Generation O (Optimizers)

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    flickr(c) Andrew Stawarz

    Generation O

    mobileYouth Report 2012module 01

    1

    http://www.mobileyouthreport.com/mobileyouth-report-2012-generation-o-cove/http://www.mobileyouthreport.com/mobileyouth-report-2012-generation-o-cove/
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    Licensing and Copyrights

    mobileYouth grants the clienta non-exclusive License to download and use theInformation contained in this report beingpurchased solely for the clients privateinternal uses only. Users shall not distributeany information contained in the reportoutside the confines of the client, in anyevent, without the express prior writtenauthorization of the authors. mobileYouthTMowns the Information contained in thereport being purchased herein.

    Copyright mobileYouth 2011Unless explicitly stated otherwise, all rights

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    Contact details:

    [email protected]

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    3

    mailto:[email protected]:[email protected]
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    Vodafone needs to move a customer model

    based on revenue to a model based on value

    The key changes in value in mobile in the last 10years have been driven by youth; ringtones, SMS(discovered by youth), Facebook (created by a19 yr old), iPhone (students were the keybeachhead for the Apple brand). Youth are alsoat the forefront of the next wave of change

    (e.g. video, group messaging, photo sharing).The real value to Vodafone has been in theirapplication to the adult market (operators havemade $1 trillion from SMS in the last 10 years).Improvements to the bottom-line will comefrom innovation and innovation is driven byyouth. Vodafones business case for focusing onyouth should be based on the substantial long-term benefits accrued to high-end users fromyouth innovation.

    Youth dont love Vodafone, they love whatVodafone does for them. Youths key drive issocial - they use Vodafone to connect withfriends and meet offline not to engage the

    Vodafone brand in dialogue. Value models based

    on retention cant be built on loyalty to theVodafone brand or clever advertising but beingable to deliver services that fulfil these basicsocial needs.

    The next big thing for youth to fulfil thesebasic social needs is already out there today butit exists off the radar of traditional research.

    The mobile industry has tried to sell groupmessaging, photo sharing and video chat overthe last decade with limited success. Youngpeople today, however, are making theseservices work without need for education,without marketing and on their own terms. Thedistributed nature of these trends makes themdifficult to identify. Vodafone needs to identifythe young change agents driving forward theseservices and this starts with going beyond simpledemographic segmentation; develop lifestylebased profiling of customers and identify activeadvocates of new technology.

    Vodafone: What Matters Now?

    4

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    (1) Generation O are the optimizersTheir key motivations are social. Theirend goal is offline social interaction andthe means to achieve this end areproducts and technologies. Mobile is akey Social Tool to enable offlineinteraction for youth.

    (2) Youth behavior is socialYouth behavior is more a function oftheir social environment thaneconomical and political times. Behavioris shaped by access to social resourcesrather than beliefs. The behavioraldrivers of youth have stayed the sameacross the ages. While they appeardifferent and use different Social Tools,youth today are similar to youthyesterday and the adults of tomorrowwill be similar to the adults of today.

    The mobile tools will change but theunderlying needs stay the same; youthwill only adopt future tools that bettermeet these needs.

    (3) 3 key Change AgentsWhat Change Agents say about a productsupersedes the official brand story; theyare best positioned to determine whichmobile products better meet the needsof youth. Innovation and marketing needto incorporate these change agents intothe model.

    flickr(c) Andrew Stawarz

    Generation O: Executive Summary

    5

    http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/change-agents/http://www.mobileyouthreport.com/generation-o-executive-summary/http://www.mobileyouthreport.com/generation-o-executive-summary/http://www.mobileyouth.org/change-agents/http://www.mobileyouth.org/change-agents/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-thinking/http://www.mobileyouth.org/social-thinking/
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    (1) Youth are addicted to technologyYouth arent addicted. They, like therest of us, are dependent on Tools toachieve Social ends. Youth place a highpremium on owning these Tools,because maintaining a social lifewithout them is challenging. Youth dont

    buy technology, they buy whattechnology does for them.

    (2) Gen Y: theconnected generationThis generation is as connected as thelast; gains in technology are simply

    counterbalances to social losses. Forexample, youth today generally haveless bandwidth to explore offlineoutside of parental control. Technologyreclaims this lost connectivity to evenrather than increase the aggregatescore.

    (3) The key to communicating withyouth is to go mobileMobile is an important Social Tool foryouth but view it as a means rather thanthe end. Mobile content, marketing ortechnologies are not relevant by virtueof being mobile. The end goal for all

    youth is offline social interaction.Mobile is a tool to facilitate this.

    (4) Youth want fun, cool andpersonalizationYouth want Social Currency. Fun,

    Cool and Personalization may belogical traits of that but not theemotional goal itself. Youth seek outSocial Tools that help them belong andbe significant.

    4 Key Myths about Youth and Mobile

    6

    http://www.mobileyouthreport.com/4-key-myths-about-youth-and-mobile/http://www.mobileyouthreport.com/4-key-myths-about-youth-and-mobile/http://www.mobileyouthreport.com/4-key-myths-about-youth-and-mobile/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/
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    Youths fundamental drive is Social

    Youre either connectingor interrupting them

    Social Drivers

    flickr (c) Helga Weber

    8

    http://www.mobileyouthreport.com/social-drivers/http://www.mobileyouthreport.com/social-drivers/
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    Generation O Unplugged

    flickr (c) Helga Weber

    9

    http://www.mobileyouthreport.com/generation-o-unplugged/http://www.mobileyouthreport.com/generation-o-unplugged/
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    People use smartphones mostly in open publicrather than discrete private spaces.

    source WakefieldResearch /

    Coursesmart

    Can you go 10 minutes without checking?

    38%... of college studentssaid they couldnt

    survive 10 minuteswithout checking their

    notebook, tablet ormobile phone for

    updates

    Alcohol

    Caffeine

    Sex

    Toothbrush

    Shoes

    0 20 40 60 80

    Young Adult Mobile Usage is mostinterchangeable with other Social Tools - i.e.objects that faciliate social interaction (e.g.alcohol, caffeine and sex) rather than hygieneand function (e.g. toothbrush, shoes)

    source Telenav (young adults)

    What would you sacrifice to keep mobile?

    One student reported, I still felt like my phonewas vibrating and I was receiving messages eventhough I didnt have it on me. While its easyto view this as addiction the reality isdifferent; youth rely on these Social Tools askey composites of their daily routine andbehavior. Compare it to language: we aredependant on it to function socially but notaddicted.

    source Univ ofMaryland

    Can you survive 24 hours without mobile?

    50%... of college students

    failed to complete theUniversity of Maryland

    challenge to live 24hours without a mobile

    phone

    Social Drivers: Key Data

    flickr (c) Helga Weber

    10

    http://www.mobileyouthreport.com/social-drivers-key-data/http://www.mobileyouthreport.com/social-drivers-key-data/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/
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    The medium is no longerthe message.Generation Otranscends traditionallongitudinal definitionsof youth (e.g. Gen X orMillennials).

    Longitudinal definitionsfocus on change inmedium (e.g. MTV vsYoutube) resulting inmedia-bound solutions

    (e.g. how do Iadvertise onFacebook?) and chasingtrends.

    Gen O focuses on thefundamental socialdrivers which remainconstant despite theevolution of technology;tools change but thesocial motives remain

    the same.

    The underlying motiveof Gen O is socialinteraction; youth usetechnology not for

    technologys sake but tofacilitate this socialinteraction.

    Technologys popularity lies inits ability to facilitatemeetups, stay in touch and

    organize their social lives.Technology is a means toachieve this end, not the enditself.

    Gen O:Social Interaction is #1 goal

    flickr c Hel a Weber

    11

    http://www.mobileyouthreport.com/social-drivers-key-data/http://www.mobileyouthreport.com/social-drivers-key-data/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/
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    Social Drivers: Gen O vs Adults

    Gen O Adults

    Relationship withmobile phone

    Critical Social Tool.Without phone, socialfunction diminishes

    rapidly.

    Important Social Toolbut adults haveresources and

    experience outsidemobile to maintain

    network

    Nature of socialrelationships

    Extensive, complexsocial relationships.Fluid and transient

    nature of circles meansmore important to findSocial Tools to maintain

    them.

    Stable, limited socialrelationships. Littlechange means lessemphasis placed on

    technology to maintainnetwork.

    Social goalsMake new relationships

    and deepen existingnetworks.

    Preserve existingnetworks.

    flickr c Hel a Weber

    Mobile is fundamentally aSocial Tool for Gen O sounderstand its appeal in thiscontext, not through the lensof technology. Theirrelationship with mobile is aproduct of their world - i.e.a large number of transientsocial ties

    12

    http://www.mobileyouth.org/generation-o/http://www.mobileyouth.org/generation-o/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouthreport.com/generation-o-social-interaction-is-1-goal/http://www.mobileyouthreport.com/generation-o-social-interaction-is-1-goal/
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    flickr(c) flydime

    Youth dont buy stuff

    They buy what stuff doesforthem

    SocialCurrency

    13

    http://www.mobileyouthreport.com/social-currency/http://www.mobileyouthreport.com/social-currency/
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    Contentis what

    you make - thebrand, the productand thetechnology.

    Social Currencyissocial benefit - themeasure of the

    Contents abilityto createbelonging orsignificance forthe user.

    Contextis thestory told thatmakes sense ofSocial Currencyand makes theContent relevantto their lives.

    Youth dont buy

    technology, theybuy whattechnology doesfor them.

    The what itdoes is its SocialCurrency -

    the ability toprovidesignificance andbelonging.

    Mobile Appeal3 critical aspectsof the youth

    mobilerelationship:1. Content2. Social Currency3. Context

    Context

    Social Currency(the benefit)

    (the story)

    ProductDevt

    Innovation

    Marketing

    CustomersChange

    AgentsCom

    pany

    brands traditionally outsourcethis part to creative agencies

    this is where brands needto focus their energies

    today- the bridge between

    productand market

    Content(what you

    make)

    3 Critical Aspects of the Youth:Mobile Relationship

    The Gen O:Mobile relationship

    14

    http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/content-to-context/http://www.mobileyouthreport.com/the-generation-o-mobile-relationship/http://www.mobileyouthreport.com/the-generation-o-mobile-relationship/http://www.mobileyouth.org/content-to-context/http://www.mobileyouth.org/content-to-context/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/
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    Mobile Youth: Then and Now

    2000-2009 2010-2019

    Social Currency

    Defined by the mobilebrand and the agencyin the advertising and

    marketing story.

    Defined by ChangeAgents hacking or

    innovating the productto create a better

    Social Tool

    Discovery andEducation Process

    Youth trusted media toeducate them on theproduct benefits and

    usage

    Youth trust each othermore; Change Agentsdiscover benefits andeducate market on

    how to use

    Marketing FocusThe Medium; hire thebest agency and createadvertising that wins

    awards

    The Change Agents;

    develop a deepunderstanding of theirsocial needs and

    partner with them inyour marketing

    flickr(c) flydime

    The key difference between2009 and 2012 is the growingimportance of Change Agents.Mobile success and failure

    will become a function ofbrand success and failure inpartnering with these youthsegments

    15

    http://www.mobileyouth.org/change-agents/http://www.mobileyouth.org/change-agents/http://www.mobileyouthreport.com/mobile-youth-then-and-now/http://www.mobileyouthreport.com/mobile-youth-then-and-now/
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    flickr(c) Eva Blue

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    flickr(c) lululemon athletica

    All meaning is created in the offline worldMobile is a means to reach this end

    Face to Face

    17

    http://www.mobileyouthreport.com/face-to-face-communication/http://www.mobileyouthreport.com/face-to-face-communication/http://www.mobileyouthreport.com/face-to-face-communication/
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    flickr(c) lululemon athletica

    Work / SchoolOutdoor ActivityBar/Club

    BathroomFamily Table

    RestaurantOn Date

    Movie TheatreChurch

    0 30 60 90

    source Pew

    People use smartphones mostly in open publicrather than discrete private spaces.

    Youth place a higher premium on face-to-facecommunication than adults. Lack of experiencecombined with more transient socialrelationships means youth need more intimatesocial contact to be gauge trust.

    source tatango

    Where do you use your Smartphone?

    18-24

    25-29

    30+

    0 22.5 45 67.5 90

    How do you gather information pre-purchase?Face to Face

    Friends Family In-Store Media Online

    source mobileYouth based on Harris Poll

    %

    %

    33% of 18-24 yr olds gathered productinformation face-to-face with friends or family.Compared to older peers, 18-24 yr olds aremore reliant on face-to-face recommendation.

    Source Retail Advand Marketing Assoc

    Which media influences you the most?

    41%... of youth said face-to-face was the biggest

    influence on theirpurchase decision,

    ranking ahead oftraditional media and

    internet

    Face to Face: Key Data

    18

    http://www.mobileyouthreport.com/face-to-face-communicaiton-key-data/http://www.mobileyouthreport.com/face-to-face-communicaiton-key-data/http://www.mobileyouth.org/open-vs-discrete-networks/http://www.mobileyouth.org/open-vs-discrete-networks/
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    Youth social meaning is

    rooted in the realworld. Without offlineinteraction, marketingand technology havelittle meaning. Whatyoung people value

    most is friendship andfriendship can rarelyexist online.Relationshipsdeteriorate with lack

    of face to facecontact.

    Youth have an inherentunderstanding thatface-to-face is crucialin maintaining socialnetwork and valueSocial Tools thatfacilitate their offlineworld.

    Face to FaceTextingSocial Networking

    OnlineMobile Call

    TVLandline

    0 10 20 30 40 50

    source Pew

    49% of 15-25 yearolds said Face-to-Face was theirpreferred mode ofcommunicating withfriends. Only 15%cited Texting.

    I will text my friends when I buy somethingnew or get back from shopping to come overand check out the stuff. We go through theclothes and jewelry. I text pictures to someof them who cant come. But when they are

    here and they bring what they have boughtwe can try each others outfits.Gabrielle 14, USA

    Mobile: Tool to create Offline interaction

    flickr(c) lululemon athletica

    Which medium is most important for communication?

    19

    http://www.mobileyouthreport.com/mobile-tool-to-create-offline-interaction/http://www.mobileyouthreport.com/mobile-tool-to-create-offline-interaction/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/content-to-context/http://www.mobileyouth.org/content-to-context/
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    Gen O: Myths vs Reality

    Myths Reality

    Media UseSpend a lot of timeindoors and using

    media, often alone.

    Spend more timeoutdoors interacting

    with friends thanadults do. Media use is

    often highly social.

    Relationship withTechnology

    Youth are addicted totechnology. Consumed

    by whimsicaltechnology fashions

    and trends.

    Youth are dependent

    on their social lives.Communication is more

    passive than activewhich may appear

    whimsical to adults.

    Key Drivers

    Hungry for new gadgetsand technology. Drivenby fun, cool and

    personalization. Livetheir lives online.

    Hungry for SocialCurrency. Driven by theneed to belong and besignificant. Live theirlives offline. Onlinehelps organize their

    offline life.

    flickr(c) lululemon athletica

    Be wary of generationalstereotypes that are aproduct of specific periodsin history (e.g. Gen X,Y,Z,millennials). In reality, youth

    remain consistent acrosstime and geography. Whatchanges is the tools theyuse not the reasons why.

    20

    http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://livepage.apple.com/http://livepage.apple.com/http://www.mobileyouthreport.com/generation-o-myths-vs-reality/http://www.mobileyouthreport.com/generation-o-myths-vs-reality/
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    The mobile phone isone device butmultiple tools.Youth adopt a wideset of messagingdevices on the phone

    rather than settle fora unified application.

    flickr(c) lululemon athletica

    Facebook: monitor &creep existingfriendships

    Skype: family &distant friends

    ooVoo: hangouts, socialspaces to bypass parents

    SMS: default to organizeoffline meetups

    BBM: gossip, controlledconversation, closefriends

    Voice call:parents

    Twitter: followcelebrities

    active

    passive

    group

    individual

    tools favored by adultsbecause they are more

    purposive and direct

    tools favored by youthbecause they are discrete

    and group based

    What communication apps do youth use on the phone?

    Gen O: 1 Mobile, 7 Social Tools

    21

    http://www.mobileyouthreport.com/generation-o-1-mobile-7-social-tools/http://www.mobileyouthreport.com/generation-o-1-mobile-7-social-tools/
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    flickr(c) Arnoooo

    Give adults a mobile phone and theylluse it to make calls or read the manual

    Give Gen O a mobile phone and theyll

    start hacking it to find ways to connect better

    Generation O vs Adults

    22

    http://www.mobileyouthreport.com/generation-o-vs-adults/http://www.mobileyouthreport.com/generation-o-vs-adults/
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    flickr(c) ArnooooYouth place a higher premium on Social Tools

    because they have a greater ongoing needfor them.

    0

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    3000

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    flickr(c) Arnoooo

    Youth Adult

    Free Time vs Money

    Free Time Money

    Youth Adult

    Social Tools vs Social Circles

    Social Circles Social Tools

    Youth vs AdultsSocial Supply & Demand

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    Optimization Tech: Adults vs Gen O

    Adults Gen O

    Attitude towards tech

    Look for finishedproducts. They have

    little time to wasteon inconsistency.

    Favor products thatcan be Optimized asOptimization offers

    social benefit.

    Relationship withTechnology

    Would rather buy tried

    and tested productsoff-the-shelf. They arewilling to pay for anOptimized finished

    offering.

    Gen O willing to invest

    time and effort overmoney in learning and

    Optimization. Willshare results with

    peers.

    Role of Optimization inSocial dynamics

    Optimization notvalued. Optimization

    confined to nichesocial groups who areoften marginalized

    (e.g. geeks, Applefanboys, car mods)

    Optimization highly

    valued. Optimizationoffers socialsignificance and

    belonging.

    flickr(c) Arnoooo

    Understanding how and whyGen O interacts with mobiledoesnt just give us a betteridea of marketing but also

    valuable pointers how toposition these products forthe wider adult market.

    25

    http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/generation-o/http://www.mobileyouth.org/generation-o/http://www.mobileyouth.org/optimization/http://www.mobileyouth.org/optimization/http://livepage.apple.com/http://livepage.apple.com/
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    flickr (c) luc legay

    3 Types of Youth Changing Mobile Today

    26

    http://www.mobileyouthreport.com/3-types-of-youth-changing-mobile-today/http://www.mobileyouthreport.com/3-types-of-youth-changing-mobile-today/
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    flickr(c) Libertinusflickr(c)

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    mobileYouth identified 3 consistentyouth behvioral groupings across 65markets. Each group is led by ChangeAgents who are instrumental in both theinnovation andmarketing of mobile

    technologies. Change Agents are bothhighly influential and difficult to reachvia traditional marketing channels.Brands need to develop a deeperunderstanding of these gatekeepers.

    Disruptive Diva 22 Female

    Cashless Innovator

    19 Male

    Teenage Pirate15 Male

    Who are the Change Agents?

    27

    http://www.mobileyouth.org/positive-deviance/http://www.mobileyouth.org/earned-media/http://www.mobileyouthreport.com/who-are-the-change-agents/http://www.mobileyouthreport.com/who-are-the-change-agents/http://www.mobileyouthreport.com/who-are-the-change-agents/http://www.mobileyouth.org/fans/http://www.mobileyouth.org/fans/http://www.mobileyouth.org/earned-media/http://www.mobileyouth.org/earned-media/http://www.mobileyouth.org/positive-deviance/http://www.mobileyouth.org/positive-deviance/http://www.mobileyouth.org/change-agents/http://www.mobileyouth.org/change-agents/http://www.mobileyouth.org/change-agents/http://www.mobileyouth.org/change-agents/
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    3 Change Agents: Comparison

    Teenage Pirates(15-17)

    Cashless Innovators(18-22)

    Disruptive Divas(20+)

    Social Currency Skill based Knowledge based Experience based

    Social ToolsInherit hand-me-

    downs from parentsand siblings

    Discover and refurbishtools rejected by

    previous generations

    Buy into the Tools ofthe establishment,symbols of arrival

    Optimization Behavior Hack inherited SocialTools. Explore thesoftware level.

    Revive and refurbishold tools, bring themup to date.

    Hijack establishmenttools, stamp theirown character

    Social SpacesLarge, inclusive.

    Barriers to parents.

    Niche, knowledgebarriers to entrybased on passions

    Small, tight, innercircles. Routine

    activities.

    flickr(c)

    Libertinus

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    http://www.mobileyouthreport.com/3-change-agents-comparison/http://www.mobileyouthreport.com/3-change-agents-comparison/
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    The 3 Change Agents arebridge between theindustry and the market.They optimize theproduct and discover itsSocial Currency. Theyalso form key lines of

    influence in marketingthe product.

    Without Change Agentsoptimizing it, yourproduct is a commoditylost in a wall of noise.

    Without Change Agentsoptimizing, products are

    reduced to price-basedcompetition.

    !!

    #$%&' (%$)*+#*%,--*%'

    ./01234*$5Change Agents

    Rest of Market

    0 18 36 54 72 90

    source mobileYouth based on Weber Shandwick data

    % of Youth who influence their peers

    Change Agents: Bridge to the Market

    flickr (c) luc legay

    29

    http://www.mobileyouthreport.com/change-agents-bridge-to-the-market/http://www.mobileyouthreport.com/change-agents-bridge-to-the-market/http://www.mobileyouth.org/earned-media/http://www.mobileyouth.org/earned-media/http://www.mobileyouth.org/fans/http://www.mobileyouth.org/fans/http://www.mobileyouth.org/fans/http://www.mobileyouth.org/fans/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/optimization/http://www.mobileyouth.org/optimization/http://www.mobileyouth.org/change-agents/http://www.mobileyouth.org/change-agents/
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    flickr(c) followtheinstructions

    1. Teenage Pirates

    30

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    0

    1000

    2000

    3000

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    How do they Hack tech?

    Rooting & JailbreakingTeens expose weakness in Appleand Android source code andsuggest improvements. Hacksoften preempt official patches.Hackers often release their ownupdates.

    Weibo Hacking

    Chinese teens dont havewidespread access to onlinedating services. Teen PositiveDeviance behavior turned Weibo,originally pitched at teens toidentify missing persons, into apopular ad-hoc dating service.The relationship doesnt developonline, its a tool to facilitate the

    hookup. The end-goal for teens isoffline meeting; teens will reviewprofiles but not comment on orpost to them.

    Video Chat (ooVoo / Tinychat)

    Teens hack video chat tobypass parental restrictionson their social life. Video chathelps teens reclaim hangoutbehaviors and define theirown Social Space outside ofparental control

    flickr(c) followtheinstructions

    Teenage Pirates: Innovation

    32

    http://www.mobileyouthreport.com/teenage-pirates-mobile/http://www.mobileyouthreport.com/teenage-pirates-mobile/
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    Social Currency forTeenage Pirates is skillrather than statusbased; mastery ofhacking technology.

    Hacking is Positive

    Deviance - improvingand changing theContent at the technicallevel (e.g. Androidrooting, Jailbreaking orturning Weibo into a

    dating service) ratherthan vandalism.The hackability of aSocial Tool is key toappeal for Teenage

    Pirates as results areshared with peers.

    Teenage Pirates SocialTools are often inheritedfrom parents or oldersiblings. Lack of income

    and excess time meansthey have the ability toexplore and optimizeproducts.

    Teenage Pirates: Social Currency

    flickr(c) followtheinstructions

    !""#$%& (")*%&$%& +

    ,$&%$-./%."

    !""#$%&

    0/,1"234.*%12*) +

    2".*&%$5*%

    6**), 17"3 ./% 7/.# /%8

    ,9(:"21 1* (2"/# 8*;%

    (/22$"2,

    !*.$/) 1**), 17/1

    *

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    Teenage Pirates: Inherited Tools

    !" $%&' % ()*+ (%,- ./01'2 ).

    34%563'227 8$,5$ $%* % 1'9'2 -%+%

    (4%. +$%. ,:$).'; " .''- % (2' (%,-

    5%2-* %.- /*' +$'0 -'('.-,.A ).

    8$,5$ ).' $%* /.4,0,+'- .%B).8,-'=>=;C

    Madhu 17F, India

    Lack of income andability to purchasecontract handsets meansmost teen handsets arehand-me-downs fromsiblings and family.

    Inheriting the Toolsmeans teens are moreopen to hacking them;handsets are often outof warranty or old.

    Whereas the last 2 yearsteens were inheritingBlackberry and featurephones, in 2011 and2012, the trend has

    shifted to smartphoneslike iPhone 2&3.

    Expect a significant risein teen smartphoneownership 2012.

    0

    50

    100

    2010 2011 2012 2013

    Region 1 Region 2

    How teen smartphoneownership will track adults

    teen ownership ratestypically track adults by the

    length of smartphonecontract (e. . 2 years)

    flickr(c) followtheinstructions

    34

    http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouthreport.com/teenage-pirates-inherited-tools/http://www.mobileyouthreport.com/teenage-pirates-inherited-tools/
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    Teenage Pirates actively

    explore new ideas andshare their discoverywith peers andstrangers. This behavioris best depicted inteenage haul videos on

    YouTube.

    Blair, known asJuicyStar07 on YouTube,regularly shares hershopping discoveries onYouTube and explain toher viewers how she

    plans on puttingtogether an outfit withher purchases.

    Her desire to createhaul videos stems fromher eagerness to shareher skills as an amateurstylist. It is not just herfriends watching thevideo. On average hervideos get more than300,000 views.

    I dont create and post these videos to show off or get something out of them. Itsnot that I shop a lot either. It's more like, I'm 16, I work two jobs, and this is what I'vesaved my money up for, and I'm excited to share it with you guys.

    Blair 16F, USA

    Teenage Pirates: Sharing the How-to

    flickr(c) followtheinstructions

    35

    http://www.mobileyouthreport.com/teenage-pirates-sharing-the-how-to/http://www.mobileyouthreport.com/teenage-pirates-sharing-the-how-to/http://www.mobileyouth.org/shared-experiences/http://www.mobileyouth.org/shared-experiences/
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    TinyChat ooVoo

    !>7 (%2'.+* %2' &'27 *+2,5+ %.- -) .)+ 4'+ 0' A)

    )/+ 8,+$

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    Teenage Pirates: Video Chat & Hangouts

    Teens Adults

    Rationale for VideoChat

    Hangout, PassiveCommunication

    Purposive,Active

    Structure of Sessions

    Multiple participants,parallel conversations.each engaged in their

    own conversation

    Serial, unifiedconversation involving

    all participants

    Time and Engagement

    Not unusual to spend5-6 hours per day for

    heaviest users. Serviceon constantly in

    background as theyengage in other

    activities

    Similar to voice call;make the call, talk,end. Short sessions.

    Preparation

    Set rituals before calls- adjusting personal

    look, clothes, lightingin room

    Minimal ritual, treatedsimilarly to voice call

    flickr(c) followtheinstructions

    37

    http://livepage.apple.com/http://livepage.apple.com/
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    !" $%&' % ()*+ (%,- ./01'2 ).

    34%563'227 8$,5$ $%* % 1'9'2 -%+%

    (4%. +$%. ,:$).'; " .''- % (2' (%,-

    5%2-* %.- /*' +$'0 -'('.-,.A ).

    8$,5$ ).' $%* /.4,0,+'- .%B).8,-'=>=;C

    Madhu 17F, India

    Tariff wars among

    operators are common inthe emerging markets ofIndia and Indonesia.

    Teenage Pirates haveresponded to tariff wars

    by subscribing to morethan one mobile numberand owning differenthandsets. The trend,known as dual handsetownership, falsely droveup acquisition rates in

    the short term beforedriving up churn rates inthe long term asteenagers kept switching

    to the service with the

    lowest tariff. Thebiggest advantage ofowning multipleaccounts is enjoyingdiscounts whenavailable.

    Rather than displayloyalty to the cheapestprovider, teens willactively negotiatecomplex tariff structureswith multiple accounts

    to maximize their usage.

    Teenage Pirates: Managing Price Wars

    flickr(c) followtheinstructions

    38

    http://www.mobileyouthreport.com/teenage-pirates-managing-price-wars/http://www.mobileyouthreport.com/teenage-pirates-managing-price-wars/
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    flickr (c) fotologic2. Cashless Innovators

    39

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    flickr(c) fotologic

    Alternative + ThriftRetro + KnowledgeWill often own 2 or more handsets/

    SIMs to negotiate complex operatortariffs and maximize offers.

    Key drivers of laptop and MP3 playermarket meaning key Beachhead for

    brands like Apple and Samsung.

    Winning the Cashless Innovatormarket is key to long term tech

    brand relationships

    MP3 playerLaptop

    Games ConsoleMobile PhoneEbook reader

    TabletDesktop

    -10 0 10 20 30 40

    Tech Ownership:

    Students vs Rest of Market

    source mobileYouth based on Pew data

    77%... shopped at Thrift

    stores (compared with

    50% of teens).source Care2 & NPD

    -20%-10%

    0%

    10%

    20%

    30%

    40%

    50%

    Apple

    Blackb

    erry

    SonyE

    ricsso

    nNo

    kia

    Samsun

    g

    Motor

    ola

    SMART scores

    Change fromteens to students

    source mobileYouth (US,Malaysia, South Africa)

    SMART Recommendation

    Scores: Students

    As youth reach student agerecommendations for Apple,Blackberry, Samsung and Motorolaincrease while Sony Ericssonspopularity declines. Nokia remains asrecommended with students as it iswith teens. Motorola is unpopular.

    Age 18-22yrs, mostly male*

    * we are seeing increasing numbers of femaleCIs in developed markets

    Cashless Innovators & Mobile

    40

    http://www.mobileyouthreport.com/cashless-innovators-mobile/http://www.mobileyouthreport.com/cashless-innovators-mobile/
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    Social Currency for

    Cashless Innovatorsmoves from skill toknowledge. CashlessInnovators seek outniche groups withdefined knowledge

    barriers that, to the

    mainstream, appeardifficult or obscure(e.g. Hipster culture,single-gear Fixie bikeswithout brakes, retroclothing).

    !""#$%& (")*%&$%& +

    ,$&%$-./%."

    0$.1" ,*.$/)

    &2*34, 5$61 /#%*5)"7&"

    (/22$"2 6* "%628

    9*2&*:"% 6**), *; 61"

    4/,6 61/6 /)$&% 5$61

    %$.1" $%6"2",6 /2"/,

    !*.$/) 6**), 61/6 42*=$?/>*%

    !*.$/) .322"%.8 ;*2 61$,

    ,"&="%6

    Social Profile of Cashless InnovatorsOptimization for CashlessInnovators means thediscovery of old Social Tools.Teens inherit tools, CIsrediscover them. The

    knowledge of how to use andrefurbish these tools is a keybarrier to entry; being inmeans being in the know.

    Fixie Bike Culture

    Cashless Innovators: Social Currency

    41

    http://www.mobileyouthreport.com/cashless-innovators-social-currency/http://www.mobileyouthreport.com/cashless-innovators-social-currency/http://livepage.apple.com/http://livepage.apple.com/http://www.mobileyouth.org/optimization/http://www.mobileyouth.org/optimization/http://www.mobileyouth.org/cashless-innovators/http://www.mobileyouth.org/cashless-innovators/http://www.mobileyouth.org/social-currency/http://www.mobileyouth.org/social-currency/
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    Cashless innovators have

    also turned to mobiletechnology as theirSocial Tool of choice.One such example isadoption of theInstagram app by

    hipsters. Hisptersusually carry around atraditional film cameravaluing the grainyimages they produce.

    Instagram allows them

    to apply a retro effectto an image instantly.Hispters gave Instagraman identity thatseparated it from othersimilar applications.

    Within 9 months of itslaunch, 150 millionphotos were uploadedby 7 million Instagramusers.

    flickr (c) fotologic

    Instagram Photo Sharing App

    !"#$%" '( ('$ )*$* "'+ ,"* )'-.)$ /-01)%$ .)"2-13

    4-50)21 1( )*$ 0"#$%" 6-1, 7"+ /-01)%$ .)"2-13

    8+)21

    !"*,2$** 9''(:"1(%*

    Cashless Innovators: Instagr.am

    42

    http://www.mobileyouthreport.com/cashless-innovators-instagr-am/http://www.mobileyouthreport.com/cashless-innovators-instagr-am/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/cashless-innovators/http://www.mobileyouth.org/cashless-innovators/
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    flickr(c) Libertinus

    3. Disruptive Divas

    43

    http://www.mobileyouthreport.com/disruptive-divas/http://www.mobileyouthreport.com/disruptive-divas/
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    flickr(c) Libertinus

    BrazilIndia

    ChinaIndonesia

    USUK

    GermanyFrance

    Italy

    0 20 40 60 80 100?

    Recommendation Scores for Disruptive Divas

    20 something females recommend Blackberry,Apple and Nokia the most. Blackberry isparticularly popular with this group. SonyEricsson and Motorola are disliked.

    Disruptive Divas & Mobile

    -40%

    -20%

    0%

    20%

    40%

    60%

    80%

    Blackb

    erryApple

    Nokia

    Samsun

    g

    SonyE

    ricsso

    n

    Motor

    ola

    SMART scores

    Change fromstudents to Divas

    source mobileYouth (US,Malaysia, South Africa)

    Shop at Global Brand or Local Boutiques?

    source NPD GroupGlobal Brand Local Boutique

    In emerging markets, where the difference ingender roles between generations is mostpronounced, Disruptive Divas gravitate mosttowards symbols of the global establishment. In

    mobile this means Blackberry (your Dadsphone). In lifestyle, this means 20-somethingwomen in Brazil, India, China and Indonesiafavor global, widely recognized status brands.

    44

    http://www.mobileyouthreport.com/disruptive-divas-and-mobile/http://www.mobileyouthreport.com/disruptive-divas-and-mobile/
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    Social Currency for Disruptive Divas is based on

    arrival. Divas seek recognition for having made it- whether as a career executive or being a well-informed mother - and gravitate towards SocialTools that help them stand out within their ownpeer groups. Social interaction centers aroundsmall, tightly-defined peer groups and routine

    activities.

    flickr(c) Libertinus

    Disruptive Divas: Social Currency

    !""#$%& (")*%&$%& +

    ,$&%$-./%."

    0/$%

    1".*&%$2*%

    *3 ".*%*4$.

    5*167

    81/9$2*%/) ,*.$/) (/9&",

    *3 ",6/()$,74"%6 67/6

    4/1# /11$:/) /%9 ,;..",,

    !*.$/) 6**), 67/6 ;%9/4"%6/) 91$:"1 *3

    *

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    Disruptive Divas in

    developing nations haveventured into newcareer domainsfollowing economicdevelopment in the lastdecade.

    As newly appointedprofessionals, theyprefer traditionalsymbols of theestablishment for SocialTools such as BlackBerry

    over Apples iPhone.

    In the developed world,females from minoritygroups have risen toprominence in thecorporate and politicalworld.

    Propelled by role modelssuch as Oprah Winfreyand Michelle Obama,DDs display their statusand declare arrival intypically male domains

    by flaunting theirBlackBerry handsets.

    Disruptive Divas: Blackberry vs iPhone

    flickr(c) Libertinus

    0%

    30%

    60%

    90%

    South

    Africa

    Malay

    sia USA

    SMART scores

    Change fromstudents to Divas

    source mobileYouth (US,Malaysia, South Africa)

    SMART recommendation scores:iPhone vs Blackberry, females 20-29

    BlackberryiPhone

    46

    http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouthreport.com/disruptive-divas-blackberry-vs-iphone/http://www.mobileyouthreport.com/disruptive-divas-blackberry-vs-iphone/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/social-tools/http://www.mobileyouth.org/disruptive-divas/http://www.mobileyouth.org/disruptive-divas/
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    Disruptive Divas have not only chosen BlackBerry

    over iPhone as their Social Tool, they have alsoadded a touch of color to their BlackBerry usage bystarting the BlackBerry Bling trend.

    In the first manifestation of Optimization behavior,Divas started coloring their thumbnails to make

    them stand out when using the Blackberry handset(known as Blackberry Bling).

    Disruptive Divas: Blackberry Bling

    flickr(c) Libertinus

    Other hacks of Blackberryinclude adding charms anddecorating the sleeves(popular examples includechocolate bars or retro

    refits in the form ofcassette tapes)

    47

    http://www.mobileyouthreport.com/disruptive-divas-blackberry-bling/http://www.mobileyouthreport.com/disruptive-divas-blackberry-bling/http://www.mobileyouth.org/optimization/http://www.mobileyouth.org/optimization/http://livepage.apple.com/http://livepage.apple.com/http://www.mobileyouth.org/disruptive-divas/http://www.mobileyouth.org/disruptive-divas/
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    What is mobileYouth?

    We are a youth agency established in

    2001 by Graham Brown and JoshDhaliwal for the purposes of trackingand predicting emerging trends amongstyoung mobile consumers worldwide.

    Clients are primarily

    telecommunications and handset OEMs,but include sports brands, beveragelabels, banks, ad agencies, recordcompanies, television channels, onlinesocial networks, games developers,content aggregators, publishers and awhole array of other youth-focused

    brands and service providers.

    A privately held company we conduct

    youth research in more than 60countries across 5 continents.

    Please visit us athttp://www.mobileYouth.org

    48

    http://www.mobileyouth.org/http://www.mobileyouth.org/
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    The Research Quadrant

    CultureData

    Insight(Analytical/Predictive)

    Historical(Reporting/Analysis)

    McKinsey,PWC etc

    (What does this meanto my industry?)

    mobileYouth(Why is this happening?)

    Nielsen, Harris, Pew etc(How much is happening?)

    Trendwatching,Trendspotting etc

    (What is happening?)

    Youth research is very broad. While weprovide data and trends, our core valueis distinct.

    mobileYouth research is cultural insight.We explain why youth use mobilephones in certain ways. We provide aframework for understanding behaviorclients can use to predict the futuretrajectory of technology and mobileculture.

    As companies move from strategiesbased on market share to ones based onshare of customer, we believe thebrands with the deepest insights ratherthan the most knowledge and data willwin. We believe being liked bycustomers is worthless and brands todayneed to form relationships based onlove because its these brands thatyouth recommend to each other and65% of all youth handset purchasedecisions are influenced by peers notadvertising.

    49

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    Bonus Downloads...

    Click the Downloadbutton on each

    slide. The button will take you to thepage on MobileYouthReport.com from

    where you can download the hi-

    resolution graphic to use in your ownpresentations.

    50

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    About the Authors

    Graham Brown has spent his life living

    and working in both London and Tokyo.A psychology graduate, Graham hasfocused his marketing career onunderstanding what influences consumerbehavior a field in which he is due topublish his first book in early 2011 .

    Graham is author of 3 youth marketingbooks available on Amazon: All isSocial, Influence and The YouthMarketing Handbook

    As well as speaking at industry

    conferences on the subject of youngconsumers, Graham has appeared onCNBC, Sky News, CNN and BBC as well as

    in print with the FT, The Guardian, Wall

    Street Journal and The Sunday Times.

    Freddie Benjamin leads mobileYouthson-the-ground research in the field ofmobile culture and youth marketingbehavioural trends.

    Freddie is the Research Manager atmobileYouth undertaking ethnographicand quantitative research. He is also acontributing author for the YouthMarketing Handbook published in 2011.