Youth culture marketing presentation.

1. Marketing to Tweens &
Teens: Insights, Strategy
and Tactics
Presented by Bill Carter, Fuse
July 2010
1
1

2. Contents
• Teens & Tweens: Who They Are
• Market Power
• Technology, the Internet, and Social Media
• Gaming g
• Music
• Sports
• Fashion
• Other Product/Cultural Trends
2
2

3. Fuse
Offices in Burlington
Burlington,
VT & New York, NY
For more information
Founded in 1995
see fusemarketing.com
Fuse develops
marketing
strategies that
Brand Strategy
Strategy,
reach a mass
h Fuse is a leading youth
F i l di th
PR/Social Media, Event
market while culture marketing
Marketing, Design,
maintaining services agency
Interactive
legitimacy
throughout youth
culture
3
3

4. Teens and Tweens: Who They Are
4

5. Population
Teens (Gen Y,
Millenials)
Mill i l ) and
d
tweens (Gen Z,
iGeneration, NetGen)
are 8-19 year olds
born between about
1991-2002
Most ethnically
About 55
diverse
million in total
generation to
or nearly 20%
date (one in
of the US
f th
three is non-
33 population
Caucasian)
5
5

6. Born At The Right Time
1991
2001
Internet made 1996
Wikipedia goes
available Ebay goes live
yg
online
commercially
6
6

7. Social/Environmental
• 83% will have more trust in a company if it is
3, 7
socially/environmentally responsible
y y p
• Nearly ¾ are more likely to pay attention to the
company’s ,message if they are deeply committed
3 7
to a ca se
cause
• 69% base their shopping decisions on a
company’s social and environmental
p y
3, 7
commitments
• Almost 90% would likely switch brands (if quality
and price are equal) if a second b d was
d i l) d brand
7
associated with a good cause
• 66% consider a company’s commitments when
company s
7
recommending it
7
7

8. Historic Concerns
Money (and
the current
recession)
Independence
( DIY )
(“DIY”)
Happiness
8
8

9. Free Time
Friends Gaming
Movies/DVD’s
(mostly on the
Music
M i weekends/Su
mmer)
TV
Free Internet
Time
9
9

10. Television
• Teens and tweens still watch a lot of TV – about
two hours per day
p y
• While they watch TV, they multi-task: do
homework, talk to friends on the phone, and spend
time online
• Fuse Teen Advertising Study available for free
download here
(http://www.fusemarketing.com/Youth_Rese
arch) in 2009 indicated teens approve of/think its
appropriate for advertisers to reach them through
TV (ranking it the highest among any media)
10
10

11. Market Power
11

12. Market Power
Spending power 6
exceeds $200 billion
d billi
They buy
products
Gen Y
that are
influences
either
another
cheap or
p
$300 -
elite, not
$400
much 33
billion
middle8
ground
Spend an average 33 of
$30 per mall visit
12
12

13. Where Money Is Spent
• Tweens spend money on entertainment and things
they can use at home with their friends since they
y y
are less independent
• Video games, music, toys
• Teens spend money on activities away from home
because they are more independent
• Going to the movies eating out
movies,
13
13

14. Spending Habits
More brand loyal than
you’d think, more than
50% purchased the same
15% of total spending is 44% go to the mall at 1f
brand on two out of three
b d t t f th 1e
1
done online least once every month
of last shopping trips
across all brand
32
categories
19% of their disposable 5.6% on
14% buy four or more1f
income is spent on accessories/personal care
1d 1d pairs of j
i f jeans in a year
i
clothing items
10% of 12 – 19 year-olds
have their own credit
1e
card
14
14

15. Consumer Profile
• They are critical and highly savvy consumers
• Price is the number one purchasing factor for 70% of
2
this population
• One-quarter consider brand names as an important
2
factor when buying new products
• They are turned off by blatant branding and the hard
sell
8
• They like products that let them show individuality
15
15

16. Consumer Profile
• They want to discover products, but on their terms
and in appropriate places
• 52% of males and 38% of females “couldn’t care
less” about advertising, while 44% say that it has
2
no impact on their purchasing decisions
• They are in constant contact with friends by cell
phone, IM, email and online social networks
• One-third say their friend’s opinions impact their
2
purchasing decisions
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16

17. Technology, the Internet, and Social Media
17

18. Born Into Technology
Tweens and teens were
born into a world that
already included:
• 24 hour cable TV news and
entertainment
i
• Mobile phones
• Video gaming industry with
multiple console and hand‐
held brands
18

19. Technology Usage
Technology Approximate Percentage of
Tweens/Teens Use
Tweens/Teens Use
Computer 80
Cell phone 80 (for teens)
DVD player 85
Gaming device
g 75
19

20. Internet
Social
Media
Video
Video
Search
Sharing
g
Most
Most
Popular
Destinations
20

21. E-Mail
• E mail while still used by tweens and teens
E-mail,
continues to diminish in importance
• Rapidly being replaced by daily use of IM and social
p y g p y y
media (Facebook and twitter in particular)
• Marketers should not expect youth to communicate
with them by email but rather social media – nor
email,
should marketers consider e-mail a marketing tactic
21

22. New Sites
• How they learn about sites is critical for marketers
• Most important are referrals from friends (including
discussions with friends on Facebook)
• Links from other sites are very important too
22

23. Mobile Phones
• Over 80% of teens have mobile phones and over
50% of tweens have them
• In addition to talking to friends, they use mobile
phones for texting, playing games, and taking
pictures/video
pict res/ ideo
23

24. Social Media
Facebook
MySpace
twitter Tumblr
24

25. Social Media
• Connecting with friends is by far the most prevalent
reason youth uses social media
• Meeting new people is not a key use, and should be
noted by marketers trying to introduce their brands
online
25

26. Gaming
26

27. Who’s Playing
• Age gamers
• Under 18: 31%
• 18 to 49: 44%
• 50+: 25%
• The average game player is 33 years old and has
been playing for 12 years
• 61% of teens (80% males and 42% females) play
video games in a given week
• 38% of all players are women
27

28. Frequency
• Youth who game spend about one hour per day
doing it
g
• They purchase just a handful of new games per
year
28

29. Consoles & Handhelds
• Most videogame play is on a console
• PS and XBOX
• Tweens and teens also do a significant amount of
gaming online/through websites
• T
Tweens are more likely t use a h dh ld th a
lik l to handheld than
teen
• Wii and Gameboy y
• Fuse’s Teen Advertising Study in 2009 found that
only 10% of teens think in game advertising is
acceptable way to reach them
29

30. Casual Gamers
More people spending more
time playing Web Browser
44% of game players say they
mini‐games such as poker
play online for one or more
play online for one or more
than playing “serious” Multi‐
th l i “ i ” M lti
hours per week
Player Online Role‐Playing
games like World of Warcraft
The average adult woman
The average adult man gamer
g
gamer plays games 7.4
p y g
plays 7.6 hours/wk
l 76h / k
hours/wk
Females average two hours of
game play
more per week than they did
more per week than they did
a year ago
30

31. Music
31

32. Music Basics
Youth listen to music
more than five hours per
day – far exceeding other
media and entertainment
Nearly half
of teens
prefer to Most new
buy music music is
online found on the
(digital internet
inte net and
downloads) from friends
versus at a
retail store
Even young teens spend
over $25 per month on
music
32
32

33. Downloads
• iTunes is the dominant player and as much as 7x
more popular than its nearest competitor
• Amazon.com is surprisingly popular, while retail
sites like FYE.com are not
33
33

34. Sports (Action Sports)
34

35. Importance
• Sports such as skateboarding, BMX and
snowboarding that embrace individuality, creativity
g y, y
and style
• These sports have high rates of youth participation
18
and spectatorship (33+ million participants )
• For many, they are a complete lifestyle rather than
j
just an activity
y
35
35

36. Growth
• The fastest growing sports in the US are
p
action sports
Sport Total Participation* 6 Year % Growth**
Surfing
S fi 1,936,000
1 936 000 +38.8%
+38 8%
Skateboarding 10,592,000 +47.3%
Snowboarding 7,110,000 +30.2%
Wakeboarding 2.843,000 +26.2%
BMX 2,642,000 NA
Motocross / FMX
M t 5,000,000
5 000 000 NA
Freeskiing 3,500,000 NA
Totals 33,623,000
33 623 000
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36

37. Acceptance
• Teens today are the first generation to grow up in a
society that accepts action sports
• Parents attend action sports events like they attend
soccer or baseball games
• F iliti th t f t action sports continue to emerge
Facilities that foster ti t ti t
• Skateparks (over 2,000 parks in existence)
• Ski / Snowboard terrain parks
• Action Sports Camps (Woodward, Point X
Camp, Mount Hood)
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37

38. Action Sports Influence
• Youth that don’t skate/surf/snowboard still want to identify
with the lifestyles associated with these sports
• C
Consumers can now b snowboard j k t f
buy b d jackets from non-
snowboard brands like Old Navy, black slim-legged
skate/punk inspired jeans at the Gap or board short inspired
sheets at Pottery Barn
38
38

39. Fashion
39

40. Trends
• 48% of youth consider fashion and trends when
2
making a p
g purchase
• 26% females and 19% males say trends influence
2
their purchase
• Thrift and vintage stores increased the most in terms
4
of where young mostly people buy their clothes
• Spending on T-shirts denim jeans and footwear
T shirts, footwear,
specifically sneakers, have increased on average
4
since spring of 2006
• Stores such as Target and H&M have
commissioned well-known designers to create
accessible well-designed products
well designed
40
40

41. Denim
• Media exposure and visibility is on high end denim brands
like Paper Denim and True Religion (
p g ($150 - $250 per p ),
p pair),
but this is not a youth phenomena
• Youth generally spend under $40 per pair, but buy on
average six-seven
a erage si se en pairs per year
ear
• Levi’s still #1
41
41

42. Sneakers
• Shoes as a • Shoes as a • Skate
ism
kate
ban
canvas, fashion piece, inspired
Urb
reflect rich designs
designs, footwear
viduali
Sk
personality, materials worn by
showcase (Swarovski skaters and
color crystals) and non-skaters,
palettes, textures, paired with
Indiv
allow for themed skate and
design-it- patterns and higher
yourself colors, fashion
concepts
p alternative apparel
pp
styles such
as flats or
heels
42
42

43. Other Product/Cultural Trends
43

44. Tech Integration
Oakley MP3 & Bluetooth
Sunglasses
Levi’s iPod Jeans
Kyono iPod Jacket
Tunebuckle iPod Belt Nike iPod Running Shoes
Burton / Motorola Audex
44
44

45. Limited Edition
DC Shoes / New Era Set: 115 Sets
New Era Capture The Flag Series: 200
Hats Per Issue
Obey Poster: 100 Produced
y
Gorillaz Toys: 250 Produced
5Boro Beastie Boys
45
Skateboard: 100 Produced 45

46. Collaboration
Nike SB / Futura
Vans/ Marc Jacobs Burton / Stash
46
46

47. Customization
Nike ID
Boardpusher Custom
Skate D k
Sk t Decks
O’Neill Custom Series
Board Shorts
Burton Series 13
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47

48. Q&A: Any remaining questions?
48

49. Please contact me with any question @
bcarter@fusemarketing.com or 802 598 1008
b t @f k ti 802-598-1008
*As a reminder, you can download this presentation at
licensing.org and download the Fuse Advertising Study
g g g y
from fusemarketing.com
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50. Appendix
50

51. Resources
1) EPM Communications “Teen/Tween Crib Sheet.” <epmcom.com>.
a. Child’s Play Communications & Insight Research Group
b. Grunwald Associates
c. BuzzBack
d. Piper Jaffray
e. Harris Interactive
f. Simmons
g. Teenage Research Unlimited
h. Census Bureau
2) “Price Matters, Celebrity Doesn’t For Teen, Young Adult Purchases.”
PhatGnat, DK, Founder/President <phatgnat.com>. (Youth Markets Alert. 1
Sept 2006.)
3) Jayson, Sharon. Generation
Jayson Sharon “Generation Y Gets Involved.” USA Today 23 Oct 2006
Involved Today. 2006.
<usatoday.com>.
4) “Youth Culture Study Reveals Consumer Market Trends.” TransWorld
Business. 02 Oct. 2006. <twsbiz.com>.
5) “Marketing to Teens & Tweens.” EPM Communications Report.
6) “Generation Y Defined.” OnPoint Marketing and Promotions. <onpoint.com>.
7) “Civic-Minded Millenials Prepared to Reward or Punish Companies based on
Commitment t Social C
C it t to S i l Causes.” CONE 2006 Mill
” Millennial C
i l Cause St d
Study.
Business Wire. 24 Oct 2006. <businesswire.com>.
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51

52. Resources
8) O’Donnell, Jayne. “Gen Y Sits on Top of Consumer Food Chain.” USA
Today. 11 Oct. 2006. <usatoday.com>.
9) Kharif, Olga. Everyone s
Kharif Olga “Everyone’s Aiming at Satellite Radio ” BusinessWeek Online
Radio.
13 January 2006. <businessweek.com>.
10) MySpace.
11) “XM S t llit R di Thi d Q t 2006 S b ib Additi
Satellite Radio Third Quarter Subscriber Additions.” O bit
” Orbitcast. 4
t
Oct 2006. <orbitcast.com>.
12) “Music News.” What’s the Download? 13 Oct. 2006.
<whatsthedownload.com>.
13) “Music News.” What’s the Download? 19 Oct. 2006.
<whatsthedownload.com>.
)
14) “Music News.” What’s the Download? 24 Oct. 2006.
<whatsthedownload.com>.
15) “SIRIUS Satellite Radio Third Quarter 2006 Subscriber Additions.” Orbitcast.
4 Oct 2006. <orbitcast.com>.
16) Ipsos-Reid’s Digital Music Research Study. TEMPO, 2004.
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52

53. Resources
17) National Sporting Goods Association 2005 and 2006.
18) American Sports Data. 2002 -2005.
19) American Motorcycle Association
20) Freeskier Magazine.
21) “Mobile Gaming Grows.” Center for Media Research MediaPost
Communications. 15 M 2006 <centerformediaresearch.com>.
C i ti May 2006. t f di h
22) Elliot, Stuart. “Tony Hawk’s New Trick: 2 Marketers in 1 Campaign.” New
York Times. 23 Oct. 2006. <newyorktimes.com>.
23) GameSpot com
GameSpot.com
24) Entertainment Software Association
25) “Sneaker Culture Changes + Predictions – Preview from ‘North American
Youth Culture Study – Fall Report ’06 September 19 2006 ’” Label Networks.
06 19, 2006. Networks
<labelnetworks.com>.
26) “IG Picks.” Trend Central. 22 Sep. 2006. <trendcentral.com>.
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53

54. Resources
27) “Cassandra Report Day 2: Mainstream Green.” Trend Central. 03 Oct.
2006. <trendcentral.com>.
28) Jesella, Kara. Grunge Good.
Jesella Kara “Grunge is Good ” New York Times 22 Oct 2006
Times. 2006.
<newyorktimes.com>.
29) “The Trendcentral Newsletter.” Trendcentral. 18 Sep. 2006.
<trendcentral.com>.
30) Fixins Sneakers. 26 Sep. 2006. <fixins.com>.
31) Writer, Ghost. “DC Shoes X Methamphibian.” Hype Beast. 27 Oct. 2006.
y
<hypebeast.com>.
32) “Teen Spending.” High School Newspaper Network. Dept Zero.
33) Horovitz, Bruce. “Gen Y: A Tough Crowd to Sell.” USA Today.
y
<usatoday.com>
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