CONFIDENTIAL AND PROPRIETARY Copyright 2008 by Frank N. Magid Associates, Inc. Any duplication, reproduction, or usage of this document or any portion

CONFIDENTIAL AND PROPRIETARY Copyright 2008 by Frank N. Magid Associates, Inc. Any duplication, reproduction, or usage of this document or any portion thereof without the written consent of the firm is prohibited.

Presentation to:

Millennial Strategy Program®

American Tapestry: The Millennial Generation

News21 – Carnegie-Knight Initiative for the Future of Journalism

December 05, 2008

© 2008 Frank N. Magid Associates, Inc. 2

Frank N. Magid Associates, Inc.

Fifty years as leading media, communications, and entertainment research and strategy firm with clients in the U.S., Europe, and Asia

More than 300 employees serving clients from New York, Los Angeles, London, Minneapolis, and Cedar Rapids, Iowa

Large, experienced team of M.A. and Ph.D. analysts: social scientists, statisticians, and communication experts

Large consulting team with expertise in corporate strategy, brand development, communications plans and both traditional and new media strategies

Interviewed over 1 million consumers by phone, online, and in-person in 2007. Conducted thousands of B2B executive and professional interviews.

March 05, 2006Business and Technology

January 22, 2006Business and Finance

October 19, 2005Business and Finance


MSP® Engagements

ABC-Disney Television Group ABC Family Anheuser-Busch, Inc. AOL Bonneville International CBS Television Distribution Clear Channel Communications Comcast Cable Condé Nast Country Radio Broadcasters Assoc Cox Enterprises, Inc. Current TV Dale Carnegie Foundation DirecTV The Dispatch Printing Company Evening Post Publishing Fisher Communications Fleishman-Hillard General Growth, Inc. Hearst Corporation Lee Enterprises Media General Meredith Corporation Microsoft NBC The New York Times Company News Corporation Saban Capital Group, Inc. Sony Pictures Television Sony PlayStation/SCEA Tribune Interactive Washington Mutual Wrigley – USA Wrigley International

© 2008 Frank N. Magid Associates, Inc.

Research Methodology

Quantitative

Every other month Online survey 20-25 minutes Sample size ~ 2,000 Millennials, 500 Gen

Xers, 500 Baby Boomers Random sample representative of the

national online population and weighted to match the U.S. Census

Surveys are conducted in the English language

4

Qualitative

Focus groups Ethnographic exploration 1-on-1 interviews Friends groups

Conducted every other month


1945 1965 1977 1996

Generation X Born: 1965-1976

Children of the Silent Generation

Births per yeardecreased to 3.4 M per year

Major Events/Issues: WatergateOil Crisis

Cable television

Generations Are Defined By Birthrates And Common Experiences

Millennials Born: 1977-1996

Major Events/Issues:Clinton Impeached

9/11The Internet

Children of the Baby Boomer Generation Births increase to

3.8 M per year


Baby Boomers Born: 1945-1964

Children of the G.I. Generation

Births increased from 2.6 M to 3.9 M per year

Major Events/Issues: Vietnam War

Civil Rights MovementTelevision


Millennial Difference: Size

40

45

50

55

60

65

70

75

80

85

Boomers XERS Millennials

78

mill

ion

86

mill

ion

48

mill

ion

66Millennial Strategy Program™


The Millennial Generation will continue to become even more diverse due to immigration

Millennial Difference: Diversity

Millennial Strategy Program® Source: US Census, 2006

77


Millennial “Elevator Pitch”Collaborative * Optimistic * Influential




“You’ve Got Mail”

“Girls Rule”


9/11

Collaborative team players who think in groups and are hyper-connected to their “circle”

They’re optimistic about their place in the world

They are influential – they influence their friends, family, and the world at large due to their cohort perspective and size

9Millennial Strategy Program® 9


1976Gymboree Opens

Collaborative, hyper-connected, and exhibit an unfailing, inclusionary group mindset

Play group expectations

Emergence of the ‘active dad’

Birth of the Millennial social network

Societal Events That Helped Foster The Millennial Mindset


Adult Millennials Drive Social Network UseBased on weekly or more frequent users, ranked by Adult Millennials

General or broad social networking sites 52%

Niche or focused social networking sites 25%

Social play sites 28%

Gen Xers General or broad social networking sites 29%



Boomers General or broad social networking sites 13%



Millennial Strategy Program® Wave VIIIQ. 40-42 The following are types of social sites online. How often, if ever, do you use the following online sites – accessing the Internet with any device (computer, laptop, smartphone, PSP, etc)?

General or broad social networking sites 44%



Pre-Teens/Teens

Adult Millennials


0

10

20

30

40

50

60

70

0 20 40 60 80

Adult Mills Spend Substantial Time Communicating With OthersBased on Adult Millennials, minutes based on those who participate in behavior weekly

Ave

rag

e m

inu

tes

per

day

Percent participating in behavior weekly

Texting

E-mail Playing games

Using the calendar

Talking

Internet browsing

Checking weather

Listening to music

Reading news

Adult Millennials

Checking sports

Millennial Strategy Program® Wave VII – see Appendix for percentages for each behaviorQ. 20 During a typical week, Sunday through Saturday, which of the following do you engage in on your cell phone/smartphone? Q. 21(A-S) During a typical day how many minutes, on average, do you spend using your cell phone/smartphone for the following?


Millennials Leverage Their Social Circle To Reduce Costs

Millennial Strategy Program® Wave VIIIQ. 28 Overall, which of the following, if any, have you done to reduce costs, save money or make more money in the past 12 months?

Sharing costs with friends …

Borrowing rather than buying what I need …

28%Vs.

15% Gen Xers

10% Boomers

19%Vs.

10% Gen Xers

8% Boomer

13


1971Title IX

Optimistic and confident about their place in the world

Trickle down to young-girl athletic opportunities

Gender-gap reduction

Traditional barriers were not a significant part of the Millennial youth – dawning of girl power movement



Confident About Their Place In The World

Adult Millennials Gen X Boomers

Confident that “I will always”… (top 2 box)

Have an interesting and fulfilling career 45% 36% 33%

Be able to find good jobs throughout my career

44 36 32

Be well off enough financially during my career to live comfortably while working

40 32 32

Have the right amount and quality of education to allow me to succeed in life

51 38 44

Things in my life are…

Generally moving in the right direction 69% 66% 62%

Pretty much off track 19 22 24

Don’t know 12 12 14

Millennial Strategy Program®15

15


Demonstrate High Workplace Expectations – Especially Millennial Women

Pay Me Well 73% of Adult Millennial women

67% of Adult Millennial men

Respect Me 59% of Adult Millennial women


Give Me Good Benefits 40% of Adult Millennial women


Make My Work Environment Fun 36% of Adult Millennial women


Millennial Strategy Program Wave VI Q. 10M – The three best ways to keep me happy at my job are… Based upon those employed or looking for a job.


They Believe They Can And Should Tackle Big IssuesBased on Adult Millennials. somewhat or strongly agree with statement (4+5)

Agree

My responsibility to improve environment 79%

Feel like my generation left with problems 75

Too much talk not enough action 74

I can have positive impact 73

I want to be part of the solution 73

I am knowledgeable about environmental issues

67

More likely to watch/listen to/read story if involves environment

60

I research issues to see if they are true 51

I understand “carbon neutral” 44

No longer pay attention to news about environmental issues

33

Confident most issues solved in my life 32

Too much fuss made about environmental issues

31

Millennial Strategy Program Wave VII Q.73(A-L) How much do you agree or disagree with each of the following statements? Base = Split sample. Adult Millennials only. Agree (4+5)


1974AYSO Expands

Influence their circle and the world at large

The first “family” sport

Soccer moms and mini-vans

Birth of the don’t keep score, trophies for everyone phenomenon



Word-Of-Mouth Dominates As Source Of Coolest, Hottest, LatestBased on Adult Millennials who say the source applies to them

Q. 60(A-L) How important are each of the following in helping you keep up with the latest trends, the coolest things to do, or the hottest things to buy? *Asked of those 18 or older with kids

My friends

My kids*

My parents

Magazines

Web sites

Programs on Cable TV

Programs on Network TV

Social networking sites

TV commercials

Newspapers

Blogs

Billboards


Millennials Wield Significant Influence Within Their Families

Boomers and Xers say their Millennial children are more important sources of cool/hot/trendy information than their non-Millennial children

Parents

Non-Millennial

kids

65%

Millennial kids

48%

Influence

9500001Q. 60 How important are each of the following in helping you to keep up with the latest trends, the coolest things to do, or the hottest things to buy? Percent of parents saying “my kids” are important source


Millennials continue to be more likely than other generations to use the Web for political involvement

Top Campaign Interactions Include Peer Persuasion And Visiting Candidate WebsitesBased On Total Sample; Ranked By Millennials

21 Q. 19 Which of the following, if any, have you done as it relates to the 2008 Presidential campaigns, for any candidate? Base=Adults 18-62

Tried to convince friends, family to vote for a candidate

Visited a candidate’s official Web site

Posted online opinions or comments about a candidate

Placed a candidate’s bumper sticker on car, sign in yard or

similar

Visited the candidate’s page on a social networking site such as

MySpace

Commented about a candidate on my Web page such as on

MySpace

Fewer than 10% across all generations have:

•worked/volunteered on a campaign•attended a fundraiser•met a candidate •posted online video about a candidate•added candidate materials to their Web page •“friended” a candidate on a social network site



“You’ve Got Mail”

“Girls Rule”


9/11Financial Crisis 2008

Collaborative team players who think in groups and are hyper-connected to their “circle”

They’re optimistic about their place in the world

They are influential – they influence their friends, family, and the world at large due to their cohort perspective and size

22Millennial Strategy Program® 22


Lindsay SchutteDirector, Millennial Strategy Program®Frank N. Magid Associates, Inc

Direct: 818-263-3315Mobile: 323-445-3879


Appendix



Famous Faces – Millennial Strategy Program® Alum

Millennial Makeover: MySpace, YouTube, and the Future of

American Politics named Top 10 Book Of The Year

“In what turns out to have been a highly prescient book, the two authors predicted that 2008 would be a ‘change’ election, informed by new technology and by the outlook of a

new generation of Millennial voters, who tend to be more inclusive, optimistic and tech-savvy

than their elders.”

Michiko Kakutani, New York Times lead book reviewer

25

What The Authors Are Saying Now:

“Millennials remade U.S. politics in 2008, a happening we forecast in Millennial Makeover. But the Millennial Generation, the largest ever in American history, is not through changing the country. In the years just ahead, Millennials will completely reshape all of our society and economy--its corporations, workplaces, media, and marketing.

-Michael D. Hais ”Millennials remade American

politics this year, as predicted would happen in Millennial

Makeover. But the impact of America's largest generation in

history, Millennials, will be felt in areas far beyond politics in the years to come. This optimistic,

group-oriented generation of young people will completely transform how companies make decisions,

motivate their workforce, reach their customers, and promote their

brands.

-Morley Winograd

“

”


It’s “Cool” 49% of Millennials think

volunteering for local organizations is “cool.”

Nearly 60% of Millennial females think volunteering is “cool.”

And They Do It 48% of Millennials have

volunteered for a local organization.

A teen thing: 53% of 12- to 17-year-olds have volunteered locally.

Millennials Get Involved Locally . . .


26


Global Activism 40% of Millennials think it is “cool”

to be involved with an organization that deals with global issues.

The Environment 47% of Millennials think caring

about environmental issues is “cool.”

42% have actively supported an environmental issue.

. . . And Globally


27


Baby Boomers Most Reliant On Traditional Sources

67

34

34

42

57

59

65

69

71

83

53

34

0% 20% 40% 60% 80% 100%

Local TV News

Friends, family, or coworkers

Local Print Newspaper

National Network TV News

Radio

Web Portals

Cable TV News

National Morning Network Show

Website for National TV News

Local TV Website

Local Newspaper Website

Search Engines

9500021A Q. 11(A-Z) On weekdays, Monday through Friday, how often do you read, see, or hear news and information from the following? Based upon: Weekly

Tier 1

Tier 2

Tier 3

Baby Boomers(N=511)

New Media

Traditional Media


Gen Xers Use A Mix Of New & Traditional Media

52

54

56

61

65

73

77

48

37

34

34

29

0% 20% 40% 60% 80% 100%

Gen Xers(N=510)


Local TV News

Search Engines

Web Portals

Radio


National TV News

Cable TV News

National Morning Network Show

Website of National TV News

Local Newspaper Website

Local TV Website

9500021A Q. 11(A-Z) On weekdays, Monday through Friday, how often do you read, see, or hear news and information from the following? Based upon: Weekly

Tier 1

Tier 2

Tier 3

New Media

Traditional Media


Adult Millennials Are Most Reliant Upon Emerging Sources

50

52

55

56

58

68

69

75

81

39

40

42


Search Engines

Web Portals

Local TV News

SNS


Cable TV News

Radio

National TV News

Website National TV News

Satirical/Humorous Show

Late Night Talk Show

Adult/Millennials(N=1,157)

0% 20% 40% 60% 80% 100%

9500021A Q. 11(A-Z) On weekdays, Monday through Friday, how often do you read, see, orhear news and information from the following? Based upon: Weekly

Tier 1

Tier 2

Tier 3

New Media

Traditional Media


On Environmental Problems Millennials Are The Most Likely To Believe Individuals Should “Step Up”Based on Adult Millennials

Millennial Strategy Program Wave VII Q. 77 Which of the following do you feel is responsible for any current environmental problems in the U.S.? Q. 78 Going forward, which of the following do you feel is responsible for correcting or preventing environmental problems in the U.S.?

Adult Millennials Gen Xers Boomers

Cause Fixer Cause Fixer Cause Fixer

Public/Individuals

64%

Public/Individuals

67%

Corporations/Business

70%

National Government

74%


74%

National Government

71%


62%

National Government

65%

Public/Individuals

63%

Public/Individuals

68%

National Government

61%


66%

National Government

58%

Local/State Government

59%

National Government

62%


65%

Public/Individuals

57%

Public/Individuals

65%


50%


54%


53%


65%


49%


62%

PrivateOrganizations

43%


49%


47%


54%


40%


54%

Environmental Problems

Documents

CONFIDENTIAL AND PROPRIETARY Copyright 2008 by Frank N. Magid Associates, Inc. Any duplication, reproduction, or usage of this document or any portion