OMD_truly_madly_final_booklet_2006_30S - Page 1 - CONTENTS Welcome to the My Media Generation. 3 PREFACE 4 INTRODUCTION 5 METHODOLOGY 6 MOTIVATING FACTORS 8 KEY CHANNELS 10 MUSIC 12 INTERNET 14 MOBILE 16 MEDIA PERCEPTIONS 18 MEDIA ROLES 20 MEDIA MESHING 24 ADVERTISING RECEPTIVITY 26 INSIGHTS AND IMPLICATIONS 28 CONCLUDING THOUGHTS PREFACE MACROTREND: REGIONAL VARIATIONS: OPTIMISTIC VIEW OF THE FUTURE. Despite the turbulent times, young people are excited by the prospect of the future; they’re highly optimistic and energized. Youth in developing countries are also optimistic, but have more faith that technology can make their lives better. In more developed countries, this age group tends to be more jaded about technology's potential to improve their lives. MACROTRENDS SHAPING A GENERATION IMPORTANCE OF FAMILY AND FRIENDS. Around the world, young people consider friends, family and career to be indicators of a successful life. Western youth especially value close relationships with friends and family, and having a fulfilling career as paths to future happiness. China's only-child population prefers spending time with peers instead of parents, whereas US and Mexican youth value their parents' company more. STRESS AND TIME PRESSURES. Youth around the world report having more things to do in a day than they have time to accomplish them, which is one reason for the high incidence of multitasking and media meshing. Stress levels are highest in Asia, where there’s a push to succeed, stand out, achieve. In the US and the UK, stress levels are high, but they mainly revolve around getting into a good college. In both Germany and Mexico, young people are seemingly more laid back, with less parental pressure. Research commissioned by Yahoo! and OMD. 3 INTRODUCTION Youth around the globe are engaging with media in new, deeper, and more passionate ways. The global My Media Generation, the first to grow up with an array of interactive and wireless technology at its fingertips, has seized these tools to cope with the pressures of youth and fulfill basic needs for community, self-expression, and personalization. Empowered by interactive media, these 13- to 24-year-olds are no longer receptive to passive media experiences—in fact, they’re quickly adopting the role of “chief programmer” for their own world of personal media. In the process, the My Media Generation has redefined the roles and functions of traditional media, with some striking variations across the 11 countries we surveyed. Emerging as this generation’s key channels for supporting all three core needs are music, the Internet, and mobile devices. Traditional media, still heavily used by this generation, serve vital but perhaps increasingly niche functions, often pushed to background status in the media-meshing hierarchy. We’ve moved from broadcasting to podcasting in a short number of years, but young people aren’t as aware of the shift—they take these new tools for granted. They also know that they can increasingly filter the flow of advertising messages, only letting in those that are relevant, entertaining, or delivering value. That raises serious questions for marketers, but also brings the promise of new, more powerful channels for reaching young people and having them, willingly and perhaps enthusiastically, engage with your brands. Truly, Madly, Deeply Engaged. 4 METHODOLOGY This project was a two-phased market research study that included qualitative focus groups and in-home ethnographies, as well as a quantitative online survey. The qualitative phase consisted of 16 focus groups and 15 in-home ethnographies in six countries. The research sessions were conducted in Chicago, Mexico City, London, Berlin, Seoul, and Shanghai. Participants represented teens aged 15-18 and young adults aged 20-22. Focus group and ethnography discussions centered on youth values, attitudes toward and usage of different media, and the role of digital media in their lives. The online survey was conducted with a total of 5,334 respondents aged 13-24. Surveys were collected in July and August 2005. The sample was drawn from the Ipsos online panel and partner global online panels, and respondents represent Internet users in urban markets around the world. (Internet penetration levels vary from a high of 66% of the population in South Korea to lows of 7% in China and 2% in India, according to e-Marketer, so respondents in these last two regions especially may represent an “elite” cut of the population.) The survey contained questions regarding technology ownership and usage, traditional and digital media usage, media choices, receptivity toward advertising channels, and overall attitudes and values. ABOUT IPSOS Ipsos, founded in 1975, is the only independent, publicly listed survey research company that is managed by research professionals. The organization is headquartered in Paris and has operations in 35 nations. Ipsos Public Affairs, which operates from Washington, DC, has been conducting national polls in the United States since 2001. ABOUT TRU—TEENAGE RESEARCH UNLIMITED Chicago-based TRU is the world’s leading youth research and consultancy firm. Founded in 1982, TRU has developed an unparalleled expertise in the teenage market, offering clients virtually unlimited methods for researching teens. TRU has not only pioneered the field of youth research, but also continued to innovate and remains the only full-service marketing-research firm dedicated solely to understanding teens. ABOUT OMD OMD (www.omd.com) is the largest and most innovative media communications specialist in the world, with more than 140 offices in 80 countries. In 2005, OMD had the distinction of winning more media Lions than any other media agency at the Cannes International Advertising Festival. The agency network, a unit of Omnicom Group Inc, is also ranked as the largest worldwide media agency network according to the 2004 Recma Report. Research commissioned by Yahoo! and OMD. 5 MOTIVATING FACTORS Three aspects of socialization motivate and drive the My Media Generation: community, self-expression and personalization. COMMUNITY: Even though they want to stand out and express their individuality, young people strive to feel connected with each other. Shared experiences and constant communication create a sense of community among youth. Reaching out and building new relationships with diverse groups of people enhance and broaden this sense of community. However, in some countries, community is defined more locally, with youth in these markets feeling more of a connection with people closer to home. SELF-EXPRESSION: Young people place an incredible premium on self-expression. A defining attribute of My Media teens and early 20-somethings, this age group manifests self-expression by constantly seeking ways to put their stamp on products and have their voices heard, and by generally constructing, maintaining, and advocating their own self-brands. Self-expression is their way of showing the outside world who they are and what they value. PERSONALIZATION: Today’s youth thrive on selfdirected, self-programmed usage of technology and media. Young people are used to customizing and personalizing everything. They demand products and services that suit their moods and desires, and they will actively search for, modify, or create these products and services. Mass market media as well as marketing messages do not appeal or deliver the emotional connections to this audience. Truly, Madly, Deeply Engaged. 6 THE PRIMARY MOTIVATIONS OF SOCIALIZATION ARE INTERLINKED COMMUNITY SELF-EXPRESSION PERSONALIZATION Research commissioned by Yahoo! and OMD. 7 KEY CHANNELS Global youth have many options for addressing their needs of community, self-expression, and personalization, but our research identified three especially significant channels—music, the Internet, and mobile COMMUNITY devices—that have the capacity to support all three youth needs. Around the world, online youth have access to all three channels—usage of PCs and mobile phones is widespread around the world. Music has always been MUSIC INTERNET MOBILE SELF-EXPRESSION PERSONALIZATION a defining element of youth, and these devices (along with MP3 players) have enhanced music’s ubiquity. In fact, in many developing countries the technology is considered so important to a child’s future success, that often great sacrifices are made to fit a PC into meager budgets and crowded living space. Despite many perceptions of American youth being on the cutting edge and heavy users of technology, Internet users in most other countries are far ahead of the US in usage of key devices. Truly, Madly, Deeply Engaged. 8 TECHNOLOGY ENABLES COMMUNITY, SELF-EXPRESSION AND PERSONALIZATION WHICH DEVICES DO YOU PERSONALLY OWN OR USE ON A REGULAR BASIS? 06 03 01 04 05 09 07 02 10 08 11 01 US 02 MEXICO 03 UK 04 FRANCE 05 GERMANY 06 RUSSIA 07 CHINA 08 HONG KONG 09 S. KOREA 10 INDIA 11 AUSTRALIA PC 86% Mobile Phone 72% Video Game Console 61% MP3 Player 28% PDA w/Internet 2% PC 59% Mobile Phone 91% Video Game Console 58% MP3 Player 60% PDA w/Internet 23% PC 92% Mobile Phone 97% Video Game Console 69% MP3 Player 63% PDA w/Internet 12% PC 92% Mobile Phone 91% Video Game Console 56% MP3 Player 62% PDA w/Internet 7% PC 90% Mobile Phone 95% Video Game Console 51% MP3 Player 72% PDA w/Internet 11% PC 83% Mobile Phone 92% Video Game Console 12% MP3 Player 61% PDA w/Internet 4% PC 80% Mobile Phone 74% Video Game Console 19% MP3 Player 83% PDA w/Internet 19% PC 83% Mobile Phone 89% Video Game Console 36% MP3 Player 77% PDA w/Internet 12% PC 80% Mobile Phone 85% Video Game Console 12% MP3 Player 64% PDA w/Internet 14% PC 79% Mobile Phone 75% Video Game Console 19% MP3 Player 46% PDA w/Internet 10% PC 88% Mobile Phone 92% Video Game Console 61% MP3 Player 49% PDA w/Internet 9% Research commissioned by Yahoo! and OMD. 9 MUSIC MUSIC DOWNLOADING IS A POPULAR FORM OF SELF-PROGRAMMING AND PERSONALIZATION AMONG YOUTH AROUND THE WORLD PERCENTAGE DOWNLOADED/STREAMED MUSIC OR MUSIC VIDEOS IN THE PAST MONTH 54% 42% 22% 22% 27% 19% 16% 25% 22% 0% 25% 50% 88% 71% 64% 80% 67% 73% 64% 70% 75% Music Music Videos Music is possibly the single greatest mechanism by which youth facilitate their three needs. US Mexico UK Russia China Hong Kong South Korea India Australia 10% As a constant presence in young people’s lives, music is a critical tool for community, self-expression and personalization. Favorite music styles and artists are used to express specific identities to the outside world. Music is featured in online profiles, home pages, and ringtones as important means of self-expression. Listening to music no longer means merely tuning in to the radio or buying CDs. Young people create music experiences for themselves that are highly personalized. Music downloading, custom playlists, and podcasting allow youth to listen to music on their own terms, modifying it to suit their mood or their day’s activities. Truly, Madly, Deeply Engaged. 10 DESPITE REGIONAL DIFFERENCES, YOUTH GLOBALLY DO THE SAME THINGS FOR FUN WHAT DO YOU REGULARLY DO FOR FUN WITH YOUR FREE TIME? 1 01 US 02 MEXICO 2 Friends 81% Movies 79% Friends 82% Music 80% Movies 72% Friends 81% Friends 64% Friends 69% Friends 48% Movies 73% Friends 83% 3 Movies 79% Friends 76% Movies 74% Movies 78% Music 69% Movies 72% V. Games 58% Movies 58% Movies 48% Friends 66% Movies 78% 4 Family 61% Family 62% V. Games 59% V. Games 51% Shopping 44% Family 52% Family 56% V. Games 54% V. Games 41% Family 54% V. Games 57% Music 82% Music 84% Music 85% Friends 82% Friends 84% Music 81% Music 71% Music 69% Music 68% Music 81% Music 85% It is impossible to overstate the importance of music to the My Media Generation. 03 UK 04 FRANCE 05 GERMANY 06 RUSSIA 07 CHINA 08 HONG KONG 09 S. KOREA 10 INDIA 11 AUSTRALIA Music is the universal language of youth, consistently ranking as one of their favorite pastimes. Music plays continually throughout their day—on their PCs, MP3 players, or even stereos. It helps define and express personalities, sets moods, and creates connections with peers. Tools to share and connect through music are available to My Media youth in an unprecedented way. CD burning, blogs, and chat rooms foster community around music more than was ever possible for previous generations. Research commissioned by Yahoo! and OMD. 11
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