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Are Execs On-Point with Millennial Marketing?

Ever feel like companies try too hard with advertising only to end up appearing as though they have no understanding of their target market? Execs have always tried to understand the generations and the best ways to market to them, despite the fact that the emerging generation may be far removed from their own.

Results of a May-June 2008 survey of executives worldwide recently released by eMarketer shows their views of the best ways to market to Gen Y. Some of their thoughts seem to be on-point, but some seem skewed, at least to me. As you can see in the chart below, the execs voted the top three Gen Y marketing tactics as viral marketing, peer-to-peer recommendations, and sponsorship of Millennials' favorite programs.


Personally, I feel that viral marketing is very similar to word-of-mouth marketing in that it is hard to create a successful campaign and is near impossible to control. I also don't feel that I respond to sponsorship marketing, at least not at the level it is represented in this survey. I do, however, feel that personal recommendations (especially from close, trusted friends) are something that do hit a chord with Gen Y. As for the rest of the rankings displayed in the chart, I would agree with most of their placements except text message marketing. Unsolicited text messages I find a nuisance, but I suppose if I signed up to receive some sort of offer through text message it would be less bothersome.

Again, this was a global study so I may not be an average representative of Gen Y, so my opinions on this topic are just that: my opinions. I would, however, like to know how other members of Gen Y feel about these marketing avenues. What are your opinions?

Gen Y Votes Obama 'Most Likely to Succeed'

It may seem as though social media has little to do with politics, but this year’s Presidential candidates have numerous opportunities for connecting with Gen Y. There are many avenues through which to reach an audience who gets the large majority of their news and information online. Barack Obama and John McCain seem to have differing strategies on this topic, but we may soon know if these communication tools have proven effective in their campaigns.

Obama’s campaign is clearly attempting to appeal to younger voters not only through atypical, fresh visual designs, but also through their leverage of social media platforms such as Facebook and Twitter. McCain may be present in these venues as well, but the numbers show that Obama has definitely found his marketing niche. And the online social media arena isn’t the only place to get the word out to Gen Y. Obama’s website allows for supporters to sign up to receive text message updates, which was the first way many heard of his VP decision.

figures accurate as of 9/23/2008

While these numbers may reflect typical demographics on either side of the party line, there is still a viable argument about the influence these social media platforms may have on young voters. Regardless of partisanship, if I were to see that 75% of my Facebook friends were fans of either of the candidates and I hadn’t considered the election and wasn’t concerned about voting, a certain amount of peer pressure would build up. Then the question looms: If 75% of my friends are interested and involved, what’s my excuse for not being involved? This may be the case for many young voters. Generation Y is the largest generation since the Baby Boomers and could be very influential in any election, especially in swing states. How many “peer pressure” votes would it have taken to swing one or two states to the opposite side in the last two elections? Not many.

The mere action of getting Gen Y to vote, period, should be the goal. This has been an incredibly close election so far. Could his leverage of social media possibly aid Obama to a win? We shall see.

A&E Markets Shows Through Games

Traditionally, cable television network A&E were known for showing artful drama movies and the series Biography. Recently they have added a list of reality-based shows that have helped them draw in a new, younger audience. With shows such as Criss Angel Mindfreak, Gene Simmons’ Family Jewels, The Two Coreys, and Parking Wars, A&E have also tapped into a new marketing venue, particularly with the latter two series. To briefly touch on the bases of these shows, Mindfreak centers on magician and illusionist Criss Angel, while Family Jewels chronicles the crazy and unexpected happenings in the life of KISS superstar Gene Simmons and his family. The Two Coreys follows former child actors Corey Haim and Corey Feldman as they struggle to maintain their once inseparable friendship. Parking Wars is a behind-the-scenes glimpse into the daily life of the Philadelphia Parking Authority as they “manage the chaos that is every driver’s greatest nightmare… parking!”

On their web site, A&E has launched interactive games to promote their shows. This is something they may have taken from their Gen Y targeted counterparts, VH1 and MTV. By engaging the online community, which is largely made up of members of Generation Y, A&E can capture the attention of this market segment in an effort to attract viewers. Corey vs. Corey (the game for The Two Coreys) is exactly what it sounds like – Corey Haim fighting Corey Feldman. Users can choose which Corey they want to play as, and by winning rounds in this fighting match they can add special skills like the Dirty Sock Slap or the Dreamt of Success Smackdown. The web site game for Parking Wars is called Parking Warrior and challenges users to maneuver through traffic to park in available spaces while avoiding the parking authorities and tow trucks.



In addition to the website games, two of A&E’s shows also have games and communities as Facebook applications, which further extends their reach into the target market for these shows. Corey vs. Corey has a Facebook app where friends can compare their scores and vote for their favorite of the two Coreys. Parking Wars has a Facebook app game, which differs from the web site version. Friends can park on each other’s streets to earn money and give out parking violation tickets to those parked illegally. The Parking Wars game has become especially competitive within the office here at MindComet, spawning playful rivalries among co-workers. Badges are also awarded for different achievements, such as moving your cars 25 times without being ticketed or being the last of 5 cars to park illegally on a street. Personally, I had not planned on watching the series, but since becoming involved in the Facebook game, I am more inclined.



Ultimately, these games are a scalable way for A&E to capture and maintain viewers in a venue other than the TV screen.

Moving the Target to Gen Y

Many historically conservative brands which have targeted Baby Boomers and Gen Xers are beginning to refocus their efforts toward Gen Y. This is a curious concept which begs the question, is the older audience disloyal and moving on? Or is it simply that as Gen Y is getting older, brands are realizing what a large opportunity is available? Additionally, aiming at Gen Y widens the gamut of advertising channels. Gen Y can be targeted through avenues which older generations cannot, such as social media.

Southwest Airline, P&G’s Herbal Essences, and politicians are among the many who have refocused their efforts.

Southwest, an airline which has traditionally targeted business travelers through low price and customer service, recently announced they will be sponsoring the Midnight Gaming Championship (MGC) 2008. This sponsorship of the video gaming season is targeted at gamers aged 16 to 25 who will be tomorrow’s business travelers. “The ‘Southwest Airlines Ultimate Gamer’ promotion and MGC sponsorship speak to young adults and gaming enthusiasts--a demographic far removed from the traditional frequent business traveler that Southwest typically targets with low airfares and timely plane departures and arrivals,” states a MediaPost Publications article. This “Ultimate Gamer” promotion is a sweepstakes in which two grand-prize winners will each receive two roundtrip tickets on Southwest to Las Vegas, tickets to the Video Game Awards, a Sony PlayStation 3, a Microsoft Xbox and a Nintendo Wii. Southwest is making an obvious long-term attempt to capture this audience early, which may show no short-term payoff.

Herbal Essences, an almost 40 year old brand, was in a “long-term decline” when P&G acquired it in 2001. P&G’s marketing team found that the target audience for Herbal Essences was too broad. A BusinessWeek article states, “By 2006, [Chairman and CEO A.G.] Lafley and P&G's beauty business chief, Susan Arnold, knew something had to be done with the tired brand. ‘We had three choices,’ Lafley says. ‘Abandon it, divest it, or frankly, reinvent it and resuscitate it.’” They chose the latter. In finding that no competitors were targeting Gen Y specifically nor meeting their specific needs, Herbal Essences decided to prioritize their efforts on this generation. Through not only redesigning packaging with youthful designs and curved bottles which fit together, but also renaming the specific products (different lines renamed “color me happy”, “body envy” and “totally twisted” - as opposed to bland titles for color treated, volumizing, and curl booster), Herbal Essences was able to drive up sales by targeting Gen Y.

Barack Obama’s campaign has notoriously been targeting the younger voters. By using social media venues, Obama has been able to reach out to his young supporters in a way that other candidates have not embraced, giving him an advantage in this demographic. Strategically targeting Gen Y through Facebook, where he has over 1 million supporters, and Twitter, where he has over 43,000 followers, gives this audience an insight into his campaign in a way that is more appealing to them. He also posts photos from his campaign trail to Flickr, and has just over 5,500 followers there. Additionally, MTV has now decided to accept political ads, but only from candidates and party committees, not from third parties. In the past, even as recent as primaries earlier this year, MTV had refused political advertising, even throughout its Rock the Vote and Choose or Lose voting promotions. MTV Networks is encouraging the youth vote, which gives the candidates even more access to reach Gen Y.

Understanding the marketing opportunities available to reach Gen Y will be an important tactic for brands in the near future. However, it will also be important that these aging brands not abandon nor alienate the earlier generations who may still be loyal consumers.

Send Barack Your Baby

Traditionally politicians have had issues reaching out to the youth in America. That was until the current Presidential race. By inviting the youth in America to question their potential leader through online debates, politicians have successfully created a youthful following. It appears that in return for the politicians reaching out to Gen Y, Gen Y is paving the way for their candidate of choice. By setting up websites that further a political message or just creating buzz about candidate’s qualities, the Internet has become a major political tool. Viral campaigns are not limited to products and companies. “Obama Girl” and the popular Republican video entitled "The Incredible McCain Girl are examples of Gen Y viral campaigns. Combined, these two videos have had over 10 million views.
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It’s not just videos that are attracting the attention of Gen Y. Websites like www.sendbarackyourbaby.com have gained popularity by poking fun at those who take politics a little too seriously. This website offers comic relief to for the politically overwhelmed.
Gen Y is known for embracing technology to further causes that are dear to them in this case Gen Y has chosen politics as their cause. By observing how Gen Y has embraced this years political candidates businesses can get a clearer understanding about how to reach Gen Y.

Gen Y in the Workplace

While doing research on Generation Y, I continuously came across articles talking about hard it is to work with Gen Y. At first I was taken aback by what I was reading. I began to question not only the work ethic of those around me, but my own desire to succeed in the corporate world. Suddenly, I realized that the arguments on the screen in front of me were the same talking points that were aimed at every previous generation I could think of.

In the eyes of an older generation the youth of today will never be as efficient or dedicated as their own. Many of the arguments sited issues with dress code and inexperience. I personally believe that Gen Y is just as capable if not better equipped to flourish in a corporate work environment.

Though these arguments are flawed, many of them point out several of the eccentricities associated with Generation Y. We are, and will continue to be, an individualistic generation who loves their flip-flops and jeans. However, I can’t imagine that for many a dress code would be a professional deal beaker. Speaking from my experience, uniforms have been something to adhere to since grade school. To me, being asked to dress appropriately isn’t an outlandish request; it’s to be expected when in a professional situation.

Since the dress code argument was null and void in my mind, I moved on to the inexperience argument. Each generation faces a time when they, too, are new to the corporate work environment. Regardless of what we learned in school, the knowledge of books can never surpass the knowledge gained in a real work environment. I believe that, thanks to Generation Y’s virtual upbringing, our knowledge of the way things work has far exceeded the marker set by previous generations when they entered the work force.

Though I can see why an older generation would be leery to accept Generation Y into their corporate family, it will be necessary for growth in the marketplace that both the Gen Yers and corporate leaders learn to adapt to their new family members.

Streamlined Branding for Gen Y

Highly media savvy, Generation Y may be the generation most conscious of being marketed to. As a result, they constantly scrutinize ads and branding with which they are continuously bombarded. A San Francisco research firm conducted a survey of 100 “trendsetter panelists” in New York City, Los Angeles, San Francisco and Miami to better understand what brand communications Gen Yers receive best. An article by Kevin Ransom, “Reign of the Plain: Survey Finds Gen Ys Prefer Brand Simple”, shares the results of the survey which state the Gen Y trendsetters are drawn to brands which approach them in a "straightforward and stripped-down way, use plain packaging, and avoid excess." Another article by Sarah Perez entitled “Why Gen Y is Going to Change the Web” says that these digital natives are also more concerned about their friends’ opinions than about ads. She quotes retail analyst James R. Palczynski who said Gen Y responds less to traditional ads and more to “humor, irony, and the unvarnished truth."

You will notice that the top 15 brands listed from the survey results not only offer clean, simple ideas in their design and packaging, but also in their no-frills attitude which bleeds through to their products. “Reign of the Plain” notes that these highly respected brands offer consumers a convenience which may be related to Gen Y’s responsiveness to environmental concerns. This article concludes saying, “The bottom line ... is that any company that is inconvenient or confusing, or that used over-designed imagery, is seen as out of touch and too ‘corporate.’”

The 15 Most Trusted brands determined by the trendsetters in the survey were:

1. Apple
2. Trader Joe's
3. Jet Blue
4. In-N-Out Burger
5. Ben & Jerry's
6. Whole Foods
7. Adidas
8. American Apparel
9. Target
10. H & M clothing stores
11. Levi's
12. Volkswagen
13. Converse
14. Vitamin Water
15. Red Stripe beer
    

“Brands that succeed in the future will be those that open a dialog with their customers, admit their mistakes, and essentially become more transparent,” says Perez. For the most part, these characteristics are representative of the brands above. These 15 brands not only use stripped-down marketing and plain packaging, but many also use humor or are known for their non-bureaucratic corporate cultures.

Is it possible that the adversity to excess displayed by Gen Y could be related to their shrinking attention spans? It is repeatedly studied and reported that younger generations have shorter attentions spans, allegedly as a result of heightened media bombardment and constant exercise of mental fast-twitch muscles through video games. Or perhaps the desire for straightforward information is simply a sign of Gen Y’s tendency to be information and text scanners, as seen in web reading studies. It could be that this generation is simply adapting to the increasing amount of information immediately available at their fingertips. Bottom line: if you’re targeting Gen Y, get straight to the point.