Adroit Millennials Brand Loyalty Study FINAL 03 12 14

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Adroit Millennials Brand Loyalty Study FINAL 03 12 14

MILLENNIALS

THE NEW

AGE OF BRAND

LOYALTY

A SNAPSHOT OF MILLENNIALS

AND THEIR VIEWS ON BRANDS

adroitdigital.com


Contents

Introduction 3

Objectives & Methodology 4

Major Findings 5

Demographics 6

Survey 7

Conclusion 18

About Adroit Digital 19

Contact Us 19

adroitdigital.com

MILLENNIALS


Introduction

Every generation has its story: Baby Boomers, America’s greatest generation; Gen X, the

slackers; and lastly Gen Y, the boomerang generation—digital natives, or as they’re best

known today, Millennials. For marketers, Millennials are the most important generation

to come along in the last 100 years, perhaps ever. This group of young adults is the largest

generation by number in US history. Millennials number more than 80 million. That’s a

population larger than the Baby Boomers, and it outnumbers Gen X almost 3:1. Millennials

came of age in the wake of massive advancements in technology, unparalleled communication

access, and media exposure that allowed people to spread information faster to a wider,

more diverse audience than in any generation before them.

Millennial consumer behavior has been shaped by the world in which they have come of

age, and their importance cannot be underestimated. As Baby Boomers move closer to

retirement, they will take with them close to $400 billion in annual spending. This leaves a

void that will be very difficult to fill.*

Retailers are scrambling to secure the loyalty of this tech-savvy and fast-paced crowd, which

spends $600 billion a year. By 2030, Millennials will outnumber non-Millennials.** But what is

this generation about, and what’s shaped their perceptions? In addition to growing up as

digital natives, Millennials entered college in the face of the largest recession since the

Great Depression. Many of those who completed their college education received their

diploma accompanied by massive student loan debt. They also entered college knowing a

bleak job market faced them on the other side. This has left many young adults still at home

or returning home to live with their parents. They also see things differently because they

are culturally different. Millennials are the most racially and ethnically diverse American

generation ever, with over 20% of the population now identifying as Hispanic and 13% as

African American.

Armed with this knowledge, how can brand marketers secure the loyalty of this extremely

important group of consumers? Some have suggested the best marketing and advertising

strategy is to not market to Millennials at all.† The digital age has created an environment

that allows brands to engage and converse with their consumers. Marketers have the ability

to shape multiple messages to nuanced audiences, which is of incredible value in a time

when a “one size fits all” campaign no longer measures up. It is time to move beyond the

hard sell.

Getting to know Millennial consumers will require testing, testing, and more testing. It will

require evaluating new ad units, including social, native, and video as well as the associated

creative and messaging. While much of this may seem to be shifting sands under marketers’

feet, there is some certainty. What seems certain is that this is a very exciting time to be a

marketer traveling a new path and forging a new breed of advertising.

adroitdigital.com MILLENNIALS

3


Objectives & Methodology

To gain insight into how Millennials view brands and

their thoughts on brand loyalty, Adroit Digital conducted

a study to ask Millennials how they think about brands

compared to how their parents think about them, and

how brands can gain their future loyalty. The insights

gained in the survey are meant to assist agencies and

brands in evaluating how their current branding efforts

align with the next generation of brand promoters.

The study was fielded from January 21 through January

27, 2014. The survey targeted a random sample of US

consumers who self-identified as 18–33 years of age

and who own both a smartphone and a personal

computer. The study garnered 2,000 completes.

adroitdigital.com

MILLENNIALS

4


Major Findings

• 60% of Millennials said that social advertising has the most influence over them in how

they perceive a brand and a brand’s value. This compares with TV at 70%. Traditional

media outside of TV fell flat. In the realm of influence, radio, billboards (OOH), and

magazines finished last with mobile and online—both display and video—comfortably in

the center.

• 64% of Millennials are more brand-loyal or as brand-loyal as their parents. 24% consider

themselves to be more brand-loyal than their parents. As marketers look forward, they

can rest assured this generation demonstrates strong brand loyalty.

• 39% of all respondents think that brands that don’t advertise through mobile channels,

smartphones, and tablets are outdated and undesirable. While the tides of advertising

channels are changing, brands still have an opportunity to keep ahead of the transition.

• 32% of those surveyed said social advertising lends the most credibility to influencing their

brand decisions, compared to 35% who indicated TV as the most influential advertising

channel.

• 26% of Millennial respondents said social is the most likely channel to introduce a new

product they will consider for trial. Only TV, at a very small margin of +3%, outranks social.

• 77% of the Millennials surveyed said they are evaluating brands on a different set of criteria

than their parents. Millennials may be brand-loyal, and many use several of the same

products their parents are loyal to, but they’ll be evaluating them against a new yardstick.

• 55% of young shoppers said that a recommendation from a friend is one of the strongest

influencers in getting them to try a new brand. 47% consider brand reputation to be

almost as important. Product quality ranks fourth at 35%, while price has the most sway at

62%.

• 36% of Millennials believe digital advertising is the most effective method of influencing

their brand decisions, with traditional advertising as a standalone showing markedly less

influence at 19%.

• 52% of Millennials want brands that are willing to change based on consumer opinion and

feedback to maintain future relevance. 44% want to have open dialogue with brands

through social channels, and 38% want brands to be more about the consumer and less

about the brand.

• 38% of Millennials will switch brands if a company is found to have bad business practices

—ethics matter to Millennials. Outside of financial factors, a business found to have bad

business practices is the number one reason that Millennials will switch brands. This

carries the same weight as a recommendation from a friend, at 38%.

adroitdigital.com

MILLENNIALS

5


Demographics

Gender

AGE

46% 46% 54% 54%

60% 60% 40% 40%

Male Male

Female Female

18 - 2518 - 25

26 - 3326 - 33

Base: n=2,000

11%

11%

Sums may not equal 100 due to rounding

20% 20%

26% 26%

MEN 27% MEN 27%

WOMEN 12% WOMEN 12%

27% 27% 18 - 25 18 - 25

45% TOTAL 45% 72% TOTAL 72%

15% 15% 26 - 33 26 - 33

41% TOTAL 41% 56% TOTAL 56%

43% 43%

Millennials

are the most

important

brand

I'm brand I'm brands brand loyal as and loyal my use parents

and the use same the same

brands as my parents

I use many I use many of the of same the brands same brands my my

parents parents use, but use, not but allnot all

I use a I few use of a few the of same the brands same brands as as

my parents my parents

I use different I use different brands brands than my than my

parents parents

5%

5%

24% 24%

audience

in the last

100 years.

31%

31%

adroitdigital.com

MEN 30% MEN 30%

WOMEN 17% WOMEN 17%

18 - 25 23% 18 - 25 23%

26 - 33 37% 26 - 33 37%

More brand More brand loyal than loyal parents than parents

Same level Same of level brand of brand loyalty loyalty as parents as parents

Not as Not brand as brand loyal as loyal parents as parents

MILLENNIALS

6


MAYBE MOTHER DOESN’T

KNOW BEST

Do you use, or are you brand-loyal to,

the same brands your parents use and

to which they are brand-loyal?

43% of respondents indicated they use many of the same

brands as their parents, but not all the same brands.

46% 54%

There are a few who think Mother knows best. 20% of

respondents said they use and are brand-loyal to the same

Male

brands as their parents. A larger percentage of men than

women think Mother knows best: 27% of men Female compared

to 12% of women fall into the above category of loyalty.

Younger Millennials 18–25 are closer to Mother’s apron

strings, with 72% indicating they use or are loyal to all or

many of the brands their parents use, compared to 56% of

older Millennials aged 26–33.

60% 40%

60% 40%

18 - 25

26 - 33

ale

emale

11%

18 - 25

26 - 33

20%

MEN 27%

20%

26%

WOMEN 12%

27% 18 - 25 45%

15%

41%

TOTAL 72%

26 - 33

TOTAL 56%

43%

I'm brand loyal and use the same

brands as my parents

I use many of the same brands my

parents use, but not all

I use a few of the same brands as

my parents

I use different brands than my

parents

3%

I'm brand loyal and use the same

brands as my parents

I use many of the same brands my

parents use, but not 5% all

I use a few of the same brands as

my parents

I use different brands than my

parents

24%

Base: n=2,000

Sums may not equal 100 due to rounding

adroitdigital.com

MEN 30%

WOMEN 17%

18 - 25 23%

More brand loyal than parents

MILLENNIALS

7


THE APPLE DOESN’T FALL FAR

FROM THE TREE

Do you feel you and others your age are

as brand-loyal to your favorite brands

43%

as your parents are to their favorite

brands?

Good news for marketers: 64% of Millennials surveyed feel

the same level of brand loyalty or greater brand loyalty

than their Baby Boom or Gen X parents. 24% fall into the

5%

category of feeling more brand-loyal than their parents.

Millennial men feel they are more brand-loyal than their

parents compared to Millennial women, 30% and 17%,

respectively.

As Millennials age, their feeling of brand MEN loyalty 30% compared

to their parents drops considerably, WOMEN with 23% 17% of 18–25

year-olds and 37% of those aged 26–3318 indicating - 25 23% they are

less brand-loyal than their parents.

26 - 33 37%

For brands’ continued success, securing the loyalty of the

Millennial audience in the next ten years will create a

tremendous upside in the future lifetime value of this

customer set.

MOBILE = MODERN?

While the mobile advertising

revolution is under way, brands still

have time to jump on the bandwagon.

The majority of Millennials, 61%, don’t

consider a brand to be undesirable

and outdated if it lacks a mobile ad

presence. However, 39% do feel

brands lacking a mobile advertising

presence are undesirable and

outdated. This is a number large

enough that brands and agencies

can’t ignore it.

There is a significant delta in this

WOMEN 27%

sentiment between men and

women, as well as between younger

Millennials compared to their elder

counterparts. More men than

Base: n=2,000

26%

31%

Sums may not equal 100 due to rounding

adroitdigital.com

61% 39%

80%

MEN 50%

MEN 27%

WOMEN 12%

27% 18 - 25 45%

15%

18 - 25 66%

26 - 33 73%

6%

41%

TOTAL 72%

26 - 33

TOTAL 56%

24%

40%

60%

70%

31%

women feel mobile is modern:

50% of male respondents

compared to 27% of female

respondents.

compared

18 - 25 50%

to 32%, respectively.

26 - 33 32%

Women 66%

61% 39%

MEN 50%

WOMEN 27%

It should Yes come as no shock to

brands and Noagencies that digital

natives, those aged 18–25, see

mobile as modern compared to

older Millennials aged 26–33, who

80%

didn’t spend their formative years

with mobile phones and the

Internet at their fingertips: 50%

33%

MEN 30%

WOMEN 17%

18 - 25 23%

26 - 33 37%

43%

I'm brand loyal and use the same

MEN

brands as my parents 27%

WOMEN 12%

I use many of the same brands 27% my

parents 26% use, but not all 45%

15%

41%

I use a few of the 5% same brands as

my parents

I use different brands than my

parents

Yes

No

Do you feel brands that

don’t advertise on mobile,

smartphones, and tablets are

less desirable and outdated?

Men 38% 18 - 25 66%

Women 46% 26 - 33 73%

5%

18 - 25 50%

26 - 33 32%

39% 42% 50% 31% 50%

80% 21% 21%

MILLENNIALS

24%

40%

More brand loyal than parents

WOMEN 17%

Same level of brand loyalty as parents

18 - 25 23%

Not as brand loyal as parents

26 - 33

31%

37%

Not brand loyal

23% 77%

61% 39%

MEN 50%

WOMEN 27%

18 - 25 66%

26 - 33 73%

18 - 25

TOTAL 72%

26 - 33

TOTAL 56%

MEN 30%

Women 66%

60%

Men 55%

8

70%

43%

Yes

No

18 - 25 50%

26 - 33 32%

20%

24%

40%

Yes

No

my

I us

par

M

Sa

No

No

Parents a

influence

70%

Parents a

Women 66%


61% 39%

Yes

No

TV MAY STILL BE KING OF THE

HILL, BUT SOCIAL IS THREATENING

ITS CROWN

MEN 50%

WOMEN 27%

18 - 25 50%

26 - 33 32%

Which advertising medium influences

you and other people your age the

most in how you perceive and value a

brand?

If agencies and brands want to hold sway over the

millennial audience, TV is the champ, but social is

quickly coming up on its heels. For a medium that has

existed less than a decade, social is offering TV some

stiff competition.

When asked which advertising medium has the most

influence over how our survey respondents view

brand value, TV and social were the clear winners,

with 70% and 60%, respectively. Traditional media

outside of TV fell flat. In the realm of influence, radio,

billboards (OOH), and magazines finished last, with

mobile and online—both display and video—

comfortably in the center.

Those who spent their youth in front of the TV and

not the Internet or game console show TV as their

primary influencer in perceiving brand value. 73% of

26–33 year-olds, compared to 66% of 18–25 year-olds,

consider TV to be their biggest influencer when it

comes to brand value.

Both men and women indicated social and online

display as their largest influencers beyond TV.

Base: n=2,000

Sums may not equal 100 due to rounding

80%

33%

Mobile

40%

15%

39% 42% 21% 21%

Online video

9%

Men 38% 18 - 25 66%

Women 46% 26 - 33 73%

Online display

12%

Radio

Billboards

31%

Magazines

Social

60%

Men 55%

Men 21%

Women 66%

Women 31%

2% 3% 4% 26%

70%

TV

29%

adroitdigital.com

adroitdigital.com MILLENNIALS

9

Mobile

e video

display

Radio

lboards

gazines

Social

TV


31%

THE FIRST ONE IS FREE

26 - 33 37%

40%

40%

Mobile

Same level of brand loyalty as parents

Not as brand loyal as parents

Not as brand loyal as parents

Not brand loyal

Not brand loyal

Online video

Online display

Radio

Billboards

Magazines

Social

TV

Through which advertising medium

are you and other people your age

most likely to be introduced to or

find out

61%

about a new

39%

61% brand you’ll 39%

consider for trial?

Yes

The first step in winning over a new customer is No moving

him or her from consideration to trial.

As our survey demonstrates, TV and social are the top

advertising media in influencing Millennials’ perception

of brand value. The same holds true in moving them to

trial.

For brands prospecting new customers, MEN 50% TV and social

WOMEN 27%

26 - 33 32%

will pave the way with Millennials: WOMEN 27% 29% and 26% indicated

TV and social, respectively, as the media most likely to

introduce them to a new product for trial.

Women are 1.5

80%

times more likely than men to discover a

new product for trial through 80% social media exposure or

70%

advertising—31% compared to 21% of men.

PLAYING BY A NEW SET OF RULES

While many Millennials may have brand loyalty equal to or greater

than that of their parents, they select brands using a different set

of criteria.

When asked if Millennials chose brands on a different set of criteria

from that used by their parents, the majority, 77%, indicated yes.

The variance between men and women is slight: 79% of men,

compared to 75% of women, indicated they use a different set

of criteria than their parents to select brands.

Base: n=2,000

33%

40%

MEN 50%

Sums may not equal 100 due to rounding

adroitdigital.com

Men 38% 18 - 25 66%

26 - 33 73%

Women 46%

Women 66%

60%

Men 55%

39%

39% 42%

33%

31%

42%

21% 21%

21% 21%

Mobile

Online video

Online

Mobile

display

Online video

Radio

Billboards

Online display

Magazines

Radio

Billboards Social

TV

Magazines

40%

Women 31%

26%

31%

29%

Yes

No

18 - 25 50%

18 - 25 50%

26 - 33 32%

26 - 33 73%

Men 38% 18 - 25 66%

Women 46%

Women 66%

60%

Men 55%

Social

TV

Women 31%

26%

40%

15%

Mobile

70%

29%

9%

Online video

70%

55%

Recommended by friend

12%

Online display

23% 77%

23% 77%

Radio

50% 50%

50% 50%

Billboards

Do you 62% and others your age

choose your favorite brands

on a different set of criteria

THAN your 47% parents?

25%

Recommended by parent

2% 3% 4% 26%

23% 77%

23% 28% 77%

MEN 79%

WOMEN 75%

Brand reputation

Magazines

Eco-friendly brands

Entertaining ad campaigns

Brand exposure through

traditional advertising

Brand exposure through

Value/price

Men 21%

Women 31%

Social

TV

23%

MEN 79%

WOMEN 75%

50%

Men 41%

18 - 25 42%

MILLENNIALS

29%

19%

Men 15%

10

Women 36%

Yes

No

Parents are m

influenced Pa

in

Parents and I a

equally influe Pa

eq

29%

Yes 20%

No

50%

Men 41%

- 25 42%

Ye

N

35%

Ye

N

social media

Prestige/social perception

Quality

Established brand


9%

12%

2%

3%

4%

NO ONE WANTS A BAD

REPUTATION

Mobile

Online video

Online display

Radio

Billboards

Magazines

Social

TV

What criteria do you and

others your age use to select

a new brand for trial?

Is having a quality product enough?

For Millennials, the answer appears to be

no. When we asked our Millennials which

criteria they use to select a new brand for

trial, quality was fourth on the list, with 35%

of respondents. It was preceded by brand

reputation at 47% and recommendation of a

friend at 55%. The most important criterion

to a Millennial is value and/or price, with 62%.

Rounding out the list of criteria are exposure

through social media at 29%, brands that are

eco-friendly at 28%, and a recommendation

from good old mom and dad at 25%.

The big standout difference between men

and women in their selection criteria is

exposure to a brand through traditional

advertising (TV, radio, magazines). Women

are almost 2.5 times more likely than men to

use traditional advertising in their brand

selection criteria, 36% compared to 15%.

70%

55%

Recommended by friend

25%

Recommended by parent

62%

Value/price

47%

Brand reputation

28%

Eco-friendly brands

23%

70%

59%

56%

Entertaining ad campaigns

Brand exposure through

traditional advertising

Brand exposure through

social media

Prestige/social perception

19%

Men 15%

Women 36%

29%

20%

35%

20%

Quality

Established brands that

instill trust

Men 61%

Men

61%

Women 54%

Women

64% Women 64%

Women 56%

39%

Men 50%

Men 41%

37% 36%

25%

Base: n=2,000

Sums may not equal 100 due to rounding

16%

adroitdigital.com

MILLENNIALS

11


Open dialogue through

social channels

Brands willing to change based

on consumer opinion

DIGITAL FOR BETTER CHOICES

More advertising

Publicize fair business practices

Do you think you and other people your

age are Publicize making eco-friendly smarter practices brand choices

than your parents because of your access

to and familiarity Become more with charitable new technologies

(e.g., mobile, social, Internet)?

Become more active in

local communities

Are Millennials smarter than their Baby Boomer and Gen X

parents, Become or are they less just about able the to gather brand more and information

more about the consumer

from a wider selection of sources with speed and accuracy?

Regardless of the answer, 73% of Millennials think they are

making smarter brand choices than their parents because of

their knowledge, familiarity and access to the digital world

at large.

Men 28%

Men 28%

Men 33%

29%

25%

28%

44%

32%

W

33% W

38%

27% 73%

Yes

No

Base: n=2,000

Sums may not equal 100 due to rounding

adroitdigital.com

MILLENNIALS

12


nline vide

Online displa

Radi

Billboard

Magazine

Socia

TV

Yes

No

9%

nline video

70%

55%

12%

Online display

Radio

DIGITAL DELIVERS

MEN 79%

WOMEN 75%

Do you think digital 29% advertisements

(online, mobile, social) are more

26%

effective in influencing your brand

decision making than traditional

advertisements (TV, magazines, radio)?

The majority of our Millennials, 45%, found strength in

teamwork. They indicated digital ads when combined with

traditional ad channels are equally or more effective in

influencing their brand decision making compared to either

as a standalone channel.

2% 3% 4% 36% of the Millennials surveyed think digital advertising is

more effective than traditional advertising.

Men and younger Millennials are the true digital believers:

41% of men and 42% of those 18-25 feel digital advertising is

more effective than traditional advertising in influencing

their brand decisions.

Billboards

Magazines

Men 21%

Women 31%

Social

TV

When broken out by age set, the younger Millennials are

more likely to feel digital is the channel of choice for

influencing their brand decision making compared to their

62% elder counterparts: 42% and 32%, respectively.

50%

Men 41%

18 - 25 42%

36%

Women 30%

26 - 33 32%

Digital ads are more

effective

Traditional ads are

more effective

They’re equally effective

They’re most effective

when used together

19%

28%

17%

25%

d by friend

commended by parent

Value/price

47%

Digital ads win

out with men

and younger

Millennials.

Entertaining ad campaigns

Brand exposure through

traditional advertising

Brand exposure through

social media

Prestige/social perception

Brand reputation

28%

Eco-friendly brands

23%

19%

Men 15%

Women 36%

29%

20%

35%

20%

Quality

Established brands that

instill trust

omen 64%

adroitdigital.com

adroitdigital.com MILLENNIALS

13


Recommend

Recommend

Bran

Eco-frie

Entertaining a

Brand expos

traditiona

Brand expos

Prestige/socia

Establ

LOYALTY CAN BE FLEETING

In which categories are you and others

your age the most brand-loyal?

It is good news for mobile phones and fashion. Some may

argue the two are entwined.

Men 61%

70%

Men

61%

59%

Women 54%

Women

64% Women 64%

56%

When it comes to brand loyalty, Millennials put their mobile

phone providers toward the top of their lists, at 59%. Not

surprising for a generation known as digital natives.

Women 56%

39%

Men 50%

Men 41%

37% 36%

What they wear matters. The category where Millennials

also feel strong brand loyalty is in clothing, shoe, and

accessory brands, at 56%. With a marked decrease, health

and beauty finishes out the top three brand loyalty

categories, at 39%.

16%

25%

Millennial men are more loyal to their cars and phones

than women. Guys may love their cars, but they love their

phones considerably more—41% and 61% comparatively.

While the ladies still love their phones (56%), their brand

dollars also lie with health and beauty products (54%).

The Millennial ladies felt the greatest brand loyalty to their

clothes, shoes, and accessories (64%).

Mobile phone providers

Hotels and airlines

Health and beauty

Clothing/shoes/accessories

Financial services

CPG

Auto

Don’t get

Change in financial situation

Change in family/relationship status

between

Newer more attractive brand

Millennials

More eco-friendly product attracts you

Advertising causes a brand change

and their

Recommendation from friend/family

Current brand found to have bad

phones.

business practices

Current brand price increase

Men

2

Men 25%

Base: n=2,000

Sums may not equal 100 due to rounding

adroitdigital.com

MILLENNIALS

14


Men 6

70%

Men

61%

59%

56%

KEEPING THEM LOYAL

Women 56%

Women 54%

What causes you 39% and other people 37% 36%

your age to switch brands?

Men 50%

Women

64% Wome

Men 41%

The key to brand loyalty is just that.

25%

How do you keep a

loyal customer over the long haul of a lifetime?

16%

56% of Millennials would change brands when they

experience a change in finances. When finances change

either for the better or for the worse, consumers have

to evaluate their current brands and their associated

costs and value.

41% of Millennials would change brands if their current

brand increased in price.

The other top three reasons that Millennials would

change brands are a recommendation from a friend, at

38%; if their current brand is found to have bad business

Mobile phone providers

Hotels and airlines

Health and beauty

Clothing/shoes/accessories

Financial services

CPG

Auto

practices, at 32%; and if something newer and shinier

comes along, at 37%.

Women on average are more likely than men to change

brands on several counts: something newer, 45%

compared to 35%; a brand found to have bad business

practices, 36% compared to 28%; and an eco-friendly

competitor, 35% compared to 25%.

Outside of the constraints of financially driven motives,

brands courting Millennials should adhere to a few

ideas: keep people talking about your brand, make sure

you’re a good corporate citizen, and keep your products

and brand fresh and exciting so consumers aren’t

tempted away by the latest new product.

Change in financial situation

Change in family/relationship status

Newer more attractive brand

More eco-friendly product attracts you

Advertising causes a brand change

Recommendation from friend/family

Current brand found to have bad

business practices

Current brand price increase

Men 25%

56%

20%

Men 28%

Men 35%

29%

25%

38%

32%

37%

Women 35%

Women 45%

Women 36%

41%

60%

8%

8%

Base: n=2,000 Sums may not equal 100 due to rounding

35%

14%

adroitdigital.com

MILLENNIALS

15


KEEPING IT CREDIBLE

More eco-friendly product from attracts you

Recommendation from friend/family

Advertising Current Current brand causes brand found a found brand to to have change have bad bad

business business practices practices

Recommendation from friend/family

Current Current brand brand price price increase increase

Current brand found to have bad

business practices

Current brand price increase

Men 25%

25%

Men

Men

28% 28%

Men 28%

29%

32

32%

What advertising medium do you

and other people your age believe

gives a brand the most credibility in

influencing your brand decisions?

35% of the Millennials surveyed said TV advertising

is the medium that gives a brand the most credibility.

32% indicated social as a close second to TV in

providing a brand with credibility.

More than two-thirds of Millennials see TV and

social as having almost the same level of brand

advertising influence.

40% of women indicated social advertising as

having more of an influence in brand credibility than

TV, compared to 28% of men.

Given this information, it seems the tides of channel

influence are changing. Are brands and agencies

prepared to keep up?

8% 8%

8%

35% 35%

8%

14% 14%

35%

14%

3% 3%

3%

TV TV

Social Social

8% 8%

MEN

MEN

28% 28%

WOMEN

WOMEN

40% 40%

MEN 28%

WOMEN 40%

Radio Radio

Online Online display display

32% 32%

32%

Online Online video video

Magazines Magazines

TV TV

Social Socia

Radio Radio

TV

Online d

Social

Online v

Radio

Magazin

Online di

Online vi

Magazine

TV

Social

Radio

Online display

Online video

Magazines

BRANDS HAD BETTER ROLL

UP THEIR SLEEVES

Will brands today have to work harder

to earn your loyalty than they did to

earn your parents’ loyalty?

Millennials say an astounding yes to the question above.

78% of Millennials in our survey said brands will have to

work harder to earn their brand loyalty than they did to

earn their parents’ loyalty.

22% 22% 78% 78%

22% 78%

Yes Yes

No No

Yes

No

Gone are the days of a flashy 30-second TV spot, a few

magazine placements, a smattering of radio spots, and a

little out-of-home mixed in. The next great generation of

consumers, Millennials, will require more from brands than

they’ve ever had to give. They won’t settle for being

advertised at. Brands need to roll up their sleeves and

engage Millennials in meaningful ways to win them over.

adroitdigital.com

Open Open dialogue dialogue through through

social social channels channels

Brands Brands willing willing to to change change based based

on on consumer consumer opinion opinion

Open dialogue through

More social More advertising

channels advertising

Brands willing to change based

Publicize Publicize on fair fair consumer business business opinion practices practices

Publicize More advertising

Publicize eco-friendly practices practices

MILLENNIALS

Base: n=2,000

16

Men

Men

28% 28%

29

Men

Men

28% 28%

Men 28%

Publicize fair business practices 3

2


35%

14%

3%

MEN 28%

WOMEN 40%

32%

TV

Social

Radio

Online display

KEEPING IT REAL

Online video

How will brands remain relevant to

you and other

Magazines

people your age moving

into the future?

TV

Social

Radio

Online display

22% 78%

It’s a new age of branding, and the consumers are

Online running video the show. To remain relevant in the future, our

Magazines Millennials told us brands need to listen to them and let

them chart the course.

52% of all respondents said to remain relevant, brands

need to listen to consumers and be willing to change

based on their feedback.

44% expect brands to have open dialogue with them.

It’s no longer a one-way street of communication.

Yes

38% No of Millennials said brands need to become more

about the consumer and less about the brand.

Millennial women feel more strongly about this than

men, 45% compared to 33%. Women are also more

concerned about eco-friendly products, 40% compared

to 28% of men, and fair business practices, 37% compared

to 28% of men.

Open dialogue through

social channels

Brands willing to change based

on consumer opinion

More advertising

Publicize fair business practices

Publicize eco-friendly practices

Become more charitable

Become more active in

local communities

Become less about the brand and

more about the consumer

Men 28%

Men 28%

Men 33%

44%

52%

29%

32%

25%

28%

Women 37%

33% Women 40%

38%

Women 45%

70%

Base: n=2,000

Sums may not equal 100 due to rounding

adroitdigital.com

27% 73%

MILLENNIALS

17


Conclusion

Looking back several years, a number of articles put forward the idea that Millennials aren’t

brand-loyal. As our study indicates, this couldn’t be further from the truth. Millennials are

brand-loyal. In fact, many consider themselves to be more brand-loyal than their parents,

more informed about brands, and in a better position to make what they consider smarter

brand choices. Because of their access to vast amounts of information, they are highly

informed about everything from a brand’s pricing to its product quality and even its

business practices—including good corporate citizenship, corporate values, and

eco-friendly practices.

There is no denying that gaining the brand loyalty of Millennials at the beginning of their

earning years will create an enormous upside for brands in delivering the maximum future

lifetime value of these consumers. Armed with a well-informed view of Millennials, how do

brands and agencies go about gaining the trust and admiration of the next generation of

super buying power?

The secret to success will lie in their ability to select the right partners, employ the right

strategies, leverage the right technology, and be prepared to constantly turn and pivot.

The wide array of ad tech available today is positioning brands and agencies to open the

dialogue of engagement and to lay the foundation for earning the loyalty of Millennials.

The loyalty of Millennials isn’t an elusive thing. However, it’s something marketers will have

to work hard to earn and even harder to keep. But with some willingness to try new things,

the ability to remain flexible and most importantly, meet Millennials on their terms, the

future for marketers is bright.

adroitdigital.com

MILLENNIALS

18


About Adroit Digital

At Adroit Digital, we believe people move technology,

not the other way around. Our team of programmatic

experts uses human insights, our exclusive data set,

and unmatched media access to intelligently drive

marketing performance. We work hard to delight our

customers every day.

We have offices in New York, Boston, Los Angeles, and

San Francisco.

Sources:

* http://www.forbes.com/sites/gregpetro/2013/03/21/millennial-engagement-and-loyalty-make-them-part-of-the-process/

** http://www.retailwire.com/discussion/16646/how-can-retailers-gain-the-loyalty-of-millennials

† http://www.huffingtonpost.com/ryan-donegan/marketing-to-millennials_b_4025881.html

All registered trademarks and logos contained herein are the sole property of their respective owners.

Contact Us

For press inquiries, please contact:

Hollis Guerra, Blast PR

hollis@blastpr.com

For sales inquiries please contact:

hello@adroitdigital.com

(855) 6-ADROIT

19

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