Consumers 16 to 34 are indeed different than older consumers when it comes to dining out, dining in, grocery shopping and apparel shopping behaviors and preferences, confirms a new study from The Boston Consulting Group. For the study, “Millennial Passions: Food, Fashion and Friends,” BCG surveyed 4,000 Millennials and 1,000 non-Millennials (ages 35 to 74). Dining Out Habits, Preferences Restaurant meals and drinks rank high on Millennials’ list of what they like to spend their money on—above consumer electronics, apparel, footwear, beauty, cosmetics and accessories. On average, they also spend slightly more on dining out than non-Millennials, and they eat out more often (3.4 versus 2.8 times a week). Males and Hispanic males in particular eat out more often. Millennials also: * Prefer fast-casual dining venues such as Panera Bread, Chipotle Mexican Grill and Pei Wei Asian Diner, although they also often patronize casual-dining venues such as Olive Garden, Applebee’s, Chili’s and The Cheesecake Factory. They also prefer Asian, exotic and organic foods more than non-Millennials (who prefer seafood and steak). *Are more likely to get food to go than to dine in the restaurant, particularly at breakfast. * Are more likely to eat out with friends and coworkers than non-Millennials (65% versus 43%), and get more social value out of casual dining than non-Millennials. * Eat at restaurants during off-peak hours twice as much as non-Millennials – a behavior that appears to be generational, not just related to life stage. But Millennials are far from homogenous; subgroups differ in regard to their priorities for restaurants. For instance, “Gadget Gurus” (typically male and the generation’s most frequent restaurant goers) want great-tasting food and convenience, whereas “Hip-ennials” (primarily female and the largest segment) want customized and error-free orders, friendly/attentive service, good value and an orderly, clean environment. Millennial segments also report somewhat different emotional needs related to dining out. In general, however, they want to feel like they are “experiencing something new,” and they care more about late-night dining, convenience, décor, menu/drink variety, entertainment and Wi-Fi. (Challenging restaurants to meet their needs without turning off older consumers.) In addition to offering fast(er) service, ready-to-eat and to-go options, food/beverage combinations that include exotic, organic and local ingredients, and entertainment experiences, BCG recommends that restaurants provide innovative services for large parties and technology options that enhance the dining experience. And of course, that they use digital, mobile and social media promotions, as well as advocacy marketing. Dining In and Food Shopping Millennials prefer farm-to-table and organic foods (they care twice as much about organic food than non-Millennials), and are willing to "trade up" for fresh produce and prepared or organic foods. They’re also more likely than non-Millennials to love cooking and to consider themselves experts in the kitchen (64% versus 52%) – and they enjoy exotic and diverse foods and creative menu ideas. A major point for food and beverage manufacturers: Millennials still prefer branded foods, and perceive them as offering noticeably higher quality – but economic realities (including having children) tend to drive purchases of store brands. When it comes to food shopping, Millennials exhibit preferences that are likely to stick with them as they get older, reports BCG. Millennials at all income levels are less aware than non-Millennials of traditional grocery chains such as Albertsons and Safeway – they prefer club, specialty and convenience food-store formats. However, there’s a gap between where Millennials say that they would like to shop (chains such as SuperTarget, Whole Foods, Trader Joe’s and Costco) and where they actually shop (one-third shop at Walmart Supercenters). Apparel Shopping Nearly half (47%) of female Millennials and a substantial 38% of male Millennials report shopping for clothing more than twice a month (versus 36% and 10% of female and male non-Millennials, respectively). Regardless of demographics and income levels, male Millennials spend twice as much annually on clothing as non-Millennials, and female Millennials outspend older females by about a third (although personal clothing purchases decline in Millennial households with children). Both male and female Millennials are knowledgeable about clothing and have definite brand preferences. While there is some overlap (Levi’s, Gap and American Eagle Outfitters, for example), the two sexes’ preferred brands generally differ. Also, men are more apt to stick with a relatively few brands, although when they try and are converted to a new brand, they tend to stay loyal longer than women do. More detail on Millennials’ preferences and behaviors in all three of these consumer arenas, as well as more specific advice for restaurant operators and retailers from BCG, are available in an article on BCG’s site (with registration).
Forrester is predicting that this holiday season, Americans will spend 15% more online than they did last year, with mobile and tablet options leading to increasingly fussy shoppers. The challenge for retailers is understanding that while consumers are always motivated to find a better deal online, they are also looking for more than the best price. So extras like free store pickup, price matching, and mobile optimization will all make a difference this year, writes analyst Sucharita Mulpuru in the report. “While price is critical, retail eBusiness executives must look to add value elsewhere in the customer purchase funnel to retain customers,” she writes. “Ensuring that critical content is available (and tested) on mobile devices will be imperative this holiday season, as consumers will continue to use mobile devices for product research and even for buying.” Price is still the leading reason a shopper moves from one site to another, with 85% of consumers saying it’s critical. But Forrester reports that lower shipping costs (61%), in-stock products (41%), coupons and promotions (34%) all play a role. The report predicts that as consumers continue to weigh all factors, they will be harder to impress, “as aggressive promotions, discounts, and free shipping have become holiday table stakes.” For m-commerce, mobile optimized features such as express checkout are also increasingly part of shopper expectation. Forrester estimates that by the end of the year, 135 million American adults will have smartphones, and 60 million will have tablets. (And 18% use their phone to shop, as do 24% of tablet owners.) But she adds that the “value of mobile extends far beyond the transaction, as consumers more frequently use those devices to research a product than to buy it.” In addition to hunting for deals and free shipping, Forrester expects consumers to be as committed to shopping on key days, including Thanksgiving, Black Friday and Cyber Monday. That makes it tough for retailers to stand out. “In 2011, 76% of the top 50 online retailers called out holiday promotions prominently on their home pages; furthermore, 50% of those retailers highlighted some sort of free shipping promotion,” it says.
Axe Hair has teamed up with young comedians to create the "Splitting Hairs" Comedy Tour in conjunction with Comedy Central. Kicking off at the New York Comedy Festival on Nov. 9, each "Splitting Hairs" live show will feature Abby Elliott and Owen Benjamin. The show will include live and pre-taped segments and audience participation. Comedian David Koechner will serve as moderator. To uncover attraction truths that will be discussed by the comedians during the tour, the Unilever-manufactured brand surveyed 1,000 guys and girls, ages 18-24 years old and found that 66% of girls said the quality or style of a guy's hair can make him more or less attractive. More than half of girls agreed that it's important to date a guy who has similar standards for their hair as their own Six out of ten girls admitted they wouldn't be interested in touching a guy's hair if it looked greasy or dirty, so wannabe rock stars and hipsters beware. "We're thrilled to have talented comedians to provide a no-holds-barred look into the attraction game from both sides of the gender aisle," said David Rubin, marketing director for AXE Hair, in a release."The show really brings to life how first impressions, like the right or wrong hairstyle, can play into the ultimate success or failure for guys." Following the premiere in New York City, the tour will stop in five more cities across the U.S., including: Pittsburgh, Cincinnati, Louisville, Nashville and Columbia, S.C. Axe Hair will be a premier sponsor of the third annual Variety Power of Comedy fundraiser on Nov. 17 at the Avalon Hollywood. Hosted by Joel McHale and honoring Seth MacFarlane, the night will showcase a number of comedic performances, including Axe Hair's very own Owen Benjamin, to support the Noreen Fraser Foundation, which raises funds for women's cancer research.
The bad news for automakers putting marketing muscle behind electric vehicles (EVs) is that they won't be more than a sliver of the U.S. auto market, at least until companies cut prices and convince consumers that such cars' longer-term benefits more than make up for the price premium. Compared with sales prices for similar gasoline-powered vehicles, all-electric vehicles carry a premium of $10,000, on average, while plug-in hybrid electric vehicles carry a $16,000 premium, on average, per J.D. Power and Associates’ new -- and first-ever -- Electric Vehicle Ownership Experience Study. Based on annual fuel savings, it would take an average of 6.5 years for EV owners to recoup the $10,000 premium, while the payoff point for plug-in hybrid ownership is 11 years. The study, which looks at EV shopping, consideration and ownership experience, finds that nearly half of current EV owners say they are still mostly driven by a need to be green. Not so for the next generation of owners, those shopping now. The firm says only 11% of those considering an EV are doing so for the environmental benefits offered by such vehicles, while 45% want the economic benefits consistent with lower fuel costs. The savings, on the surface, are tangible. Current EV owners report an average monthly increase in their utility bill of just $18 to recharge their battery, versus $147 for gasoline in that period. “The way for manufacturers to take EVs to the masses and increase sales is to address the economic equation,” said Neal Oddes, senior director of the green practice at J.D. Power and Associates. He says that for automakers to do so there must be "a technological quantum leap to reduce the battery price," whose consequence would obviously be a lower MSRP. He notes that there must also be an improvement in the infrastructure, and a big boost in the the number of charging stations outside of the home. "Until those two concerns are addressed, EV sales will remain flat.” According to JDP unit LMC Automotive, the lower cost of ownership may help increase market share from less than 1% of new-vehicle sales. The study also found that driving range and the availability of charging stations are the top concerns among consumers considering an EV, with 12% of EV intenders worried about range. The other problem is that most consumers considering an EV look more frequently for a midsize sedan, while most EV's are small. The new midsize EVs will come next year. The third problem is a typical one for new technology consideration: Reliability. A big incentive for automakers is that once consumers buy an EV, automakers tend to keep them as customers: per the firm, 82.5% of owners say they “definitely” or “probably” will buy another EV from the same brand. The average retention among owners of all vehicle types is 49.8%. The study is based on October online responses from more than 7,600 vehicle owners and panelists who either currently own an EV, are considering one, or shopped for an EV but ultimately decided not to purchase one.
Brian Lipman could not take the podium at Ad:Tech in New York on Thursday without having his iPhone with him. The digital media manager at MillerCoors did try, he admitted, but had to go back to his bag and get it. That, in short, evinces the power of the phone. "Mobile is no longer just consumption,” he said, “it's woven into the fabric of people's daily lives.” Lipman ran some slides giving a good picture of that: 84% of tablet owners browse the Internet. A quarter of tablet and smartphone users check out mobile ads and then purchase on a PC. Sixty-five percent of people shopping online start that journey on a smartphone. Over 45% start planning trips online then book trips digitally. He pointed out that the prevalent things people are doing on smartphones is accessing local information, participating in social media and networking, and getting news and entertainment. He cited Google data that 46% of consumers research on smartphones then purchase in stores. And he noted that prognosticators think mobile commerce will increase 417% by 2016. "Mobile's true power is the ability to capitalize on location and in-the-moment. But you have to protect your turf; you know when they are in your store, and you can offer consumers loyalty programs. You should be able to dynamically serve them ads when they are cross-shopping. Because if you don't, someone else may take advantage of it." He said among 18 to 34 year olds, 84% use phones to compare prices. Lipman served up some mobile programs MillerCoors has been doing in the location and real-time arenas. "We did a test in which we looked at when people were tweeting about beer. We would retarget them almost in real time to serve them contextually relevant info." He said the team would know when consumers checked in from a bar, or when they tweeted about meeting friends or wanting beer, for example. Kim Kyaw, digital marketing and social media at Jaguar and Land Rover, cited a recent study by J.D. Power on the importance of mobile to premium consumers, showing premium-product consumers are more likely to use smartphones and apps for new-vehicle shopping. For example, 85% of Land Rover shoppers use smartphones to access the internet, she said. "We want to support perception, consideration, favorability. We want to drive to retailer, increase owner satisfaction and amplify advocacy [via mobile]." Kyaw said mobile is also now a good platform for top-of-funnel activity, with hands-on experiences through rich-media mobile ads. "It allows for a rich brand experience." For the launch of the Evoque vehicle, the company did a mobile app allowing consumers to do things like choose and view vehicle colors, see product attributes, and get a 360-degree view of the vehicle. "So we are increasing consideration through mobile video. It's what shoppers are looking for." She added that mobile geo-fencing is also a focus at Land Rover in terms of driving traffic to retailers or directing leads there. "We do geo-fencing around Range Rover and Evoque in the New York area, and it's showing great results." She said the company saw a 20% increase in retail interaction.
As I figured and hoped, Heineken’s $45 million product placement deal with the new James Bond franchise entry "Skyfall" doesn’t undermine the 007 brand at all. In fact, if I’m the execs at Heineken, I might well be fuming and pouring myself something a good deal stiffer than a beer. So whether you’re an Ian Fleming purist or just a loyal fan of the long-running movie series, don’t sweat it. Bond is in good hands, not only big-budget entertainment-wise, but brand stewardship-wise. When the deal with Heineken was announced, there were reports that Bond would be forced to eschew his signature martini -- shaken, not stirred, duh -- in lieu of the brew. That hasn’t happened. Instead, the product integration has been handled so creatively, I’m surprised the film’s brain trust got away with it in the way that they have. Heineken actually plays a key part in "Skyfall"’s narrative and character development, but not in any way I’d want my brand to be associated. First, Bond drinks but a single Heineken in the entire movie -- and it happens early in the film and under a cloud. The quaff comes shortly after Adele and the opening credits, with the British superspy presumed dead and licking his wounds (actually, there’s a dialogue-less exotic beauty doing that, but whatever) in some remote island locale. Bond is burned out and full of self-doubt, hiding away in some tropical backwater, at a loss, questioning his very existence. When we see him drinking a Heineken, eyes haunted and body broken, the very fact that he’s drinking that beer becomes a subtext of how far he’s fallen -- James Bond, drinking Heineken? The poor guy’s slumming. He’s in a bad way. Uh-oh. Moreover, in the scene, actor Daniel Craig as Bond doesn’t even let us see the logo. The whole time Bond’s got the beer bottle in his hand, it’s conspicuously over the Heineken logo. We never see it. Maybe we recognize the distinctive green bottle and the label’s border. Maybe. Later in the film, however, after Bond’s back on top of his game, spiffily sporting a tuxedo and strutting into an Asian casino, when he gets to the bar we’re back to the trademark martini -- shaken, not stirred. No Heineken in sight. In fact, the bartender ostentatiously shakes up the drink for him and Bond purrs, “Perfect,” before taking it. I thought the scene was pretty perfect myself -- the transition from Heineken to martini is used as another signifier that Bond has returned to form -- although it’s doubtful Heineken’s execs feel the same. Heineken pops up a couple other times in the movie, mostly as drink of choice for the MI6 geeks wonking out in spy agency’s subterranean basement beneath London, but I don’t think anybody’s going to be rushing to buy a six-pack of Heineken because Q or some bureaucratic flunky likes it. It’s possible that when you blend in all the other marketing tie-ins -- a TV commercial featuring Daniel Craig and femme fatale Bérénice Marlohe, which ties in with a digital gamification campaign -- it adds value to the brand’s $45 million investment. But I don’t think so. In this case, James Bond has taken on the supervillain of brand-corrupting product placement and won in almost humiliating fashion.
If you’re working in the ad industry, there’s one question that’s even more intriguing than the last scene of "The Sopranos" -- just how will Facebook be able to grow revenue and send its stock price soaring? In the recent past, Facebook launched several new advertising initiatives to make its platform more appealing to advertisers, and extended the scope of its Facebook Offers product by making it available on its mobile app. More recently, Facebook took its app install program out of beta for mobile app developers. And a few weeks ago, the company launched yet another product that got some attention, but deserves a lot more -- Facebook Custom Audience. Custom Audience allows marketers to find their offline or email audience on Facebook. With Custom Audience, you can now take an email list or phone list of your current customers, prospects, loyalty club members, current or lapsed users and upload them to Facebook. Facebook hashes the user information (which means that it encrypts the data in a secure way that can’t be decrypted) to maintain user privacy. Once you upload your email list, Facebook serves that audience targeted ads as they spend time on the social network. You can customize the message for different audiences. For example, you could offer lapsed users an irresistible discount to renew their relationship with your brand. At the same time, you can give current users of your product an entirely different offer to renew. The initial results of the new ad offering are promising. E-commerce company Open Sky was one of the first brands to use Facebook Custom Audience. They reported that they were able to increase conversion rates by 34%. In addition, the Washington Post’s ad arm SocialLike reported that Custom Audience delivered a 15% lower Cost-per-Like and 87% higher Impression-to-Like rate. Facebook Custom Audience is important for brands, as it helps them deepen engagement with their audience as they spend time on social networks. With Facebook’s user base at over one billion, it is highly likely that you can find your offline or email audience on Facebook. In addition, in the U.S., Facebook accounts for more than 50% of Internet time. Facebook Custom Ads enables you to reach your audience where they are spending most of their time, and send the message that is most relevant to them. In addition, with Facebook Custom Audience brand marketers can extend the scope of their email marketing efforts. There has always been talk about the convergence of email and social media. Now with Facebook Custom Audience, that talk is a reality. With Facebook Custom Audience, marketers have to think of adding an entirely new dimension to their social marketing efforts. To date, all they’ve had to do is focus their efforts on connecting with their audience on Facebook. Now, they have to also focus on growing their audience outside Facebook -- by using banner, search or signup advertising. They can then leverage the social network to deepen their engagement with that audience. Improving advertising performance on Facebook has long been an issue for advertisers. With Custom Audience, the social network seems to have taken a positive step in assuaging their concerns. And that’s something to like.