25 current television programs and 15 websites. This study
surveyed more than 3,000 respondents who were asked whether they had viewed each program or
visited each property in the past two weeks. Then, comScore’s battery of engagement questions were
administered to those who indicated recent viewership or visitation, allowing engagement scores to be
derived for each program/property. The results were examined across generations.


First, it was found that, on average, engagement was higher among Millennials than all other generations
for both television programming and websites. In addition, it was found that this difference was greater
on a percentage basis for websites than for television, despite the selected television programming being
somewhat more skewed toward shows targeted to a younger audience than were the websites.




                                                                                                   PAGE 12
Figure 13: Percent Increase in Engagement for Millennials versus Other Generations by Medium




                                        6.2%
            Generation X
                                 1.6%



                                                             22.2%                        Digital
          Baby Boomers
                                               10.3%                                      Television



                                                                                35.4%
                  Seniors
                                                            21.4%




These results are good news for those interested in advertising to Millennials. It appears that they are
highly engaged with the content that they choose to view. This is true for both television and digital. This
engagement will amplify the effectiveness of advertising to Millennials, helping to boost advertising
returns on investment among this key demographic. The results also suggest that digital is a good bet
among Millennials because, when compared to television, its ability to engage is skewed toward younger
generations.


Conclusion
The Millennial generation is of great importance to marketers due to its size and purchasing power.
Millennials are often defined in large measure by their use of digital technologies, and it is the digital world
that appears to present marketers with some of the best opportunities to reach and persuade them.
While Millennials follow a familiar pattern of younger generations being more difficult to persuade through
television advertising, to some extent digital appears to break this pattern.


Some optimistic news for marketers is that Millennials appear to strongly engage with the media they
choose to view. In this regard, digital is well suited to this generation, as their relative engagement versus
older viewers is stronger for digital than for television. Conversely, it appears that it is harder for
advertising to achieve breakthrough and catch the attention of Millennials, who are notorious for
multitasking and short attention spans. Hence strong creative may need to be tailored to draw Millennials
into the story being told. At the same time, Millennials respond to a powerful and differentiating reason to



                                                                                                          PAGE 13
buy as much as any other generation, with the same core drivers of impactful creative strongly relating to
high ad effectiveness scores. The quality of creative is critical in terms of generating interest in the
advertisement and crafting a persuasive message. And this is as true for Millennials as for other
generations.




                                                                                                       PAGE 14
Appendix

About Share of Choice


comScore is a world leader in advertising copy testing. Having pioneered the discipline more than 40
years ago, comScore has conducted over 40,000 television advertising studies, and more recently,
hundreds of digital advertising analyses, on behalf of some of the world’s largest and best-known brands.


comScore has developed a metric called Share of Choice (formerly the ARS Persuasion Score), which is
the most well-documented and independently-validated measure of advertising effectiveness in the world.
As the name implies, it quantifies the ability of an ad to influence brand preference, and it has been
shown to be predictive of advertising-induced sales with a +0.90 correlation.


How It Works


Share of Choice measures consumer brand preference through a simulated purchase exercise.
Respondents participate in prize drawings across several categories. In each category, they choose the
product they would like to win from a balanced competitive set. Bias is eliminated and preference is
collected from consumers both before and after exposure to the advertising. The difference in share of
preference between the two groups (post-exposure share minus pre-exposure share) is then calculated to
determine the lift in Share of Choice (see below).




                                                                                                     PAGE 15
Fair Share Benchmark


comScore has developed the comScore Fair Share Benchmark to aid in assessing whether the lift in
Share of Choice for a specific ad meets or exceeds the level expected for a typical ad for the brand. This
benchmark takes into account product category and brand loyalty, the number of brands competing in the
category and the advertised brand’s share of preference to determine the score expected, on average,
given the current category and brand’s environment. The ad’s strategy and/or execution are determined
to be “below average,” “average,” or “above average” based on their relationship to the Fair Share
degree-of-difficulty norm.


Correlation with Actual Sales


Since its inception, comScore has systematically collected information to determine the validity of its
measurement systems, relating comScore metrics (i.e. lift in Share of Choice) to the prevalent measures
of sales employed at the time. Early validation efforts used metrics related to sales results from store
audits and ATU trial rates, progressing later to split-cable test market outcomes. Ongoing validation
efforts include the relating of test scores to market share change from Marketing Mix Modeling (MMM)
and in-store scanner data. This systematic commitment to validation has resulted in more than 2,000
validation cases spanning four decades. Consistently, the lift in Share of Choice has demonstrated the
strongest relationship to real-world sales and share change results. This result holds true across




                                                                                                     PAGE 16
countries, cultures and multiple verticals, including CPG, auto, financial services, telecom,
pharmaceutical, retail and QSRs.


Marketing Mix Model Validation


comScore’s ongoing MMM validation data set represents the most precise validation study to date. The
MMM result isolates the effect of the test ad from other marketing variables, largely removing the issue of
uncontrolled variables from the analysis. Using the MMM result as the measure of sales attributable to a
specific advertisement, the lift in Share of Choice has been proven to be predictive of advertising-induced
sales with a +0.90 correlation (See below chart).




Source: comScore Marketing Mix Model Validation Data Set




                                                                                                    PAGE 17

Mais conteúdo relacionado

Semelhante a Next generation strategies for advertising to millennials

Kantar Millward Brown: AdReaction: Engaging Gen X, Y and Z
Kantar Millward Brown: AdReaction: Engaging Gen X, Y and ZKantar Millward Brown: AdReaction: Engaging Gen X, Y and Z
Kantar Millward Brown: AdReaction: Engaging Gen X, Y and ZIAB Europe
 
Future growth in lasik understanding and reaching generation y
Future growth in lasik understanding and reaching generation yFuture growth in lasik understanding and reaching generation y
Future growth in lasik understanding and reaching generation ySM2 Strategic
 
Marketing to millennials research paper
Marketing to millennials research paperMarketing to millennials research paper
Marketing to millennials research paperBUEntrepreneurship
 
The Conversation Index Volume 4
The Conversation Index Volume 4The Conversation Index Volume 4
The Conversation Index Volume 4Bazaarvoice
 
Bazaarvoice Conversation Index Volume 4
Bazaarvoice Conversation Index Volume 4Bazaarvoice Conversation Index Volume 4
Bazaarvoice Conversation Index Volume 4Brett Hurt
 
Bazaarvoice Conversation Index Volume 4
Bazaarvoice Conversation Index Volume 4Bazaarvoice Conversation Index Volume 4
Bazaarvoice Conversation Index Volume 4Erin Mulligan Nelson
 
Does Generation Z hate our ads?
Does Generation Z hate our ads? Does Generation Z hate our ads?
Does Generation Z hate our ads? Michael Paredrakos
 
The Deloitte Global Millennial Survey 2019
The Deloitte Global Millennial Survey 2019The Deloitte Global Millennial Survey 2019
The Deloitte Global Millennial Survey 2019aakash malhotra
 
Generation Why
Generation WhyGeneration Why
Generation Whyckaupert
 
Marketing to Millenials (ComScore)
Marketing to Millenials (ComScore)Marketing to Millenials (ComScore)
Marketing to Millenials (ComScore)Isabel Maria
 
Whitepaper: Surprising Attitudes Millennials Have About Total Compensation
Whitepaper: Surprising Attitudes Millennials Have About Total CompensationWhitepaper: Surprising Attitudes Millennials Have About Total Compensation
Whitepaper: Surprising Attitudes Millennials Have About Total CompensationIconixx
 
FEED: The 2009 Razorfish Digital Brand Experience Report
FEED: The 2009 Razorfish Digital Brand Experience ReportFEED: The 2009 Razorfish Digital Brand Experience Report
FEED: The 2009 Razorfish Digital Brand Experience ReportIN2marcom .com
 
Attracting the Next Generation Worker
Attracting the Next Generation WorkerAttracting the Next Generation Worker
Attracting the Next Generation WorkerDave Moorman
 
Millennial segmentation research
Millennial segmentation researchMillennial segmentation research
Millennial segmentation researchEarnestine Benford
 
Myths exaggerations and uncomfortable truths executive report
Myths exaggerations and uncomfortable truths executive reportMyths exaggerations and uncomfortable truths executive report
Myths exaggerations and uncomfortable truths executive reportSyl Cotter
 
Intergenerational Perceptions about Online Platforms and Digital Marketing Ac...
Intergenerational Perceptions about Online Platforms and Digital Marketing Ac...Intergenerational Perceptions about Online Platforms and Digital Marketing Ac...
Intergenerational Perceptions about Online Platforms and Digital Marketing Ac...anoop_g
 
CEO JAN16_New Age Networking - millennials buidling relationships
CEO JAN16_New Age Networking - millennials buidling relationshipsCEO JAN16_New Age Networking - millennials buidling relationships
CEO JAN16_New Age Networking - millennials buidling relationshipsFederico Re
 

Semelhante a Next generation strategies for advertising to millennials (20)

Kantar Millward Brown: AdReaction: Engaging Gen X, Y and Z
Kantar Millward Brown: AdReaction: Engaging Gen X, Y and ZKantar Millward Brown: AdReaction: Engaging Gen X, Y and Z
Kantar Millward Brown: AdReaction: Engaging Gen X, Y and Z
 
Future growth in lasik understanding and reaching generation y
Future growth in lasik understanding and reaching generation yFuture growth in lasik understanding and reaching generation y
Future growth in lasik understanding and reaching generation y
 
Marketing to millennials research paper
Marketing to millennials research paperMarketing to millennials research paper
Marketing to millennials research paper
 
The Conversation Index Volume 4
The Conversation Index Volume 4The Conversation Index Volume 4
The Conversation Index Volume 4
 
Bazaarvoice Conversation Index Volume 4
Bazaarvoice Conversation Index Volume 4Bazaarvoice Conversation Index Volume 4
Bazaarvoice Conversation Index Volume 4
 
Bazaarvoice Conversation Index Volume 4
Bazaarvoice Conversation Index Volume 4Bazaarvoice Conversation Index Volume 4
Bazaarvoice Conversation Index Volume 4
 
Does Generation Z hate our ads?
Does Generation Z hate our ads? Does Generation Z hate our ads?
Does Generation Z hate our ads?
 
Preliminary report
Preliminary reportPreliminary report
Preliminary report
 
Millennials Strategy
Millennials StrategyMillennials Strategy
Millennials Strategy
 
The Deloitte Global Millennial Survey 2019
The Deloitte Global Millennial Survey 2019The Deloitte Global Millennial Survey 2019
The Deloitte Global Millennial Survey 2019
 
Generation Why
Generation WhyGeneration Why
Generation Why
 
Marketing to Millenials (ComScore)
Marketing to Millenials (ComScore)Marketing to Millenials (ComScore)
Marketing to Millenials (ComScore)
 
Whitepaper: Surprising Attitudes Millennials Have About Total Compensation
Whitepaper: Surprising Attitudes Millennials Have About Total CompensationWhitepaper: Surprising Attitudes Millennials Have About Total Compensation
Whitepaper: Surprising Attitudes Millennials Have About Total Compensation
 
FEED: The 2009 Razorfish Digital Brand Experience Report
FEED: The 2009 Razorfish Digital Brand Experience ReportFEED: The 2009 Razorfish Digital Brand Experience Report
FEED: The 2009 Razorfish Digital Brand Experience Report
 
Attracting the Next Generation Worker
Attracting the Next Generation WorkerAttracting the Next Generation Worker
Attracting the Next Generation Worker
 
Millennial segmentation research
Millennial segmentation researchMillennial segmentation research
Millennial segmentation research
 
Myths exaggerations and uncomfortable truths executive report
Myths exaggerations and uncomfortable truths executive reportMyths exaggerations and uncomfortable truths executive report
Myths exaggerations and uncomfortable truths executive report
 
Intergenerational Perceptions about Online Platforms and Digital Marketing Ac...
Intergenerational Perceptions about Online Platforms and Digital Marketing Ac...Intergenerational Perceptions about Online Platforms and Digital Marketing Ac...
Intergenerational Perceptions about Online Platforms and Digital Marketing Ac...
 
CEO JAN16_New Age Networking - millennials buidling relationships
CEO JAN16_New Age Networking - millennials buidling relationshipsCEO JAN16_New Age Networking - millennials buidling relationships
CEO JAN16_New Age Networking - millennials buidling relationships
 
8095whitepaper
8095whitepaper8095whitepaper
8095whitepaper
 

Último

HONOR Veterans Event Keynote by Michael Hawkins
HONOR Veterans Event Keynote by Michael HawkinsHONOR Veterans Event Keynote by Michael Hawkins
HONOR Veterans Event Keynote by Michael HawkinsMichael W. Hawkins
 
Event mailer assignment progress report .pdf
Event mailer assignment progress report .pdfEvent mailer assignment progress report .pdf
Event mailer assignment progress report .pdftbatkhuu1
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMANIlamathiKannappan
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfPaul Menig
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Centuryrwgiffor
 
Creating Low-Code Loan Applications using the Trisotech Mortgage Feature Set
Creating Low-Code Loan Applications using the Trisotech Mortgage Feature SetCreating Low-Code Loan Applications using the Trisotech Mortgage Feature Set
Creating Low-Code Loan Applications using the Trisotech Mortgage Feature SetDenis Gagné
 
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Dipal Arora
 
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...anilsa9823
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayNZSG
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...Paul Menig
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Dave Litwiller
 
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779Delhi Call girls
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Serviceritikaroy0888
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdfRenandantas16
 
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Lviv Startup Club
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxWorkforce Group
 
Best Basmati Rice Manufacturers in India
Best Basmati Rice Manufacturers in IndiaBest Basmati Rice Manufacturers in India
Best Basmati Rice Manufacturers in IndiaShree Krishna Exports
 
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case studyThe Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case studyEthan lee
 
Unlocking the Secrets of Affiliate Marketing.pdf
Unlocking the Secrets of Affiliate Marketing.pdfUnlocking the Secrets of Affiliate Marketing.pdf
Unlocking the Secrets of Affiliate Marketing.pdfOnline Income Engine
 

Último (20)

HONOR Veterans Event Keynote by Michael Hawkins
HONOR Veterans Event Keynote by Michael HawkinsHONOR Veterans Event Keynote by Michael Hawkins
HONOR Veterans Event Keynote by Michael Hawkins
 
Event mailer assignment progress report .pdf
Event mailer assignment progress report .pdfEvent mailer assignment progress report .pdf
Event mailer assignment progress report .pdf
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMAN
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdf
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
Creating Low-Code Loan Applications using the Trisotech Mortgage Feature Set
Creating Low-Code Loan Applications using the Trisotech Mortgage Feature SetCreating Low-Code Loan Applications using the Trisotech Mortgage Feature Set
Creating Low-Code Loan Applications using the Trisotech Mortgage Feature Set
 
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
Call Girls Navi Mumbai Just Call 9907093804 Top Class Call Girl Service Avail...
 
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 May
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...
 
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
 
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
Best VIP Call Girls Noida Sector 40 Call Me: 8448380779
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Service
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
 
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
 
Best Basmati Rice Manufacturers in India
Best Basmati Rice Manufacturers in IndiaBest Basmati Rice Manufacturers in India
Best Basmati Rice Manufacturers in India
 
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case studyThe Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
 
Unlocking the Secrets of Affiliate Marketing.pdf
Unlocking the Secrets of Affiliate Marketing.pdfUnlocking the Secrets of Affiliate Marketing.pdf
Unlocking the Secrets of Affiliate Marketing.pdf
 

Next generation strategies for advertising to millennials

  • 1. Next-Generation Strategies for Advertising to Millennials JANUARY 2012 For further information please contact: Doug Crang, comScore, Inc. dcrang@comscore.com
  • 2. Introduction The Millennial generation is often viewed by marketers as one of the most valuable segments of the population, mainly due to the powerful combination of the group’s massive size and strong purchasing power. Millennials are commonly defined as individuals born between 1981 and 2000, and there are approximately 79 million Millennials in the U.S. This segment dwarfs the 48 million Generation Xers (born between 1965 and 1980) and is the largest generation since the Baby Boomers (born between 1946 and 1964). The purchasing power of Millennials is estimated to be $170 billion per year, so it is no wonder that marketers are keenly interested in better understanding this group and how to effectively reach them. One defining characteristic of Millennials is their comfort-level with new technologies. This is the first generation to grow up with computers in the home and in the classroom, not knowing a life without the Internet or cell phones. They are also accustomed to accessing an endless array of entertainment options via cable television, sophisticated gaming consoles and the worldwide web. This familiarity with technology has allowed Millennials to easily adapt to the accelerating level of innovation in our world, effortlessly transitioning from e-mail to instant messaging and from texting to tweeting. As Figure 1 illustrates, 93 percent of Millennials ages 18 to 34 are Internet users, compared to only slightly more than 40 percent of those age 55+. Figure 1: Percent of Consumers Using the Internet by Age (Source: comScore, Inc.) 93% 88% 42% Ages 18-34 Ages 35-54 Ages 55+ Beyond technology, there are other common characteristics unique to the Millennial generation. To begin, the diversity of this group cannot be ignored. As a nation that will make its way toward minority- majority status by the middle of the century, ethnic and cultural diversity has become the norm in the PAGE 1
  • 3. U.S., making Millennials more tolerant of diversity than preceding generations. Trends in parenting, such as delaying the childbearing years and single parenthood, have also brought unprecedented diversity to family structures. And, as children of often hyper-competitive Baby Boomers (hence the alternative moniker ‘Echo Boomers’), Millennials have grown up in a very child-focused environment, with “helicoptering” parents planning for their future success, which often results in a very structured, full and active lifestyle. The combination of this active environment along with the influence of technology has resulted in Millennials often being characterized as ‘stimulation junkies’. In addition, this generation is prone to extreme multitasking, usually involving some combination of social media, online entertainment, video chatting, homework and possibly good, old-fashioned television. This need for stimulation, in conjunction with the technological and family environments, has led to Millennials being described as having short attention spans and a need to be constantly entertained. In terms of education, Millennials, on average, attain a higher level than any preceding generation. However, due to skyrocketing tuition fees, college graduates are often left with record levels of debt. This, in combination with the outsourcing of many U.S. jobs to other countries, slow economic growth and the high cost of living, has left this often privileged generation feeling some degree of economic hardship. Many find themselves struggling with finances or having a difficult time securing adequate employment, often resulting in their returning to the classroom for higher education or living with family or friends. Study Background Given the unique characteristics of this generation, how they perceive and react to advertising is of great interest to marketers who wish to effectively reach and persuade this valuable audience with their messages. This report seeks to answer questions about marketing to this generation, including:  Are Millennials truly set apart from other generations, or are there broad commonalities which span generations?  Is traditional television advertising as effective for Millennials, or is digital a better alternative?  Regardless of the medium, are there unique ways to engage and/or persuade the Millennial generation? The findings in this paper are derived from an analysis of nearly 1,000 comScore tests of the effectiveness of TV advertising creative as well as 35 tests of digital creative that ran in the U.S. The core metric of advertising effectiveness used in this analysis is comScore’s Share of Choice (SOC), a measure of creative quality that is highly predictive of in-market sales results. Share of Choice is measured through a simulated purchase exercise that quantifies the ability of an ad to influence brand preference. The degree to which the ad lifts the SOC score predicts the in-market effect the ad is likely to have on PAGE 2
  • 4. sales. (See Appendix for a detailed explanation of this measure). Ad recall, engagement and other diagnostic measures were also included as part of the analysis. Collectively, the study included more than 500,000 women across four generational groups: Millennials (ages 16 – 29); Generation X (30 – 44); Baby Boomers (45 – 59); and Seniors (60+). It is important to note that only women were included in this research. Occasionally effectiveness for an ad differs by gender. Since women are the primary purchasers for most products, scores among women were consistently used. The 2011 study is the fourth iteration of comScore research on advertising across generations. The prior studies were conducted in 1961, 1988 and 1999 (via ARSgroup, which was acquired by comScore in 2010). When relevant, findings from these studies are used as a point of comparison to the 2011 study results. Prior iterations of the study did not include digital creative analyses, and as such, there are no trended insights included as it relates to digital. Millennials Response to Advertising Trends for Television Advertising Findings from the previous studies have consistently shown that television ads are less effective among younger consumers than among older ones, as measured by lift in SOC (See Figure 2). These results suggest that it is more difficult to persuade younger consumers with advertising messages than consumers from older generations. The 1999 study, which focused on Generation X, concluded that lower responsiveness to advertising among young consumers is at least in part a reflection of life-stage rather than generational factors. PAGE 3
  • 5. Figure 2: Average Lift in Share of Choice by Age Group – Prior Studies 13.4 13.8 11.6 10.5 10.7 10.0 8.5 Younger 7.3 Middle-Aged Older 1999 Study* 1988 Study** 1961 Study*** *Younger: age <30; Middle-Aged: age: 30-49; Older: age 50+ **Younger: age <35; Middle-Aged: age 35-54; Older: age 55+ ***Younger: age <36; Older: age 36+ The 2011 study results display the familiar stair-step pattern seen in previous studies, with average ad effectiveness increasing with age. As expected, Millennials (the youngest generation) are more difficult to persuade via television advertising when compared to older viewers, with an average lift in SOC significantly lower than for Baby Boomers or Seniors. Figure 3: Average Lift in Share of Choice by Generation – 2011 Study 6.6 6.4 5.3 4.6 Millennials Generation X Baby Boomers Seniors PAGE 4
  • 6. In addition to absolute levels, lift in SOC was also examined relative to the Fair Share benchmark. The Fair Share benchmark is the expected lift in SOC for a typical ad among a particular target group given the brand’s position in the market. It is calculated based on the group’s preference for the advertised brand and brand loyalty in the category as well as the number of competing brands in the category. (See Appendix for a detailed explanation of the Fair Share benchmark). Millennials have somewhat lower Fair Share levels due to slightly higher levels of brand loyalty and share of preference versus other generations. However, even when correcting for differing expectations, by indexing lift in SOC to the Fair Share benchmark, average effectiveness is still much lower for the younger generations. Figure 4: Average Lift in Share of Choice Indexed to Fair Share by Generation – 2011 Study 85 83 75 62 Millenials Generation X Baby Boomers Seniors While these results suggest that Millennials are harder to persuade with television advertising than members of older generations, the context of the past research suggests that this is more likely a life- stage phenomenon rather than a fundamental generational difference. Next, advertising recall was evaluated across generational groups. Recall measures were collected after exposure to advertising creative in a veiled environment. Two distinct recall methodologies were used to capture immediate and delayed recall. For immediate recall, respondents were questioned about the test advertisement approximately 15 minutes after exposure. This method measures the ability of an ad to break through and gain the attention of viewers. For delayed recall, respondents were contacted three days after exposure and questioned about their recall of the test advertisement. This method measures the ad’s ability to leave a memorable and lasting impression. PAGE 5
  • 7. The trends among the generations are striking. Ad breakthrough for Millennials was substantially lower than the other generations, which is not all that surprising given the group’s reputation for having a short attention span and requiring attention-grabbing content. However, Millennials demonstrated a higher propensity than other generations to retain a lasting impression of an advertisement. This trend is no doubt driven, at least in part, by the effects of age on memory outstripping the breakthrough effect. Figure 5: Average Related Recall Results by Age Group – 2011 Study 54% 54% 50% 43% 24% Immediate Recall 23% 21% 18% Delayed Recall Millenials Generation Baby Seniors X Boomers Diagnostic results from the study (which involved a sub-set of ads tested, n=157) also appear to support many of the common notions regarding Millennials. As Figure 6 illustrates, when compared to Baby Boomers and Seniors, Millennials tend to be less interested and more difficult to connect with, capture attention, impress, convince and entertain. This helps to explain the immediate recall results examined above, since the greater difficulty in capturing attention would logically inhibit ad breakthrough. Millennials also appear to be more price-sensitive, with higher levels of “Brand Costs More” than they would expect to pay, perhaps due to lower disposable incomes. At the same time, they are no less likely to be “Willing to Pay More” for specific brands if need be, perhaps due to a sense of brand loyalty. On the positive side, there is an opportunity for marketers to connect with Millennials as they are more likely to have a lot in common with other users. Figure 6 provides an illustration indicating the percentage of respondents agreeing (based on top 2 boxes) with the statements at the left. PAGE 6
  • 8. Figure 6: Average Diagnostic Results by Age Group – 2011 Study A B C Female Female Baby Female Millennials Boomers Top Seniors Top 2 Top 2 Box 2 Box Avg. Box Avg. Avg. Ad Interesting 66 70A 70A Best I've Seen 45 48 49A Commercial Believable 71 76A 75A Convenient 76 82A 80A It Grabbed My Attention 67 73A 70 Likeability 57 62A 63A Easy to Relate to 68 75A 72A Easy to Understand 83 89A 88A Irritating 16BC 10C 8 A Lot in Common with Others 44C 44C 37 Brand Costs More 38C 34 30 Willing to Pay More 42 43C 40 A capital letter indicates a significant difference at the 95% confidence level vs. lettered column Trends for Digital Advertising The same generational groups were analyzed for digital ad testing. The available digital ad testing data for categories of general interest across age ranges and for which sufficient sample size for all age ranges was available was relatively limited (n=35). However, it does provide an initial look at how digital advertising performs among the different generations. The data suggests that digital advertising performs better in relative terms among Millennials than does television advertising. While Millennials do show the lowest average lift in SOC from digital ads among the generations, the difference is much smaller than seen for television (See Figure 7). PAGE 7
  • 9. Figure 7: Average Modeled Lift in Share of Choice by Generation – Digital 6.8 6.4 6.4 6.0 Millennials Generation X Baby Boomers Seniors In addition, when results are examined relative to the Fair Share benchmark, results for Millennials are at parity with Generation X and Baby Boomers and are substantially above Seniors. This indicates that relative to expectations, digital ads are performing among Millennials as well as or better than they are performing among the other generations. Figure 8: Average Lift in Share of Choice Indexed to Fair Share by Generation – Digital 104 106 103 84 Millennials Generation X Baby Boomers Seniors PAGE 8
  • 10. It may be Millennials’ comfort with technology and all things digital that makes them relatively more responsive to digital advertising versus television. Conversely, Seniors may be responding poorly to digital ads due to a lack of understanding and comfort with this medium. The middle generations respond well to digital advertising, perhaps due to the need to stay professionally competitive, but unlike the case for television, they are not more responsive to digital advertising than Millennials. General Strategies for Targeting Millennials So, given these findings, what should marketers be doing to most effectively communicate with the Millennial generation? What are key considerations when it comes to creative and creative messaging? How should the approach differ with Millennials versus other generations? Below are some key strategic considerations to help address these questions, providing actionable insights to drive your marketing campaigns. Employ Strong Creative Decades of copy-testing research has established that the quality of an ad’s creative has a profound impact on the effectiveness of the campaign. In fact, comScore research has shown that over half of a campaign’s impact on sales is due to creative strength. Additional comScore research has identified a variety of creative advertising elements that have a significant impact on an ad’s ability to build a brand and ultimately lift sales. This research has identified more than 200 creative elements that can have an impact on an ad’s lift in Share of Choice, while a sub-set of these elements, called the Validated Drivers, has been shown to have a significant impact. For the television cases in the current study, correlations between each of the Validated Drivers and lift in Share of Choice were compared for Millennials and the older generations (Seniors and Baby Boomers). Across all of these content elements, there were no statistically significant differences in correlation levels for Millennials versus the older generations. This indicates that there is some level of consistency regardless of age in the key drivers of advertising creative that positively impacts sales. Among the Validated Drivers are the core campaign drivers, which represent advertising content that gives a reason to prefer the featured brand and sets it apart from the competition. As illustrated in Figure 9, the presence of each of these elements results in a large average increase in lift in Share of Choice among Millennials. As with other consumers, Millennials respond when given a compelling reason to choose the brand. This is not to say that the same messages will always resonate across generational PAGE 9
  • 11. groups, but rather that the same underlying principles tend to be universal. For a specific implementation, only testing can determine how an ad ultimately fares among the different generations. Figure 9: Average Increase in Lift in Share of Choice among Millennials Due to Use of Core Campaign Drivers Brand Differentiation 1.3 Competitive Comparison 1.1 New Product/ 0.9 New Feature Information Superiority Claim 0.8 Among the other Validated Driver elements associated with higher Share of Choice scores for the general population, several also result in an average increase of about one-half point or more in lift in Share of Choice among Millennials. These elements suggest that Millennials respond to sufficient branding and appropriate focus on the product, much like a general audience. Figure 10: Average Increase in Lift in Share of Choice among Millennials Due to Use of Selected Drivers Actual Product Shown Longer 0.8 Brand Name/Logo Shown Longer 0.8 More Brand Name Mentions 0.5 PAGE 10
  • 12. Other content elements were examined for differences in relationship to lift in Share of Choice for Millennials versus older generation groups. Three such elements stood out from the rest, with the presence of each found to be more favorable for Millennials. Two of these elements, a product benefits main message and information on results of using the brand, indicate a pragmatic streak among Millennials. Interestingly, the 1961 study concluded: “Younger women tend to respond to logical, ‘reasons why’ demonstration more than older women…This points to the possible existence of a more tough-minded attitude, an innate skepticism, among younger women.” The current results certainly appear to mesh with this observation of younger women from a previous generation. The third element is the presence of a child/infant/animal/animated character in the advertisement. This likely reflects the need to grab the attention and engage the younger audience to avoid losing attention and achieve breakthrough, or to provide a relevant emotional connection. Figure 11: Difference in Lift in Share of Choice Due to Content Elements: Millennials vs. Seniors Information on Results of Use 1.1 Product Benefits Main Message 0.8 Child/Infant/Animal/Animated 0.7 Character* *Represents importance of breakthrough and emotional connection Place Ads around Engaging Content comScore studies have found that the content in which an advertisement is embedded can have a significant impact on the advertisement’s effectiveness. This is because engaged audiences amplify the effect of the advertiser’s creative execution. The effect of this amplification is on an ad’s ability to build Share of Choice. PAGE 11
  • 13. Figure 12: Engagement Effect on Share of Choice 120 110 100 Higher Engagement Lower Engagement 90 80 70 Share of Choice Given the importance of an engaged audience in amplifying advertising’s effectiveness, comScore studied engagement among viewers of 25 current television programs and 15 websites. This study surveyed more than 3,000 respondents who were asked whether they had viewed each program or visited each property in the past two weeks. Then, comScore’s battery of engagement questions were administered to those who indicated recent viewership or visitation, allowing engagement scores to be derived for each program/property. The results were examined across generations. First, it was found that, on average, engagement was higher among Millennials than all other generations for both television programming and websites. In addition, it was found that this difference was greater on a percentage basis for websites than for television, despite the selected television programming being somewhat more skewed toward shows targeted to a younger audience than were the websites. PAGE 12
  • 14. Figure 13: Percent Increase in Engagement for Millennials versus Other Generations by Medium 6.2% Generation X 1.6% 22.2% Digital Baby Boomers 10.3% Television 35.4% Seniors 21.4% These results are good news for those interested in advertising to Millennials. It appears that they are highly engaged with the content that they choose to view. This is true for both television and digital. This engagement will amplify the effectiveness of advertising to Millennials, helping to boost advertising returns on investment among this key demographic. The results also suggest that digital is a good bet among Millennials because, when compared to television, its ability to engage is skewed toward younger generations. Conclusion The Millennial generation is of great importance to marketers due to its size and purchasing power. Millennials are often defined in large measure by their use of digital technologies, and it is the digital world that appears to present marketers with some of the best opportunities to reach and persuade them. While Millennials follow a familiar pattern of younger generations being more difficult to persuade through television advertising, to some extent digital appears to break this pattern. Some optimistic news for marketers is that Millennials appear to strongly engage with the media they choose to view. In this regard, digital is well suited to this generation, as their relative engagement versus older viewers is stronger for digital than for television. Conversely, it appears that it is harder for advertising to achieve breakthrough and catch the attention of Millennials, who are notorious for multitasking and short attention spans. Hence strong creative may need to be tailored to draw Millennials into the story being told. At the same time, Millennials respond to a powerful and differentiating reason to PAGE 13
  • 15. buy as much as any other generation, with the same core drivers of impactful creative strongly relating to high ad effectiveness scores. The quality of creative is critical in terms of generating interest in the advertisement and crafting a persuasive message. And this is as true for Millennials as for other generations. PAGE 14
  • 16. Appendix About Share of Choice comScore is a world leader in advertising copy testing. Having pioneered the discipline more than 40 years ago, comScore has conducted over 40,000 television advertising studies, and more recently, hundreds of digital advertising analyses, on behalf of some of the world’s largest and best-known brands. comScore has developed a metric called Share of Choice (formerly the ARS Persuasion Score), which is the most well-documented and independently-validated measure of advertising effectiveness in the world. As the name implies, it quantifies the ability of an ad to influence brand preference, and it has been shown to be predictive of advertising-induced sales with a +0.90 correlation. How It Works Share of Choice measures consumer brand preference through a simulated purchase exercise. Respondents participate in prize drawings across several categories. In each category, they choose the product they would like to win from a balanced competitive set. Bias is eliminated and preference is collected from consumers both before and after exposure to the advertising. The difference in share of preference between the two groups (post-exposure share minus pre-exposure share) is then calculated to determine the lift in Share of Choice (see below). PAGE 15
  • 17. Fair Share Benchmark comScore has developed the comScore Fair Share Benchmark to aid in assessing whether the lift in Share of Choice for a specific ad meets or exceeds the level expected for a typical ad for the brand. This benchmark takes into account product category and brand loyalty, the number of brands competing in the category and the advertised brand’s share of preference to determine the score expected, on average, given the current category and brand’s environment. The ad’s strategy and/or execution are determined to be “below average,” “average,” or “above average” based on their relationship to the Fair Share degree-of-difficulty norm. Correlation with Actual Sales Since its inception, comScore has systematically collected information to determine the validity of its measurement systems, relating comScore metrics (i.e. lift in Share of Choice) to the prevalent measures of sales employed at the time. Early validation efforts used metrics related to sales results from store audits and ATU trial rates, progressing later to split-cable test market outcomes. Ongoing validation efforts include the relating of test scores to market share change from Marketing Mix Modeling (MMM) and in-store scanner data. This systematic commitment to validation has resulted in more than 2,000 validation cases spanning four decades. Consistently, the lift in Share of Choice has demonstrated the strongest relationship to real-world sales and share change results. This result holds true across PAGE 16
  • 18. countries, cultures and multiple verticals, including CPG, auto, financial services, telecom, pharmaceutical, retail and QSRs. Marketing Mix Model Validation comScore’s ongoing MMM validation data set represents the most precise validation study to date. The MMM result isolates the effect of the test ad from other marketing variables, largely removing the issue of uncontrolled variables from the analysis. Using the MMM result as the measure of sales attributable to a specific advertisement, the lift in Share of Choice has been proven to be predictive of advertising-induced sales with a +0.90 correlation (See below chart). Source: comScore Marketing Mix Model Validation Data Set PAGE 17