Marketing to Millennials 2017 Page 1
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1 Marketing to Millennials 217 Page 1
2 MARKETING TO MILLENNIALS 217 Several recent studies have shown that millennials are less brand loyal than preceding generations. A recent Daymon Worldwide global study1 showed that only 2 of millennials usually buy the same brand, compared with 35% of Gen Xers. Furthermore, an Accenture study from last year showed that millennials change banks more than twice as often as other consumers.2 As a result of this lack of brand loyalty, it is critical for marketers to understand how to reach the millennial generation. Fluent conducted a nationwide survey of 1,769 millennials and 1,191 non-millennials to better understand millennials device usage and interaction with various digital media channels, and their relationship to impacting purchasing decisions. 1 Daymon Worldwide, The Next World: How Millennials Will Shape Retail, June 2, The Financial Brand, May 12, 215 Marketing to Millennials 217 Page 2
3 SOME OF THE KEY FINDINGS INCLUDE: Smartphones are the most popular device with millennials as 7 in 8 millennials own one. They spend the highest proportion of their online time using their smartphones (51% spend all or most of their online time) and use them to make purchases as much as any other platform (4 at least monthly). While still the top network, Facebook is far less influential with millennials than it is with older generations. 43% of millennials say Facebook is the social media platform they use most often, compared with 61% of nonmillennials. Among the youngest cohort of millennials, year olds, other networks including YouTube, Instagram & Snapchat have nearly caught up to Facebook. Despite the dominance of smartphones, computers remain an important purchase device for millennials. Nearly 1 in 3 (32%) millennials use computers to make purchases at least weekly. However, younger millennials, aged 18-24, use computers less often to make purchases than their older counterparts. Promotional s were the most effective digital advertising medium asked about in the survey at influencing millennial purchase decisions. Over 2 in 3 (68%) of millennials said that promotional s impacted their purchase decisions at least on a few occasions. Millennials own smartwatches at nearly twice the rate of the general population. 44% say they own smartwatches compared with only 23% of non-millennials. Apple is the preferred device brand for millennials. Despite having less disposable income, millennials are more likely than older generations to purchase Apple products across all four device categories that we asked about. Millennials show somewhat less concern about data privacy and security than older generations. There are double digit gaps between the percentage of millennials and non-millennials who are very concerned about data privacy (37% vs. 51%) and data security (42% vs. 55%), respectively. We hope that you will enjoy the report and welcome your feedback! The Fluent Research Team research@fluentco.com Marketing to Millennials 217 Page 3
4 AS SMARTPHONES HAVE BECOME UBIQUITOUS, MILLENNIALS ARE ADOPTING SMARTWATCHES QUICKLY Smartphones are dominant devices across the entire population. 87% of both millennials and non-millennials own a smartphone. Millennials are slightly less likely to own computers and tablets, but nearly twice as likely (44% to 23%) to own smartwatches as older generations. 1% % WHO OWN THIS TYPE OF DEVICE Millennials (18-34) Non-Millennials (35+) 8% 87% 87% 6% 68% 7% 5 64% 44% 23% Smartphone Computer Tablet Smartwatch MILLENNIALS CHOOSE APPLE MORE FREQUENTLY Apple products, particularly the iphone, are disproportionately popular with millennials. % WHO USE APPLE PRODUCT AS THEIR PRIMARY DEVICE IN A CATEGORY Millennials (18-34) Non-Millennials (35+) 3% 38% 2 18% 1 16% Apple iphone Apple Mac Apple ipad 6% Apple Watch Marketing to Millennials 217 Page 4
5 MILLENNIALS, PARTICULARLY WOMEN, SPEND THE LARGEST SHARE OF THEIR ONLINE TIME ON THEIR SMARTPHONES Millennials spend the greatest portion of their online time using their smartphones, followed by computers, tablets and smartwatches. IF OWN DEVICE: WHICH BEST DESCRIBES WHAT PORTION OF THE TIME YOU SPEND ONLINE IS SPENT USING YOUR [DEVICE]? (Those who do not own device are assumed to answer none.) 1% 8% 6% 7% 27% Smartphone 35% 17% 15% Computer 46% 16% 15% 14% Tablet 62% 8% Smartwatch Nearly all Most Some Very little None Millennial women spend a greater portion of their online time on their smartphones than millennial men. IF OWN SMARTPHONE: WHICH BEST DESCRIBES WHAT PORTION OF THE TIME YOU SPEND ONLINE IS SPENT USING YOUR SMARTPHONE? (Those who do not own device are assumed to answer none.) 1% 8% 6% 7% 27% 5% 23% 28% 8% 21% Nearly all Most Some Very little None 27% 21% All Women Men Marketing to Millennials 217 Page 5
6 MILLENNIALS MAKE THE MAJORITY OF THEIR PURCHASES ON COMPUTERS AND SMARTPHONES Computers are about on par with smartphones as the devices used to make online purchases. Smartphones are somewhat more likely to be used at least monthly, while computers are somewhat more likely to be used at least weekly. IF OWN DEVICE: WHICH BEST DESCRIBES HOW OFTEN YOU MAKE PURCHASES USING YOUR [DEVICE]? (Those who do not own device assumed to answer once a year or less.) 1% 8% 6% 17% 1 15% 15% Smartphone 45% 55% 64% 8% 1 14% 12% Computer Tablet Smartwatch Multiple times per week Weekly Monthly A few times per year Once a year or less Younger millennials make purchases less frequently with computers than older millennials. IF OWN COMPUTER: WHICH BEST DESCRIBES HOW OFTEN YOU MAKE PURCHASES USING YOUR COMPUTER? (Those who do not own device assumed to answer once a year or less.) 1% 8% 6% 45% 47% 44% 17% 6% 14% 1 16% 18% 17% All Multiple times per week Weekly Monthly A few times per year Once a year or less Marketing to Millennials 217 Page 6
7 FACEBOOK NOT QUITE AS IMPORTANT FOR MILLENNIALS, BUT IS STILL THE TOP SOCIAL MEDIA PLATFORM OVERALL Facebook is losing share to other platforms at a greater pace among millennials than non-millennials. 6% WHICH OF THE FOLLOWING SOCIAL MEDIA NETWORKS DO YOU USE MOST? 61% Millennials (18-34) Non-Millennials (35+) 5% 43% 3% 18% 12% 6% 6% 7% 2% 4% Facebook Instagram YouTube LinkedIn Pinterest Snapchat Twitter 2% WHICH OF THE FOLLOWING SOCIAL MEDIA NETWORKS DO YOU USE MOST? Millennials (18-34) By Age By Gender Women Men Facebook 41% 5% Facebook 51% Instagram 17% Instagram 17% 18% YouTube 12% 14% YouTube 16% LinkedIn 7% LinkedIn 6% Pinterest 8% 8% Pinterest 7% Snapchat 5% Snapchat 8% 7% Twitter 3% 1% 2% Twitter 2% 2% Marketing to Millennials 217 Page 7
8 OTHER SOCIAL MEDIA PLATFORMS ARE EFFECTIVELY COMPETING WITH FACEBOOK FOR MILLENNIALS With the sole exception of Facebook, all social media platforms are more popular with millennials than non-millennials. The largest gap between millennials and their older counterparts is with Snapchat. 1 in 4 millennials use it every day versus just over 1 in 1 () among non-millennials. 5% 3% WHICH BEST DESCRIBES HOW OFTEN YOU USE [SOCIAL MEDIA PLATFORM]? % Saying Everyday 41% 4 35% Millennials (18-34) Non-Millennials (35+) 2 25% 17% 17% 8% Facebook YouTube Instagram Snapchat Pinterest Twitter LinkedIn 7% Snapchat & Instagram are especially popular with younger millennials. At least 3 in year olds use each platform every day. WHICH BEST DESCRIBES HOW OFTEN YOU USE [SOCIAL MEDIA PLATFORM]? % Saying Everyday By Age Facebook now trails YouTube in the percentage of millennial men using it every day. WHICH BEST DESCRIBES HOW OFTEN YOU USE [SOCIAL MEDIA PLATFORM]? % Saying Everyday By Gender Women Men 5% 48% 5% 51% 3% 38% 35% 33% 26% 3% 1 3% 32% 26% 28% Facebook YouTube Instagram Snapchat Facebook YouTube Instagram Snapchat Marketing to Millennials 217 Page 8
9 DIGITAL ADVERTISING CHANNELS HAVE SIMILAR LEVELS OF INFLUENCE ON MILLENNIAL PURCHASES Promotional s edge out other digital mediums in their impact on millennial purchase decisions. 68% of millennials said their purchase decisions were impacted at least occasionally by promotional s, compared with 63% for ads on social media networks and ads on news and entertainment websites, and 56% for promotional text messages. HOW FREQUENTLY DO [MEDIUM] IMPACT YOUR PURCHASE DECISIONS? Promotional s 32% All of the time Most of the time Some of the time Ads on social media networks 12% 12% 1 37% On a few occasions Never Ads on news and entertainment websites 1 37% Promotional text messages (SMS) 14% 17% 14% 44% 6% 8% 1% CONCERNS THAT MILLENNIALS IGNORE S ARE UNFOUNDED Counteracting the notion that millennials don t respond to marketing, promotional s influence millennials better than older generations. more millennials than older generations (26% to 16%) say promotional s are influential all or most of the time. HOW FREQUENTLY DO PROMOTIONAL S IMPACT YOUR PURCHASE DECISIONS? Millennials (18-34) Non-Millennials (35+) 3% 32% 23% 8% 8% All of the time Most of the time Some of the time On a few occasions Never Marketing to Millennials 217 Page 9
10 MILLENNIALS ARE LESS CONCERNED ABOUT DATA PRIVACY THAN NON-MILLENNIALS Millennials are less concerned that companies will not respect privacy when using personal information than older generations. Millennial women and older millennials show greater concern than millennial men and younger millennials. HOW CONCERNED ARE YOU THAT COMPANIES WILL NOT RESPECT YOUR PRIVACY IN USING YOUR PERSONAL INFORMATION? Very concerned Somewhat concerned Not concerned 26% 38% 37% Millennials Non-Millennials 51% 23% 25% By Age By Gender Women 35% 31% 43% 27% 3% Men 38% 42% 32% 44% % 8% 1% 44% 6% 8% 1% Marketing to Millennials 217 Page 1
11 SECURITY IS A GREATER CONCERN THAN PRIVACY Both millennials and non-millennials find that data security is somewhat more worrisome than privacy concerns. Again, millennials have fewer security concerns than non-millennials and millennial men and younger millennials have fewer data security concerns than their older and female millennial counterparts. HOW CONCERNED ARE YOU THAT COMPANIES WILL FAIL TO KEEP YOUR PERSONAL INFORMATION SECURE? Very concerned Somewhat concerned Not concerned 25% Millennials 42% Non-Millennials 55% By Age By Gender Women 42% 43% 27% 3% Men 42% 32% 44% % 8% 1% 47% 18% 35% 6% 8% 1% Marketing to Millennials 217 Page 11
12 METHODOLOGY This Fluent survey was conducted online within the United States on August 2, 216 among 2,96 adult US residents (aged 18 and up) including 1,769 millennials (aged 18-34) and 1,191 non-millennials (aged 35 and older). Respondents were randomly selected. Due to rounding, percentages may not always add up to 1%. Fluent s proprietary ad serving technology includes a real-time survey module that was used to facilitate the data collection for this study. ABOUT FLUENT Fluent, LLC, a cogint company (Nasdaq: COGT), is an industry leader in people-based digital marketing and customer acquisition, serving over 5 leading consumer brands and direct marketers. Leveraging a massive reservoir of proprietary audience data, as well as millions of real-time survey interactions with consumers every day, Fluent enables advertisers to more effectively target and acquire their most valuable customers, with precision, at a massive scale. The company is headquartered in New York City. For more information visit fluentco.com I sales@fluentco.com I Marketing to Millennials 217 Page 12
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