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flickr(c) Andrew Stawarz

Generation O
mobileYouth Report 2012
module 01
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
®
MOBILEYOUTH
youth marketing mobile culture since 2001
1
What will this module do for you?
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flickr(c) Andrew Stawarz
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lululemon athletica
flickr(c) Arnoooo
flickr (c) luc legay
flickr (c)
fotologic
flickr(c)
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Read this module to get a better understanding of
young mobile owners today. This module looks at why
and how do they use mobile phones? Also read this
module to find out who the 3 youth mobile behavioral
profile types are, how they innovate and why they
are important to your business.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
2
Licensing and Copyrights
®
MOBILEYOUTH
youth marketing mobile culture since 2001
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
mobileYouth® grants the client a non-
exclusive License to download and use the
Information contained in this report being
purchased solely for the client’s private
internal uses only. Users shall not distribute
any information contained in the report
outside the confines of the client, in any
event, without the express prior written
authorization of the authors. mobileYouth
TM

owns the Information contained in the
report being purchased herein.
© Copyright mobileYouth 2011
Unless explicitly stated otherwise, all rights
including those in copyright in the content
of this report are owned by or controlled for
these purposes by mobileYouth®
Except as otherwise expressly permitted
under copyright law the content of this
report may not be republished, posted,
broadcast or transmitted in any way without
first obtaining the written permission of
mobileYouth®.
Imagery licensed in this report is accordant
with Flickr’s Creative Commons Commercial
license and remains the copyright of its
respective owners.
Contact details:
josh.dhaliwal@mobileYouth.org
UK/Europe: +44 203 286 3635
North America: +1 646 867 3635
South Africa: +27 11 08 3635 1
Asia: +852 8 176 365 0
3
Vodafone needs to move a customer model
based on revenue to a model based on value
The key changes in value in mobile in the last 10
years have been driven by youth; ringtones, SMS
(discovered by youth), Facebook (created by a
19 yr old), iPhone (students were the key
beachhead for the Apple brand). Youth are also
at the forefront of the next wave of change
(e.g. video, group messaging, photo sharing).
The real value to Vodafone has been in their
application to the adult market (operators have
made $1 trillion from SMS in the last 10 years).
Improvements to the bottom-line will come
from innovation and innovation is driven by
youth. Vodafone’s business case for focusing on
youth should be based on the substantial long-
term benefits accrued to high-end users from
youth innovation.
Youth don’t love Vodafone, they love what
Vodafone does for them. Youth’s key drive is
social - they use Vodafone to connect with
friends and meet offline not to engage the
Vodafone brand in dialogue. Value models based
on retention can’t be built on loyalty to the
Vodafone brand or clever advertising but being
able to deliver services that fulfil these basic
social needs.
The “next big thing” for youth to fulfil these
basic social needs is already out there today but
it exists off the radar of traditional research.
The mobile industry has tried to sell group
messaging, photo sharing and video chat over
the last decade with limited success. Young
people today, however, are making these
services work without need for education,
without marketing and on their own terms. The
distributed nature of these trends makes them
difficult to identify. Vodafone needs to identify
the young change agents driving forward these
services and this starts with going beyond simple
demographic segmentation; develop lifestyle
based profiling of customers and identify active
advocates of new technology.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Vodafone: What Matters Now?
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
4
(1) Generation O are the optimizers
Their key motivations are social. Their
end goal is offline social interaction and
the means to achieve this end are
products and technologies. Mobile is a
key Social Tool to enable offline
interaction for youth.
(2) Youth behavior is social
Youth behavior is more a function of
their social environment than
economical and political times. Behavior
is shaped by access to social resources
rather than beliefs. The behavioral
drivers of youth have stayed the same
across the ages. While they appear
different and use different Social Tools,
youth today are similar to youth
yesterday and the adults of tomorrow
will be similar to the adults of today.
The mobile tools will change but the
underlying needs stay the same; youth
will only adopt future tools that better
meet these needs.
(3) 3 key Change Agents
What Change Agents say about a product
supersedes the official brand story; they
are best positioned to determine which
mobile products better meet the needs
of youth. Innovation and marketing need
to incorporate these change agents into
the model.
flickr(c) Andrew Stawarz
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Generation O: Executive Summary
5
(1) Youth are “addicted” to technology
Youth aren’t addicted. They, like the
rest of us, are dependent on Tools to
achieve Social ends. Youth place a high
premium on owning these Tools,
because maintaining a social life
without them is challenging. Youth don’t
buy technology, they buy what
technology does for them.
(2) Gen Y: the“connected generation”
This generation is as connected as the
last; gains in technology are simply
counterbalances to social losses. For
example, youth today generally have
less bandwidth to explore offline
outside of parental control. Technology
reclaims this lost connectivity to even
rather than increase the aggregate
score.
(3) The key to communicating with
youth is to “go mobile”
Mobile is an important Social Tool for
youth but view it as a means rather than
the end. Mobile content, marketing or
technologies are not relevant by virtue
of being mobile. The end goal for all
youth is offline social interaction.
Mobile is a tool to facilitate this.
(4) Youth want “fun”, “cool” and
“personalization”
Youth want Social Currency. “Fun”,
“Cool” and “Personalization” may be
logical traits of that but not the
emotional goal itself. Youth seek out
Social Tools that help them belong and
be significant.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
4 Key Myths about Youth and Mobile
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
6
0
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10-19 20-29
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Source: mobileYouth 2011-2012
The mobileYouth World Map 2012
®
MOBILEYOUTH
youth marketing mobile culture since 2001
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
mobileYouth nears 2 billion Youth mobile spend 2012 ($bn pa)
Europe
Latin
America
North
America
MidEast
Africa
Asia &
Pacific
7
Youth’s fundamental drive is Social
You’re either connecting
or interrupting them
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Social Drivers
flickr (c) Helga Weber
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
8
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10 countries
5 continents
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Source: mobileYouth based on The World Unplugged, ICN
“lonely”
“helpless”
“panicking”
“dead”
“problem”
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Generation O Unplugged
flickr (c) Helga Weber
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
9
®
MOBILEYOUTH
youth marketing mobile culture since 2001
People use smartphones mostly in open public
rather than discrete private spaces.
source Wakefield
Research /
Coursesmart
Can you go 10 minutes without checking?
38%
... of college students
said they couldn’t
survive 10 minutes
without checking their
notebook, tablet or
mobile phone for
updates
Alcohol
Caffeine
Sex
Toothbrush
Shoes
0 20 40 60 80
Young Adult Mobile Usage is most
interchangeable with other Social Tools - i.e.
objects that faciliate social interaction (e.g.
alcohol, caffeine and sex) rather than hygiene
and function (e.g. toothbrush, shoes)
source Telenav (young adults)
What would you sacrifice to keep mobile?
One student reported, “I still felt like my phone
was vibrating and I was receiving messages even
though I didn’t have it on me.” While it’s easy
to view this as “addiction” the reality is
different; youth rely on these Social Tools as
key composites of their daily routine and
behavior. Compare it to language: we are
dependant on it to function socially but not
addicted.
source Univ of
Maryland
Can you survive 24 hours without mobile?
50%
... of college students
failed to complete the
University of Maryland
challenge to live 24
hours without a mobile
phone
Social Drivers: Key Data
flickr (c) Helga Weber
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
10
The medium is no longer
the message.
“Generation O”
transcends traditional
longitudinal definitions
of youth (e.g. Gen X or
Millennials).
Longitudinal definitions
focus on change in
medium (e.g. MTV vs
Youtube) resulting in
media-bound solutions
(e.g. “how do I
advertise on
Facebook?”) and chasing
trends.
Gen O focuses on the
fundamental social
drivers which remain
constant despite the
evolution of technology;
tools change but the
social motives remain
the same.
The underlying motive
of Gen O is social
interaction; youth use
technology not for
technology’s sake but to
facilitate this social
interaction.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Technology’s popularity lies in
its ability to facilitate
meetups, stay in touch and
organize their social lives.
Technology is a means to
achieve this end, not the end
itself.
Gen O:Social Interaction is #1 goal
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr (c) Helga Weber
11
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Social Drivers: Gen O vs Adults
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Gen O Adults
Relationship with
mobile phone
Critical Social Tool.
Without phone, social
function diminishes
rapidly.
Important Social Tool
but adults have
resources and
experience outside
mobile to maintain
network
Nature of social
relationships
Extensive, complex
social relationships.
Fluid and transient
nature of circles means
more important to find
Social Tools to maintain
them.
Stable, limited social
relationships. Little
change means less
emphasis placed on
technology to maintain
network.
Social goals
Make new relationships
and deepen existing
networks.
Preserve existing
networks.
flickr (c) Helga Weber
Mobile is fundamentally a
Social Tool for Gen O so
understand its appeal in this
context, not through the lens
of technology. Their
relationship with mobile is a
product of their world - i.e.
a large number of transient
social ties
12
flickr(c) flydime
Youth don’t buy stuff
They buy what stuff does for them
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Social Currency
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
13
Content is what
you make - the
brand, the product
and the
technology.
Social Currency is
social benefit - the
measure of the
Content’s ability
to create
belonging or
significance for
the user.
Context is the
story told that
makes sense of
Social Currency
and makes the
Content relevant
to their lives.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Youth don’t buy
technology, they
buy what
technology does
for them.
The “what it
does” is its Social
Currency -
the ability to
provide
significance and
belonging.
Mobile Appeal
3 critical aspects
of the youth
mobile
relationship:
1. Content
2. Social Currency
3. Context
Context
Social Currency
(the benefit)
(the story)
Product
Devt
Innovation
Marketing
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brands traditionally outsource
this part to creative agencies
this is where brands need
to focus their energies
today
- the bridge between
product
and market
Content
(what you
make)
3 Critical Aspects of the Youth:Mobile Relationship
The Gen O:Mobile relationship
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
14
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Mobile Youth: Then and Now
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
2000-2009 2010-2019
Social Currency
Defined by the mobile
brand and the agency
in the advertising and
marketing story.
Defined by Change
Agents hacking or
innovating the product
to create a better
Social Tool
Discovery and
Education Process
Youth trusted media to
educate them on the
product benefits and
usage
Youth trust each other
more; Change Agents
discover benefits and
educate market on
how to use
Marketing Focus
The Medium; hire the
best agency and create
advertising that wins
awards
The Change Agents;
develop a deep
understanding of their
social needs and
partner with them in
your marketing
flickr(c) flydime
The key difference between
2009 and 2012 is the growing
importance of Change Agents.
Mobile success and failure
will become a function of
brand success and failure in
partnering with these youth
segments
15
flickr(c) Eva Blue
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®
MOBILEYOUTH
youth marketing mobile culture since 2001
Generation O “hacked” the Blackberry to turn
it form a corporate to a Social Tool
BEFORE
AFTER
Corporate tool
Youth Social Tool
Youth explored the
Blackberry device as
a way to move from
Open to Discrete and
from Individual to
Group messaging.
The benefits of BBM
were discovered by
youth via
Optimization
behavior
BBM is a step up from
SMS because it
affords more control
and group messaging.
BBM, BBM Groups and
PINs allow youth to
engage in discrete
messaging.
How Gen O optimized Blackberry
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
16
flickr(c) lululemon athletica
All meaning is created in the offline world
Mobile is a means to reach this end
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Face to Face
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
17
flickr(c) lululemon athletica
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Work / School
Outdoor Activity
Bar/Club
Bathroom
Family Table
Restaurant
On Date
Movie Theatre
Church
0 30 60 90
source Pew
People use smartphones mostly in open public
rather than discrete private spaces.
Youth place a higher premium on face-to-face
communication than adults. Lack of experience
combined with more transient social
relationships means youth need more intimate
social contact to be gauge trust.
source tatango
Where do you use your Smartphone?
18-24
25-29
30+
0 22.5 45 67.5 90
How do you gather information pre-purchase?
Face to Face
Friends Family
In-Store Media Online
source mobileYouth based on Harris Poll
%
%
33% of 18-24 yr olds gathered product
information face-to-face with friends or family.
Compared to older peers, 18-24 yr olds are
more reliant on face-to-face recommendation.
Source Retail Adv
and Marketing Assoc
Which media influences you the most?
41%
... of youth said face-to-
face was the biggest
influence on their
purchase decision,
ranking ahead of
traditional media and
internet
Face to Face: Key Data
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
18
Youth social meaning is
rooted in the real
world. Without offline
interaction, marketing
and technology have
little meaning. What
young people value
most is friendship and
friendship can rarely
exist online.
Relationships
deteriorate with lack
of face to face
contact.
Youth have an inherent
understanding that
face-to-face is crucial
in maintaining social
network and value
Social Tools that
facilitate their offline
world.
Face to Face
Texting
Social Networking
Online
Mobile Call
TV
Landline
0 10 20 30 40 50
source Pew
49% of 15-25 year
olds said “Face-to-
Face” was their
preferred mode of
communicating with
friends. Only 15%
cited Texting.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
“I will text my friends when I buy something
new or get back from shopping to come over
and check out the stuff. We go through the
clothes and jewelry. I text pictures to some
of them who can’t come. But when they are
here and they bring what they have bought
we can try each other’s outfits.”
Gabrielle 14, USA
Mobile: Tool to create Offline interaction
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr(c) lululemon athletica
Which medium is most important for communication?
19
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Gen O: Myths vs Reality
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Myths Reality
Media Use
Spend a lot of time
indoors and using
media, often alone.
Spend more time
outdoors interacting
with friends than
adults do. Media use is
often highly social.
Relationship with
Technology
Youth are addicted to
technology. Consumed
by whimsical
technology fashions
and trends.
Youth are dependent
on their social lives.
Communication is more
passive than active
which may appear
whimsical to adults.
Key Drivers
Hungry for new gadgets
and technology. Driven
by “fun”, “cool” and
“personalization”. Live
their lives online.
Hungry for Social
Currency. Driven by the
need to belong and be
significant. Live their
lives offline. Online
helps organize their
offline life.
flickr(c) lululemon athletica
Be wary of generational
stereotypes that are a
product of specific periods
in history (e.g. Gen X,Y,Z,
millennials). In reality, youth
remain consistent across
time and geography. What
changes is the tools they
use not the reasons why.
20
®
MOBILEYOUTH
youth marketing mobile culture since 2001
The mobile phone is
one device but
multiple tools.
Youth adopt a wide
set of messaging
devices on the phone
rather than settle for
a unified application.
flickr(c) lululemon athletica
Facebook: monitor &
creep existing
friendships
Skype: family &
distant friends
ooVoo: hangouts, social
spaces to bypass parents
SMS: default to organize
offline meetups
BBM: gossip, controlled
conversation, close
friends
Voice call:
parents
Twitter: follow
celebrities
a
c
t
i
v
e
p
a
s
s
i
v
e
group
individual
tools favored by adults
because they are more
purposive and direct
tools favored by youth
because they are discrete
and group based
What communication apps do youth use on the phone?
Gen O: 1 Mobile, 7 Social Tools
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
21
flickr(c) Arnoooo
Give adults a mobile phone and they’ll
use it to make calls or read the manual
Give Gen O a mobile phone and they’ll
start hacking it to find ways to connect better
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Generation O vs Adults
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
22
flickr(c) Arnoooo
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Youth place a higher premium on Social Tools
because they have a greater ongoing need
for them.
0
1000
2000
3000
<12 yrs 13-17 18-24 25-34 35-44 45-54 55+
#Texts sent/received each month
source mobileYouth
based on Nielsen data
13-17 yr olds send and receive, on average, 3x
more than 18-24 yr olds and 9-10x more than
their parents.
Daily social interaction
3x
The average youth
interacts with 3 times as
many people on a daily
basis than does an adult
source Hubspot
Gen O vs Adults: Key Data
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
23
flickr(c) Arnoooo
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Youth Adult
Free Time vs Money
Free Time Money
Youth Adult
Social Tools vs Social Circles
Social Circles Social Tools
Youth vs Adults
Social Supply & Demand
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In trying to find Social Currency, youth Optimize
products to overcome restrictions
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Adults have money and
little time to explore.
They are apt to buy
finished (optimized)
products rather than
optimize existing ones.
Youth optimize Social
Tools more; they have
little money, excess
time and a greater
social need.
Gen O will take new
technology and refine it,
making it meaningful to
a wider audience
including adults (e.g.
SMS, BBM and
Facebook).
How does Gen O differ from Adults in their Optimization of technology?
Gen O vs Adults: Optimization behavior
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
24
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Optimization Tech: Adults vs Gen O
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Adults Gen O
Attitude towards tech
Look for finished
products. They have
little time to “waste”
on inconsistency.
Favor products that
can be Optimized as
Optimization offers
social benefit.
Relationship with
Technology
Would rather buy tried
and tested products
off-the-shelf. They are
willing to pay for an
Optimized finished
offering.
Gen O willing to invest
time and effort over
money in learning and
Optimization. Will
share results with
peers.
Role of Optimization in
Social dynamics
Optimization not
valued. Optimization
confined to niche
social groups who are
often marginalized
(e.g. “geeks”, Apple
“fanboys”, car mods)
Optimization highly
valued. Optimization
offers social
significance and
belonging.
flickr(c) Arnoooo
Understanding how and why
Gen O interacts with mobile
doesn’t just give us a better
idea of marketing but also
valuable pointers how to
position these products for
the wider adult market.
25
flickr (c) luc legay
®
MOBILEYOUTH
youth marketing mobile culture since 2001
3 Types of Youth Changing Mobile Today
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
26
flickr(c) Libertinus
®
MOBILEYOUTH
youth marketing mobile culture since 2001
flickr (c) fotologic

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mobileYouth identified 3 consistent
youth behvioral groupings across 65
markets. Each group is led by Change
Agents who are instrumental in both the
innovation and marketing of mobile
technologies. Change Agents are both
highly influential and difficult to reach
via traditional marketing channels.
Brands need to develop a deeper
understanding of these gatekeepers.
Disruptive Diva 22 Female
Cashless Innovator
19 Male
Teenage Pirate
15 Male
Who are the Change Agents?
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
27
®
MOBILEYOUTH
youth marketing mobile culture since 2001
3 Change Agents: Comparison
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Teenage Pirates
(15-17)
Cashless Innovators
(18-22)
Disruptive Divas
(20+)
Social Currency Skill based Knowledge based Experience based
Social Tools
Inherit hand-me-
downs from parents
and siblings
Discover and refurbish
tools rejected by
previous generations
Buy into the Tools of
the establishment,
symbols of arrival
Optimization Behavior
Hack inherited Social
Tools. Explore the
software level.
Revive and refurbish
old tools, bring them
up to date.
Hijack establishment
tools, stamp their
own character
Social Spaces
Large, inclusive.
Barriers to parents.
Niche, knowledge
barriers to entry
based on passions
Small, tight, inner
circles. Routine
activities.
flickr(c)
Libertinus
flickr (c)
fo
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flickr(c)
followtheinstructions
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28
The 3 Change Agents are
bridge between the
industry and the market.
They optimize the
product and discover its
Social Currency. They
also form key lines of
influence in marketing
the product.
Without Change Agents
optimizing it, your
product is a commodity
lost in a wall of noise.
Without Change Agents
optimizing, products are
reduced to price-based
competition.
!!
#$%&' (%$)*+ #*%,--*%'
./01234*$5
Change Agents
Rest of Market
0 18 36 54 72 90
source mobileYouth based on Weber Shandwick data
% of Youth who influence their peers
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Change Agents: Bridge to the Market
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr (c) luc legay
29
flickr(c) followtheinstructions
®
MOBILEYOUTH
youth marketing mobile culture since 2001
1. Teenage Pirates
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
30
®
MOBILEYOUTH
youth marketing mobile culture since 2001
0
1000
2000
3000
<12 yrs 13-17 18-24 25-34 35-44 45-54 55+
#Texts sent/received each month
source mobileYouth
based on Nielsen data
Send & Receive 10x as many texts
than their parents
Most likely to own a pre-
owned handset from parents
or older siblings
Hacking + Mastery
Control + Skill
L
e
g
a
l

D
o
w
n
l
o
a
d
I
l
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e
g
a
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D
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l
o
a
d
I
l
l
e
g
a
l

S
t
r
e
a
m
0 40 80
13-17 18-22 22-29
Ever downloaded/streamed music?
source
Soundscan
Twice as likely to download
or stream music illegally
Key innovators: TPs
“discovered” SMS and file
sharing
-40%
-20%
0%
20%
40%
A
p
p
l
e
B
l
a
c
k
b
e
r
r
y
S
o
n
y

E
r
i
c
s
s
o
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N
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k
i
a
S
a
m
s
u
n
g
M
o
t
o
r
o
l
a
-33 -2
17
27
33
40
source mobileYouth (US,
Malaysia, South Africa)
SMART Recommendation
Scores: Teens
Recommend Apple,
Blackberry, SE and Nokia
Age 15-17* yrs, male /
female mix (mostly male)
flickr(c) followtheinstructions
* these age groupings are flexible. Treat them as guides; It’s possible
to find 19 year old Teenage Pirates as it is to find 17 year old
Cashless Innovators
Teenage Pirates & Mobile
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
31
®
MOBILEYOUTH
youth marketing mobile culture since 2001
How do they Hack tech?
Rooting & Jailbreaking
Teens expose weakness in Apple
and Android source code and
suggest improvements. Hacks
often preempt official patches.
Hackers often release their own
updates.
Weibo Hacking
Chinese teens don’t have
widespread access to online
dating services. Teen Positive
Deviance behavior turned Weibo,
originally pitched at teens to
identify ‘missing persons’, into a
popular ad-hoc dating service.
The relationship doesn’t develop
online, it’s a tool to facilitate the
hookup. The end-goal for teens is
offline meeting; teens will review
profiles but not comment on or
post to them.
Video Chat (ooVoo / Tinychat)
Teens hack video chat to
bypass parental restrictions
on their social life. Video chat
helps teens reclaim hangout
behaviors and define their
own Social Space outside of
parental control
flickr(c) followtheinstructions
Teenage Pirates: Innovation
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
32
Social Currency for
Teenage Pirates is skill
rather than status
based; mastery of
hacking technology.
Hacking is Positive
Deviance - improving
and changing the
Content at the technical
level (e.g. Android
rooting, Jailbreaking or
turning Weibo into a
dating service) rather
than vandalism.
The hackability of a
Social Tool is key to
appeal for Teenage
Pirates as results are
shared with peers.
Teenage Pirates Social
Tools are often inherited
from parents or older
siblings. Lack of income
and excess time means
they have the ability to
explore and optimize
products.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Teenage Pirates: Social Currency
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr(c) followtheinstructions
!""#$%& (")*%&$%& +
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!""#$%&
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,"&0"%1
33
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Teenage Pirates: Inherited Tools
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
´l bove o post polJ oombet oo
8lock8etty wblcb bos o beuet Joto
ploo tboo llbooe. l oeeJ o pte polJ fot
oollmlteJ 5M5 wblcb post polJ ploos
Jo oot o[et. l cotty J ptepolJ 5lM
cotJs ooJ ose tbem JepeoJloq oo
wblcb ooe bos oollmlteJ oouoowlJe
5M5.´
Madhu 17F, India
Lack of income and
ability to purchase
contract handsets means
most teen handsets are
hand-me-downs from
siblings and family.
Inheriting the Tools
means teens are more
open to hacking them;
handsets are often out
of warranty or old.
Whereas the last 2 years
teens were inheriting
Blackberry and feature
phones, in 2011 and
2012, the trend has
shifted to smartphones
like iPhone 2&3.
Expect a significant rise
in teen smartphone
ownership 2012.

0
50
100
2010 2011 2012 2013
Region 1 Region 2
How teen smartphone
ownership will track adults
teen ownership rates
typically track adults by the
length of smartphone
contract (e.g. 2 years)
flickr(c) followtheinstructions
34
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Teenage Pirates actively
explore new ideas and
share their discovery
with peers and
strangers. This behavior
is best depicted in
teenage haul videos on
YouTube.
Blair, known as
JuicyStar07 on YouTube,
regularly shares her
shopping discoveries on
YouTube and explain to
her viewers how she
plans on putting
together an outfit with
her purchases.
Her desire to create
haul videos stems from
her eagerness to share
her skills as an amateur
stylist. It is not just her
friends watching the
video. On average her
videos get more than
300,000 views.
“I don’t create and post these videos to show off or get something out of them. It’s
not that I shop a lot either. It's more like, I'm 16, I work two jobs, and this is what I've
saved my money up for, and I'm excited to share it with you guys.”
Blair 16F, USA
Teenage Pirates: Sharing the How-to
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr(c) followtheinstructions
35
®
MOBILEYOUTH
youth marketing mobile culture since 2001
TinyChat ooVoo
´My poteots ote vety sttlct ooJ Jo oot let me qo
oot wltb ftleoJs lf tbey Jo oot koow tbem well. 5o
l speoJ o lot of ume oo Oovoo tolkloq to my
ftleoJs. uotloq weekolqbts, l speoJ opto 6 boots
oo Oovoo. lt´s llke o qet-toqetbet becoose yoo coo
cteote o cbot wltb 6 people ot tbe some ume ooJ
jost booqoot. ´
Andra 18F, Indonesia
ºMy parenLs are very sLrlcL and do noL leL me go ouL
wlLh frlends lf Lhey do noL know Lhem well. So l
spend a loL of ume on Covoo Lalklng Lo my frlends.
uurlng weeknlghLs, l spend upLo 6 hours on Covoo.
lL's llke a geL-LogeLher because you can creaLe a chaL
wlLh 6 people aL Lhe same ume and [usL hangouL. "
Andra, 19
lndonesla
Teens use video chat
differently to adults.
Unlike adults, teen video
chat is passive rather
than active; sessions are
often unstructured
“hangouts” with no
specific agenda.
Chat sessions are the
modern surrogate for
hanging out in each
other’s backrooms.
Participants usually
multitask (e.g. watch TV,
play games or eat) while
video chat runs in the
background.
Teenage Pirates: Video Chat & Hangouts
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr(c) followtheinstructions
36
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Teenage Pirates: Video Chat & Hangouts
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Teens Adults
Rationale for Video
Chat
Hangout, Passive
Communication
Purposive,
Active
Structure of Sessions
Multiple participants,
parallel conversations.
each engaged in their
own conversation
Serial, unified
conversation involving
all participants
Time and Engagement
Not unusual to spend
5-6 hours per day for
heaviest users. Service
on constantly in
background as they
engage in other
activities
Similar to voice call;
make the call, talk,
end. Short sessions.
Preparation
Set rituals before calls
- adjusting personal
look, clothes, lighting
in room
Minimal ritual, treated
similarly to voice call
flickr(c) followtheinstructions
37
´l bove o post polJ oombet oo
8lock8etty wblcb bos o beuet Joto
ploo tboo llbooe. l oeeJ o pte polJ fot
oollmlteJ 5M5 wblcb post polJ ploos
Jo oot o[et. l cotty J ptepolJ 5lM
cotJs ooJ ose tbem JepeoJloq oo
wblcb ooe bos oollmlteJ oouoowlJe
5M5.´
Madhu 17F, India
Tariff wars among
operators are common in
the emerging markets of
India and Indonesia.
Teenage Pirates have
responded to tariff wars
by subscribing to more
than one mobile number
and owning different
handsets. The trend,
known as dual handset
ownership, falsely drove
up acquisition rates in
the short term before
driving up churn rates in
the long term as
teenagers kept switching
to the service with the
lowest tariff. The
biggest advantage of
owning multiple
accounts is enjoying
discounts when
available.
Rather than display
loyalty to the cheapest
provider, teens will
actively negotiate
complex tariff structures
with multiple accounts
to maximize their usage.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Teenage Pirates: Managing Price Wars
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr(c) followtheinstructions
38
flickr (c) fotologic
®
MOBILEYOUTH
youth marketing mobile culture since 2001
2. Cashless Innovators
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
39
flickr(c) fotologic
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Alternative + Thrift
Retro + Knowledge
Will often own 2 or more handsets/
SIMs to negotiate complex operator
tariffs and maximize offers.
Key drivers of laptop and MP3 player
market meaning key Beachhead for
brands like Apple and Samsung.
Winning the Cashless Innovator
market is key to long term tech
brand relationships
MP3 player
Laptop
Games Console
Mobile Phone
Ebook reader
Tablet
Desktop
-10 0 10 20 30 40
Tech Ownership:
Students vs Rest of Market
source mobileYouth based on Pew data
77%
... shopped at Thrift
stores (compared with
50% of teens).
source Care2 & NPD
-20%
-10%
0%
10%
20%
30%
40%
50%
A
p
p
le
B
la
c
k
b
e
r
r
y
S
o
n
y
E
r
ic
s
s
o
n
N
o
k
ia
S
a
m
s
u
n
g
M
o
t
o
r
o
la
SMART scores
Change from
teens to students
source mobileYouth (US,
Malaysia, South Africa)
SMART Recommendation
Scores: Students
As youth reach student age
recommendations for Apple,
Blackberry, Samsung and Motorola
increase while Sony Ericsson’s
popularity declines. Nokia remains as
recommended with students as it is
with teens. Motorola is unpopular.
Age 18-22yrs, mostly male*
* we are seeing increasing numbers of female
CIs in developed markets
Cashless Innovators & Mobile
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
40
Social Currency for
Cashless Innovators
moves from skill to
knowledge. Cashless
Innovators seek out
niche groups with
defined knowledge
barriers that, to the
mainstream, appear
difficult or obscure
(e.g. Hipster culture,
single-gear Fixie bikes
without brakes, retro
clothing).
®
MOBILEYOUTH
youth marketing mobile culture since 2001
!""#$%& (")*%&$%& +
,$&%$-./%."
0$.1" ,*.$/)
&2*34, 5$61 /
#%*5)"7&"
(/22$"2 6* "%628
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4/,6 61/6 /)$&% 5$61
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,*.$/) .322"%.8
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*4>=$?/>*%
!*.$/) .322"%.8 ;*2 61$,
,"&="%6
Social Profile of Cashless Innovators
Optimization for Cashless
Innovators means the
discovery of old Social Tools.
Teens inherit tools, CIs
rediscover them. The
knowledge of how to use and
refurbish these tools is a key
barrier to entry; being “in”
means being “in the know”.
Fixie Bike Culture
Cashless Innovators: Social Currency
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
41
Cashless innovators have
also turned to mobile
technology as their
Social Tool of choice.
One such example is
adoption of the
‘Instagram’ app by
hipsters. Hispters
usually carry around a
traditional film camera
valuing the grainy
images they produce.
Instagram allows them
to apply a retro effect
to an image instantly.
Hispters gave Instagram
an identity that
separated it from other
similar applications.
Within 9 months of its
launch, 150 million
photos were uploaded
by 7 million Instagram
users.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
flickr (c) fotologic
Instagram Photo Sharing App
!"#$%" '( ('$ )*$* "'+ ,"* )'-.)$ /-01)%$ .)"2-13
4-50)21 1( )*$ 0"#$%" 6-1, 7"+ /-01)%$ .)"2-13
8+)21
!"*,2$** 9''(:"1(%*
Cashless Innovators: Instagr.am
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
42
flickr(c) Libertinus
®
MOBILEYOUTH
youth marketing mobile culture since 2001
3. Disruptive Divas
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
43
flickr(c) Libertinus
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Brazil
India
China
Indonesia
US
UK
Germany
France
Italy
0 20 40 60 80 100
?
Recommendation Scores for Disruptive Divas
20 something females recommend Blackberry,
Apple and Nokia the most. Blackberry is
particularly popular with this group. Sony
Ericsson and Motorola are disliked.
Disruptive Divas & Mobile
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
-40%
-20%
0%
20%
40%
60%
80%
B
la
c
k
b
e
r
r
y
A
p
p
le
N
o
k
ia
S
a
m
s
u
n
g
S
o
n
y
E
r
ic
s
s
o
n
M
o
t
o
r
o
la
SMART scores
Change from
students to Divas
source mobileYouth (US,
Malaysia, South Africa)
Shop at Global Brand or Local Boutiques?
source NPD Group
Global Brand Local Boutique
In emerging markets, where the difference in
gender roles between generations is most
pronounced, Disruptive Divas gravitate most
towards symbols of the global establishment. In
mobile this means Blackberry (“your Dad’s
phone”). In lifestyle, this means 20-something
women in Brazil, India, China and Indonesia
favor global, widely recognized status brands.
44
Social Currency for Disruptive Divas is based on
arrival. Divas seek recognition for having “made it”
- whether as a career executive or being a well-
informed mother - and gravitate towards Social
Tools that help them stand out within their own
peer groups. Social interaction centers around
small, tightly-defined peer groups and routine
activities.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
flickr(c) Libertinus
Disruptive Divas: Social Currency
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
!""#$%& (")*%&$%& +
,$&%$-./%."
0/$%
1".*&%$2*%
*3 ".*%*4$.
5*167
81/9$2*%/) ,*.$/) (/9&",
*3 ",6/()$,74"%6 67/6
4/1# /11$:/) /%9 ,;..",,
!*.$/) 6**), 67/6 <1*:$9"
,*.$/) .;11"%.=
>;%9/4"%6/) 91$:"1 *3
*<24$?/2*%
!*.$/) .;11"%.= 3*1 67$,
,"&4"%6
!"#$%& %( #" )*+*,) +) + ),--.))(,& /%#+0
1%23 45%0. /6*5 ).-,2. .#+6& +--.))
78,&*
96)2,4:;. 96;+)
Disruptive Divas co-opt the
Social Tools of the
establishment - symbols
high on display and with
strong heritage.
45
Disruptive Divas in
developing nations have
ventured into new
career domains
following economic
development in the last
decade.
As newly appointed
professionals, they
prefer traditional
symbols of the
establishment for Social
Tools such as BlackBerry
over Apple’s iPhone.
In the developed world,
females from minority
groups have risen to
prominence in the
corporate and political
world.
Propelled by role models
such as Oprah Winfrey
and Michelle Obama,
DDs display their status
and declare arrival in
typically male domains
by flaunting their
BlackBerry handsets.
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Disruptive Divas: Blackberry vs iPhone
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr(c) Libertinus
0%
30%
60%
90%
S
o
u
t
h
A
f
r
ic
a
M
a
la
y
s
ia
U
S
A
SMART scores
Change from
students to Divas
source mobileYouth (US,
Malaysia, South Africa)
SMART recommendation scores:
iPhone vs Blackberry, females 20-29
Blackberry
iPhone
46
Disruptive Divas have not only chosen BlackBerry
over iPhone as their Social Tool, they have also
added a touch of color to their BlackBerry usage by
starting the BlackBerry Bling trend.
In the first manifestation of Optimization behavior,
Divas started coloring their thumbnails to make
them stand out when using the Blackberry handset
(known as Blackberry Bling).
®
MOBILEYOUTH
youth marketing mobile culture since 2001
Disruptive Divas: Blackberry Bling
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
flickr(c) Libertinus
Other hacks of Blackberry
include adding charms and
decorating the sleeves
(popular examples include
chocolate bars or retro
refits in the form of
cassette tapes)
47
What is mobileYouth®?
®
MOBILEYOUTH
youth marketing mobile culture since 2001
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
We are a youth agency established in
2001 by Graham Brown and Josh
Dhaliwal for the purposes of tracking
and predicting emerging trends amongst
young mobile consumers worldwide.
Clients are primarily
telecommunications and handset OEMs,
but include sports brands, beverage
labels, banks, ad agencies, record
companies, television channels, online
social networks, games developers,
content aggregators, publishers and a
whole array of other youth-focused
brands and service providers.
A privately held company we conduct
youth research in more than 60
countries across 5 continents.
Please visit us at
http://www.mobileYouth.org
48
The Research Quadrant
®
MOBILEYOUTH
youth marketing mobile culture since 2001
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Culture Data
Insight
(Analytical/Predictive)
Historical
(Reporting/Analysis)
McKinsey,
PWC etc
(What does this mean
to my industry?)
mobileYouth
(Why is this happening?)
Nielsen, Harris, Pew etc
(How much is happening?)
Trendwatching,
Trendspotting etc
(What is happening?)
Youth research is very broad. While we
provide data and trends, our core value
is distinct.
mobileYouth research is cultural insight.
We explain why youth use mobile
phones in certain ways. We provide a
framework for understanding behavior
clients can use to predict the future
trajectory of technology and mobile
culture.
As companies move from strategies
based on market share to ones based on
share of customer, we believe the
brands with the deepest insights rather
than the most knowledge and data will
win. We believe being “liked” by
customers is worthless and brands today
need to form relationships based on
“love” because it’s these brands that
youth recommend to each other and
65% of all youth handset purchase
decisions are influenced by peers not
advertising.
49
Bonus Downloads...
®
MOBILEYOUTH
youth marketing mobile culture since 2001
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Click the Download button on each
slide. The button will take you to the
page on MobileYouthReport.com from
where you can download the hi-
resolution graphic to use in your own
presentations.
50
About the Authors
®
MOBILEYOUTH
youth marketing mobile culture since 2001
2012 MOBILEYOUTH REPORT
®
Generation O: module 01/06
Graham Brown has spent his life living
and working in both London and Tokyo.
A psychology graduate, Graham has
focused his marketing career on
understanding what influences consumer
behavior a field in which he is due to
publish his first book in early 2011 .
Graham is author of 3 youth marketing
books available on Amazon: “All is
Social”, “Influence” and “The Youth
Marketing Handbook”
As well as speaking at industry
conferences on the subject of young
consumers, Graham has appeared on
CNBC, Sky News, CNN and BBC as well as
in print with the FT, The Guardian, Wall
Street Journal and The Sunday Times.
Freddie Benjamin leads mobileYouth’s
on-the-ground research in the field of
mobile culture and youth marketing
behavioural trends.
Freddie is the Research Manager at
mobileYouth undertaking ethnographic
and quantitative research. He is also a
contributing author for the “Youth
Marketing Handbook” published in 2011.
51