D M W R E P O R T S

consumer insight report: 1.0146.SP

Mille n n i a l s
The Gen Y Tsunami is Here
D M W R E P O R T S

The Millennials
Come of Age
Whether you call them Millennials or Generation Y,
individuals born between about 1978 and 1993
are a consumer force to be reckoned with — more
than 75 million young adults with distinctly
different outlooks, values, and preferences than
their older Gen X siblings or their Baby Boomer
parents. And within this 75 million, we find a new
level of demographic and ethnic diversity
(38 percent of them are non-White according to
Brad Sago), portending an integration of culture-
driven values and viewpoints that may significantly
redefine what it means to be an American.

The oldest of the Millennials began graduating

from college in the spring of 1999 and are
now in their early 30s, while the youngest are
approaching college eligibility. Regardless of
their age, this group stands distinctly apart from
other generations. They’ve inherited values and
viewpoints from their Boomer parents and Gen X
siblings, but put a spin on them that reflects their
own unique experience set. They’ve watched their
world go through booms and busts, grown up
amid a seemingly endless series of armed conflicts,
and assimilated information from a multitude of
sources — including media channels that support
communications innovation, personal content
development, and sharing among peers and
colleagues.
For marketers, the Millennials represent a multi-
faceted challenge that defies easy categorization.
Beyond their demographic diversity, marketers
need to recognize distinct behaviors, preferences,
attitudes, and values that set this group apart from
the rest. We need to realize that consumer-driven
marketing integration is not a dream but a critical
reality. And this starts with understanding who
these young adults really are.
Millennials —
“The Generation of the Child”
Millennials are the darlings of their Boomer parents. They have close relationships
with their parents and come from a structured lifestyle that moved them from
activity to activity — with few breaks in between. The word “entitled” is often used
to describe this group. They are the most hovered-over generation ever, with their
parents earning the title of “helicopter parents” due to unprecedented parental
supervision and advocacy. But even with this intense involvement on the part of
their parents, they are an achieving generation, with strong goals and aspirations.
Like other earlier generational cohorts (an aggregation of individuals who
experience the same event within the same time interval), Millennials have been
shaped by their own times and experiences. Much of this “shaping” occurs in the first
20 years of life, after which time the influence of external factors begins to decrease.
Claire Raines (considered the nation’s leading expert on Generation X), lists eight
filters through which individuals view the world. For the Millennials, these are:
u Focus on children and family
u Scheduled, structured lives
u Multiculturalism
u Terrorism (including Columbine & 9/11)
u Heroism
u Patriotism
u Parent advocacy
u Globalism
 M i L l ennials

Their lives are also shaped by technology. They are well prepared for a future with “smarter”
appliances, cars, and more. Mobility in terms of communications will be commonplace.
Content creation will explode. And online search will be better — more contextual and social.

Marketers will be able to reach customers and prospects wherever they are — online or
on the road — with content regarding everything from science to any number of specific
products. The Millennials (and subsequent generations) will always be in touch — with you
and your competition.

“They combine the teamwork ethic of the Boomers and the can-do attitude of the
veterans and the technological savvy of the Xers. At first glance, and even at second glance,
Generation Next may be the ideal workforce — and ideal citizens” (Generations at Work).

Green Consumers
Millennials describe themselves as “green,” thinking and acting with environmental considerations and modeling their purchasing
behavior on these values, according to Green Teens, a July 2007 white paper authored by David Card, VP of Research and Senior Analyst
for JupiterResearch. The paper reveals that “38 percent of teens [ages 13-17] online are concerned about the environment, with
15 percent constituting an especially committed group of ‘Green Teens.’ This smaller ‘hardcore’ element is especially responsive to online
communications” (MediaPost’s “Media Daily News”). This should not come as a surprise to anyone who spends time with teens and
20-somethings who run their lives in cyberspace and often resent the intrusion of paper.
D M W R E P O R T S

Going a step further, Millennials are also attracted

by corporate cause-related initiatives. According to
the Cone Study:

u 83% will trust a company more if it is

socially/environmentally responsible
u 74% are more likely to pay attention to a
company’s message if the company has
a deep commitment to a cause
u 69% consider a company’s social and
environmental commitment when
deciding where to shop
u 89% are likely or very likely to switch
from one brand to another (price and
quality being equal) if the second brand Technology
is associated with a good cause Millennials are the first generation to possess technological capabilities superior

What this means to direct marketers is that to their own parents — from a disconcertingly young age. They grew up with

consumers may feel kindly towards those ever-advancing technologies and naturally assimilated these into their lifestyles.

companies believed to be working hard toward They are devoted to the Internet, using it to research products and services, doing

becoming an environmentally friendly, paperless comparison shopping, and contacting their social network for advice and guidance.

workplace — in everything from Internet Their technology is mobile … and “like a techno Steven Stills, if they can’t be with
marketing to online applications and the device they love, they love the device they’re with” (Pew).
customer service.
At the same time, the Millennials are also deeply impacted by the Digital Divide.
Cause marketing will be an important part of “Never has the gap between the haves and the have-nots been so great. There is a
the marketing mix, establishing a “shared values” whole group of Millennials coming of age separate from the experience” (Raines).
connection with Millennials that transcends The point for marketers is clear: While technology will be a critical part of the media
product. Done correctly, it aligns social and/or mix, it cannot entirely replace more traditional techniques — even for the
environmental awareness with key brand wired Millennials.
promises. And walking the talk resonates with this
generation. But pick your causes wisely. Usually the However, those who are connected are active Internet buyers, and are even more
wider the appeal, the better. active in their use of the Internet as a research tool — both to research the product
and to ask their friends about their experiences.
According to the research, Millennials have
shown that they will research the brands and
the companies they use and are willing to move
from one brand to another if they feel one is more
devoted to the causes they support.
 M i L l ennials

Media Choices
According to a Yahoo! and Carat Interactive study,
Millennials each week spend, on average:

u 6 hours reading books and magazines

(not for school)
u 13.6 hours watching TV
u 12 hours listening to the radio
u 7.7 hours talking on the phone
u 16.7 hours on the Internet
(not counting e-mailing, which
clearly increases this time)

Television — traditionally the workhorse of broad market advertising — is

changing too. “When asked which competitive challenges they expect to be
most significant in five to seven years, network executives worldwide cited
nontraditional threats like Internet portals (such as Google, Yahoo!, and AOL), and
content owners going direct. While the degree to which mainstream users will
watch internet TV is debatable, it is clear that more ‘lost eyeballs’ translates into
further weakening of the traditional media network model.” (IBM)

“On a typical day, a young person selects from 200+ cable television networks,
5,500 consumer magazine titles, 10,500 radio stations, 30 million+ Websites, and
122,000 newly published books. There are currently 240 million television sets in
the U.S. — 2 million of which are in bathrooms!” (“Born to be Wired” study).

Millennials watch TV differently than their predecessors. “Eighty-seven percent of

millennials who have a DVR say they regularly fast forward through commercials
and are more likely to be switching channels and multi-tasking while the
These numbers are changing daily as print
television is on, indicating they are less focused than boomers” (Cynopsis: Digital).
publications disappear from driveways and
newsstands and smaller, faster, and cheaper They do watch television shows — but often not on a television set. They
technologies become the norm. There’s no turn to their ever-present computer, scan a folder of downloaded cable and
question that the landscape will be very different network programming, make their selection, then sit back and enjoy. Millennials
in just a very few years, and keeping up can make are weaned on digital technology and media convergence (and skipping
your head spin (at least if you’re not a Millennial). commercials). There is a shift toward an increase in Internet consumption
and away from scheduled programming. This has tremendous implications
“The tech- and fashion-forward consumer
for direct response television (DRTV), most importantly demonstrating the
segment will lead us to a world of platform-
need to develop a long-term strategy for TV in which flexibility is the key to
agnostic content, fluid mobility of media
accommodating ever-changing technology.
experiences, individualized pricing schemes
and an end to the traditional concept of release
windows” (IBM, “The End of TV as we
Know it” study).
D M W R E P O R T S

Now What?
A survey by Harris Interactive and Kid Power
Xchange (2004) asked marketers who work in youth
fields to compare Millennials to young people at the
same age 10 to 15 years ago. Of these marketers:

u 91% consider Millennials more powerful

as consumers
u 84% said Millennials are more
demanding as consumers
u 79% viewed Millennials as more savvy
consumers
u 60% said Millennials are more influential
on the decisions of others
u Only 47% thought Millennials are more
likely to pester others to buy things
Give Millennials the tools they need to thrive. They may dream of living large, but
So how do we get to these smart, savvy these dreams are balanced by pragmatism. They know they need tools to make
consumers? dreams a reality. Financial products and services, for instance, can be positioned to
help them achieve their dreams of financial security.
One Yankelovich Monitor® discussed the leading-
edge Millennials — those who started turning Wherever and whenever possible, allow Millennials to interact and provide input.
27 in 2006 — and labeled them “the young adult They expect to be heard. Use the Internet. Hand out flash drives with a clear,
Echoes.” In a 2006 Yankelovich Monitor titled targeted, and environmentally sound message. Computers, instant messaging,
“Echo Boomers 16-26,” they suggest: e-mail, interactive media, and cell phones provide instant feedback and instant
information. And they’re waiting for messages 24/7. Millennials have the tools and
u Let ‘em mash it up: Echoes expect to
the inclination to edit and customize content, and the more a company is able to
have a voice in the products and services
allow for and embrace this input, the better.
they consume.
u Avoid hype in any shape or form — they The number of alternative media embraced by Millennials — from cell phones to
will react badly and tell their friends — iPods to blogs to Twitter — presents a real challenge to marketers. The good news
and never forget that, in cyberspace, is that most of these media are “free” in terms of distribution, unlike direct mail and
messages can reach millions in seconds. other more traditional media. The challenge however is to integrate each media
u Never, never try to impose style from within an overall strategy designed to reach business goals.
the outside — individuality trumps
Social networks are paramount in the lives of the Millennials, providing 24/7 access
conformity.
to their friends, families, and likely, your company. “What’s hard to measure, and
u Connections are everything and they are
what we’re trying to measure, is the impact of groupthink, of group mentality,
often virtual. Imagine ways to leverage
and the tendency of what we might call the democratization of social interaction
your brand’s ability to bring the right
and how that changes this generation’s relationship with almost everything they
people together and create a special
come in contact with,” says Jack McKenzie, senior vice president for Frank N. Magid
community. Shopping has traditionally
Associates, a market research and consulting firm specializing in the news media
been a solitary event — or at most, a day
and entertainment industries. McKenzie heads the firm’s Millennials Strategy Group.
out for a small group. This is, quite simply,
no longer true.
 M i L l ennials

“What we’re seeing is a whole different relationship with marketing and advertising which obviously has ripple effects
through the entire economy,” says McKenzie. For Millennials, “reliance and trust in nontraditional sources — meaning
everyday people, their friends, their networks, the network they’ve created around them — has a much greater influence on
their behaviors than traditional advertising.”

With regard to television advertising, the IBM study suggests that “Given the market imperatives and heightened operating
complexities, we expect value to shift throughout the industry creating new winners and losers … and the future will only
favor those who prepare now.”
D M W R E P O R T S

Case in Point
One Blue Cross and Blue Shield plan reported a 15
percent jump in subscribers since it began airing
direct response television spots targeted at the 18-
to 34-year-old market. The spots were aimed not
only at recruiting new health care subscribers, but
at rebranding the health insurer’s name and image
for a younger, hipper market.

Leveraging the fact that many younger people

today respect the opinions of their parents, the
spot makes the point that this is “the coverage
trusted by your mom and dad.” The insurer knows
that this younger audience should recognize the
name and corporate logo and — as a result of
rebranding efforts — presents an opportunity
to relate them to a more innovative and flexible
health care option.

To help this young, healthy market realize that

health coverage is both needed and affordable,
the plan offered was designed specifically to be
low-priced (about $66 per month) and to focus
heavily on alternative medicine such as yoga,
massage therapy, and acupuncture. Language was
carefully targeted to appeal to a younger audience;
for instance, the monthly premium was compared
to the price of concert tickets, and the word
“bucks” was used instead of “dollars.” This carefully tailored offer naturally appeals to a
younger audience, and alternative medicine can result in cost savings for the insurer
— a win-win situation.
Because the spot is targeting a younger, Web-savvy audience, the Blue’s Web
address is prominent. To appeal to the younger prospect, too, the commercial strays
from traditional Blue Cross Blue Shield formats. The music is upbeat with a Seinfeld-
like tune, and the camera cuts are quick and frequent. The ultimate message is
to call or visit the Website for additional information — a basic, but effective, lead
generation effort.

As is true in using television or free-standing inserts to target an older audience,

targeting a younger group requires continual testing to determine a control
position. The goal of using a broad-reaching medium is to have younger prospects
cost-effectively self-select. Using this approach, it is possible to reach and influence
a younger prospect for your product or service where leads have been traditionally
difficult to reach.

Millennials are just beginning to make their mark. Gaining a foothold in the
Millennial market is not only smart business in the short term, it is a strategy that
will hold a company in good stead as the lifetime value of these young consumers
grows over the decades.
 M i L l ennials

References/For More Information

Akalin, Burak, Performance Improvement for the New Generation, Workforce Performance Solutions: The Business of Talent Management,
May 2006.

Hunter, Warren, “Using Direct Response to Market to the Invincibles,” Health Insurance Underwriter, December 2005.

Jayson, Sharon, “The Millennials Come of Age,” USA Today, June 29, 2006.

Raines, Claire, “Managing Millennials,” Generations At Work: The Online Home of Claire Raines Associates, 2002.

Strauss, William & Neil Horn, Millennials Rising, Vintage Books, 2000.

Tresser, Tom, “What the World Might Look Like When the Millennials Run It,” www.alternet.org, August 2, 2007.

Zeller Jr., Tom, “A Generation Serves Notice: It’s a Moving Target,” New York Times, January 22, 2006.

The End of TV as we Know it — An Industry Perspective, study by IBM Institute for Business Value, 2006.
(www-935.ibm.com/services/us/index.wss/ibvstudy/imc/a1023172?cntxt=a1000062&re=endoftv)

“Boomers and Matures Mix Media Usage,” The eMarketer Daily Newsletter, December 17, 2007.

The Millennial Generation: Pro-Social and Empowered to Change the World, 2006 Cone Millennial Cause Study.
(www.solsustainability.org/documents/toolkit/2006%20Cone%20Millennial%20Cause%20Study.pdf)

Younger Online News Consumers Are Not Newspaper Readers, The Center for Media Research, March 20, 2008.

Decoding Generational Differences: Fact, fiction … or should we just get back to work?, Special Edition in the Talent Market Series, Deloitte,
2008. (www.deloitte.com)

The Online Shopping Psychology and Expectations of Millennials, Brad Sago, D.B.A., presented at the 16th Annual Educators’ Conference
Direct Marketing Educational Foundation, August 4, 2004.

Life Online: Teens and technology and the world to come, Lee Rainie, Director, Pew Internet & American Life Project, speech at a Public
Library Association annual conference in Boston, March 23, 2006.

Born to Be Wired: The Role of New Media for a Digital Generation, commissioned by Yahoo! and Carat Interactive (research conducted by
Harris Interactive), 2003.

10 Things: Echo Boomers, Yankelovich MONITOR®, 2006.

The Millennials are Coming, CBS News, November 11, 2007.

‘Young Invincibles’ OK with risk of no insurance, www.cnnhealth.com, March 20, 2009.

Websites of Interest

www.current.com (Al Gore’s creation)

www.generations.com

www.labelnetworks.com
D M W R E P O R T S

Who Are the Millennials,

a.k.a. Generation Y?
Demographics
u No definitive agreement on birth years; experts
say somewhere between 1978 and 1995;
most say 1981 to 1993
u Children of the Baby Boomers
u Younger siblings of Gen Xers
u Largest generation (75 million) after the
Boomers (80 million) compared to the
Gen Xers (40 million)
u 38% of Millennials identify themselves
as “non-White”
u Positioned in history to be the next
“hero generation”

Characteristics
u Techno-savvy
u Connected … 24/7
u Self-confident
u Optimistic
u Hopeful
u Independent
u Comfortably self-reliant
u Determined
u Goal-oriented
u Success-driven
u Lifestyle-centered
u Diverse
u Inclusive
u Global-, civic-, and community-minded
u Pulling together
u Service-oriented
u Entrepreneurial

Source: Deloitte Consulting

 M i L l ennials

“… they are an achieving

generation, with strong goals
and aspirations.”
 About DMW Direct
DMW Direct is a full-service direct response marketing
agency with offices in Wayne, Pa., and Plymouth, Mass.
The ECHO Award-winning agency — which ranks
Call-outs among the top 50 in the prestigious Advertising Age

“… Boomers have given them the confidence to be
optimistic about their ability to make things happen, and
Xers have given them just enough skepticism to be cautious
… If you want to remember just one key word to describe
Millennials, it’s realistic.” (Lynne C. Lancaster and David
Stillman, When Generations Collide)
“… those age 18-24 are 38 percent more likely than average
to not read a print newspaper at all during a typical week.”
(Research Brief from the Center for Media Research)
“Top 50 Direct Marketing Agencies” list — provides
strategic planning, creative, data analytics, broadcast,
media, production, fulfillment, and Internet multi-channel
direct response marketing solutions. Industry experience
includes insurance, financial services, consumer products,
B2B, and non-profit. DMW’s Chairman and CEO, Warren
Hunter, can be reached at 877.744.DMWW or via e-mail
at whunter@dmwdirect.com. Visit DMW’s Website at
www.dmwdirect.com.

“ The tech- and fashion-forward consumer segment will lead

us to a world of platform-agnostic content, fluid mobility
of media experiences, individualized pricing schemes and
an end to the traditional concept of release windows …
Companies must get in front of change … or consumers
threaten to leave them behind.” (“The End of TV as we
Know it,” IBM Business Consulting Services)

“… like a techno Steven Stills, if they can’t be with the device
they love, they love the device they’re with.” (Pew)
www.dmwdirect.com
877.744.DMWW
(877.744.3699)

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