Generational Snapshots An In-Depth Analysis Of 3 Generations

Transcription

1 Generational Snapshots An In-Depth Analysis Of 3 Generations

2 For This Analysis, We Looked At The Following Generations And Their Significant Value To Advertisers: Millennials: Born (A18-34) Generation X: Born (A35-49) Baby Boomers: Born (50+) 2

3 Millennials Comprise Less Than a Quarter of the Population, While Baby Boomers Make Up More Than a Third Generational Composition (1Q16) 35% 20% 21% 24% Generation Z (2-17) Millennials (18-34) Generation X (35-49) Baby Boomers (50+) Generation Generation Z (Age 2-17) Millennials (Age 18-34) Generation X (Age 35-49) Baby Boomers (Age 50+) Population as of January 1, 2016 (000) 65,910 72,850 60, ,470 Source: Nielsen Generational Snapshot. NPOWER, based on Universe Estimates, Feb 2016; Nielsen Universe Estimate Market Breaks

4 Millennials Are the Most Diverse of the Generations Ethnicity % Composition Millennials 5% Generation X 5% 3% Baby Boomers 58% 21% 14% 60% 19% 14% 70% 11% 14% Asian- American Hispanic Black White (Non- Hispanic) Source: Nielsen Generational Snapshot. NPOWER, based on Universe Estimates, P2-17, P18-34, P35-49, P50-67, P68-99, Feb 2016; NPOWER, based on scaled installed counts, P18-34, P35-49, P50-67, Feb

5 Baby Boomers and Generation Xers, Being More Established, Have the Highest Household Income HH Income (% Composition) 29% 25% 13% 9% 12% 21% 18% 18% 18% 17% 16% 17% 16% 15% 12% 12% 12% 20% Millennials Generation X Baby Boomers <$20K $20-40K $40-60K $60-75K $75-100K $100K+ Source: Nielsen Generational Snapshot. NPOWER, based on Universe Estimates, P2-17, P18-34, P35-49, P50-67, P68-99, Feb 2016; NPOWER, based on scaled installed counts, P18-34, P35-49, P50-67, Feb

6 Generation Xers and Millennials Have The Highest Employment Rates, While Baby Boomers Have More Retired Individuals Employment Rate % Composition 21% 14% 34% 79% 86% 66% Unemployed Employed Millennials Generation X Baby Boomers Source: Nielsen Generational Snapshot. NPOWER, based on Universe Estimates, P2-17, P18-34, P35-49, P50-67, P68-99, Feb 2016; NPOWER, based on scaled installed counts, P18-34, P35-49, P50-67, Feb

7 Millennials Live in Larger Households, With Many Opting To Live With Parents; Generation Xers Tend To Have Larger Households With Children Household Size (% Composition) 23% 53% 55% 19% 23% 20% 43% 20% 18% 4% 7% 15% Millennials Generation X Baby Boomers 4+ Person 3-Person 2-Person 1-Person Source: Nielsen Generational Snapshot. NPOWER, based on Universe Estimates, P2-17, P18-34, P35-49, P50-67, P68-99, Feb 2016; NPOWER, based on scaled installed counts, P18-34, P35-49, P50-67, Feb

8 Millennials Spend More On Leisure Activities And Rent Than They Did a Year Ago % Spending More Than a Year Ago Groceries Gasoline or Fuel Rent or Mortgages Utilities Healthcare Leisure Activites Travel Automotive Expenses Clothing Telephone Services Consumer Electronics Cable or Satellite Internet Dining Out Home Maintenance Household Goods (i.e., Toilet Paper, Cleaning Supplies) Personal Care (i.e., Toothpaste, Cosmetics) Retirement Investments Source: Gallup, Millennials Are Starting to Spend More May % 58% 40% 35% 40% 29% 37% 44% 35% 47% 33% 22% 29% 24% 29% 26% 28% 20% 28% 32% 27% 18% 26% 36% 26% 23% 26% 25% 24% 36% 24% 29% 23% 24% 21% 17% Millennials All Others 8

9 Younger Generations Focus on Money and Careers; As We Age, Family and Health Take Precedence % Who Selected Option As One of Their Top Three Aspirations Fit & healthy Family time Make money Fulfilling career 71% 37% 39% 36% 29% 31% 29% 28% 20% 51% 39% 32% 19% 60% 44% 21% 11% 50% 10% 3% A15-20 A21-34 A35-49 A50-64 A65+ Source: Nielsen Generational Lifestyle Survey 1Q15 9

10 Both Young and Old Are Tech Savvy Video Viewing Habits

11 Across All 3 Generations, Mobile Usage Has Grown Substantially Device Penetration Millennials Generation X Baby Boomers DVD 75% 69% 82% 79% 86% 84% DVR Game Consoles 51% 50% 56% 57% 52% 73% 68% 66% 65% 39% 54% 38% HDTV 88% 89% 90% 93% 89% 92% Smartphone 89% 96% 87% 94% 71% 83% Tablets 60% 66% 62% 71% 50% 59% SVOD 58% 69% 53% 64% 40% 48% Source: Nielsen Generational Snapshot. NPOWER, based on scaled installed counts; P18-34, P35-49, P50-67, February

12 Regardless of Generation, HDTV Ownership Has Increased Across Generations and Wired Cable Remains Highest Among Television Distribution Sources HDTV Device Penetration in TV Households Millennials Generation X Baby Boomers % 89% % 93% % 92% Television Distribution Sources Millennials Generation X Baby Boomers 16- Feb 12% 41% 11% 29% 7% 16-Feb 12% 41% 12% 31% 3% 16-Feb 10% 45% 12% 33% 1% Source: Nielsen Generational Snapshot. NPOWER, based on scaled installed counts; P18-34, P35-49, P50-67, February

13 Millennials Consume Almost The Same Amount of TV As Generation Xers and Baby Boomers Monthly Time Spent by Medium (hh:mm) Millennials Generation X Baby Boomers 1Q 16 1Q 16 1Q 16 Live+DVR/ Time-Shifted TV 195:51 147:29 199:52 77% of Video Time Spent 88% of Video Time Spent 93% of Video Time Spent Video on a PC 51:40 18:07 12:15 Video on a Smartphone 7:28 2:16 1:41 Source: Nielsen Generational Snapshot. P18-34, P35-49, P Live+DVR/Time-shifted TV, Multimedia Devices 09/28/ /27/2015 via Nielsen NPOWER/NPM Panel; Nielsen Total Audience Report 1Q16 13

14 Overall TV Ranks High Among Viewer Attitudes 76% Similar Attitudes Towards TV Among Generations (Comp%) 81% 85% 64% 67% 75% 58% 60% 67% Millennials Gen Xers Baby Boomers Pure Entertainment A Good Escape Relaxes me Source: MRI Doublebase

15 TV Is Highest Among Generation Xers and Baby Boomers; Social Networks and Mobile Devices Are Higher Amongst Millennials In a typical day, please indicate if you see/hear multiple ads in the following locations On TV 59.7% 73.7% 84.9% On the radio 56.2% 66.2% 64.3% On a social network (using any device) 48.3% 67.2% 58.8% In a search engine 58.0% 55.9% 49.6% On a smartphone In an online video (e.g. YouTube, Hulu) 28.1% 51.3% 40.8% 42.2% 64.1% 61.4% Millennials Generation X Baby Boomers In a print newspaper 15.0% 21.7% 42.2% In a print magazine 19.4% 25.1% 40.8% On a tablet 25.9% 29.6% 30.5% At the movies 16.1% 13.5% 8.2% In a videogame (on a console) 8.6% 3.9% 2.3% 15 Source: Marketing Charts Study, Q3 2016, Advertising Channels with the Largest Purchase Influence on Consumers

16 However, Ad Recall is Highest With TV Across All Demos During the past week, do you recall noticing any specific advertisers when: Watching TV Listening to radio Using a social network, on any device Using a smartphone Reading a newspaper (in print) Using a search engine Reading a magazine (in print) Viewing a video online (e.g. YouTube, Hulu) Using a tablet Going to a movie Playing a videogame on a console I don't recall any specific advertisers 5.9% 7.4% 4.3% 4.7% 2.2% 1.4% 27.9% 31.9% 30.9% 29.7% 30.7% 21.3% 31.3% 26.6% 19.3% 9.0% 12.7% 25.5% 21.5% 21.7% 21.1% 9.2% 15.5% 25.0% 27.7% 18.8% 9.1% 11.5% 13.9% 15.7% 34.6% 32.7% 29.2% 40.8% 49.5% Source: Marketing Charts Study, Q3 2016, Advertising Channels with the Largest Purchase Influence on Consumers 62.9% Millennials Gen Xers Boomers 16

17 TV Ads Rank Top in Driving Consumers to Point of Purchase Regardless Of Age TV Ads Radio Ads Search Engine Ads Ads on Social Networking Platforms Print Newspaper Ads Magazine Ads Display Ads on Smartphones 10.5% 12.2% 12.3% 8.7% 8.6% 10.0% 7.7% 6.8% 20.0% 15.2% 10.4% 8.7% 12.2% 15.2% 12.1% 8.6% 7.2% 16.0% 25.8% 25.5% 26.2% Purchase Influence What has influenced you to purchase a product or service during the past 6 months? Millennials Generation X Baby Boomers Display Ads on Tablets Ads While Viewing Online Video (e.g. YouTube, Hulu) Ads in Movie Theaters 6.0% 6.0% 5.7% 10.5% 5.0% 3.7% 5.6% 3.4% 1.8% 2.2% Ads While Playing Videogames on Consoles 1.4% 1.0% Source: Marketing Charts Study, Q3 2016, Advertising Channels with the Largest Purchase Influence on Consumers 17

18 Consumers of All Generations Connect with TV Branded Content Online

19 Millennials Millennials Spend 65% Of Their Time with Ad Supported TV, And Just 35% With The 4 Portals +Facebook Monthly Time Spent (August 2016) (Average mins per viewer/visitor, Hrs: Mins) TV Brands (TV + Internet) + 4 Portals + FB (Hrs: Mins) P18-34 Total Ad-Supported TV Brands (Cable Nets+ MVPD s + Broadcast: TV+ Web+Mobile) (Hrs: Mins) 4 Portals + FB (Hrs: Mins) 126:13 81:53 44:20 Average Minutes Per Visitor Source: Nielsen Npower Live+7 August 2016, P18-34, VAB analysis of comscore duplicated August 2016 data (mediametrix, multiplatform). Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, Broadcast Television and MVPDs. 4 portals = Google (includes YouTube), AOL, MSN, Yahoo! 19

20 Millennials TV Content Resonates With Millennials Across A Range of Categories Online Ranking by Internet Genre A18-34 Top Traffic TV Sites: Genre Rank: 1 st Sports 3rd Comedy TV Ent. Black General News 2nd LGBTQ Top Traffic TV Sites: Genre Rank: 2nd Home Weather TV Ent. Food 1 st Kids Source: VAB analysis of multi-platform comscore data, August 2016 (Ranking based on Total Minutes Viewed ) 20

21 Generation X Generation Xers Spend 75% Of Their Time with Ad Supported TV, And Just 25% With The 4 Portals +Facebook Monthly Time Spent (August 2016) (Average mins per viewer/visitor, Hrs: Mins) P35-49 TV Brands (TV + Internet) + 4 Portals + FB (Hrs: Mins) Total Ad-Supported TV Brands (Cable Nets+ MVPD s + Broadcast: TV+ Web+Mobile) (Hrs: Mins) 4 Portals + FB (Hrs: Mins) 169:43 126:21 43:23 Average Minutes Per Visitor Source: Nielsen Npower Live+7 August 2016, P13-17, VAB analysis of comscore duplicated August 2016 data (mediametrix, multiplatform). Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, Broadcast Television and MVPDs. 4 portals = Google (includes YouTube), AOL, MSN, Yahoo! 21

22 Generation X TV Brands Rank #1 In 8 Out Of 10 Categories Among Generation Xers Top Traffic TV Sites: Ranking by Internet Genre A35-49 Genre Rank: 1 st Sports Political News TV Ent. Black General News 3rd LGBTQ Top Traffic TV Sites: Genre Rank: 3rd Home Weather TV Ent. Food 1 st Kids Source: VAB analysis of multi-platform comscore data, August 2016 (Ranking based on Total Minutes Viewed ) 22

23 Baby Boomers Baby Boomers Spend 86% Of Their Time with Ad Supported TV, And Just 14% With The 4 Portals +Facebook Monthly Time Spent (August 2016) (Average mins per viewer/visitor, Hrs: Mins) TV Brands (TV + Internet) + 4 Portals + FB (Hrs: Mins) P50+ Total Ad-Supported TV Brands (Cable Nets+ MVPD s + Broadcast: TV+ Web+Mobile) (Hrs: Mins) 4 Portals + FB (Hrs: Mins) 224:44 193:19 31:25 Average Minutes Per Visitor Source: Nielsen Npower Live+7 August 2016, P50+, VAB analysis of comscore duplicated August 2016 data (mediametrix, multiplatform). Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, Broadcast Television and MVPDs. 4 portals = Google (includes YouTube), AOL, MSN, Yahoo! 23

24 Baby Boomers TV Content Dominates The Majority Categories Online Among Baby Boomers Ranking by Internet Genre A50+ Top Traffic TV Sites: Genre Rank: Sports 2nd Finance News TV Ent. Black General News Political News Top Traffic TV Sites: Genre Rank: Home Weather TV Ent. Food 1 st Kids Source: VAB analysis of multi-platform comscore data, August 2016 (Ranking based on Total Minutes Viewed ) 24

25 Although Their Shopping Styles Are Similar, Marketers Can Tailor Campaigns To Target Specific Age Groups

26 Baby Boomers Account For The Majority Of Consumption Growth In The U.S. Aggregate US Household Consumption Growth by Head of Household Age ( ) Health Care Reading Personal Care Products & Services Housing Food Entertainment Transportation Alcoholic Beverages Tobacco Products & Smoking Supplies Apparel & Services Personal Insurance & Pensions Education 31% 28% 20% 19% 18% 17% 15% 13% 12% 12% 6% 8% 29% 29% 26% 23% 12% 32% 29% 29% 30% 31% 38% 38% 15% 15% 16% 16% 16% 14% 18% 17% 24% 34% 12% 12% 26% 30% 30% 31% 30% 32% 31% 35% 39% 30% 16% 17% 3% 4% 6% 7% 7% 6% 8% 11% 10% 9% 7% 16% A75+ A60-74 A45-59 A30-44 A15-29 Source: McKinsey Global Institute: Urban world: the global consumer to watch (BLS Consumer Expenditure Survey, 2013; McKinsey Global Institute Cityscope) 26

27 Overall, Spending Peaks Within Ages 45 to 54 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 Average Annual Spending by Age $49,544 $31,411 $58,069 $62,103 $55,636 $45,968 $33,530 $10,000 $0 < Source: Bureau of Labor Statistics Consumer Expenditure Survey

28 Consumers of All Ages Have Similar Priorities When Shopping, But Their Attitude Differences Are Noteworthy For Advertisers Similar Buying Styles among Generations (Comp%) Buying Styles A18-34 A35-49 A50+ They Are Loyal To Brands When I find a brand I like, I stick to it 78% 83% 86% If a product is made by a company I trust, I'll buy it even if it is slightly more expensive 71% 73% 76% I prefer a store that has a large selection of familiar brands 72% 76% 78% I only use coupons for those brands I usually buy 48% 50% 54% They Are Impulsive Buyers Who Shop For Fun If I really want something I will buy it on credit rather than wait 39% 43% 42% I m a spender rather than a saver 46% 44% 35% I think shopping is a great way to relax 48% 43% 38% I enjoy wandering the store looking for new, interesting products 59% 54% 49% They Are Socially Conscious Shoppers I buy natural products because I am concerned about the environment 51% 52% 55% I am more likely to purchase brands that support a cause I care about 57% 52% 52% I buy brands that reflect my style 66% 63% 60% Source: MRI Doublebase

29 Millennials Are Impulse Buyers That Like Buying Products That Help Their Image Or A Cause They Support Index to General Population Source: MRI Doublebase 2015 I m a spender rather than a saver 113 I would pay extra for a product that is consistent with the image I want to convey 117 I tend to make impulse purchases 119 I am more likely to purchase brands that support a cause I care about I think shopping is a great way to relax A celebrity endorsement may influence me to consider or buy a product I m always one of the first of my friends to try new products or services

30 Generation Xer s Spending Is Highly Influenced by Their Children Index to Gen Pop Child-Oriented Spending A35-49 Source: MRI 2015 Doublebase Children s Toys & Games Bought in Past Year 124 Amount Spent on Children s Toys & Games in Past Year- $ Amount Spent on Children s Shoes in Past 6 Months- $ Amount Spent on Children s Clothing in Past 6 Months- $ Let Child Make Own Decisions When Ordering at a Restaurant 106 Let Child Decide Which Restaurant/Steak House to go to 186 Let Child Decide Which Fast Food/Drive- In Restaurants to go to 167 Let Child Decide to go to Theme Parks 182 Purchased Family/Child Oriented Movies & Other Video Types in Past 30 Days

31 Generation Xer s Spend More on Clothing, Vacations, And Other Luxury Items Adults Index to General Population Index Travel & Leisure Spent $8K+ on Foreign Vacations/ last year 114 Spent $7K+ on Domestic Vacations/ last year 131 Spent $200+ on Camping Equipment/last year 143 Spent $250+ on Sports & Recreation Equipment/last year 129 Food/Restaurants Spent $500+ on Fine Dining/last month 123 Spent $200+ on Fast Food/Drive-in Restaurants/last month 131 Spent $300+ on Family Restaurants/Steak Houses/last month 125 Health & Beauty Spent $250+ on Men s Cologne/ last year 127 Spent $250+ on Women s Perfume/last year 143 Spent $500+ on Women s Health & Beauty Aids/ last year 127 Spent $500+ on Men s Health & Beauty Aids/ last year 138 Clothing & Shoes Spent $500+ on Women s Big Ticket Clothing Items/last year 137 Spent $250+ On Men s Business Suits/last year 115 Spent $250+ on Shoes/last year 127 Source: MRI 2015 Doublebase 31

32 Baby Boomers Spend More On Big Ticket & Lifestyle Products & Services A55+ Index To General Population Index Services Spent $150+ on Beauty Parlor/Salon/ last 6months 126 Spent $150+ on Dry Cleaning/ last 6months 107 Spent $150+ on Flower Shop/ last 6months 135 Food/Restaurants Spent $200+ on Fine Dining/last month 114 Spent $100+ on Other Restaurants/last month 106 Big Ticket Spent $50K+ On Vehicle/ last year 118 Spent $8K+ on Foreign Vacations/ last year 139 Spent $7K+ on Domestic Vacations/ last year 118 Clothing Spent $250+ on Men s Sports Jacket/last year 113 Spent $100+ on Men s Casual Slacks/last year 105 Spent $250+ on Women s Coats & Jackets/last year 104 Spent $250+ on Women s Blazers/last year 109 Shoes Spent $150+ on Athletic Shoes/last year 137 Spent $250+ on Casual/Leisure Shoes/last year 105 Spent $250+ on Total Shoes/last year 135 Source: MRI Doublebase

33 No Matter How Old You Are, When It Comes to Spending Age Ain t Nothing But a Number

34 For More Information Visit Us Online: Follow Like us: facebook.com/ VideoAdvertisingBureau