8095 REFRESHED The evolving role of brands for the worldslargest and most impactful generation

Continuing the 8095 Conversation Edelman 8095 is an insights group studyingthe Millennial generation, born between 1980and 1995, to understand their evolvingrelationship with brands.In 2012, we refreshed our research with asurvey of 4,000 Millennials in 11 countries.

Millennials in 2013 Why Millennials Matter To Marketers Global Trends 8095 Where Weve Been 8095 2.0 New data and insights Implications for marketers

The Millennial Generation Goes By Many Names

Millennials in 2013 The oldest are 33 years-old, the youngest are 18 Life defining moments include the Global Recession, 9/11, Asian Tsunami, Arab Spring, Facebook, smart phones First generation that may be worse off economically than their parents Most diverse and educated generation in history

Their World Is Smaller, More Connected of Millennials across all 11 markets surveyed see theircountry as being influential on the world stage. *(Edelman Berland 8095 2.0 Survey 2012)

Why Millennials Matter To MarketersBIG: The largest generation alive today 1.8 billion globally1 (out of 7 billion world population) 75% of workforce by 20252INFLUENTIAL: Impact purchase decisions of peers & parents Will outpace Boomer earnings by 2018 ($2.5+ trillion spending power)3 74% say they influence purchase decisions of other generations4UNIQUE: The first inherently digital generation Dont know a world without the Internet or smart phones1. (U.S. Census Bureau International Database 2012)2. (Business and Professional Womens Foundation 2011)3. (Harris Interactive and Deloitte study 2011)4. (Edelman Berland 8095 2.0 Survey 2012)

Millennials are more likely torecommend products and starttrendsmore involved in popculture and activities that wouldcompel them to try new productsand recommend them to friends. -MINTEL, WORD OF MOUTH AND VIRAL MARKETING

Trends That 8095ersAre Leading Today

Global Urbanization For the first time in world history, more people live in cities or suburbs than rural locales1. Implication Millennial identities will be closely tied to the cities they live in, and marketers need to customize and target engagement.1. United Nations Department of Economic and Social Affairs/Population Division World Urbanization Prospects: The 2011 Revision

Experiences Over Stuff The economy is forcing Millennials to delay purchases and demand a newlevel of value from the brands they buy. ImplicationMarketers must demonstrate how their products or services enable life experiences and deliver value.

Rise (or fall) of the Millennial Dad Traditional gender roles are shifting. Six in 10 college students are female1, and men are taking over more household and purchasing responsibilities. Implication Marketers should lessen the focus on gender and other traditional audience segmentation. Appeal to the new blended nature of humanity and to the audiences influencing your target.1. (Digest of Education Statistics, 2010)

Where Weve Been

In 2010, Edelman launched 8095,an insights group founded on aneight-country study of theMillennial generation, bornbetween 1980 and 1995.The goal? To understand theirrelationship with brands, theactions they take on behalf ofbrands and how those actionscreate new opportunities formarketers.

8095 The benchmark 8095 study in 2010 revealed four insights. Brands are a partnership and form of self-expression Information is a key to influence Taking action on behalf of brands is a core value There is a reverberation effect taking place online, offline and increasingly on mobile devices

Brands are a Partnership and Form of Self-Expression 1 in 3 look for brands to make a positive impact on is the #1 personal the world. identifier Millennials are willing to share online.*(Edelman Berland 8095 Survey 2010)

Information is a Key to Influence Of Millennials consult four or more sources of information when making brand purchase decisions.*(Edelman Berland 8095 Survey 2010)

Taking Action on Behalf of Brands is a Core Value take action on behalf of their trusted brands. are brand loyal and keep purchasing brands they like.*(Edelman Berland 8095 Survey 2010)

Reverberation Effect Taking Place Online, Offline And Increasingly On Mobile Devices Average number of text messages young Millennials send every month1. Weekly volume of word-of-mouth impressions. Of which, 13.5 billion are offline and 1.2 billion are online2.1. The Nielsen Company, 20102. Keller Fay Groups TalkTrack, U.S. July 2010 June 2011

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8095 2.0In October 2012, Edelman 8095 andresearch partner Edelman Berlandsurveyed 4,000 Millennials in 11 countries

A CaveatA challenge in defining Millennials is that they are progressingthrough fundamentally different life stages.Millennials are not a monolithic bloc.The best Millennial study is directional rather than absolute, and digsdeep into the behaviors and cultural nuances of Millennials inindividual countries.8095 attempts to give a snapshot of commonalities that tie thegeneration together.

8095 2.0 The rise of realism, with a twist.Compared to the 2010 study, we see a shift in theways Millennials perceive their lives and future.While idealistic and optimistic, there is a newmeasure of realism.Millennials are growing up, and so too are theirviews of success. Their aspirations are surprisinglytraditional, but coming of age in the globalrecession has forced them to push back typicalstages of adulthood and has created a new breed ofentrepreneurs.For brands to matter to Millennials, average is nolonger enough. A whole new level of engagement,authenticity and purpose is necessary.

The Global Recession has Created a Mix ofTraditional and Non-Traditional Values forMillennials, Sparking a New Type of Consumer

The economy sucks for most, and itsdevastating to MillennialsDEFINED BY DEBTAverage $28,500 in student loans1WEAK JOB PROSPECTSUnemployment rates for Millennials are typically double the national average. In the U.S., Millennial unemployment is 12+% (7.9% is national average)2 In Spain, Millennial unemployment is 48% (22% is national average)3LOW NET WORTHIn the U.S., median net worth of people under 35 fell 37% between 2005 and2010; those over 65 took only a 13% hit.41. (Institute of Education Science 2012)2. (U.S. Department of Labor) 20123. (National Statistics Institute of Spain 2012)4. (U.S. Census 2012)

Millennials Have a PR ProblemIf you follow recent headlines,Millennials are lazy, self-entitled, orworse.We believe much of the criticism isundeserved. They are coming ofage during one of the hardesteconomic and social environmentsthe world has seen.They are blazing new paths andfinding a new way through life.

Despite Challenges, They RemainOptimistic, and Their Aspirations SurprisinglyTraditionalWhat are your most important life goals?*(Edelman Berland 8095 2.0 Survey 2012)

Entrepreneurial of Millennials say thatowning their own business is a top life goal 76% in Turkey 65% Brazil 61% China 44% US *(Edelman Berland 8095 2.0 Global Survey 2012)

SensibleWhat products or services are Millennials willing to pay a premium for?Health-related items rule. Beauty and Apparel dont.0% 100% *(Edelman Berland 8095 2.0 Global Survey 2012)

Implications for Marketers Millennials arent kids anymore. The oldest are 33, the youngest 18. They are not the next frontier, they are the here-and-now consumer target influencing the purchase of EVERY brand. Shift away from traditional segmentation. Diversity is everywhere and gender lines are blurred. Speak to your target AND their influencers. Marketers need to think about how they assist the generations new life goals and revised timeline of life events. Think about how your brand can help Millennials in other parts of their lives.

Millennials are Alpha-Influencers

Alpha-Influencers of Millennials think they influence the purchase decisions of peers and those in other generations*(Edelman Berland 8095 2.0 Survey 2012)

Like Daughter, like Mother Children have a strong influence over the purchase decisions of items used by their family, such as cars, food and vacations1. New research2 also suggests children influence goods their parents use for themselves, such as clothing. Many mothers intentionally mimic their daughters style.1. (Mintel Kids as Influencers U.S. study 2010)2. (Journal of Consumer Behavior study, 2011)

Shopping is a Social ActivityFor Millennials, shopping is a social activity, and many wont makea purchase their friends disapprove. of Millennials typically shop with friends, family or significant other*(Edelman Berland 8095 2.0 Survey 2012)

Two-Way Dialogue Millennials think its their responsibility to sharefeedback with companies after a good or bad brand experience.*(Edelman Berland 8095 2.0 Survey 2012)

Alpha-InfluencersMillennials crowd-source to make brand purchase decisions. use at least one outside source for guidance use four or more sources of information *(Edelman Berland 8095 2.0 Survey 2012)

Inherently Digital, But Craving Offline ConversationMillennials most often go to search engines as a source to help themmake brand purchase decisions, but face-to-face engagement withfriends and family are the second and third most used sources.*(Edelman Berland 8095 2.0 Survey 2012)

Implications for Marketers Every brand needs to consider Millennials as a core target, or at least a significant influencer for their target. As masters of crowd-sourcing to make purchase decisions, engage Millennials in surround sound. Online and offline. Help Millennials become an expert on your brand, purpose and story. They have a strong desire to share and learn. Sell unique and real product benefits and you will drive reverberation. 38

Millennials Are Surprisingly Open To BrandEngagement and Advertising, But Only IfBrands Have the Right Approach.

Willing to Engage With BrandsWhile skeptical of brand messages, they are open toengaging with brands, but1. Brands must act and engage differently to get attention and loyalty. We are in an age of surprise-and-delight. If you dont, they will tune you out.2. Authenticity rules. Focus on selling unique and real product benefits. Millennials want to share and learn. Give them messages that show value and are worth repeating.

Willing to Engage With Brands of Millennials think all advertising is boring*(Edelman Berland 8095 2.0 Survey 2012)

8 in 10 Millennials want brands to entertain them.How do they want to be entertained? Allow me to influence your products (co-creation) Answer my questions/comments in real time via social media Sponsor entertaining events Create online content such as videos, photos, games and blogs Connect me to the other fans of the brand/company I dont expect brands/companies to entertain me Partner with a celebrity or public figure I admire*(Edelman Berland 8095 2.0 Survey 2012)

Millennials want brands to help them in other areas of their lives.How do they want brands to help them? Provide me with financial assistance (e.g., grants, scholarships) Provide me with the opportunity for more life experiences (e.g., send me on trips, give me lessons in something I have an interest in) Provide me with a mentor who can help guide me Allow me to use your audiences (e.g., Facebook pages, ads, etc.) to connect with others with similar interests and ideas Allow me to use your audiences (e.g., Facebook pages, ads, etc.) to share my message/story with a wide group *(Edelman Berland 8095 2.0 Survey 2012)

Humor, Value & Engagement RuleWhat is the most effective way for a company tocapture your attention?*(Edelman Berland 8095 2.0 Global Survey 2012)

Implications for Marketers Its not your brand anymore. It belongs to your customers. Be agile, collaborative and prepared for the worst and best Experiences over stuff. Focus on how your brand enables life experiences. They want to buy into new ideas and share them with friends and family. Be social and enable sharing. Smart and funny is the new rock and roll.1 Business is often serious, but dont always take yourself so seriously.1. (Nick Shore, Strategic Insights & Research at MTV)

Continuing the 8095 2.0 Survey Conversation Methodology Survey conducted by Edelman Berland and consisted of online interviews in 11edelman8095.tumblr.com countries among 4,000 adults bornOur blog for all things 8095. between 1980 and 1995. The survey was conducted in the following countries: Australia (N= 300),twitter.com/edelman8095 Brazil (N=300), Canada (N=300), ChinaUpdates and insights in 140 (N=300), France (N=300), Germanycharacters or less. (N=300), India (N=300), Turkey (N=300), United Arab Emirates (N=300), United Kingdom (N=300), United States (N=1,000) with weighting to ensure equalt.sina.com.cn/edelman8095 representation from each country.Updates and insights in 140characters or less. The survey has an overall margin of error of 1.55% at the 95% level of confidence.

A Final Reason Millennials Matter The iGeneration/Generation Z isnow fully formed, with their oldest turning 17 years-old. They will soon become the new it generation. If we cant understand Gen Y, well never get Gen Z.