Marketing to Tweens &Marketing to Tweens & Teens: Insights, Strategy

and TacticsPresented by Bill Carter, Fuse

July 2010

11

Contents

• Teens & Tweens: Who They Are• Market PowerMarket Power• Technology, the Internet, and Social Media• Gamingg• Music• Sports • Fashion• Other Product/Cultural Trends

22

Fuse

Offices in Burlington

Founded in 1995

Offices in Burlington, VT & New York, NY

For more information Founded in 1995 see fusemarketing.com

Fuse develops marketing

strategies that h Brand Strategy F i l di th reach a mass

market while maintaining legitimacy

throughout youth culture

Brand Strategy, PR/Social Media, Event

Marketing, Design, Interactive

Fuse is a leading youth culture marketing services agency

33

Teens and Tweens: Who They Are

4

Population

Teens (Gen Y, Mill i l ) d Millenials) and tweens (Gen Z,

iGeneration, NetGen) are 8-19 year olds

born between about born between about 1991-2002

About 55 million in total or nearly 20%

f th US

Most ethnically diverse

generation to date (one in of the US

population

date (one in three is non-Caucasian)

33

55

Born At The Right Time

1991

Internet madeavailable

1996

Ebay goes live

2001

Wikipedia goes onlinecommercially

y g online

66

Social/Environmental

• 83% will have more trust in a company if it is socially/environmentally responsible3, 7y y p

• Nearly ¾ are more likely to pay attention to the company’s message if they are deeply committed to a ca se3, 7to a cause

• 69% base their shopping decisions on a company’s social and environmental p ycommitments3, 7

• Almost 90% would likely switch brands (if quality d i l) if d b dand price are equal) if a second brand was

associated with a good cause7

• 66% consider a company’s commitments when

77

66% consider a company s commitments when recommending it7

Historic Concerns

Money (and the current recession)

Independence (“DIY”)

Happiness

( DIY )

Happiness

88

Free Time

Friends Gaming

M i

Friends Gaming

Movies/DVD’s (mostly on the Music (mostly on the weekends/Su

mmer)

Free TV Internet

TimeTV Internet

99

Television

• Teens and tweens still watch a lot of TV – about two hours per dayp y

• While they watch TV, they multi-task: do homework, talk to friends on the phone, and spend time onlinetime online

• Fuse Teen Advertising Study available for free download here (http://www.fusemarketing.com/Youth_Research) in 2009 indicated teens approve of/think its appropriate for advertisers to reach them throughappropriate for advertisers to reach them through TV (ranking it the highest among any media)

1010

Market Power

11

Market Power

Spending power d $200 billi

6exceeds $200 billion

They buy

Gen Y influences another $300 -

They buy products that are either

cheap or $300 -$400

billion33

pelite, not

much middle ground

8

Spend an average of $30 per mall visit

33

1212

$30 per mall visit

Where Money Is Spent

• Tweens spend money on entertainment and things they can use at home with their friends since they y yare less independent• Video games, music, toys

• Teens spend money on activities away from home because they are more independent• Going to the movies eating outGoing to the movies, eating out

1313

Spending Habits

More brand loyal than you’d think, more than

50% purchased the same b d t t f th 15% of total spending is 1 44% go to the mall at 1fbrand on two out of three

of last shopping trips across all brand

categories32

15% of total spending is done online

1e 44% go to the mall at least once every month

1f

19% of their disposable income is spent on

5.6% on accessories/personal care 14% buy four or more

i f j i 1fincome is spent on

clothing1d accessories/personal care

items1d pairs of jeans in a year

10% of 12 – 19 year-olds have their own credit 1e

1414

card1e

Consumer Profile

• They are critical and highly savvy consumers• Price is the number one purchasing factor for 70% ofPrice is the number one purchasing factor for 70% of

this population2

• One-quarter consider brand names as an important 2factor when buying new products2

• They are turned off by blatant branding and the hard sellsell

• They like products that let them show individuality8

1515

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 no impact on their purchasing decisions2no 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 purchasing decisions2

1616

Technology, the Internet, and Social Media

17

Born Into Technology

Tweens and teens were born into a world that already included:• 24 hour cable TV news and 

ientertainment • Mobile phones• Video gaming industry with multiple console and hand‐held brands

18

Technology Usage

Technology Approximate Percentage of Tweens/Teens UseTweens/Teens Use

Computer 80

Cell phone 80 (for teens)

DVD player 85

Gaming device 75g

19

Internet

Social 

VideoMedia 

Video Sharing Search

Most

g

Most Popular 

Destinations

20

E-Mail

• E mail while still used by tweens and teens• E-mail, while still used by tweens and teens continues to diminish in importance

• Rapidly being replaced by daily use of IM and social p y g p y ymedia (Facebook and twitter in particular)

• Marketers should not expect youth to communicate with them by email but rather social media norwith them by email, but rather social media – nor should marketers consider e-mail a marketing tactic

21

New Sites

• How they learn about sites is critical for marketers• Most important are referrals from friends (includingMost important are referrals from friends (including

discussions with friends on Facebook) • Links from other sites are very important too

22

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 pict res/ ideopictures/video

23

Social Media

FacebookFacebook

MySpace

twitter Tumblr24

Social Media

• Connecting with friends is by far the most prevalent reason youth uses social mediareason 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

Gaming

26

Who’s Playing

• Age gamers• Under 18: 31%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• 61% of teens (80% males and 42% females) play video games in a given week

• 38% of all players are women

27

Frequency

• Youth who game spend about one hour per day doing itg

• They purchase just a handful of new games per year

28

Consoles & Handhelds

• Most videogame play is on a console• PS and XBOXPS and XBOX

• Tweens and teens also do a significant amount of gaming online/through websitesT lik l t h dh ld th• Tweens are more likely to use a handheld than a teen• Wii and Gameboyy

• Fuse’s Teen Advertising Study in 2009 found that only 10% of teens think in game advertising is acceptable way to reach themacceptable way to reach them

29

Casual Gamers

44% of game players say they play online for one or more

More people spending more time playing Web Browser mini‐games such as poker 

th l i “ i ” M ltiplay online for one or more hours per week than playing “serious” Multi‐

Player Online Role‐Playing games like World of Warcraft

The average adult woman gamer plays games 7.4  The average adult man gamer 

l 7 6 h / kg p y ghours/wk plays 7.6 hours/wk

Females average two hours of game play 

more per week than they did

30

more per week than they did a year ago

Music

31

Music Basics

Youth listen to music more than five hours per day – far exceeding other media and entertainment

Most new music is

found on the inte net and

Nearly half of teens prefer to

buy music online (digital internet and

from friends(digital

downloads) versus at a retail store

Even young teens spend over $25 per month on

music

3232

Downloads

• iTunes is the dominant player and as much as 7x more popular than its nearest competitormore popular than its nearest competitor

• Amazon.com is surprisingly popular, while retail sites like FYE.com are not

3333

Sports (Action Sports)

34

Importance

• Sports such as skateboarding, BMX and snowboarding that embrace individuality, creativity g y, yand style

• These sports have high rates of youth participation and spectatorship (33+ million participants18)and spectatorship (33+ million participants )

• For many, they are a complete lifestyle rather than just an activityj y

3535

Growth

• The fastest growing sports in the US are action sportsp

Sport Total Participation* 6 Year % Growth**

S fi 1 936 000 +38 8%Surfing 1,936,000 +38.8%Skateboarding 10,592,000 +47.3%

Snowboarding 7,110,000 +30.2%

Wakeboarding 2.843,000 +26.2%

BMX 2,642,000 NAM t / FMX 5 000 000 NAMotocross / FMX 5,000,000 NA

Freeskiing 3,500,000 NA

Totals 33 623 000

3636

Totals 33,623,000

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 gamesF iliti th t f t ti t ti t• Facilities that foster action sports continue to emerge

• Skateparks (over 2,000 parks in existence)• Ski / Snowboard terrain parks• Ski / Snowboard terrain parks• Action Sports Camps (Woodward, Point X

Camp, Mount Hood)

3737

Action Sports Influence

• Youth that don’t skate/surf/snowboard still want to identify with the lifestyles associated with these sportsC b b d j k t f• Consumers can now buy snowboard 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 Barnsheets at Pottery Barn

3838

Fashion

39

Trends

• 48% of youth consider fashion and trends when making a purchase2g p

• 26% females and 19% males say trends influence their purchase2

• Thrift and vintage stores increased the most in terms of where young mostly people buy their clothes4

• Spending on T-shirts denim jeans and footwearSpending on T shirts, denim jeans and footwear, specifically sneakers, have increased on average since spring of 20064

• Stores such as Target and H&M have commissioned well-known designers to create accessible well-designed products

4040

accessible well designed products

Denim

• Media exposure and visibility is on high end denim brands like Paper Denim and True Religion ($150 - $250 per pair), p g ( p p ),but this is not a youth phenomena

• Youth generally spend under $40 per pair, but buy on a erage si se en pairs per earaverage six-seven pairs per year

• Levi’s still #1

4141

Sneakersis

m

• Shoes as a canvas, reflect b

an

• Shoes as a fashion piece, rich designs kate • Skate

inspired footwear

vidual

i reflect personality, showcase color palettes,

Urb rich designs,

materials (Swarovski crystals) and textures,

Sk footwear

worn by skaters and non-skaters, paired with

Indiv palettes,

allow for design-it-yourself concepts

textures, themed patterns and colors, alternative

paired with skate and higher fashion apparelp

styles such as flats or heels

pp

4242

Other Product/Cultural Trends

43

Tech Integration

Oakley MP3 & Bluetooth Sunglasses

Kyono iPod JacketLevi’s iPod Jeans

4444

Tunebuckle iPod Belt Nike iPod Running Shoes Burton / Motorola Audex

Limited Edition

DC Shoes / New Era Set: 115 Sets

New Era Capture The Flag Series: 200 Hats Per Issue

Obey Poster: 100 Produced

45455Boro Beastie Boys

Skateboard: 100 Produced

yGorillaz Toys: 250 Produced

Collaboration

Nike SB / Futura

4646

Vans/ Marc Jacobs Burton / Stash

Customization

Nike ID

Boardpusher Custom Sk t D k

O’Neill Custom Series Board Shorts

Skate Decks

4747

Burton Series 13

Q&A: Any remaining questions?

48

Please contact me with any question @ b t @f k ti 802 598 1008bcarter@fusemarketing.com or 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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Appendix

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Resources

1) EPM Communications “Teen/Tween Crib Sheet.” <epmcom.com>.a. Child’s Play Communications & Insight Research Groupb. Grunwald Associatesc. BuzzBackc. BuzzBackd. Piper Jaffraye. Harris Interactivef. Simmonsg. Teenage Research Unlimitedh. 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 Y Gets Involved ” USA Today 23 Oct 20063) Jayson, Sharon. Generation Y Gets Involved. USA Today. 23 Oct 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 C it t t S i l C ” CONE 2006 Mill i l C St d

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Commitment to Social Causes.” CONE 2006 Millennial Cause Study. Business Wire. 24 Oct 2006. <businesswire.com>.

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 Aiming at Satellite Radio ” BusinessWeek Online9) Kharif, Olga. Everyone s Aiming at Satellite Radio. BusinessWeek Online 13 January 2006. <businessweek.com>.

10) MySpace.

11) “XM S t llit R di Thi d Q t 2006 S b ib Additi ” O bit t 411) “XM Satellite Radio Third Quarter 2006 Subscriber Additions.” Orbitcast. 4 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>.

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16) Ipsos-Reid’s Digital Music Research Study. TEMPO, 2004.

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 C i ti 15 M 2006 t f di hCommunications. 15 May 2006. <centerformediaresearch.com>.

22) Elliot, Stuart. “Tony Hawk’s New Trick: 2 Marketers in 1 Campaign.” New York Times. 23 Oct. 2006. <newyorktimes.com>.

23) GameSpot com23) 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 NetworksYouth Culture Study Fall Report 06 September 19, 2006. Label Networks. <labelnetworks.com>.

26) “IG Picks.” Trend Central. 22 Sep. 2006. <trendcentral.com>.

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Resources

27) “Cassandra Report Day 2: Mainstream Green.” Trend Central. 03 Oct. 2006. <trendcentral.com>.

28) Jesella Kara “Grunge is Good ” New York Times 22 Oct 200628) Jesella, Kara. Grunge is Good. New York Times. 22 Oct 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. <hypebeast.com>.y

32) “Teen Spending.” High School Newspaper Network. Dept Zero.

33) Horovitz, Bruce. “Gen Y: A Tough Crowd to Sell.” USA Today. <usatoday.com>y

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