the good, the bad and the brands - millennial rules · the good, the bad and the brands . who...

The good, the bad and the brands who listenMillennials require brands and advertising to be subtle, authentic, impressive and passionate.

In the last chapter we looked at the phenomenon of online research and the fact that millennials spend hours at it. We know it is commonly seen only as diligent trawling in pursuit of cheap prices but we believe it is far more than that.

It is fun and inspirational and it is ‘content’ to be enjoyed and to look savvy by. Far from downgrading brands, it makes brands the stars. It is an enjoyable game of hunting down the lifestyle, the image and the values of the brands you favour.

With the rise of ad blocking, the ability to skip adverts and an overall decline in commercial TV viewing, it is often thought that millennials are cynical and hate all advertising. This couldn’t be further from the truth – they simply hate bad advertising. And when given a choice to avoid bad advertising, they will. They are particularly critical and hard to impress because they are in fact savvier to what good advertising looks like.

It is important to understand that millennials are no longer passive consumers of media like older generations, they don’t wait to see whats on TV, they use on demand platforms like Netflix. They don’t have to listen to the radio, they can stream any music of their choice from Spotify. This ability to choose how to consume media has a massive effect on their choice to consume advertising.

Being a harsh critic

As can be seen in the next table, the majority of millennnials consider themselves to be harsh critics of advertising (as is the case for 40-50s too) but amongst the millenials the majority of those who are harsh critics actually like good advertising and are only harsh on advertising that is poorly executed. Conversely, amongst the 40-50s, the majority of those harsh on advertising are people who dislike all advertising.

The good, the bad and the brands who listen

44%

Older Gen X

Total Millennials Younger Millennials Older Millennials

41% 45%

Younger Gen X

46% 43%

I tend to be a harsh critic of advertising (Millennial Rules)

Not a harsh critic of advertising

I’m a harsh critic of bad advertising because I like good advertising and so bad ads offend me

I’m a harsh critic of advertising because I dislike all advertising

Total Millennials

33%

Younger Millennials Older Millennials

34% 32%

Younger Gen X Older Gen X

33% 27%

Total Millennials

23%


25% 23%


23% 30%23 Robert Heath, Seducing the Subconscious: The Psychology of Emotional Influence

in Advertising 2012

“What is important to understand is that mistrust is not ingrained in millennials – yes, a certain level of cynicism can lead to bad performance in brands but what is important to understand is that cynicism is not ingrained in us, it comes from marketing laziness” (Younger Millennial).

We found that millennials define great advertising as that which is subtle, authentic, impressive and makes a real effort. Here we look into these four key watchwords…

Subtle

Millennials are still exposed to an enormous amount of advertising. They see a much higher proportion of it on social media and due to their mobile phone usage, they’re probably exposed to interruptive formats on a daily basis. As a result they see a lot of poor quality advertising.

“The worst thing ever is when you go on Instagram and this girl is holding these pills saying these pills will make your hair really silky and I’m thinking there’s no way in hell I’d do that. That kind of advertising is so stupid and I can’t believe people fall for it. It’s got to be so subtle now because we’re so aware we’re being sold to all the time” (Older Millennial).

It is interesting that, at a time when millennials are spending their time online researching they aren’t asking advertisers to provide more ‘features and benefits’ style advertising that might aid research. Instead they want to be inspired and engaged. They want to be excited by brands, giving them something to go on and research. They want you to draw them in.

“Advertising gives us a dreamland to escape to and fuels aspiration”

(Younger Millennial)

Total Millennials

39%


42% 37%


34% 34%

“I think young people react better to advertising that is different, exciting and memorable as opposed to being informative” (Younger Millennial).

“Advertisers need to work to create emotional engagement with millennials. An advert needs to give more than just a simple product description and a reason to buy. Millennials react best to something that they can really relate to or an advert that they can become immersed in” (Younger Millennial).

“There are some brands that are like the boring person at the party that only talk about themselves and they’re the brands that are struggling. The brands that are more involved are the ones that are engaging” (Younger Millennial).

In short, millennals have become very wary of hard sell ads and good advertisers are learning to be subtle.

I dislike advertising that is very obviously trying to sell something

Authentic

We often hear that millennials demand authenticity within advertising but what does it really mean? It isn’t, after all, that anyone demands inauthenticity. Nor is it that they think only in a rigid and linear way, unable to comprehend the idea of a beer brand doing anything but talk about beer or a soap brand about soap.

Millennials give you a broad licence to align yourself with causes or lifestyles, once it feels authentic. This means that brands need to be seen to be deeply involved in the things they align themselves with.

“It’s difficult not to be cynical in such a consumer driven, money obsessed world. Adverts I like are those that have deeper meaning” (Younger Millennial).

Millennials love cause marketing but are cynical if that’s simply ‘aligning’ to a charity. The brand has to be seen to do something more than contribute a small share of revenues. A good example is TOMS, who donates a pair of shoes for every pair a customer buys.

“When a brand says it gives 10% to charity it doesn’t mean anything anymore, you have to believe in them” (Older Millennial).

“I actually bought a pair of TOMS shoes because it made me feel good about myself and like I was giving something back too” (Older Millennial)

Native advertising and sponsored content are great ways to deeply align your brand with causes or lifestyles.

Done well (and with an eye on environmental fit) these can be very successful. AdYouLike27 found that 60% of millennials will happily read content that has been sponsored (especially the younger millennials) and Yahoo28 found a third will share it. These figures could even be higher if all native advertising and sponsored content was as good as it could be.

“Sponsored content? I see this on Buzzfeed and MailOnline and will read the articles and enjoy them as long as they are not obviously littered with references to the sponsor. I will become cynical that they are biased if there are too many references or they seem pushy. I wouldn’t want to avoid or block this type of advert”

(Older Millennial)

In fact, according to Insights in Marketing research29, mentioning a product or service in content, even briefly, lessens trust in three out of ten readers. In Marketing to Millennials30, the authors advise that content marketing should be seen as a way of gaining cultural relevance, making sure not to make millennials feel ‘marketed to’.

Being authentic means becoming deeply involved in the causes and lifestlyes you align your brands with. Native advertising is a great opportunity – just remember to be subtle too.

27 AdYouLike research 2015

28 Yahoo! Research 2014

29 Insights in Marketing research, 2015

30 Fromm, Jeff and Christine Garton. Marketing to Millennials: Reach the Largest and Most Influential

Generation of Consumers Ever. 2013.

Environmental fit (Millennial Rules)

Advertising that fits the environment it is in is more likely to engage me

Impressive

“It’s got to be impressive, it’s got to make an impact”(Younger Millennial)

Millennials aren’t a captive audience for advertising. This generation watch only 80% of the live TV that people their age watched ten years ago31. They fast-forward, skip and block advertising (with 18-24 being the most likely to download and use ad blockers).

Proportion watching less live commercial TV now than they were a few years ago (Millennials Rules)

Total Millennials

48%


52% 45%

40% 39%

Total Millennials

54%


55% 53%


56% 36%

Proportion who ever pre-record TV programmes so they can fast forward through the advertising when they watch them (Millennials Rules)

Total Millennials

74%


74% 74%


68% 71%

31 Enders Analysis, BARB/Infosys+, 2015

Total Millennials

46%


49% 43%


49% 53%

Always

Total Millennials

94%


95% 94%


92% 90%

How often they choose to ‘skip’ when watching a video ad online that allows them to skip it after five seconds (Millennial Rules)

Ever


Devices on which they use ad-blocking technology (Millennials Rules)

Base: All who use online ad blocking software

Smartphone

Tablet

PC (Desktop or laptop)

Total Millennials

38%


39% 38%

Proportion using ad-blocking technology (Millennials Rules)

Yes, using now

Yes, use them now on all devices

Total Millennials

58%


59% 55%


55% 57%

Total Millennials

21%


34% 32%


33% 27%

Total Millennials

27%


18% 34%

Total Millennials

84%


86% 83%

Total Millennials

63%


65% 61%

“Last week I spent the week at home and not at university, and it was strange to be surrounded by television adverts. My mum said to me ‘Have you seen this advert? It really annoys me, does it annoy you?’ I don’t watch live TV at uni”


“It is no longer a given that we just have to accept these commercial messages anymore. We can choose for ourselves rather than have someone else choose for us” (Younger Millennial).

They demand impressive advertising to stop them skipping.

“I don’t think I have a right not to be exposed to advertisements but I do think I have the right to pick and choose what I want to see” (Younger Millennial).

What kind of advertising will they pick and choose? The tables below show the extent to which different approaches have an opportunity to arrest their interest.

Factors that stop them skipping an online video ad after five seconds (Millennials Rules)

The ad being relevant to me

Good humour in the advertisement

Total Millennials

45%


52% 40%

The ad is about my hobbies/interests

Total Millennials

35%


41% 31%

The ad being visually appealing and attractive

Total Millennials

32%


27% 35%

I’ve been distracted

Total Millennials

19%


22% 16%

The ad inviting me to participate in something interesting

Total Millennials

11%


12% 11%

Ads that look striking or beautiful

Total Millennials

15%


17% 13%

Ads that help you research purchases

Total Millennials

13%


14% 13%

Total Millennials

12%


11% 12%

Ads that help you keep up with the trends

Total Millennials

10%


10% 11%

Ads that give you something to do or play

Total Millennials

12%


8% 15%

The types of advertising they think they would miss if they used ad blocking technology (Millennials Rules)

Based on those who don’t currently use ad blocking software

Information about deals

Humorous ads

Ads that are relevant and targeted to you

Ads that are about your hobbies/interests

Total Millennials

29%


26% 32%

Total Millennials

20%


26% 17%

Total Millennials

18%


20% 17%

Total Millennials

20%


19% 21%

Great deals and a sense of being targeted are two ways to impress them. In fact, some don’t delete their cookies in order to receive targeted ads.

Proportion who sometimes choose not to delete their cookies so advertising remains targeted to them (Millennials Rules)

Captivating imagery and great humour are two timeless ways to engage them. Millennials are as impressed by great display advertising as people always have been.

“Beautifully shot, beautifully drawn or hilariously funny”


“Even though this is just a traditional advert, it is quirky and memorable, which is what makes it effective in my eyes” (Younger Millennial).

Total Millennials

26%


29% 24%


26% 14%

“With me, what keeps me looking at an advert and not for the skip button is the cleverness of the ad itself. Ads should make the target audience think for a short time “what is the message here?” before understanding it and receiving a sense of achieved satisfaction. So, be attentive to wisdom and creativity in your marketing and we’ll be attentive to the ads” (Younger Millennial).

Millennials are also all too aware what can be achieved in these days of digital interactivity, gamification and personalisation.

“Let us be part of the advert, give us a game to play, reward us, don’t just tell us!”


The book Marketing to Millennials32 advises; ‘Create a well-rounded engagement strategy. Employ all the facets of the participation economy.’

Social media offers a great opportunity for interaction. Generally, people will interact with brands on social media – and millennials no less so.



Interacting with brands and advertising on social media (Millennials Rules)

Based on those using social media

Followed a brand or company

Posted about / shared advertising you liked

Total Millennials

62%


71% 55%


56% 51%

Total Millennials

19%


19% 19%


22% 15%

Taken part in a brands marketing campaign on social media e.g. using their hashtag or posting pictures at their event

Contacted a company to praise their products / service

Total Millennials

17%


18% 17%


17% 11%

Total Millennials

16%


15% 18%


19% 14%

Total Millennials

18%


14% 21%


16% 16%

Won something from a brand (perhaps because you followed them, liked them or posted something)

Effort

I really like advertising when the advertiser has made a real effort to engage me

“With some ads you can see the amount of effort”

(Older Millennial)

“We aren’t going to buy something if we see there is no marketing effort in it” (Younger Millennial).

“If you put real effort into it and think about consumers rather than product we’ll love you better than ever before” (Younger Millennial).

When we drilled into this, what became clear was that great effort means creating a balanced value exchange. Millennials want something back for the time or effort they spend with your campaign.

For example, it is often said that millennials will co-create with brands, using their digital skills to produce content or pick up the theme of a campaign and run with it. This creates remarkable opportunities for companies, as millennials can be part of your creative or new product development (NPD) teams.

Total Millennials

56%


58% 54%


59% 44%

However, there needs to be something in it for them or they won’t co-create with you. Worse still, they might use their creativity and social media reach to lampoon your attempt to involve them without offering something back.

Use of social media to protest about/lampoon advertising (Millennials Rules)

Based on those using social media

Protested about advertising you didn’t like (including making fun of it)

A good way to look at the value exchange is to think about the parts of the millennial story we’ve looked at in this report.

The story began with experiences – and many brands offer a value exchange through the sponsoring or creation of experiences.

It then moves to competition. Remember how competitive life is for millennials. They are constantly looking for the edge over their peers. They would love to use their skills to contribute to your campaign if it helped them get on. One millennial talked about trying to break into photography by entering brand competitions; “It’s a way to get into an industry that is quite hard to get into, so they are giving something. It’s a CV thing”.

In fact, the advertising tactic currently most appreciated by 25-34s, is helping them learn new skills like learning to code.

Total Millennials

13%


9% 16%


12% 7%

Another way they will use their skills in your service is if they get something personalised from it. They’d love to design for you if they were able to personalise your product. Futurologist Tracey Follows33 predicts “an explosion in the number of co-creative, collaborative, customisable services that allow for consumers to express their own stories, character, or design ideas – within a product, or through a brand.”

33 Tracey Follows, The future of average: why millennials and Gen Z are striving for the unique, Marketing

Magazine, 2015

Making their advertising relevant to real-time events or something going on in the news

Total Millennials

37%


37% 38%

Organising or sponsoring events that are relevant to you e.g. music festivals, sporting events, pop-ups, installations andlive experiences

Total Millennials

37%


39% 36%

Asking you to use your creativity to add to their campaign, for example by including your idea, photography, design or writing

Total Millennials

35%


34% 35%

Encouraging you to share pictures or videos on social media of you and your friends to show support in something the brand is doing

Total Millennials

30%


28% 31%

Proportion who said they actively liked these advertiser tactics (Millennial Rules)

Helping you to learn skills for example baking or learning to code

Allowing you to personalise a product e.g. in its design, your name etc.

Encouraging you to share your thoughts and feedback in order to shape the development of a new product

Supporting charities in ways beyond just donating a percentage of their profit and providing easy ways for you to get involved

Total Millennials

47%


42% 50%

Total Millennials

40%


37% 43%

Total Millennials

40%


40% 41%

Total Millennials

43%


48% 41%

Creating or sponsoring content on topics that you are interested in

Total Millennials

34%


39% 30%

Involving your friends by jointly incentivising you; encouraging you to make a recommendation and them to sign up/make a purchase

Total Millennials

28%


27% 29%

Involving your friends by jointly incentivising you; encouraging you to make a recommendation and them to sign up/make a purchase

Total Millennials

29%


29% 29%

And finally, remember millennials are savvy. As the book Marketing to Millennials34 says:

“Millennials are savvy. They are willing to invest in you as much as you invest in them. Brands that approach the relationship with these young consumers as a lifetime one versus a one-night stand will enjoy higher returns”.



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