Professional Documents
Culture Documents
Affluents:
Media Survey
SCOT T G A L LO W AY
N Y U S tern December 16, 2010
A Think Tank
for DIGITAL INNOVATION
© L2 2010 L2ThinkTank.com
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
IN T R O D U C T I O N
But digital is trouncing traditional channels with this critical cohort and is gaining momentum. Luxury
brands continue to fight tanks with cavalry, devoting the bulk of their marketing dollars to print and analog.
Brands that continue to under-invest in digital risk losing mind share of the largest U.S. consumer group—
Generation Y.
Fortunately, brands are catching on; it’s the “end of the beginning” of a dramatic shift in ad spending from
traditional formats to digital. Deft marketers are recognizing the value of investing in their own sites, social
media platforms, and mobile apps. Those that don’t embrace the digital migration risk joining Blockbuster
on the dust heap of great brands that hoped the Internet would just go away.
© L2 2010 L2ThinkTank.com 2
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
42% watch TV shows online; 27% watch movies online. .2% .6%
.4% 0.4% 40%+
0.2%
11.7%
.4% 41.5%
1.9% .4%
The upwardly mobile go mobile: 0.4% 0.2% 1.5% 0.6%
20 – 40%
40%+
1.9% 11.7%
25% use mobile to access social media, and 1 in 8 .2%
0.4%
5.2% 2%
.2%
1.9%
41.5% 3.2%
.7%
0.4%
10 – 20%
20 – 40%
1.5% 5 –10%
watched a video on mobile in the past 24 hours. 6.3% .2%
.9%
9.5%1.9%
2.2%
3.2% 10 – 20%
0.2% 1– 5%
0.2% 5.2% 2% 0.7%
4.3% 5 –10%
6.3% 0.2% .4% 2.2%
9.5%
Digital social branding is paramount: 0.9% .2%
0 –1%
1– 5%
0.2%
Websites are flagships, too:
© L2 2010 L2ThinkTank.com 3
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
K E Y F IN D IN G S S oc i al M E D I A : F re q ue n cy of U se
Respondents’ Usage by Platform
Facebook Is Fundamental
100%
With more than 550 million active users, Facebook dominates the
social media landscape. In the past ten years, the number of
page views recorded for the top ten websites in the U.S. = MORE THAN
5 times a day
increased from one third to three quarters of total page views on-
= daily
line; as the Internet matures people are focusing on fewer sites.1
= WEEKLY
This is especially true in the case of Facebook, whose share of = moNTHLY
75%
the Internet continues to grow. The behemoth’s success comes
= Several
at the expense of other portals as well as traditional channels times a year
that brands have relied on for marketing. Websites remain impor- = NEVER
50%
0%
1. “The Web is Dead. Long Live the Internet,” Chris Anderson and Michael Wolff,
Facebook YouTube Twitter Hulu Geo-Platform Flickr
Wired, August 17, 2010.
© L2 2010 L2ThinkTank.com 4
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
K E Y F IN D IN G S
M O D E s O F A C C E S S IN G C O N T E N T: N E W S PA P E R S
Blogs on Par with Newspapers % who access via the following:
tions as The New York Times and ESPN are as popular as those = ONLINE
19% (Desktop or Laptop
focused on a niche. Millennials’ favorite specialty blogs include Computer)
Mashable and The Sartorialist. Micro-blogging is even more = iPAD / E-reader
(Kindle, Nook)
pervasive; two thirds of affluent Gen Y’s use Twitter, with one in
= mobile
four checking their account in the past 24 hours. 65% (Phone, iPod)
Attention as TV
On a daily basis, Gen Y affluents are as likely to read newspaper
content as they are to watch TV, and they would rather have the
content on a screen. In fact, four of five readers access news-
papers digitally, and one in eight do so using a mobile device.
M O D E s O F A C C E S S IN G C O N T E N T: M A G A Z IN E S
% who access via the following:
Magazines Are Getting ‘Facebooked’ 2%
1%
Facebook could do to magazines what Google did to newspa- 2%
pers, providing easier access to a vast array of content. Gen Y
= TRADITIONAL
affluents are avid magazine readers, but magazines have not (Print)
yet figured out the transition to digital. = ONLINE
(Desktop or Laptop
24% Computer)
Nine in ten Gen Y affluents read at least one magazine per
= iPAD / E-Reader
month, but only a quarter of them access magazines online,
71% (Kindle, Nook)
and almost none receive that content on an iPad, e-reader, or
= mobile
smartphone. The iPad has been a force for innovation, but so (Phone, iPod)
far magazine content repackaged for iPads is not compelling = I DON’T ACCESS THIS
SORT OF MEDIA
enough for this cohort.
© L2 2010 L2ThinkTank.com 5
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
K E Y F IN D IN G S
R E L AT I V E A U D I E N C E : R E A C H V I A FA C E B O O K & C I R C U L AT I O N
Apple iTunes & Burberry vs. Wall Street Journal & The New York Times
Renting Versus Owning (November 19, 2010)
Brands’ ability to establish direct relationships (en masse)
could dramatically alter the media landscape. Power will shift Apple iTunes
as brands cultivate authentic relationships via Facebook, Facebook Likes: 8,525,195
WSJ
Circulation: 2,061,142
Facebook Likes:
165,720
© L2 2010 L2ThinkTank.com 6
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
K E Y F IN D IN G S
T R A D I T I O N A L T V V S . D I G I TA L V I D E O
Millennials love TV programs and movies, though affection for More than one hour of TV 60% Traditional TV
television sets and theaters is waning. Instead, affluents are
watching online and on mobile devices. Indeed, one in eight re-
ports watching a video on a mobile device in the past 24 hours. In the last 24 hours, I watched a video via:
YouTube 56%
Geo-Local: The Mouse That Roars
Location-based services garner major buzz, though we have Online
(other than Hulu, YouTube) 21%
yet to see what this technology can really offer. About one in Digital Video
five Gen Y affluents report using Foursquare in the past 24 Hulu 19%
hours, though a recent Pew study indicated that adult use of
location-based services declined slightly between May and
Mobile Device 13%
September of 2010.2 Usage could increase dramatically, how-
ever, as new platforms such as Facebook Places and Google
0% 25% 50% 75% 100%
Hotpot launch with built-in potential user bases.
i P H O N E vs . B L A C K B E R R Y
Smart, Smarter, Smartest = Currently own
Current and Expected Ownership
The mobile content-delivery revolution is underway. One in four = EXPECT TO OWN
1 icon = 1%: = CURRENTLY OWN
Gen Y affluents access Facebook using a mobile device, and
= EXPECT TO OWN
one in five read newspapers using mobile. Not surprisingly,
the “fruit” brands dominate the smartphone market. About
one third own a BlackBerry and slightly more own an iPhone.
Meanwhile, a whopping 71 percent say they expect to own an
iPhone in the future.
2. Pew Research Center’s Internet & American Life Project, “4% of online Americans
use location-based services” <http://www.pewinternet.org/Reports/2010/ iPhone Blackberry
Location-based-services.aspx>
© L2 2010 L2ThinkTank.com 7
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
K E Y F IN D IN G S
Which of the following best describes your level of
1%
Gen Ys are both brand aware and eager to interact. Three quarters
of respondents have an affinity for brands and one in eight are
self-proclaimed brand “devotees.” Early adopters—those who 12% = I follow a few good
brands
use mobile devices and e-readers to access media—may be
= i get the occasional
particularly valuable to luxury brands. Seventy-nine percent of brand crush
12%
these technophiles expect to make $100,000 per year or more 43% = i’m a brand devotee
in the near term. In other words, cutting-edge innovation is
= i’m brand agnostic
important to the most affluent among Gen Ys. This wealthier (I can take them or leave them)
bunch also skews slightly higher on brand awareness. 32% = I DON’T believe in labels
10% 37%
20%
38%
28%
© L2 2010 L2ThinkTank.com 8
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
K E Y F IN D IN G S
Building on Brick-and-Mortar FA C E B O O K IN T E R A C T I O N
The majority of respondents are likely to purchase prestige Frequency of Sharing, Comments, and Likes
brands in-store, though nearly half anticipate making pur-
chases through a brand’s website. In a given 24-hour period, 75%
however, more respondents visit a website than a physical
store. As investments follow the consumer, there’s likely to be 54%
a massive increase in the allocation of capital to brands’ online
50%
stores from their terrestrial counterparts. 38%
30%
Vis-à-Vis Facebook
25%
With the majority of Gen Y opting in to brand newsletters and
updates, email remains a powerful tool for interaction. But
Facebook is becoming the new word of mouth. More than half
0%
of respondents have “liked” a brand in the past month, and
Facebook Facebook Facebook
about one third have “shared” brands with their networks. “SHARE” “COMMENT” “LIKE”
Word of mouth is still the most important force shaping Gen Y % of respondents who have interacted with brands in the past 24 hours
brand perceptions, but websites tie for second place with news-
papers and magazines—brands’ traditional marketing weapons
In-person discussion 83%
of choice. Three quarters of Gen Y affluents visited brand sites with friends
in the past 24 hours, though most firms still allocate a dispro-
portionate percentage of their marketing budgets to analog
Brand website visit 76%
channels. Digital media receives only a fraction of the dollars that
consumers’ behavior suggests they should.
Brick-and-mortar
73%
store visit
© L2 2010 L2ThinkTank.com 9
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
CASE STUDIES
WIRED: Unplugged
Wired is head of the pack when it comes to offering a compelling
format for magazine content on the iPad. The Wired app was
downloaded an impressive 100,000 times in June, its first month.
Not surprisingly, downloads dropped more than a third in each
successive month through September after its core readership
signed on.
It’s too early to tell if the honeymoon is already over or if the real
marriage of magazines and apps is forthcoming.
© L2 2010 L2ThinkTank.com 10
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
CASE STUDIES
150
The average user is connected to 80 community
151.13 pages, groups, and events.
An increase of 55%
over the last year
Users share more than 30 billion pieces of content
100 (web links, news stories, blog posts, notes,
97.37
photo albums, etc.) each month.
millions
3. Glaciation of Wisconsin, Lee Clayton, John W. Attig, David M. Mickelson, Mark D. Johnson, and Kent M. Syverson, University
0 of Wisconsin, Department of Geology.
2009 2010 4. “Facebook Accounts for 25% of All U.S. Pageviews,” Jolie O’Dell, Mashable, November 19, 2010, <http://mashable.com/
2010/11/19/facebook-traffic-stats/>.
5. “President,” CNN.com’s Election Center 2008, November 17, 2008, <http://www.cnn.com/ELECTION/2008/results/president/>.
© L2 2010 L2ThinkTank.com 11
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
CASE STUDIES
In many ways, fashion has led the way for luxury firms. Ralph
Lauren was among the first to offer mobile shopping, followed
by Diane von Furstenberg, Marc Jacobs, Donna Karan, and oth-
ers. And with the success of e-tailers such as Net-a-Porter and
flash sales site Gilt Groupe, traditional luxury retailers such as
Neiman Marcus are following suit.10
Net-a-Porter
iPhone app
6. “eBay Releases All-in-One Buying, Selling & Scanning iPhone App,” Lauren
Indvik, Mashable, November 22, 2010, <http://mashable.com/2010/11/22/
ebay-mobile-iphone-app/>.
7. “eBay Helps You Dress Better with New iPhone App,” Lauren Indvik, Mashable,
July 16, 2010, <http://mashable.com/2010/07/16/ebay-fashion-iphone-app/;
http://mashable.com/2010/07/22/2010-mobile-commerce-trends/>.
8. “Amazon.com Announces Second Quarter Sales up 41% to $6.57 Billion,”
<http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=
1451041&highlight=>.
9. “Amazon’s Price Comparison App for iPhone Falls Just Short of Great,” Lauren
Indvik, Mashable, November 22, 2010, <http://mashable.com/2010/11/22/
amazon-price-check-iphone/>.
10.“How Fashion Brands Can Make the Most of M-Commerce,” Lydia Dishman,
BNET, November 4, 2010, <http://www.bnet.com/blog/publishing-style/how-
fashion-brands-can-make-the-most-of-m-commerce/937>.
© L2 2010 L2ThinkTank.com 12
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
CASE STUDIES
Burberry’s shoppable spring/
summer 2011 runway show
BURBERRY: Luxury’s Digital Darling was streamed live on its site,
in-store, and via iPad
Once synonymous with “British” and “plaid,” Burberry can now
add “innovation” to its core associations as the firm blurs the
line between brand and media company. With executive support
for digital experimentation and a rock star public relations team,
Burberry has soaked up the limelight with initiatives such as its
shoppable live-streaming runway shows, projected live in-store
and via iPad.
11. “Burberry’s Bewitching Formula: China, Digital, Harry Potter,” Caroline Smith,
BrandChannel, November 18, 2010, <http://www.brandchannel.com/home/
post/2010/11/18/Burberrys-Bewitching-Formula-China-Digital-Harry-Potter>.
© L2 2010 L2ThinkTank.com 13
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey AFFLUENTS’ Top 20 CONTACT US
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
© L2 2010 L2ThinkTank.com 14
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey AFFLUENTS’ Top 20 CONTACT US
Blogs
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 Blogs 15
16 16
17 17
18 18
19 19
20 20
© L2 2010 L2ThinkTank.com 15
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey AFFLUENTS’ Top 20 CONTACT US
TV Shows
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
© L2 2010 L2ThinkTank.com 16
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey AFFLUENTS’ Top 20 CONTACT US
Favorite Apps
© L2 2010 L2ThinkTank.com 17
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey AFFLUENTS’ Top 20 CONTACT US
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
© L2 2010 L2ThinkTank.com 18
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey AFFLUENTS’ Top 20 CONTACT US
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
© L2 2010 L2ThinkTank.com 19
Gen Y Affluents: Want to know more about your brand and Gen Y?
Media Survey CONTACT US
TEAM
© L2 2010 L2ThinkTank.com 20
UPCOMING EVENTS
consulting With over 500 million active users, Facebook has become
Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. the new operating system of the Internet. This clinic is
an in-depth look at the value consumers derive from the
Advisory work includes Brand Digital Roadmaps, Social Media Strategy, and Site Optimization
platform and how some of the most innovative brands are
engagements.
using Facebook to build relationships, drive commerce,
MEMBERSHIP and reduce costs. REGISTER NOW
W: L2ThinkTank.com
E: info@L2ThinkTank.com
A Think Tank
for DIGITAL INNOVATION
© L2 2010 L2ThinkTank.com