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..