The role of brand, advocacy & trust for generation Y and ZPippa Bailey –Ipsos MORI May 2016 for generation Y and Z The role of brand, advocacy & trust. ... Ipsos MORI Issues Index

© 2016 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may

not be disclosed or reproduced without the prior written consent of Ipsos.

1The role of brand, advocacy and trust for generation Y & Z | May 2017| Version 1 | Public | FDIN conference 2017

Pippa Bailey – Ipsos MORI

May 2016

for generation Y and Z

The role of brand, advocacy & trust


Age versus period versus generation

3 potential types of change:

Cohort effect: a cohort has different views and these stay different over time

Period effect: attitudes of all cohorts change in a similar way over the same period of time

Lifecycle effect: peoples’ attitudes change as they age i.e. attitudes can be shifted by certain stages in people’s lives or life events

Must question

ourselves when we

look at data and

ask.. ‘is this a true

cohort effect of

something else’


Generational definitions and values or stereotypes?

Traditionalists

(1925-1945)

Baby Boomers

(1945-1965)

Generation X

(1965-1980)

Millennials or

Generation Y

(1980-2000)

Generation Z

or Gen Next

(post 2000)

Mantra & RewardCore Values

Value hierarchical structures

Discipline, Respect, Patriotism, Frugality

Value inclusive leadership

Challenge Status Quo, champion causes,

Buy now pay later

Value Independence

Education, Balance, Family,

Risk takers, save for later

Value teamwork

Change the rules, citizens of the world, self

expression, instant gratification

Value collaborative environments

Privacy, Humility, Social Conscience,

Saving Money

Poor but proud

Seniority is respected

No pain, no gain

Contributions are valued

Work smarter, not harder

Time is valuable

I’m entitled

You can make a difference

Be the change

You are part of the process

71+ Years

51-71 Years

36-51 Years

17-36 Years

11-17 Years


Exceptional world in which Gen Y & Z have/are growing up in…

Birth of the Internet Smart Phones Social MediaYouTube (and the

rise of ‘vloggers’)Google Sharing Economy

Creation of the EU 9/11Biggest recession

since ‘29

Terror attacks in major

European cities

1st Black American

PresidentBrexit

Channel Tunnel

opens

Princess Diana

killedHarry Potter

Same sex marriage

legalised

Dolly the sheep

cloned

Rise of Reality

Television

The role of brand, advocacy and trust for generation Y & Z | May 2017| Version 1 | Public | FDIN conference 2017 5

Outlook on life


Traditional risky behaviours have declined…

10

20

30

40

50

60

70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Smoked cigarettes Drunk alcohol Taken any drugs

Ever smoked, drunk alcohol, taken drugs: 2005-2014 (secondary school children)

Base: All pupils in years 7 to 11: 2005 (9,092); 2006 (8,152); 2007 (7,738); 2008 (7,750); 2009 (7,612); 2010 (7,254); 2011 (6,446); 2012 (7,538)

Source: Smoking, drinking and drug use among young people in England, NatCen Social Research (2014)


They are more open in many ways

What would you say is the most important issue/other important issues facing Britain today?

IMMIGRATION

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pre-war (born before 1945) Baby boomers (born between 1945 and 1965

Gen X (born between 1966 and 1979) Gen Y (born since 1980)

Gen Next (born after 1995)

Source: Ipsos MORI Issues Index


But young have a more positive perception of the EU

All data points represent > 200 responses

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Pre war (before 1945) Baby boomers (1945-65) Generation X (1966-1979) Generation Y (1980-2000)

The 48% will slowly but

inevitably grow…

Source: Eurobarometer

% “Tend to trust the European Union”

Focus on ‘we’ and not ‘us and them’


Connected world is a double edged sword for youth

1 2The possibilities that the

internet affords which is driving

the entrepreneurial mindset

Pressure it creates due to the

creation of unreal expectations

which has implications for

mental health


Success is down to the individual

Which of these sentences do you agree with the most?

84%It doesn’t matter what

background you’re from,

anyone can be successful

in life if they try hard

enough

33% of Gen Zs believe they can

be anything they want to be

versus 18% of Gen Ys

33%of Gen Zs believe they

can be anything they

want to be versus 18% of

Gen Ys

Base: 2,757 11-16 year olds Source: Ipsos MORI Young People Omnibus (2012)

Ipsos MORI Omnibus survey February 2017 in UK


74% of 13 year olds have a social media profile

Source: Figure 17, Ofcom, Children and Parents: Media Use and attitudes report 2016.

Base 11-15 yo n=238, adults 16+ 1512. Source: Daily Mail from w/c 5th Dec 16

theguardian.com/society/2016/oct/23/nhs-figures-show-shocking-rise-self-harm-young-

people

11-18 year olds admitted to

hospital for self-harming

+18kchildren

The number of children

and young people

self-harminghas risen

in the past 10 years,

new NHS figures show

dramatically

Experts say the rise (in

poisoning, self-harm,

suicide attempts) is

shocking confirmation

that more young

people are

experiencing serious

psychological distress

because they are under

unprecedented social

pressures.

year olds spend around twice as much

time on social media than over 16s.

11-15

28%of 12-25 year olds

say they access

their main social

media account

more than

10 times a day

Average daily minutes on social media

1h 16m

Adults 16+

11-15 year olds

2h 3m


Critical touch points


35% 38% 42% 46%

12% 18% 25% 27%

11% 15% 20% 21%

17% 22% 26% 28%

29% 29% 29% 28%

29% 30% 32% 36%

24% 27% 27% 25%

26% 35% 42% 47%

More connected and engaged but effective at filtering!

TV

Mobile

Tablet

Laptop

Newspaper

Billboards

Radio

Cinema

To cut through need to be..

Relevant

Engaging

Timely

Consistent message

Baby Boomers Gen X Gen Y Gen Z

Source: Ipsos MORI Global Trends Survey. How much attention do you give to ads you see or hear on the following media? Established

Markets n= 11,597. Baby Boomers: 4082, Gen X: 3657, Millennials: 3463, Gen Z: 395

Base xxx


In 2015 Facebook was the most popular social media platform among both younger and

older millennials. Both Snapchat and Instagram are more popular among younger than older millennials.

Younger Millennials Older Millennials

84%75%

38%

20%

53%

45%

39%

13%

Social media visited/used in Past 3 Months

Gen Y not homogeneous in use of social media platforms

Source: Ipsos Connect 2015


is the key destination for this Gen Z

87% of 12-25s use

YouTube,

and 41%

prefer it to

watching TV

1 in 5 12-15s who use the

internet at home, Have

made a short video,

according to Ofcom.

6 in 10 fourteen

and fifteen year

olds access the

platform at least

every day or more

often

Show me don’t tell me

Childwise: Monitor report 2015 / Future Foundation Understanding Gen Z 2014 Ofcom, Children and Parents: Media Use and attitudes report


Online Discovery

Online discovery

of new products

/services is more

common among

younger

generations

Baby Boomers Gen X Gen Y Gen Z

30%

38%

44%

48%

Source: Ipsos MORI Global Trends Survey. I’m more likely to try new products and brands when I shop online than when I’m in a store?

(Those who agree) Established Markets n= 11,597. Baby Boomers: 4082, Gen X: 3657, Millennials: 3463, Gen Z: 395


The new online could be offline?


Loyalty programmes are out and social/digital experiential is in

Diesel with 5D multi-

sensory VR

Experience

Primania@Primark New Look Launches

Augmented - Reality

Photobooths

Nike big experiential

Soho

Gaming Arena @

GAME

To gain the loyalty of Gen Z via traditional loyalty programs, cards and promotions is a losing

battle. No matter how we asked Gen Z, they are simply much less interested in these things.

A new generation with unique experiences, beliefs and behaviours Ernst & Young LLP


Influencers in truth

and trust


In relative terms, trust is declining in younger generations

%, most people can be trusted

so being transparent and honest is key

58%

75%

57%

78%

53%

68%

37%

56%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Pre War (born before 1945) Baby Boomers (born 1945-65) Generation X (born 1966-1979) Generation Y (born 1980-2000) Overall

Source: Ipsos MORI Veracity Index


Gen Z spend several hours a day

interacting with their friends over

social media and messaging apps.

Peer endorsements are

accessible, highly visible and

seen as more trustworthy

Gen Z respect their parents and

family – they are perhaps not

such a generation of rebellion

Source: Good Relations, Good Influence Survey 2017 UK

55% of Gen Z trust their friends

views more for advice on

products, compared to 35% of

Gen Y

Friends, family and ‘people like me’ speak to Gen Z

Source Ipsos MORI survey February 2017 in UK

Base size: Gen Z(13-17) n=168 and Gen Y (18-34) = 188


69% of Millennials (vs. 57% in all

adults 16+) have made a purchase

based solely on online influencer

recommendation – this figure is

likely to be even higher for Gen Z,

who are keen followers of online

influencers - ‘people like me’

Source: Good Relations, Good Influence Survey 2017 UK

Clear shift in influence of online recommendations

Y and Z are more likely to trust recommendations from online websites

BB Gen X Gen Y Gen Z

Ipsos Global Trends Survey 2017: n=18,000, 32 markets

Products and Services where brand names influence purchase decisions

I trust online recommendations if

they’re from a well-known site / app37% 48% 55% 58%

Ipsos Global Trends Survey 2017: n=18,000, 23 markets (data: developed markets only)


Gen Y Gen Z

YouTube/Internet and Sports personalities as well as

family have a bigger inspirational role for Gen Z than Gen Y

Source: Ipsos MORI 2017 Omnibus Survey

Q4. Which celebrity, or well-known figure, inspires you in life?

35%of Gen Y are

inspired by film, TV

or entertainment

stars

17%Of Gen Z

vs.

13%of Gen Z are

inspired by

YouTube / internet

stars

1%Of Gen Y

vs.


Role of brand


Brand for food is seen as more

important than healthcare

products, banks, airlines and

alcoholic beverages.

For millennials, the importance of brand for food products

is ranked 6th , only behind clothes, and more expensive less

frequently purchased items such as cars and appliances.


For Gen Z, brand name is an important indicator of quality,

but they aren’t necessarily more brand loyal

Source Ipsos MORI survey February 2017 in UK Q2. Looking at the statements below, please use the slider scale to tell us which statements best reflect your attitudes to life.

69%

81%78% 80%

50%

39%

32%

21%

Base size: Gen Z (13-17) n=168 and Gen Y (18-34) = 188.

When I find a brand

I like, I stick to it

Brand name is the best

indication of quality

Gen Z

13-17

Gen Y

18-34

Gen X

35-54

Boomers

55+


Gen Y show greater emotional engagement for brand purpose

Brands now have new

and greater

responsibilities in the

eyes of the consumer

(human brands, better

business, ethical

educators, self-

improvement)


Gen Y show greater emotional engagement for brand purpose

Brief establishment

of character

25%

20%

15%

% E

ng

ag

em

en

t

Facial Coding. Base: Total 126. (Engagement)Engagement Trace % OT

18-30

31-70

Situation danger

is introduced

On cusp of making

negative choiceChoice is made to

escape situation

Kenco’s role

is explained

10s 20s 30s 40s 50s



Do younger Millennials and Gen Z expect more from brands?

Or perhaps more to do with hook for engagement?

Experience Social and corporate

responsibility

Actively listening

and engaging with

consumer

Be responsive – real

time crisis

management


Thoughts totake away


Some thoughts to take away…

Do question assumptions and

consider whether observations are

a cohort effect or something else

Younger generations will trust

brands but there is a need to be

ruthlessly relevant to cut through

and drive loyalty

Engage visually with Gen Y and Z,

providing content which catches

attention from the off and be

consistent in visual cues/messages

Provide realistic and aspirational

but grounded role models -

people they can relate to and feel

are ‘like me’

They will engage but critical to

maximise return on investment by

employing the right channel/s

Let them be part of your brand.

Look to co-create and invite open

innovation

Cohort, period or age Show me don’t tell me Engage in the right medium

Ruthlessly relevant Realistic role models Embrace entrepreneurialism

Documents

The role of brand, advocacy & trust for generation Y and ZPippa Bailey –Ipsos MORI May 2016 for generation Y and Z The role of brand, advocacy & trust. ... Ipsos MORI Issues Index