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WWW.MARQETA.COM

2015

MARKETING TO

MILLENNIALS MARCH

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Who are these Millennials?

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Millennials by the Numbers

9.0%

Emerging

16.9%

iGeneration

24.5%

Millennials

15.4%

Gen X

23.6%

Baby

Boomers

10.5%

Swing/WWII

Median household income

Average annual

expenditures

$51,017

$51,442

$30,604

$31,411

$51,381

$49,544

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

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Screens. Screens. And More Screens.

55%

Watch video several times

a day on different devices

72%

Visit 5 different sites

per day to watch

video content

Want to

connect news

across all

devises

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More than 74 percent feel that new

technology makes their lives easier, and 54

percent feel new technology helps them be

closer to their friends and family.

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Don’t call me. Friend me.

Millennials are checking in socially

between 20 and 21 hours each month.

Younger Millennials access social

media sites more on their laptops.

Older Millennials log in more on

mobile apps.

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Brand Affinity

45%

Millennial respondents

35%

25%

Adults ages 35-54

Adults ages 50+

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Brands we

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Important Brand Characteristics

• High Quality Products

• Fits their personality

• Socially responsible

• Shares similar interest

• Says important things

• Engages in a conversation

VERY HIGH

MEDIUM

HIGH

HIGH

VERY HIGH

MEDIUM

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What They Want From Branded Content

Informative/educational 46%

Unique 47%

Relevant to who they are 46%

Fresh/new

48%

Funny 51%

Entertaining 53%

Brief 54%

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Brand Advocacy

46%Notice branded content consume it.

1/3

Use direct word of mouth advocacy.57%

Share it.

Advocate while shopping.54%

While buying online.48%

Embrace the brand lifestyle.44%

Subscribe via email.40%

Are loyal.36%

59% 20%

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Expectations & Desires

Millennials expect:

• Immediacy. 77% expect real time interactions

• Peer Recommendations. 71% listen to peers

• Authentic relationships with brands that offer good value

• Engagement anywhere, anytime especially on mobile devices

• Emotional connection

Millennials want:

• Transparency. Marketing is ok, but don’t try to hide it.

• Something for their data. 67% believe data will be more valuable than their possessions.

• To trade up (indulgences) and trade down (value spending)

• Want more enriching experiences.

• To easily manage their money and like prepaid products

• Rewarding experiences

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So what works,

what doesn’t?

A few examples.

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It’s all about

creating a relationship.

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Tips for Marketers

• Be authentic.

• Connect with universal human experiences.

• Be an outlet for discovery.

• Be imaginative, creative and playful.

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

• Taps into millennials’ desire for discovery.

• Be real and responsive.

• Leverage all content formats to connect.

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

things they really want.

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Millennials and Money

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A Decreasing Trust in BanksConsumer confidence in banks has seen a sharp drop-off since the 2007-2008 Financial

Crisis.

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Millennials are even more distrustful.

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A Growing Prepaid Market

$5 $10$17

$33

$52

$78

$125

$148

$184$194

$205$219

$236

$254

$119

$141

$159

$179$188

$198

$231

$263

$299$309

$317$326

$334$343

$0

$50

$100

$150

$200

$250

$300

$350

$400

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

Open Loop

Closed Loop

Amount Loaded onto Cards

($Billions)

Source: Mercator Advisory Group, 2013

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Why Millennials Like PrepaidQuantitative and qualitative research support these

customer experience benefits

Prepaid customers want to be smart about money and

manage their accounts on their mobile phones. They want

to stay out of debt and avoid interest charges that come

with credit cards.

MANAGE MONEY ONLINE

Unlike cash, reloadable prepaid cards may offer zero

liability in case of fraud or a lost card.

SAFETY

For consumers whose alternative is cash, they’re looking

for a way to pay when they shop online. A prepaid card

can be used for online payments or for paying bills over

the phone.

SHOP ONLINE or PAY OVER THE PHONE

“My prepaid card helps me manage my money”

Nearly 50% of young adults incur overdraft fees,

according to the FDIC.

Prepaid cardholders report being willing to pay fees so

long as they are expected.

LOW TRANSPARENT FEES

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Dispelling the Myths of Prepaid

Customers

Do not want a credit card Of people with incomes of

$100,000 or higher report

having a prepaid card

Had a credit card Of Millennials use GPR

49% 27%

66% 45%

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

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

“People used to think of [prepaid cards] as cards for people who didn’t have

a lot of money, whereas today they’re becoming much more common for a

variety of uses and a variety of demographics.”

-- Beth Robertson, Director of Payments Research for Javelin

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What features attract consumers?

Convenient card loading options

Minimal Monthly fees

Free Direct Deposit

Retail networks or online connections

Widely accepted Flexible ways to spend and pay bills

Top Prepaid cards have these common features:

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

Fuel Redemption Flight Rewards Cash Back

Social Networking Minimizes interest payments Real-time Incentives

REWARD PROGRAMS

MOBILE WALLET

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Deals actually account for 31 percent of their

shopping dollars, and many of the top apps

used by Millennials are either retail or

discount focused.

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Introducing Perk

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A suite of apps designed to accommodate the digital habits of

the Millennials, and to reward them by providing an exchange of

“money” for their time and data

WHAT IS PERK?

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BANKS ARE INCREASINGLY NOT RELEVANT

Perk.com Inc. | Proprietary and Confidential

Millennials have time, not money.

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SO…WHAT DO THEY DO WITH THEIR

TIME?

Perk.com Inc. | Proprietary and Confidential

Millennials spend their time on

Mobile in these KEY areas:

Gaming Content Local/Social

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SHOPPING

SEARCH

VIDEO

BROWSING

GAMING

COUPONS

AGGREGATION

MULTIPLE DEVICES MILLENNIAL MOBILE “HABITS”

MULTIPLE PRODUCTSMULTIPLE PLATFORMS

LOCK SCREENSOur Mission – Become THE source for payment

and rewards for Millennials

MUSIC

AT THE CENTER OF ALL THINGS MILLENNIAL

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PERK APPS

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PERK TV

Perk.com Inc. | Proprietary and Confidential

Perk TV awards users

for watching popular

and entertaining

videos.

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PERK LIVE TV

Perk.com Inc. | Proprietary and Confidential

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PERK SCREEN PAYS FOR YOUR LOCK

SCREEN

Perk.com Inc. | Proprietary and Confidential

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HOW DOES PERK WORK?

Perk.com Inc. | Proprietary and Confidential

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

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MEMBER GETS PAID IN PERK WALLET

Perk.com Inc. | Proprietary and Confidential

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

• Over $100k Per Month Deposited

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OR A PERK PLASTIK

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Perk Plastik in Perk Wallet

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Social Media

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