Whos Got Two Million New Marketing Friends?

You do if you get the key drivers behind online social networking
Warning: You are about to enter a danger zone wherein the data is raw and the youth demo is highly elusive. Proceed with caution. As social networks continue to gain consumer momentum and marketer interest, understanding the dos and donts of social networks will make all the difference in effectively reaching out to and communicating with
by Rob Tregenza Sr. Director, Consumer Strategist Transportation and Sports/Fitness and Jonathan Steuer, PhD VP, Consumer Strategist Technology/Consumer Electronics/Media

Point of View

Millennials in this thriving yet complex Web space.

Online social sites boom among tech-native Millennials

Believe the hype, yo. The popularity of social networks continues to escalate: MySpace.com alone boasts some 85 million users and is growing by a massive 240,000 new users per day (TechCrunch.com 6.14.06). From finding a hookup to trading pop tunes, users continue to find reasons to pour into social networks. As the daily personal connection and creative outlet for Millennials and an ingrained part of their tech-native DNA, these networks facilitate interaction, foster tight-knit communities and give Millennials something highly prized the ability to personalize and control content.

MySpace has 80 million profiles and two million groups. Its site members are 51% male/49% female, and 78% report that they are over 18 and under 40.
MySpace VP of marketing Jamie Kantrowitz, Trendcatching.com 5.06

Ads on social networks embraced, ignored or rejected?

Investors and advertisers want in on the growing action as well: ad spending on social-networks is predicted to reach nearly $50 million this year (PQ Media 4.06). But entering this tangled web Millennials have woven is challenging and complicated. And if its not done well, wading in will leave you networked to nothing. Theres advertising on Facebook? Yes, its a real question we heard from one 20something Net surfer. What the question illustrates is the frequency of social-network users who fly past most information and focus only on whats relevant to them. Todays youth can smell spam from a page away and are hyperselective about where they put that most precious of commodities: their attention. So the $50 million question is: How can marketers effectively reach and connect with Millennials in this confusing space?

A bunch of kids in my class formed a fan club for us. They, like, worship me.
Ivan, 12, guitarist for Tiny Masters of Today, on his tween-fronted rock band, which has tallied more than 13,000 listens on MySpace.com and scored a recording contract, Newsweek 6.19.06

Their field, their rules

Millennials choose brands as identity markers that reflect who they are. Thus companies like Verizon, Honda, Wendys and Motorola have promoted their products on branded social-network profile pages that try to entice consumers with wallpaper, video and open discussion forums. P&G took it a star-struck step further by creating a Hilary Duff profile on MySpace.com where visitors could sign up to get more info about Secret Sparkle, enter sweepstakes and learn more about the tween icon. But what branded profile pages dont take into account is the control factor. Invading spaces where someone else is in control of content means playing by their rules. Consider enabling users to create a personal scrapbook of their favorite brands. Throw a link on your corporate site that will allow a product or brand logo to be sent
2006 Iconoculture, Inc. Iconoculture is a registered trademark of Iconoculture, Inc. All rights reserved.

July 2006

Macrotrends

BeehivingSM FingerprintingSM Mash CreativitySM HyperlifeSM Get Real

Values
SM

to someones profile. Bonus points if the product is something the consumer created on your site (e.g., Nike ID running shoes). Bump the brand stickiness factor up a notch by enabling consumers to build a profile that can switch or travel with them to the next site. Dont attach yourself to the particular sites; attach yourself to the consumers heartstrings.

So, you wanna get on the social network in list?

Keep the following fundamentals in mind to potentially connect with Millennials of today and tomorrow:

Giving back is in

access, authenticity, belonging, collaboration, connectivity, control, empowerment, honesty, sharing, trust, self-expression, philanthropy, relationship

Optimistic Millennials are socially conscious and like to associate with brands that are active in social causes. Appeal to their giving nature by aligning with a cause using a grassroots or community-oriented approach. Zaadz, a social networking site, unites idealists under one mission: changing the world. Honda Fit offered $2,500 to college marketing teams to create a grassroots campaign.

Dont crash the party

Intrusive messaging is as dangerous and unwelcome as an uninvited guest at a house party. Communication should be relevant and seamlessly integrated.

We take a sociological approach to building MySpace, and advertisers need to be cultural anthropologists when theyre thinking about their communications strategy on social networks ... MySpace is not technology. A users profile can be thought of as a metaphor for their life or apartment.
Shawn Gold, SVP of marketing and content for MySpace.com, Online Media Daily 3.29.06

Let em drive

This generation has an Ill take the wheel attitude and responds to brands that empower. Ensure consumers that they have chosen you to be part of their world, not the other way around.

Recognize you are in an eternally noncommittal relationship

Millennials fave products including their favorite social networking site are on a fast-changing playlist. Know that your brand, product or service might be a part of someones social-network experience for a day, a month or a year. Users have to feel like they have the flexibility to add/drop you at any time. Your name may get slandered, mashed and modded, but your flexibility and savvy wont go unnoticed.

Dont fake the funk

Millennials are easily turned off by marketers that try too hard to be cool. Build street cred by taking the straightforward, honest, real approach to communicating with them.

Are social networks here to stay?

What [advertisers] struggle with is the content, the environment and the right approach pretty much everything.
Jeff Lanctot, VP of media for Avenue A-Razorfish, New York Post 4.13.06

Whats certain is that while youre reading this, todays Millennial consumers are hanging out, creating content, and sharing beliefs, thoughts and opinions (maybe even about your brand) with other like-minded individuals. Understanding the appeal of these networks and the millions of consumers who live behind them is a powerful tool that mitigates the unpredictable nature of social networks and potentially means becoming a part of their brand playlist for years to come. Associate Consumer Strategist Meg Finn also contributed to this brief.

Rob Tregenza
Sr. Director, Consumer Strategist Transportation and Sports/Fitness rtregenza@iconoculture.com

Rob Tregenza provides clients with finetuned insights on whats driving consumers. His expertise in consumer insights and strategic market analysis in the sports/fitness and transportation industries provides clients with the knowledge they need to swiftly navigate the consumer landscape.

Jonathan Steuer
VP, Consumer Strategist Technology/Consumer Electronics/ Media jsteuer@iconoculture.com

Bringing vast knowledge, experience, and tech savvy to Iconoculture, Jonathan Steuer helps clients discern and synthesize insights regarding consumer technology and the industry at large. As an IT consultant and entrepreneur, Jonathan managed the development of enterprise solutions, provided strategic guidance, developed business strategies for start-ups, and founded his own start-up venture. Iconoculture is the leader in consumer trend research and advisory services that enables innovation and business growth for clients. 244 First Avenue North Suite 200 Minneapolis, mn 55401 phone 612.642.2222 fax 612.642.2299 insight@iconoculture.com www.iconoculture.com

2006 Iconoculture, Inc. Iconoculture is a registered trademark of Iconoculture, Inc. All rights reserved.