The Person Behind The Consumer: Youth Marketing In The Digital Age. October 21, 2003

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2 The Person Behind The Consumer: Youth Marketing In The Digital Age October 21, 2003

3 Agenda Introduction and background What s a youth? What s important The impact of digital technology Do s and don ts Laugh at their mistakes Marvel at their genius Case studies

4 Who am I? Andy Cairns Group Business Director Clemenger BBDO Melbourne

5 Clemenger Communications Founded in 1946 Largest agency group in Australia - NZ Billings $1 billion 1050 employees Majority Australian owned 300 Australian/New Zealand shareholders Worldwide partner BBDO

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7 What s a youth? 18 24? 12 30? A set of lifetsyle choices? A period of rapid development and exploration? An attitude not an age

8 What s a youth? Why bother? Complex & difficult to understand No correct way to segment Often subject to short lived fads

9 What s a youth? However Young Australians alone represent a $4B a year market Trendsetters in some key markets Major trends are pervasive Lifetime value (or: they re the future)

10 What matters? Herald Sun Thursday, October 9 th 2003

11 What matters? The Spin Sweeney Report surveyed year olds. Key findings: Mobile phones: one in six regard as their most important possession (77% preferred Nokia) Sex: 17% had unprotected sex in the month prior to the survey 14% had been in a car with someone over.05% BAC

12 What matters? Family: just over half still live at home, with girls more likely than boys to leave the family nest Great respect for parents and grandparents Brands: Nike is number 1 27% have donated time to charity Media: newspapers (38%) are main source of information, followed by internet (29%), TV (21%) and radio (4%) The Simpsons is the most popular TV program

13 What s a youth? More literate More choices More informed More sophisticated and more critical No set values, no universal truth

14 What s a youth? Music Fashion Gender roles Drinks It s not what you are, it s what you re into. Relationships & socialising Sport Drugs

15 The impact of digital technology for youth marketers Digital technology is empowering to the consumer. It puts them in the program director s chair as interactivity provides a host of new choices, greater convenience and a more customized media experience. David Ernst, Assessing the value of interactive communications, 2001.

16 The impact of digital technology for youth marketers The internet was nothing more than a dress rehearsal for interactivity. Existing media will continue to re-invent themselves. New media continue to be facilitated by digital technology and converging platforms. Mobile devices continue to evolve rapidly. Still incredibly nascent in a marketing sense.

17 Take the mobile phone for example THE must have. sms figures. The new language of texting. Dialogue welcome. Entertainment expected. Big Brother & Australian Idol $$$ Regulation continues to evolve.

18 Using the force of mobile technology. The do s: Target and tailor. Permission. Peer2peer: be youthful, not a youth brand. Know who you are. Value add: entertainment, fun, exclusivity, prizes. Interactivity: push sms doesn t cut it. Simplicity. Incentives. Integrate. Measure. Look ahead, not just around you.

19 And the don ts: Treat them as one homogenous group Try to appropriate their language or symbols. Talk at them. Overestimate understanding. Fail to involve them (development AND execution)

20 Brands with vision don t address the customer or the consumer. They address the person behind it. That s why we like them. Jean-Marie Dru, Disruption, 1999.

21 Brands that get it Sony Playstation. Levi s. Budweiser. Tango.

22 Case Studies

23 A Ground-Breaking Promotion

24 Money 4 Mates MORE MATES = MORE $$ $250,000 cash 2 be won SMS or your unique M&M s game code for a mates code. Invite your mates to join your group to win cash.

25 Money 4 Mates How it works! Person #1 purchases a specially marked M&M s Money 4 Mates pack Person #1 enters unique GAME code via SMS or Internet Person #1 receives MATES Code in return via SMS or & has entered draw to win $1,000 Person #1 invites up to 4 friends to form a TEAM by passing the MATES code on. Friends are required to purchase M&M s to obtain their own GAME code. Via SMS/Internet, each friend is required to send in their own GAME Code plus their friend MATES code. More MATES = More MONEY.

26 Money 4 Mates How it works! (cont.) Involving 1 friend enters the team a chance to win to $4,000 Involving a 2nd friend enters the team a chance to win to $9,000 Involving a 3rd friend enters the team a chance to win to $16,000 Involving a 4th friend enters the team a chance to win to $25,000 Winners will be drawn at end of promotional period

27 Money 4 Mates Key Success Factors Innovative Australian first mechanic SMS / On-Line promotions are where it s at! Everyone s motivated by cash Encourages multiple purchase Reinforces M&M s as the #1 brand for sharing with friends Source: Research International confectionery consumption tracking

28 Packaging example Promotional Packs - 55g M&M s Milk & Peanut, 250g M&M s Milk & Peanut

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30 M&M s Money 4 Mates Over $1.7 million in dedicated support Television ad On-line advertising On-Pack & POS Website support with 60,000 unique users per month National PR

31 M&M s results Results still being finalised. However 107,000 entries in 8 weeks. Likely highest ever sales peaks in Australia.