Captivating Connections.

Gen Buy!

It looks like there ARE consumers still spending...the youngn's!

"Doing their parts this year, Generations X and Y -- consumers age 18-44 -- assisted in the economic recovery of the nation by continuing to splurge on certain types of purchases, according to new data from Publicis Groupe's search engine marketing services provider Performics.

Indeed, Generations X and Y splurged more than any other age group in 2009, despite one of the worst economic years in decades, according to the study conducted by ROI Research.

While three out of four -- 76% -- of consumers said they still splurged in 2009, consumers between the ages of 18 and 44 splurged more than those ages 45 and up across 11 separate categories.

Categories that topped the list of splurges for the younger generation were apparel, travel/vacation, shoes and movies at the theatre.

Across all age groups, the Web continued to distinguish itself as a key commerce engine, according to Michael Kahn, SVP of marketing at Performics.

'Regardless of who spent money offline or online, consumers were emphatic about the Web's role in helping them make smarter purchase decisions in 2009,' said Kahn. 'Consumers have long turned to the Internet to check prices and identify the best products to buy and merchants to patronize, but this year's economic situation pushed this practice front and center.'"

In particular, online price checking can reduce the likelihood of buyer's remorse for a consumer either by confirming a good deal or identifying a better one."

in-store vs. traditional.

"In-store marketing is more effective than traditional ads, according to 'The Elements Report' released today (Tuesday). Nearly a third (32 percent) of the 999 shoppers polled online in March said that in-store marketing is 'very effective.' Only 27 percent said the same about ads living outside of the store. 

The report, which is part three of the 'Gone in 2.3 Seconds: Capturing Shoppers with Effective In-Store Triggers Series,' found that the shopping experience is crucial for marketers. Sixty-nine percent of those polled called the in-store experience a “make or break” scenario. While 65 percent of shoppers are making lists, brand decisions are still being made at the store, according to 60 percent of respondents.

End-aisle displays are the most engaging according to 70 percent of those polled, followed by merchandising displays (62 percent), and department signage (58 percent). Ceiling banners and overhead mobiles have the least impact. 

Shelf strips (55 percent) and shelf blades (50 percent) have become more important, especially among the Gen X and Gen Y crowds, who feel the more information the better, per the report. Overall, women and Gen Y consumers were most influenced by in-store marketing efforts. 

'Understanding high potential shopper strike zones has become increasingly critical given the intensified battle for consumer loyalty and share of mind in-store,' said D’Anna Hawthorne, strategy director at Miller Zell, a retail consultancy. The report was conducted by the National Research Network on Miller Zell’s behalf."

who is on which social network?

So we looked at what people were doing on Twitter this morning.

But, how about looking at who is on which social networks?

According to Anderson Analytics, "Twitter has become more popular than LinkedIn, more than half of U.S. consumers who tap social networks belong to more than one, and that those who belong to a social net are four times more vocal about products and services than those who don't."

How can this info be useful?

"Anderson's study aims to help marketers understand the type of people who frequent each social network. For example, it debunks the myth that Facebook attracts only kids. In fact, the Anderson study suggests that the ideal age group for Facebook spans from 15 to 34, but 44% of 35- to 44-year-olds and 30% of 45- to-54-year-olds say they have profiles, too.

And while more people are experimenting on social networks, only 10% of users report having ever created a duplicate or experimental profile. More than half of social network users have associated their profiles with a brand, company or product. While much has been written about negative nature of Web 2.0 and blog posts, social network users are more likely to say positive things about brands, companies or products."

Interesting.

OK, so let's break down the usage:

"The average user logs into a social network account about four times daily, five days a week, and spends about one hour per day on the network. About 31.8% are business users; followed by 26.3%, fun seekers; 21.8%, social media mavens; and 10.1%, leisure followers."

And what about the different generational breakdowns?

"About 90% of those surveyed from the WWII generation on a social network say they use Facebook; compared with 23% on MySpace; 17%, Twitter; and 4%, LinkedIn. Females comprise 63%, compared with 37% men.

The study suggests that advertisers looking to connect through social networks will likely find consumers ages 15 to 24 on MySpace, versus 18 to 34 on Facebook, 15 to 34 on Twitter, and 18 to 44 on LinkedIn, according to Anderson."

recession impacting gen xers/boomers the most.

As brands and marketers work to figure out how to best reposition themselves and connect with their targets, it's interesting to understand and see how the current economy is impacting different age groups, and that Gen Y and Matures are being impacted the least:

"With the latest news showing that most Americans are continuing to hold back on spending, it looks as if Gen Y and senior citizens may be the exceptions, according to new research from Retail Forward.

When it comes to things like using coupons, buying in bulk, batching trips and switching to private labels, 'I expected the most conservative people to be the oldest people,' says Mandy Putnam, VP of the Columbus, Ohio-based consulting company. 'But we're seeing that seniors on the upper end of the income scale are not changing their behavior. And the same seems to be true of Gen Y crowd. Perhaps because many of them don't yet have houses or investments, they don't feel as worried.'

Gen X and Boomers, on the other hand, are making more conscious changes. 'Among Baby Boomers, there's more interest in giving up national brands for private labels,' she says. Only 18% of 18- to 24-year-olds say they are purchasing more private or store brands, compared with nearly a third of shoppers age 45 or older.

'Younger people are more likely to have given up restaurants or their daily Starbucks,' she says, adding that nearly a third of shoppers age 25 to 34 are cutting back on everyday splurges, compared with 25% or fewer shoppers in all other age groups."

generations and media.

Pew Internet has released their data on the different generations and how they each consumer different types of online media.

As they explain:

"Contrary to the image of Generation Y as the 'Net Generation,' internet users in their 20s do not dominate every aspect of online life. Generation X is the most likely group to bank, shop, and look for health information online. Boomers are just as likely as Generation Y to make travel reservations online. And even Silent Generation internet users are competitive when it comes to email (although teens might point out that this is proof that email is for old people)."

Check out the whole report here.

gen x & shopping.

Who wants to know all about Gen X and their shopping habits?

I know you do!!

"In a Charles Schwab study of 2,000 Gen Xers, 45% of respondents said they had too much debt to think about saving.AARP and the American Savings Education Council found credit card debt was most prevalent (67%) among Generation X Internet users, followed by car loans (52%), mortgages (49%), student loans (30%), medical debt (28%) and home equity loans (16%), according to their January 2008 survey.

On the plus side, 28.8% of people ages 25 to 34 hold a bachelor’s degree or higher, according to the US Census Bureau. Among people ages 35 to 44, 29.6% have attained this education level, as have 28.6% of people ages 45 to 65.

Xers’ high education levels, coupled with their distrust of corporate America and their comfort with technology, make them scrutinizing consumers. Xers readily brag about bargains, noted a study by Reach Advisors. They are not afraid to shop discount stores. Target, for example, built its 'cheap chic' reputation largely around frugal-but-style-conscious Xers."

networking more than ever.

Any Gen Yer (and many Gen Xers) will tell you that social networks are a major part of their everyday lives. Whether they are logging on to Facebook or MySpace from their phones or computers (both at home and at work, sorry to blow your cover), the need to know and to stay connected reigns supreme:

"Social networking is an everyday activity for the majority of college students, and the percentage of students who use the networks daily has nearly doubled in the past two years. EDUCAUSE compared social network usage at 44 colleges and universities in 2006, 2007 and 2008. It found that nearly twice as many students at these institutions use social networks every day in 2008 (59%) than did in 2006 (33%).

Accordingly, the percentage of students who said they never use social networks has fallen from 25% in 2006 to 11% in 2008."

Check out more details here, including an invite to a free webinar on "Hot Trends: Social Networks, Mobile Marketing & Online Video."

moms today: x vs y.

Listen up, people: I've said it once and I'll say it 1,000 times, but there are some core differences among moms that must be taken into consideration when trying to connect with them.

Here's some new research looking at Gen Y and X mommies:

"A recent study conducted by NewMediaMetrics found a significant difference in the types of digital behavior embraced by the X and Y generations when it comes to child raising.  Gen Y is much more attached to media that connects them to other moms (online communities, blogs, video-sharing sites, etc.), while Gen X moms are more likely to embrace the web for task-oriented activities like shopping online and uploading photos. The study concludes that this might signify a shift in the way that marketers should be targeting the next new generation of moms online."

This isn't new, nor is it rocket science, but I enjoy sharing as many findings as possible in order to help make sense of this constantly-changing landscape.

As a side note, this month, Vested Interest is looking at Gen Xers Today, so let me know if you want in on the presentations!

paving the path for a new agenda.

Was that last post not enough for you? Well then what about this one, looking at how Gen Y is paving the way for a new tech agenda...and contrasting them to Gen Xers too!

"The key distinction between Generation X and Y is that Generation X uses technology when it supports a 'lifestyle need' whereas tech is 'embedded into everything Gen Yers do' making them the first 'native online population'."

Duh. Considering the medium wasn't really around for Gen X when they would have learned to use and leverage it the most, this makes sense. Us Gen Yers grew up with AIM and a lot of Beta versions of technology, so we're much more used it (and used to relying it).

If you they Gen Y has technology embedded in their lives, just wait till more research comes out on Gen We. Those kids were wired in the womb!

the great debate about the gens.

For those interested in compare in contrast, check out this article, looking at the differences between Generation Y and Generation X, written by a Yer, who notes, "I've found a remarkable insight into Generation Y and how we've distanced ourselves from Generation X. We tell people we're not lying because Generation X made young people appear cynical, jaded and careless. Generation Y has embraced sincere interaction with the rest of the world because our goal is to change society through our own self-improvement and involvement."

Why, you ask?

Self-mocking detachment became the status quo for Generation X, and it permeated their interaction with the rest of the world. In politics, the most important question for then-presidential candidate Bill Clinton at an MTV-sponsored forum for young voters was "boxers or briefs?" The movies that best exemplify Generation X - "Reality Bites," "Kicking and Screaming," "Slacker" - feature idle twenty-somethings in a sort of arrested development, placing more importance on pop culture than the very real problems of their lives. Even my favorite Generation X authors are no different - writers like Douglas Coupland, Jay McInerney, Bill Simmons and Bret Easton Ellis litter their writing with sarcasm, irony and pop-culture references. It's clear then when the Slacker (see Wayne, Garth) is a heroic figure, it's better to focus on the minutiae of life and overlook the bigger problems.

Not only is Generation Y distinct from Generation X, but one of the important characteristics of Generation Y is the rejection of the Gen-X mentality. Compared to Generation X, we have had significantly more turmoil in our lives because of 9/11, the Iraq War, a faltering economy, Hurricane Katrina and the list goes on. We didn't greet these challenges with Generation-X detachment or self-mocking, nor did we combat them with baby-boomer-esque protests.

Instead, Generation Y has made its mission to change the world through personal involvement and an "I'll-play-my-part-and-inspire-everyone-else" ethos. We've convinced ourselves that global warming can be solved by recycling, cutting our own emissions and reducing our own carbon footprint. We attack the looming food crisis by trying to eat local and organic foods. After Hurricane Katrina, donations were not sufficient enough to deal with one of the country's greatest natural disasters. Many colleges sent groups to help rebuild New Orleans, and Tulane's application numbers actually went up. With the popularity of Teach for America, we're improving our educational system by sending our best and brightest to inner-city schools. A startling 10 percent of Yale's graduating class this past year will be sent to public schools this fall to teach. How many of those students would have been accepting positions at Goldman and Sachs 15 years ago?

But it takes a certain amount of sincerity and dedication to personalize the country's problems, and, subsequently, an appreciation for anything sincere has surfaced in Generation Y's culture. One reason the media has taken so long to form a narrative for Generation Y is that our culture is fractured. There are significantly more choices and options for entertainment than there has ever been, so generation-wide trends are hard to identify.