From the mouths of babes

In the late 2000s, user-generated advertising gained popularity alongside websites such as YouTube. In theory, these ads provide an opportunity for companies to use crowd sourcing to solicit hundreds of potential ideas - all for free. Promoting contests via millennial-friendly interactive channels seems like a natural fit to attract the generation to both your contest and brand. What's not to love?

Unfortunately, if you ask any of several companies who have run these promotions, it is all more easier said than done. For example, the H.J. Heinz Company solicited entries for a user-generated ad contest for the Heinz ketchup brand in 2007, but received less than impressive submissions. 

 Dan's Heinz Commercial (Story, 2007)

For many companies, the results of these campaigns are often "more stressful, costly and time-consuming than just rolling up their sleeves and doing the work themselves." (Story, 2007, para. 6). In addition, the work involved to manage the contest and campaigns is rarely qualified by the investment as advertisers often spend millions on promotion for the contests themselves (Story, 2007, para. 7).

This is not to say that all user-generated submissions are low-quality. Frito-Lay's Doritos brand has run their Crash the Super Bowl contest prior to several Super Bowls, and the contest attracts many high-quality submissions. The 2011 winner tied for the best ad in USA Today's Super Bowl Ad Meter (Horovitz, 2011, para. 3).

If you are prepared to manage the behind-the-scenes workload of a user-generated advertising competition, and it aligns with your brand personality, then you may find it to be a worthwhile investment. However, marketers looking to woo the millennial generation should proceed with caution.

A report released by the AMA in partnership with Opinion Research Corp. finds that while adults generally find user-generated advertising contests to be customer friendly, creative and innovative as compared to agency advertising, the same does not hold true for a large segment of millennials. The younger demographic (age 18-24) actually find this type of advertising to be less trustworthy, less socially responsible and less customer friendly (Burns, 2011, pg. 641).

There is some wiggle room to reach this group of millennials if done effectively. The credibility of the source of a message can impact its effectiveness (Burns, 2011, pg. 641). If members of your target audience perceive the source as the producer of the advertisement, and they see that person as a peer, then your user-generated ads may have a higher lever of credibility, as compared to a message coming directly from the advertiser (Burns, 2011, pg. 641).
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Burns, K. (2011), From consumers to producers: Engagement through user-generated 
   advertising contests. Handbook of Research on Digital Media and Advertising, 32,     
   641.

Horovitz, B. (2011, February 3). Best Super Bowl ads: A doggone tie for Ad Meter. USA 
   Today. Retrieved October 20, 2011 from http://www.usatoday.com/money/advertising
   /admeter/2011/super-bowl-ad-meter/43271432/1

Story, L. (2007, May 26). The high price of creating free ads. The New York Times.  
   Retrieved October 20, 2011 from http://www.nytimes.com/2007/05/26/business
   /26content.ready.html?pagewanted=all

Give a little bit..

The popularity of brands like Toms Shoes among the millennial generation is no coincidence. Millennials want to associate with companies and brands that are involved in the community and that make them feel good (Sujansky & Ferri-Reed, 2009, pg. 45). 

As the first generation required to complete community service to graduate from high school, millennials are experts on volunteering, and they often extend the mindset to their purchases, which has attracted marketers eager to woo "social-aware shoppers" (Davidson, 2010, para. 5).

Recently, Microsoft's Bing search engine has been profiling Krochet Kids International, an organization launched by three friends who wanted to make a difference, in their television advertisements.

"Buy a hat, change a life."

Thirty-second Bing/Krochet Kids spot airing now

The ad is part of a series of Bing Originals that go behind the scenes to tell various stories, all of which feature the Bing website.

The Bing/Krochet Kids commercials attract attention because they feel somewhat out of character for Microsoft, a company who has been ridiculed for being out-of-touch (see any Mac/PC advertisement by Apple.) The collaboration with Krochet Kids promotes Bing in a positive light while keeping the focus on a company created by millennials that exhibits many of the key qualities the generation values.

Microsoft is currently working with Razorfish and Co Collective to evaluate re-positioning the brand, and feedback on the evaluation isn't expected until next year (Patel & Parekh, 2011, para. 1-2). How and if Bing continues to court the demographic remains to be seen. 

Given millennials' expertise using technology, they should be kept top of mind. Persuading millennials to move away from Google would certainly be a difficult task, but should Bing position themselves as a search engine that offers 'more' than Google, they may be able to capture the generation's attention.

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Davidson, S. (2010, December 1). Have yourself a merry millennial Christmas. 

   Millennial Marketing. Retrieved on October 15, 2011 from 

   http://millennialmarketing.com/2010/12/have-yourself-a-merry-millennial-christmas/

Patel, K. & Parekh, R. (2011, September 23). Bing may ax its "decision engine" 

   positioning. Advertising Age. Retrieved on October 15, 2011 from http://adage.com

   /article/digital/microsoft-s-bing-ax-decision-engine-positioning/230011/

Sujansky, J. & Ferri-Reed, J. (2009). Keeping the Millennials. (pg. 45). Retrieved 

   October 15, 2011 from http://books.google.com/books?id=nG_jJWOzhHMC&

   pg=PA44&lpg=PA44&dq=millennials+charity&source=bl&ots=mVSgcTufTY&

   sig=CZqVp1Ow- hgp7zyWSs9qPlSJqA8&hl=en&ei=a7qYTue5IKH-sQK25aCpBA&

   sa=X&oi=book_result&ct=result&resnum=7&ved=0CEkQ6AEwBjgU#v=onepage&

   q=millennials%20charity&f=false

Mother may I?

So often research focuses on teenage and college age millennials, but as the first part of the generation moves through their late 20s and early 30s they are also becoming parents.

 

When you think about advertising targeted towards this group, what is the first image that pops in your mind? For me, it's typically a mom who is dutifully preparing a snack or getting a stain out of her well-behaved, albeit messy child's clothes.  

 Electrolux commercials mentioned by Katherine Wintsch in the Forbes article

Although not a mom myself, I am not alone in this perception. In early 2011, Forbes magazine profiled Katherine Wintsch, lead strategic planner of the Wal-Mart account for The Martin Agency. After realizing the disconnect between advertisements and real life, Wintsch founded a think tank called The Mom Complex (Goudreau, 2011, para 2-3). Research revealed that 3 out of 4 moms - or approximately 34 million - feel misunderstood by marketers (Goudreau, 2011, para. 3). 

As times are changing, and a greater proportion of tech-savvy millennials become moms, it is even more critical for brands to connect effectively with their consumers. A quick internet search can reveal ten of thousands of 'mommy blogs', a number indicative of the fact that moms are the biggest group of bloggers and social networkers (Goudreau, 2011, para. 10). Word spreads quickly amongst these networks so understanding what moms are looking for is key. 

As we've heard before with millennials, authenticity is a non-negotiable. (Goudreau, 2011, para. 9). To capture this in Walmart's advertising, Wintsch and her team focused on life's everyday events. The commercials that came out earlier this year are much more relatable and should strike a chord with young millennial parents who are still figuring things out, as opposed to picture-perfect parents presented by companies in the past.

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Goudreau, J. (2011, January 27). Wal-Mart's Mom-In-Chief targets millennial mothers. 

   Forbes Magazine. Retrieved October 7, 2011 from http://www.forbes.com/sites 

   /jennagoudreau/2011/01/27/wal-marts-mom-in-chief-targets-millennial-mothers- 

   advertising-campaign-consumer-supermom-real-women/

Can you hear us now?

Among the well-chronicled attributes of the millennial generation, their experience and use of technology rarely fails to be mentioned at the top of the list. Many millennials feel the generations' relationship with technology is the key factor that sets them apart from earlier generations (Taylor et al., 2010, pg. 25).

Millennials have an especially tight bond with their cell phones. The Pew Research Center reports that 83% of millennials have slept with their cell phones in or right next to their beds (Taylor et al., 2010, pg. 6) - a marked difference compared to other generations.

Many cell phone advertisements focus on the attributes of the phones themselves, although a few companies have targeted millennials directly. 

The biggest success in this arena was the T-Mobile Sidekick, which debuted in 2002. When I was in college it seemed just about every other person had a Sidekick, and the phones were blatantly targeted at the teenage/college age market. CNN suggests that the Sidekick created the millennial generation's obsession with text messaging (Wilson, 2011, slide 7).

The phone quickly caught on with celebrities and young adults alike. In later years, the brand paired with multiple celebrities and designers like Juicy Couture, Dwayne Wade, Diane Von Furstenburg and Tony Hawk to release exclusive versions of the phone. 

Since the height of the Sidekick's reign, few phones have used celebrity endorsers to reach their target audience. Earlier this week LG announced they will be pairing with celebrity stylist and designer Rachel Zoe to market the LG Marquee phone to young female consumers (Bruell, 2011, para. 1). 

The strategy is part of LG's overarching goal to be seen as a lifestyle brand rather than a hardware manufacturer, according to Chief Marketing Officer Kwan Sup (Bruell, 2011, para. 5). The Marquee campaign will run via a web series entitled "Style Rules" where style bloggers will base different 'looks' on the Marquee's slogan, "Thin, Light and Bright" (Bruell, 2011, para. 2). 

Since the iPhone became a category killer, no one phone has been able to capture the millennial demographic so soundly. It will be interesting to see how young females respond to the LG Marquee campaign. Oddly enough, LG has paired the upscale Zoe with a tongue-in-cheek infomercial style video that mocks some of their target's obsessions: Jersey Shore and Twilight.

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Bruell, A. (2011, October 3). LG mobile enlists Rachel Zoe to target young females for 

   Marquee phone. Advertising Age. Retrieved October 4, 2011 from http://adage.com

   /article/digital/lg-mobile-phone-enlists-rachel-zoe-target-young-females/230165/

Taylor, et al. (2010, February). Millennials: a portrait of generation next. Pew Research 

    Center. Retrieved October 1, 2011 from http://pewresearch.org/millennials/

Wilson, J. (2011, October 7). The evolution of mobile phones. CNN.com. Retrieved on   

    October 7, 2011 from http://www.cnn.com/2011/10/07/tech/mobile/gallery-

    evolution-mobile-phones/index.html

The Eyes of Texas Are Upon You

As the millennial generation continues to mature, they will wield more and more economic power across multiple channels. Once they move into the 35-44 age bracket average household spending will increase 23% or greater than 10k per household (Franchese, 2011).

Where is the largest concentration of millennials (currently age 25-34)? Texas, followed closely by Washington, Arizona and Colorado.

 

(Franchese, 2011)

 

(Franchese, 2011) 

Marketers attempting to reach this demographic should keep an eye on these states because the economic impact will likely be impossible to ignore should current trends continue. 

These statistics will also be of special interest to local and regional companies located in these states that do not yet have this demographic on their radar. As millennials age, they will increasingly patronize businesses targeted to parents, home owners, investors, and the like. 

If they are not doing so already, companies should be planning for this change now so they will be ready when millennials arrive.
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Franchese, P. (2011, July 13). Top 10 states for economic growth, based on millennial 
   pop. Advertising Age. Retrieved October 1, 2011 from http://adage.com/article
   /adagestat/top-10-states-economic-growth-based-millennial-pop/228497/

Can't we all just get along?

While the Millennial generation is made up of millions of individual teenagers and young adults with different attitudes, the total sum of those personalities creates a brand in and of itself. Through my research for this blog I've encountered many articles (often cited here) that discuss what Millennials are attracted to in brands, but few that have discussed the Millennial brand itself and how it has been shaped. 

Last night I stumbled upon a TED Talk given by Scott Hess, the Vice President of Insights for TRU - a global youth research firm - that painted the generation in a different light. Check out Scott's presentation, which is entitled 'Millennials: Who They Are and Why We Hate Them' and runs just under 22 minutes, below:

Scott uses his peers, Generation X, as his method of comparison throughout the presentation. Given Gen X was the last full generation to come of age, it's interesting to analyze the similarities and differences between the two generations. As Scott points out, at one time members of Gen X were seen as wild and crazy kids clashing with the Baby Boomer generation. He uses terms like lazy and entitled to describe them - sound familiar?

For the purposes of this blog, I'm less interested in the "Why We Hate" them theme and want to focus on the brands Scott uses to make his points. When comparing "cliquish, judgmental" Gen X'ers to "inclusive, tolerant" Millennials, Scott uses Abercrombie & Fitch as the poster brand of Gen X where the cool kids "create a secret clubhouse in the mall" in contrast with American Eagle which has prospered by embracing an identity where "everyone is hanging out together at the high school football game."

One may wonder is this a case of the chicken or the egg? Did the brands shape Millennials or have they shaped the brands thus inspiring others to mimic what they are attracted to? I believe it's the latter. As compared to "anti-corporate" Gen X, Scott highlights the Millennial generation's tendency to feel large corporations are actually best positioned to solve the problems they may have created and they support companies who do so (Scott uses the great example of Starbucks' Ethos water.) What I find most interesting is that many companies transcend both generations, but appear to be embracing Millennials because of their positive outlook, and in turn Millennials embrace those companies.

Based on TRU's research, Apple is reported to be Millennials' top brand by a long shot. We could probably write several books on how well Apple has marketed their brand. Thankfully Scott highlighted several key factors by deconstructing Apple's brand to understand who Millennials aspire to be. I've highlighted a few below:

• Premium, yet accessible
• Savvy, yet approachable
• Massively personal

Rather than what they aspire to be, I'd categorize these traits as what Millennials ARE. This is why Apple is so successful - because they recognized the core traits of the generation and marketed them back in an appealing fashion.

"Generation Y-ine"

My first experience with wine was my senior year of college when one of my best friends organized a wine and cheese party. It all felt very grown up, and my love for wine blossomed when I began working in DC after college.  Having a glass of wine or sangria at a post-work happy hour was one of the things I felt solidified my status as a ‘real’ adult.

Apparently, I was not alone. Millennials are the fastest growing segment of wine drinkers (Stanford, 2011 para. 6), and brands are taking notice and catering their advertising and branding to attract a new demographic.

For some brands, this means expanding their presence online. BusinessWeek profiled the world’s second largest wine seller, Constellation Brands, who has increased their online presence 150% to connect with Millennials (Stanford, 2011, para. 10). The company’s aim is to increase their scale while remaining authentic (a key trait Millennials are attracted to.)

These strategies work well for consumers who actively engage in discussion about wine, or are open to interact with their preferred brands online. However, it’s also important to attract attention on the store shelves. Personally, I’m attracted by the packaging and branding. An interesting label will often intrigue me to look for more information about a given brand, and sometimes I’ll just take a leap of faith and purchase based on the label alone. 

HobNob wine crafted their entire branding campaign to appeal to Millennials.  HobNob is imported from France, but their advertising isn’t about the wine or the company – it’s about you. Their campaign blankets all media that millennials use on a consistent basis:

“a Web site,; a blog called The Juice; social media like Facebook and Twitter; promotions; an application for the iPhone, Rock My Whirl, that offers spinning-bottle games; an e-mail newsletter, Inner Circle; and a focus on “indie” music that includes a section of the Web site called Creative Juices.” (Elliott, 2010, para. 7)

Interestingly, the brand is also reaching out to the target audience with posters on kiosks, taxis and “wild posting locales.” (Elliott, 2010, para. 8) The creative strategy is to “fit the lifestyle of the millennial consumer” which are “busy, casual lives, filled with friends and entertainment.” (Elliott, 2010, para. 4)

It’s important not to push too hard, or else the image will feel forced and fake. I’m on the fence with HobNob. The branding is appealing, but a bit in your face, playing up the stereotypes about the generation. Given millennials penchant for wanting to be leading the conversation about their preferred brands, your strategy may be better served by cohabitating with consumers in this market, rather than shouting out loud that your brand is the place to be. As the saying goes, if you have to say you are cool, then you probably aren’t.

Elliott, S. (2010, October 25). Selling new wine in millennial bottles. The New York     

   Times. Retrieved on September 13, 2011 from       http://www.nytimes.com/2010/10  
   /25/business/media/25adnewsletter1.html?pagewanted=1 

Stanford, D. (2011, May 12). Targeting millennial wine drinkers online. Bloomberg   

    Businessweek. Retrieved on September 13, 2011 from   

    http://www.businessweek.com/magazine/content/11_21/b4229022111543.htm

You've Got A Friend In Me

Another interesting fact highlighted in the Milo.com infographic is the statistic that 60% of girls ages 13-24 consider a store as a friend. The desire to connect with these ‘friends’ is evident in the way millennials so quickly jump on board to connect with brands on Facebook and via official Twitter accounts.

Some companies are now giving their brand a true face to the name. Unlike celebrity endorsements or customer testimonials, these individuals truly embody the brand because they often are the brand. It’s an interesting creative strategy.

Since 2008, J. Crew has actively promoted creative director, Jenna Lyons, as the face of the brand. Catalogs, emails and the website feature “Jenna’s Picks” from J. Crew’s “commander-in-chic.” The picks come with advice straight from Jenna offering advice on trends or how to style a particular look - similar to the advice you’d expect from a friend, and absent of the ‘authoritative’ voice that sometimes appears in magazines a la Glamour’s Do’s and Don’ts. That is the goal, as Jenna states:

“I think there is a need to make things feel a little more intimate and exciting and people are looking for a level of integrity, and a different level of interest, in something . . . I think people want that — most people don’t have the time to really shop and find things on their own, so being able to have something curated for someone well, nine times out of 10 you’re interested in the same things your friends are interested in. That’s how it works, right? So if you like the group of people who are making the clothes, chances are very good that you’re going to like some of the other things we’re looking at, whether it’s the best lipstick we think is out there or the right nail polish, the book, the sunscreen, the perfume or the record.” (Atkinson, 2011, para. 3)

The approach clearly resonates with J. Crew’s target market of 25-to-40 year old women (Krantz & O'Donnell, 2006, para. 7). The customer base is fanatical about promoting and discussing the brand online with multiple blogs devoted solely to the brand.

As always, it’s important to remember that authenticity is key. J. Crew succeeds for a few reasons:

1)   Personality - Jenna is a real person offering personal advice that is true to her personal style.

2)   Applicability – Jenna’s Picks are real advice that consumers could use as inspiration for any outfit, not simply ones from J. Crew (although subsequent purchases are a benefit.)

3)   Accessibility – potential customers can get Jenna’s advice at any time of the day on J. Crew’s website, Facebook page and Tumblr page.

Who doesn’t love a friend who is there for you anytime of the day or night?

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Atkinson, N. (2011, August 20). Q&A: Jenna Lyons, creative director of J. Crew.  
     National Post (Toronto, Canada). Retrieved September 13, 2011 from

     http://life.nationalpost.com/2011/08/20/qa-jenna-lyons-creative-director-of-j-crew/

Krantz, M. and O'Donnell, J. (2006, June 28). Investors show faith in J. Crew's 
      potential. USA Today. Retrieved September 13, 2011 from

      http://www.usatoday.com/money/industries/retail/2006-06-28-jcrew-ipo_x.htm

 

Millennials Want it All (Or Nothing At All)

The infographic below from Milo.com provides some interesting insights into millennials’ ‘top’ brands - all of which are prestige, luxury brands.

 

It presents an interesting dichotomy given the current state of the economy and job market. Perhaps the some of the inherent attraction to premium luxury brands is in part due to the fact that many of our “helicopter parents” were able to provide us with the hottest, must-have, new ‘it’ thing as we were growing up. My mother waited in line for hours at the toy store to get me a Cabbage Patch doll when I was a toddler, and the list goes on. . . 

Expectations were set early that in-demand products are attainable. Fast forward to present day and while I may have aspirationally wished, dreamed, hoped, prayed wanted to own a Chanel bag, I’ve never been in a position where I could realistically afford one (yet.) In fact, I’m unsure I will ever be able to reach my parents’ level of financial success. Perhaps echoing some of those concerns, the infographic also indicates that while they love luxury, millennials/‘Gen Yers’ are also looking for a deal.

Their combined spending power undoubtedly makes this group an attractive market, but brands should be careful about discounting strategies to capture their attention as this has the potential to lower the value of your brand. I receive emails almost every day from the Gap offering various discounts, which makes it hard for me to believe any messages that try to position their clothes differently, i.e., their “Premium Pant” and “Premium Denim” lines. 

Luxury brands remain status symbols because of their exclusivity. This is not a luxury afforded to all brand categories.Target is a great example of a company who caters to champagne taste on a beer budget.

 

The company does a fantastic job of capturing the attention of both luxury and discount consumers with its’ Designer Collaboration collections. The limited nature of the lines is exclusive, and the marketing of each line makes it feel accessible and anything but cheap. From a branding standpoint, most of these collections are a win-win for the designers and Target.  

Target is by no means considered a luxury brand per se, but their branding positions them as the upscale retailer in their category. The "Design for All" and "Expect More. Pay Less." slogans set the foundation for their brand personality, and I've found the creative is something that makes you want to start a conversation - something millennials are apt to do. 

Target seems to be connecting. My favorite commerical from their Fall back to school campaign has over 630,000 views on YouTube:

 

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Milo.com (2011, July 18). Gen Y's Luxury Buys. Retrieved September 13, 2011 from   

     http://milo.com/blog/gen-ys-luxury-buys-young-people-crave-designer-brands/