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are coping with it all Quite well if we're talking about Millennials May 12, 2009 The recession certainly hurts for everyone, whether young or old, but it’s also teaching media buyers and planners new things about the people they are trying to reach. While Millennials, those ages 18-29, are usually made out to be selfish and spoiled, some of them are approaching this economic downturn with perhaps more sanguinity than their elders. Many see the bum housing market as an opportunity to buy a home and layoffs as a chance to start businesses. And nearly all agree that if money were to become really tight, they’d forgo more traditional forms of entertainment in order to keep newer ones, like smart phones and web connections. That’s according to a new study from JWT, the New York-based agency. But in contrast the JWT researchers found that teens are surprisingly anxious over the recession as they are forced to abandon some of their more materialistic aspirations for the good of their families. Ann Mack, director of trendspotting at JWT, talks to Media Life about Millennials’ pragmatic approach to the downturn, the deepest fears of teens, and how best to engage young people during a recession. What's the most important thing media buyers and planners can take from this study? Teens and twentysomethings already see their mobiles and the web as extensions of themselves, and the downturn is only increasing that bond and time spent with these platforms. The two things that 18- to 29-year-old Millennials are most opposed to giving up if budgets become tight are their internet connection and their mobile/smart phone (only 11 percent said they would get rid of each). Meanwhile, 90 percent and 73 percent of teens would be reluctant to relinquish their internet connection and mobile phone, respectively, if times became really tough. The web and mobile devices offer connectivity and a wide array of content and applications at little to no cost, and as a result, they can easily replace paid products and services. They also provide social connectivity, which is the air Millennials breathe. Today social connectivity is entertainment. So what’s ditchable are traditional forms of entertainment. This is all the more reason to invest in mobile and internet marketing initiatives. Why do Millennials in particular feel that the recession has dealt their generation an unfair blow? The Millennial generation has never before faced adversity of this proportion. They are new to a tight job market where wages are depressed. The once-reliable system has proved unpredictable and scary. But while there is a pervasive sense of resentfulness among twentysomething Millennials, they are finding advantage in adversity. Note how the recession is shifting the conversation from Millennials’ narcissism and sense of entitlement to their ingenuity. A good portion of them see this as a market for first-time home buyers and entrepreneurs, and they’re prepared to act. How can marketers best reach out to Millennials in this situation? Brands can tap into the aspirations and optimism of these young adults, whose eyes are open to the timely opportunities that may present themselves during this rough patch. A good way to build confidence is through hope—giving young consumers a chance to be proactive and plan practically for their future. How has the economy impacted the hopes and fears of teens, and how long will this shift likely be in effect? Economic worries are indeed trumping typical egocentric concerns for teens. Parents are having tough conversations with their kids about downsizing expectations. So teens are growing up—at least a little bit—as a result of the financial crisis. They are developing a new sensibility when it comes to money and brands, making value assessments that they haven’t before. Impulse (“I see, I want, I get”) is giving way to value consciousness—in some categories teens have a very clear perception of which brands provide better value. Teens are part of a movement away from conspicuous consumption, as glorified in recent years by shows like “My Sweet Sixteen” and “Gossip Girl.” What’s becoming more cool is conscious and creative consumerism—where cheap is chic, bargain-hunting begets bragging rights and doing more with less carries greater badge value than the latest it bag or logo-laden attire. Are teens more anxious about the recession than their parents? Teens are not more anxious than their parents, but they are more anxious than their parents realize: 64 percent of teens say they are nervous or anxious about everything that’s going on in the world, the country and their family’s life, while 54 percent of parents would describe their teens that way. It’s no wonder that teens are anxious: Seven in 10 teens have spoken with parents about the economic crisis, and six in 10 have spoken with teachers—so it’s likely that teens are drawing some of their anxiety from these conversations. Parents especially have had to have tough conversations with their teens—about being unable to afford a big purchase, downsized vacation plans or the need to cut back on costly extracurricular activities. Four in 10 teens are also getting recession-related information from TV news shows and programs like “The Daily Show.” They are being hit by bad news at home, hearing about the crisis at school and on TV, and facing the reality of it in their lives—whether that means forgoing a new game system, gymnastics lessons or the traditional family getaway. What extras are Millennials least likely to give up during this time? There are many luxuries that 18- to 29-year-old Millennials feel they could cut out altogether when looking to tighten up their budgets. The list includes: • DVR/TiVo subscription (61 percent would get rid of it all together) • Magazine subscriptions (74 percent) • Paying to download music (65 percent) • Buying video games/equipment (61 percent) • Dining out (46 percent) • Attending sporting events (47 percent) • Alcohol consumption (46 percent) As in past recessions, brands will have to communicate a value proposition loud and clear to justify higher price tags and to shift the conversation from “Is this the cheapest I can find?” to “What do I really get for my money with this product or service?” The key is to make it less about price and more about price worthiness. Unlike in past recessions, one smart way for brands to do this will be to play up the experiential nature of their products or services—the aspect that can’t be replicated online—given that Millennials are spending more and more time in the virtual world. What makes watching a show on a television more appealing than seeing it online? How can dining out or sharing drinks with friends be a uniquely memorable experience? How does Millennials' and teens' anxiety over the recession differ from older generations'? This is truly Generation O. They came of age during a presidential campaign in which Barack Obama sailed into the White House on a message of hope. And while the post-election euphoria has given way to the inevitable roll-our-sleeves-up, get-to-work letdown, Millennials are still holding on to an optimistic belief in a brighter tomorrow. “Can’t” has been excised from their vocabulary. Some may call this naïve; they see it as opportunistic. And let’s face it: The traditional barriers to entry that beset previous generations have been obliterated. Thanks to virtual networks and open-source software solutions, digital natives are able to exercise ingenuity and entrepreneurialism. Great ideas and savvy marketers can gain attention seemingly overnight. Facebook is the new contact and content management software, Twitter the new newswire.
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