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SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, Marketing Chief Executive Officer Time Warner Cable Media Dataium/HIS Automotive

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Page 1: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

SUPERCHARGE YOUR SALES BY CONNECTING WITH

MILLENNIALSFred Bucher Eric BrownGroup Vice President, Marketing

Chief Executive OfficerTime Warner Cable Media

Dataium/HIS Automotive

Page 2: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

MILLENNIALS LIVE IN AN OMNI-SCREEN WORLD

Page 3: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

WHO ARE MILLENNIALS, ANYWAY?

THEY ARE THE CABLE GENERATION Born at the same time as MTV

The most diverse, well-educated and digitally-connected adult generation to date

Omni-screen viewers: view content, consume news and shop for cars across all screens and devices

Leading vs. railing millennials: Different life stages

Account for 27% of auto sales

3Source: JD Power

Page 4: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

4

6.00 am 7.30 am 8.45 am 12.30 pm

6.30 pm1.00 am 9.30 pm

CONSTANTLY CONNECTED TO CONTENT

Source: TWC Media Usage Data for measured markets, 2Q 2014

5.30 pm

Page 5: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Sources: JD Power April 2015, Viacom/MTV, “Millennials Have Drive”, January 2015, Bloomberg, “Millennials Embrace Cars, Defiyng Predictions of Sales Implosion, April 20, 2015, Consumer Affairs, “Millennials Buy Cars Differently Than Their Parents”, 9/15/14

TV commands almost 9 out of 10 minutes of video viewing for millennials

5

CONSTANTLY CONNECTED TO CONTENT

Page 6: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Source: Deloitte, Digital Democracy Survey, November 2014

MILLENNIAL VIEWING EVOLVES AS THEY AGE

6

Trailing Millennials TV Viewing on TV

43%Leading Millennials

TV Viewing on PC

28%Leading Millennials

TV Viewing on TV

57%Trailing Millennials TV Viewing on PC

41%

Page 7: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Source: comScore

DEVICE VIEWING IS ADDITIVE

Traditional TV Desktop/Laptop PC Tablet Smartphone

83%

44%49%

31%

92%

28% 29%

14%

96%

17% 18%

5%

18-34 35-54 55+

Consumers who used devices to watch original TV content

7

Page 8: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Other

I have little interest in watching TV

Over-the-air Broadcast TV fulfills my video entertainment needs

Online TV Programming fulfills my video enternatinment needs

The cost of Pay-TV service is too high

6%

8%

11%

18%

58%

6%

10%

24%

25%

35%

1Q 2014 1Q 2015

Source: VAB: Disconnected Reality: Untangling the Great Cord Cutting and Streaming Misconception, August 2015

CUTTING THE CORD?57% OF FIRST TIME CABLE SUBSCRIBERS ARE MILLENNIALS

8

Reasons for not subscribing to a MVPD Service

Page 9: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

MILLENNIAL AUTO BUYERS

Page 10: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Sources: JD Power April 2015, Viacom/MTV, “Millennials Have Drive”, January 2015, Bloomberg, “Millennials Embrace Cars, Defiyng Predictions of Sales Implosion, April 20, 2015, Consumer Affairs, “Millennials Buy Cars Differently Than Their Parents”, 9/15/14

MILLENNIALS CARE ABOUT CARS

Millennials care about cars

60% “would feel like losers without a car”

76% would rather give up social media for a day than their car

And they’re ready to buy

60% would rather buy than lease a car

33% plan to buy and/or lease a new car in the next 6 months

33% would prefer to purchase a vehicle without negotiating

10

Page 11: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Sources: JD Power April 2015, Viacom/MTV, “Millennials Have Drive”, January 2015; Bloomberg, “Millennials Embrace Cars, Defiyng Predictions of Sales Implosion, April 20, 2015; Consumer Affairs, “Millennials Buy Cars Differently Than Their Parents”, 9/15/14

MANY PATHS TO PURCHASE

11

The average American has 4 digital devices and spends 60+ hours a week across devices.

Page 12: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Source: Edmunds.com, “Millennial Car Shopping Behaviors” as cited in press materials, March 27, 2015

CONDUCT RESEARCH ON MOBILE

12

Read Reviews Locate Vehicles of sale Research Pricing

41%

34% 33%

20% 20% 21%

Mobile Car Shopping Activities Conducted by US Millenials vs. Total Car Buyers, March 2015

Millenials* Total**

Page 13: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Sources: comScore Video Metrix September 2014 YouTube Partners Report, P13+; Nielsen Npower Live+7 Days, P13+, 9/1-9/30/14

SCALE MATTERS

13

YouTube Ad Supported TV

310

5,361

Minutes spent per month on YouTube vs. TV

IMPRESSIONS ARE NOT THE SAME AS TIME SPENT

Page 14: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Source: Rentrak – Change in Overall TV Usage over 28 Days, 2013-2014 TV Viewing vs. 2014-2015 TV Season Sept.-May. 34 Common Networks Prime Time Programs

OVERALL VIEWERSHIP IS GROWINGMEASUREMENT IS NOT KEEPING UP

14

Change in Live Viewing

+16.4%

Change in DVR + VoD Viewing

-8.9%

TVE APP DOWNLOADS – UP 31%

Page 15: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Source: SNL Kagan October 2014 for connected device projections; SNL Kagan 2015 for multichannel subscriber projections

STREAMING IS ADDITIVE

15

Multichannel Subscribers vs. Total U.S. Connected Devices 2015 vs. 2018 Projected (in Millions)

2015

9

30

70

101

2018

30

40

74

101

Streaming Sticks (Chromecast, etc)

Streaming Media Players (Roku, Apple TV, etc)

Game Consoles (XBox, Playstation, Wii, etc)

Multichannel Subscribers

Page 16: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Source: 1. Google, Sterling Branding & Ipsos, The New Multi-screen World: Understanding Cross-Platform Behavior, U.S., August 2012; 2. Nielsen/IAB Video Study 2012

SOCIAL AND TV DRIVE EACH OTHER

16

Social media and TV Go Hand in Hand…One Driving to The Other

• 76% of Brand Tweets are sent by people who Tweet about TV

• Twitter TV authors drive 3x more brand conversation than non-TV authors

Page 17: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

17

THE OMNI-SCREEN APPROACH

The average American has 4 digital devices and spends 60+ hours a week across devices.1

SCREEN AGNOSTIC

Page 18: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Source: 1. Google, Sterling Branding & Ipsos, The New Multi-screen World: Understanding Cross-Platform Behavior, U.S., August 2012 2. Nielsen/IAB Video Study 2012

THE OMNI-SCREEN APPROACH

Ad Recall

20%

TV + Digital Increases:

18

Brand Look-up

25%

Likeability

27%Message

Recall

40%

Page 19: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

AUTOMOTIVE SHOPPING COMPARISON

Page 20: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

Source: Dataium Network

AUTOMOTIVE TRAFFIC BENCHMARKS

20

Page 21: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

AUTOMOTIVE INTERNET USAGE

21

Millennials are not that different

Millennials Other

Portal Usage 29% 29%

Facebook Referral 1.2% 1.2%

Source: Dataium Network

Page 22: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

AUTOMOTIVE INTERNET USAGE

22

Except when they’re different

Millennials Other

Mobile Usage

13% 10%

Female Shoppers

49% 43%

Source: Dataium Network

Page 23: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

AUTOMOTIVE TRAFFIC BENCHMARKS

23Source: Dataium Network

Page 24: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

AUTOMOTIVE TRAFFIC BENCHMARKS

24Source: Dataium Network

Page 25: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

AUTOMOTIVE SHOPPING BEHAVIOR

25

Shopping behavior is consistent

Millennials Other

Length of shopping cycle3 days 3 days

Time on site same same

Pages viewed before lead submission 44

Time on home page18 sec 17sec

Source: Dataium Network

Page 26: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

AUTOMOTIVE SHOPPING BEHAVIOR

26

Some differentiation

Millennials Other

Peak time of day on site9 a.m. 4 p.m.

Visited credit/finance page 20%18%

Source: Dataium Network

Page 27: SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS Fred Bucher Eric Brown Group Vice President, MarketingChief Executive Officer Time Warner Cable MediaDataium/HIS

SUPERCHARGE YOUR SALES BY CONNECTING WITH

MILLENNIALSFred Bucher Eric BrownGroup Vice President, Marketing

Chief Executive OfficerTime Warner Cable Media

Dataium/HIS Automotive