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Marketing To Millennials

Niche marketing is "a hot idea" says Nilson report publisher David Robertson, especially when it comes to reaching Millennials. One example is Facecard.com, an electronic card that allows users to borrow, lend, or give away money to their friends. For a fee, retailers can send Facecard owners "prewards", or small donations of store credit, based on their age, location and personal interests. These $2-$3 gifts are redeemable via credit card, making it easy to track consumer response. During a test in June, more than 5,000 Millennials signed up for Facecard.

One 16-year-old describes the promotional service as "free money" and says he's more likely to go to establishments offering "prewards." Jersey Mike's McDonald, one such establishment, recently sent more than 300 prewards to local high school seniors, and received a 17% response rate. In the end, the whole campaign cost Jersey Mike's less than $150: $2 for each redeemed preward, plus a 5% processing fee.

Meanwhile, Facebook, home to 21.4 million U.S. Mllennials, has been courting small businesses through its Social Ads program, which launched last November. Social Ads gleans information from user profiles to target ads. Tim Kendall, Facebook's director of monetization, calls the service "highly efficient." Small businesses can pay a premium, from 48 to 62 cents per click, to target specific demographics, like jewelry enthusiasts in the Atlanta area.

Read the whole story at BusinessWeek »

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