marketing is wasted on the young - boussias conferences · delivery of target audience just pay for...

Marketing is wasted on the youngWhy we need to rethink targeting

““

The Perennials. We are ever blooming, relevant people

of all ages who live in the present time, know what’s

happening in the world, stay current with technology,

and have friends of all ages.

Gina Pell,

Content Chief The What,

inventor of ‘Perennials’

Behaviour MindsetAffluence

Need to think perennially about targeting

Media

Consumption

Comms

Marketplace

New Targeting

Opportunities

Why Perennial Targeting is important now

Media

Consumption

Comms

Marketplace

New Targeting

Opportunities

Why Perennial Targeting is important now

Anti-Social media?

12th Graders are going

out less often than

8th Graders in 2009“ “

The Atlantic, September 2017

Source: CNN/ Monitoring the Future Twenge 2017

In 5 years, hours on online mobile by 16-24s has doubled

3hrs 12m 3hrs 20m 4hrs 4m

Europe USA ROW

+124% +101% +114%

Source: GWI, FY 2012-2017, Q1&Q2’18

Dramatic Decline in TV Viewing

-46% -45%

-25% -27%

-15%-7% 0%

101 114157 183

235295

344

kids 4+ 16-24 25-34 35-44 45-54 55-64 65+

UK 5 year Decline in Viewing on TV set

% Change Now

Source: Ofcom 2016 vs 2011

Media

Consumption

Comms

Marketplace

New Targeting

Opportunities

Why Perennial Targeting is important now

The advertising industry is going through something akin

to the automation of the financial markets in the 1980s.

This has helped to make advertising much more

precise and personalised.

““

The Economist

Digital adspend overtakes TV globally

2017Source: Zenith Advertising Forecast September 2018

Digital adspend overtakes TV globally

2020Source: Zenith Advertising Forecast 2018

+74%Increase in programmatic

adspend 2020 vs 2017

Source: Zenith Advertising Forecast 2018 vs 80% Europe

Addressability changes the meaning of targeting

Pay for everybody with guaranteed

delivery of target audience

Just pay for who

you are targeting

Targeting is fundamentally different by media

Mass Reach Media Addressable (Targeted) Media

Media

Consumption

Comms

Marketplace

New Targeting

Opportunities

Why Perennial Targeting is important now

Bought the

Category

Shopping

Digital (re) targeting data is more relevant than demographics

Because we have the data to find the right audience

Searched

category related

Search

Signaled

interest

Social

Looking for

new products

Survey

Read category

editorial

Sites

Targeting is part of journey

Across all devices

Touchpoints are now part of a journey

which we can track

Target consumer is identified

Advertising is served to them where-ever

they are online

Behaviour MindsetAffluence

Need to think perennially about targeting

Behaviour MindsetAffluence

Need to think perennially about targeting

Brands grow by gaining more buyers, not by persuading loyal buyers to buy more = penetration

Behavourial Economics tells us changing behaviour is hard

Source: Daniel Kahneman

System 1 System 2

Intuition and Instinct Rational thinking

95% 5%

To Grow with Penetration = Winning at the point of change

From ‘Bullseye’ Target Audiences To ‘Points of Change’

Life Events drive change in behaviour across most categories

19%

35% 35%

13%

21% 21% 21%

8%

17% 19%

4%8%

12%

49%

Changed yourmobile phone

provider

Changed yourinsurance provider

Tried a new lager Changed yourregular coffee

shop

Changed yourdaily skincare

regime

Booked a holidaywith a new airline

No change inbehaviour

% w

ho

ha

ve

Which of the following have you done recently?

One of more life event No life events

Source: Zenith UK 2016 /Google Consumer Survey, n = 1121

In 20th Century, 20s defining decade of adulthood & life events

80% of life's most defining

moments took place

before 35

2/3of lifetime wage growth

happened during the

1st 10yrs of a career

>50%of Americans were married or

are dating or living with their

future partner by age 30

And we have more disruptions ahead

Leading to an unpredictable life with multiple life events

Source: “The Corperate Implications of Longer Lives,” By Linda Gratton et al, MT Sloan Management Review, Spring 2017, http//mitsmr.com/x/58304

In a unpredictable world, we are more predictable

Behaviour MindsetAffluence

Need to think perennially about targeting

All; 37%

Millennials; 63%

Baby Boomers;

30%WWII /

Swing ; 21%

.

What’s wrong with this chart?

Stayed overnight in a premium / luxury brand hotel or resort

Base: 447 internet users aged 18+ with $500K+ in investible assets who have purchased luxury branded items in the last 18 months [237 Affluent; 210 HNWIs] Source:

Lightspeed GMI/Mintel The Affluent and High Net Worth Premium Brand and Luxury Consumer - US - December 2016

They don’t work for money

They’re starting to realize, wow, they really do have to worry about their

resumes. They come in without the kind of reckless disregard of consequences

that a more confident generation of kids who said I’ll drop out of school

& join the peace movement.

0

5

10

15

20

25

30

35

40

45

50

“ “Stephanie Cootnz

Council for Contemporary Families

USA Enrolment in Summer Classes

+191%Enrolment in summer classes

in the past 20 years

But despite being better suited to modern working

Panel A. Percentage who like learning new

things to a high/very high extent

Source: Global Employment Trends for Youth 2017 – Paths to a better working future ILO calculations based on OECD, PIACC survey results

Across all industries

Source: Global Employment Trends for Youth 2017 – Paths to a better working future

Trans & commConstruction Trade

BusinessFinance HealthEducation

They are missing out on good jobs

Per

cen

tag

e p

oin

t ch

an

ge

in a

ge-

spec

ific

em

plo

ym

ent

Source: Global Employment Trends for Youth 2017 – Paths to a better

working future- % point change in the share of different employment

forms between 2005–2015 ages 15–29.

Changes in the forms of youth employment, 2005–15

Only generation to earn less than previous generations

Source: Raj Chetty et al FT

Share of Children earning more than their parents at 30 years old (in 2014 dollars)

Quadruple Whammy – Youth losing on every dimension

23%Income Spent Of Housing

32m2

Av. Space Per H/H Member

28 MinsMean Travel Time To Work

19 YearsAv. Time Saving For Deposit

Source: Resolution Foundation 2017

In the USA, the over fifties set to win

50% 70% $15T US population will be over 50

Y.O In less than 5 years

of the nation’s income

will be in their control

inherited by them

in the next 20 years

Over 55s dominate consumer spending growth in the next 15 years

86%67%50%

Source: U.S Bureau of Labor Statistics, Consumer Expenditure Survey 2008; Japan Statistics Bureau; Statistisches Bundesamt; BCG analysis.Note: Spending power is forecast on the basis of its historical correclation with GDP, not corrected for potential higher relative savings.

1. Because of data availability, data for Germany reflect 2007 numbers

2. Because of data availiability, data for Japan exclude expenditures by single-person households

Me generation

Boomers have worked hard &

played hard for their entire lives –

after work is done - that means

spending money & lots of it

“ “Nielsen

Young at heart

Many in their sixties & seventies may

be perceived in their prime years

pursuing education, new careers

and maintaining an overall

activity level not associated

with this age bracket.

““

BCG Global Aging

Behaviour MindsetAffluence

Need to think perennially about targeting

Historically the young generations have disrupted culture

Sex Drugs Rock’n’Roll

Sharp decline in sexual activity in past 5 years

It’s a highly motivated generation, a

lot of them are afraid that they’ll get

into something they cannot get out

of and they won’t be able to get back

to their desk & keep studying.

“ “Helen Fisher Chief Scientific Officer Match.com

Source: WHO 2018- Relative % Change. 2010 vs 2014 42 countries Europe & North America.

-18%-26%

Teenagers take fewer hard drugs

-64% -65% -87%

Heroin Crack Cocaine Methamphetamine

Source: University of Michigan Monitoring the Future 1998-2017 30 day Use 8th, 10th & 12th Graders combined

All Stimulants are down

-48% -49% -19%

Illicit Drugs* Alcohol Cannabis

Source: University of Michigan Monitoring the Future 1998-2017 30 day Use 8th, 10th & 12th Graders combined

9%13%

23% 24%

9%

England Germany Greece Italy Spain

Weekly Alcohol Consumption - Today

It’s a worldwide thing…

47%

30% 30%

38%

21%

England Germany Greece Italy Spain

Weekly Alcohol Consumption – 2002

Source: World Health Organisation HSBC Report 2018

-80% -58% -25% -37% -56%

28%25%

21%

16%

21%

England Germany Greece Italy Spain

Drunk Twice or More - Today

56%

39%

20% 19%

25%

England Germany Greece Italy Spain

Drunk Twice or More – 2002

-50% -38% -18% -18%

Everyone is missing out

on a good time

“ “Professor Norman Spack Harvard

Younger generation no longer rock

Kind of Boring

“ “Shoko Yoneyama University of

Adelaide on teenagers

Blame the parents

Because age ain’t

nothin’

but a number.

In an ageless, target the attitude not the age group

“ “Gina Pell, Content Chief at The

What, inventor of ‘Perennials’

Gucci for example is not Millennial but Perrenial

It works …

40-50%Quarterly Growth

Behaviour MindsetAffluence

Remember marketing is wasted on just targeting the young so instead target..