Fluent2_MarketingtoMillennials_2016

Marketing to Millennials 2016 | Page 1

MARKETING TO MILLENNIALS 2016
Several recent studies have shown that millennials are less brand loyal than
preceding generations. A recent Daymon Worldwide global study1 showed
that only 29% of millennials usually buy the same brand, compared with 35%
of Gen Xers. Furthermore, an Accenture study from last year showed that
millennials change banks more than twice as often as other consumers.2
As a result of this lack of brand loyalty, it is critical for marketers to understand
how to reach the millennial generation. Fluent conducted a nationwide
survey of 1,769 millennials and 1,191 non-millennials to better understand
millennials’ device usage and interaction with various digital media channels,
and their relationship to impacting purchasing decisions.
1 Daymon Worldwide, “The Next World: How Millennials Will Shape Retail”, June 20, 2016
2 The Financial Brand, May 12, 2015
Marketing to Millennials 2016 | Page 2

SOME OF THE KEY FINDINGS INCLUDE:
Smartphones are the most popular device with
millennials as 7 in 8 millennials own one.
They spend the highest proportion of their online time
using their smartphones (51% spend all or most of their
online time) and use them to make purchases as much as
any other platform (49% at least monthly).
While still the top network, Facebook is far less influential
with millennials than it is with older generations.
43% of millennials say Facebook is the social media
platform they use most often, compared with 61% of nonmillennials.
Among the youngest cohort of millennials, 18-
24 year olds, other networks including YouTube, Instagram
& Snapchat have nearly caught up to Facebook.
Despite the dominance of smartphones, computers
remain an important purchase device for millennials.
Nearly 1 in 3 (32%) millennials use computers to make
purchases at least weekly. However, younger millennials,
aged 18-24, use computers less often to make purchases
than their older counterparts.
Promotional emails were the most effective digital
advertising medium asked about in the survey at
influencing millennial purchase decisions.
Over 2 in 3 (68%) of millennials said that promotional
emails impacted their purchase decisions at least on a few
occasions.
Millennials own smartwatches at nearly twice the rate
of the general population.
44% say they own smartwatches compared with only
23% of non-millennials.
Apple is the preferred device brand for millennials.
Despite having less disposable income, millennials are
more likely than older generations to purchase Apple
products across all four device categories that we asked
about.
Millennials show somewhat less concern about data
privacy and security than older generations.
There are double digit gaps between the percentage of
millennials and non-millennials who are very concerned
about data privacy (37% vs. 51%) and data security (42%
vs. 55%), respectively.
We hope that you will enjoy the report and welcome your
feedback!
–The Fluent Research Team
research@fluentco.com
Marketing to Millennials 2016 | Page 3

AS SMARTPHONES HAVE BECOME UBIQUITOUS, MILLENNIALS ARE
ADOPTING SMARTWATCHES QUICKLY
Smartphones are dominant devices across the entire population. 87% of both millennials and non-millennials own a
smartphone. Millennials are slightly less likely to own computers and tablets, but nearly twice as likely (44% to 23%) to own
smartwatches as older generations.
100%
% WHO OWN THIS TYPE OF DEVICE
Millennials (18-34) Non-Millennials (35+)
80%
87%
87%
60%
40%
68%
70%
59%
64%
44%
20%
23%
0
Smartphone
Computer
Tablet
Smartwatch
MILLENNIALS CHOOSE APPLE MORE FREQUENTLY
Apple products, particularly the iPhone, are disproportionately popular with millennials.
40%
% WHO USE APPLE PRODUCT AS THEIR PRIMARY DEVICE IN A CATEGORY
Millennials (18-34) Non-Millennials (35+)
30%
38%
29%
20%
10%
18%
13%
19%
16%
13%
0
Apple iPhone
Apple Mac
Apple iPad
6%
Apple Watch
Marketing to Millennials 2016 | Page 4

MILLENNIALS, PARTICULARLY WOMEN, SPEND THE LARGEST SHARE
OF THEIR ONLINE TIME ON THEIR SMARTPHONES
Millennials spend the greatest portion of their online time using their smartphones, followed by computers, tablets and
smartwatches.
IF OWN DEVICE: WHICH BEST DESCRIBES WHAT PORTION OF THE TIME
YOU SPEND ONLINE IS SPENT USING YOUR [DEVICE]?
(Those who do not own device are assumed to answer none.)
100%
80%
60%
40%
20%
0
20%
7%
22%
27%
24%
Smartphone
35%
17%
24%
9%
15%
Computer
46%
9%
16%
15%
14%
Tablet
62%
8%
10%
9%
11%
Smartwatch
Nearly all
Most
Some
Very little
None
Millennial women spend a greater portion of their
online time on their smartphones than millennial men.
IF OWN SMARTPHONE: WHICH BEST DESCRIBES WHAT PORTION OF THE
TIME YOU SPEND ONLINE IS SPENT USING YOUR SMARTPHONE?
(Those who do not own device are assumed to answer none.)
100%
80%
60%
40%
20%
7%
22%
27%
11%
5%
23%
34%
28%
8%
21%
22%
Nearly all
Most
Some
Very little
None
20%
24% 27%
21%
0
All
Women
Men
Marketing to Millennials 2016 | Page 5

MILLENNIALS MAKE THE MAJORITY OF THEIR PURCHASES
ON COMPUTERS AND SMARTPHONES
Computers are about on par with smartphones as the devices used to make online purchases. Smartphones are somewhat
more likely to be used at least monthly, while computers are somewhat more likely to be used at least weekly.
IF OWN DEVICE: WHICH BEST DESCRIBES HOW OFTEN YOU MAKE
PURCHASES USING YOUR [DEVICE]?
(Those who do not own device assumed to answer once a year or less.)
100%
80%
60%
40%
20%
0
34%
17%
19%
15%
15%
Smartphone
45%
55%
64%
13%
10%
9%
10%
8%
19%
10%
14%
9%
13% 12% 9%
Computer
Tablet
Smartwatch
Multiple times per week
Weekly
Monthly
A few times per year
Once a year or less
Younger millennials make purchases less frequently
with computers than older millennials.
IF OWN COMPUTER: WHICH BEST DESCRIBES HOW OFTEN YOU
MAKE PURCHASES USING YOUR COMPUTER?
(Those who do not own device assumed to answer once a year or less.)
100%
80%
60%
40%
20%
0
45% 47% 44% 40%
13%
13%
11%
17%
6%
10%
14%
10%
24%
19%
16%
18%
13% 10% 13% 17%
All
18-24
25-29
30-34
Multiple times per week
Weekly
Monthly
A few times per year
Once a year or less
Marketing to Millennials 2016 | Page 6

FACEBOOK NOT QUITE AS IMPORTANT FOR MILLENNIALS, BUT
IS STILL THE TOP SOCIAL MEDIA PLATFORM OVERALL
Facebook is losing share to other platforms at a greater pace among millennials than non-millennials.
60%
WHICH OF THE FOLLOWING SOCIAL MEDIA NETWORKS DO YOU USE MOST?
61%
Millennials (18-34) Non-Millennials (35+)
50%
40%
43%
30%
20%
10%
0
18%
10%
12% 11%
9% 9%
6% 6%
7% 2%
4%
Facebook Instagram YouTube LinkedIn Pinterest Snapchat Twitter
2%
WHICH OF THE FOLLOWING SOCIAL MEDIA NETWORKS DO YOU USE MOST?
Millennials (18-34)
By Age
By Gender
18-24 25-29 30-34
Women
Men
Facebook
36%
41%
50%
Facebook
51%
36%
Instagram
24%
17%
13%
Instagram
17%
18%
YouTube
12%
14%
11%
YouTube
9%
16%
LinkedIn
7%
10%
10%
LinkedIn
6%
11%
Pinterest
9%
8%
8%
Pinterest
7%
10%
Snapchat
9%
9%
5%
Snapchat
8%
7%
Twitter
3%
1%
2%
Twitter
2%
2%
Marketing to Millennials 2016 | Page 7

OTHER SOCIAL MEDIA PLATFORMS ARE EFFECTIVELY COMPETING
WITH FACEBOOK FOR MILLENNIALS
With the sole exception of Facebook, all social media platforms are more popular with millennials than non-millennials.
The largest gap between millennials and their older counterparts is with Snapchat. 1 in 4 millennials use it every day versus
just over 1 in 10 (11%) among non-millennials.
50%
40%
30%
20%
10%
0
WHICH BEST DESCRIBES HOW OFTEN YOU USE [SOCIAL MEDIA PLATFORM]?
% Saying Everyday
41%
49%
35%
Millennials (18-34) Non-Millennials (35+)
29%
20% 20%
25%
11%
17% 17%
9% 8%
Facebook YouTube Instagram Snapchat Pinterest Twitter LinkedIn
13%
7%
Snapchat & Instagram are especially popular with younger
millennials. At least 3 in 10 18-24 year olds use each
platform every day.
WHICH BEST DESCRIBES HOW OFTEN YOU USE
[SOCIAL MEDIA PLATFORM]?
% Saying Everyday
By Age
18-24 25-29 30-34
Facebook now trails YouTube in the percentage of
millennial men using it every day.
WHICH BEST DESCRIBES HOW OFTEN YOU USE
[SOCIAL MEDIA PLATFORM]?
% Saying Everyday
By Gender
Women
Men
50%
48%
50%
51%
40%
30%
20%
38% 36%
36% 35%
33%
34%
26%
24%
30%
20%
19%
40%
30%
20%
32%
36%
34%
34%
26%
28%
22%
10%
10%
0
Facebook
YouTube
Instagram
Snapchat
0
Facebook
YouTube
Instagram
Snapchat
Marketing to Millennials 2016 | Page 8

DIGITAL ADVERTISING CHANNELS HAVE SIMILAR LEVELS OF
INFLUENCE ON MILLENNIAL PURCHASES
Promotional emails edge out other digital mediums in their impact on millennial purchase decisions. 68% of millennials
said their purchase decisions were impacted at least occasionally by promotional emails, compared with 63% for ads on
social media networks and ads on news and entertainment websites, and 56% for promotional text messages.
HOW FREQUENTLY DO [MEDIUM] IMPACT YOUR PURCHASE DECISIONS?
Promotional emails
13%
13%
22%
20%
32%
All of the time
Most of the time
Some of the time
Ads on social media
networks
12%
12%
20%
19%
37%
On a few occasions
Never
Ads on news and
entertainment websites
11%
13%
20%
19%
37%
Promotional text
messages (SMS)
11%
14%
17%
14%
44%
0 20% 40% 60% 80% 100%
CONCERNS THAT MILLENNIALS IGNORE EMAILS ARE UNFOUNDED
Counteracting the notion that millennials don’t respond to email marketing, promotional emails influence millennials
better than older generations. 10% more millennials than older generations (26% to 16%) say promotional emails are
influential ‘all or most of the time’.
HOW FREQUENTLY DO PROMOTIONAL EMAILS IMPACT
YOUR PURCHASE DECISIONS?
40%
Millennials (18-34) Non-Millennials (35+)
30%
32%
36%
20%
22% 23%
20%
24%
10%
13% 13%
8% 8%
0
All of the
time
Most of the
time
Some of the
time
On a few
occasions
Never
Marketing to Millennials 2016 | Page 9

MILLENNIALS ARE LESS CONCERNED ABOUT DATA PRIVACY
THAN NON-MILLENNIALS
Millennials are less concerned that companies will not respect privacy when using personal information than older
generations. Millennial women and older millennials show greater concern than millennial men and younger millennials.
HOW CONCERNED ARE YOU THAT COMPANIES WILL NOT RESPECT
YOUR PRIVACY IN USING YOUR PERSONAL INFORMATION?
Very concerned Somewhat concerned Not concerned
26%
38%
37%
Millennials
Non-Millennials
51%
23%
25%
By Age
By Gender
18-24
Women
35%
31%
34%
43%
27%
30%
25-29
Men
38%
20%
42%
32%
24%
44%
30-34
0 20% 40% 60% 80% 100%
44%
20%
36%
0 20% 40% 60% 80% 100%
Marketing to Millennials 2016 | Page 10

SECURITY IS A GREATER CONCERN THAN PRIVACY
Both millennials and non-millennials find that data security is somewhat more worrisome than privacy concerns. Again,
millennials have fewer security concerns than non-millennials and millennial men and younger millennials have fewer data
security concerns than their older and female millennial counterparts.
HOW CONCERNED ARE YOU THAT COMPANIES WILL FAIL
TO KEEP YOUR PERSONAL INFORMATION SECURE?
Very concerned Somewhat concerned Not concerned
25%
36%
Millennials
42%
Non-Millennials
55%
20%
22%
By Age
By Gender
18-24
Women
42%
24%
34%
43%
27%
30%
25-29
Men
42%
22%
36%
32%
24%
44%
30-34
0 20% 40% 60% 80% 100%
47%
18%
35%
0 20% 40% 60% 80% 100%
Marketing to Millennials 2016 | Page 11

METHODOLOGY
This Fluent survey was conducted online within the United States on August 2, 2016
among 2,960 adult US residents (aged 18 and up) including 1,769 millennials (aged
18-34) and 1,191 non-millennials (aged 35 and older). Respondents were randomly
selected. Due to rounding, percentages may not always add up to 100%. Fluent’s
proprietary ad serving technology includes a real-time survey module that was used
to facilitate the data collection for this study.
ABOUT FLUENT
Fluent, LLC, a cogint company (Nasdaq: COGT), is an industry leader in people-based digital
marketing and customer acquisition, serving over 500 leading consumer brands and direct
marketers. Leveraging a massive reservoir of proprietary audience data, as well as millions of
real-time survey interactions with consumers every day, Fluent enables advertisers to more
effectively target and acquire their most valuable customers, with precision, at a massive scale.
The company is headquartered in New York City. For more information visit www.fluentco.com.
fluentco.com I sales@fluentco.com I 646.647.2966 Marketing to Millennials 2016 | Page 12