Tuesday, January 23, 2007

Marketing to a New Tech-Savvy Generation

Originally Published: August 2006

As schools open for another year and college students arrive on campus, now is the perfect time to discuss the new tactics marketers are using to target the next generation consumer. In the beginning, marketing tactics were used to deliver mass market messages such as television commercials running on one of the original three networks. This technique worked very well since a heavy majority of the population could be reached in one fell swoop. Since most people were watching one of the three networks, these marketing messages hit people “where they were” – in their living rooms. But, the marketplace is far different today than it was even 10 years ago. Mass market advertising no longer works for the vast majority of marketers. Due to the fracturing of traditional mass media vehicles such as television, magazines and newspapers, marketers are implementing more tactics in far less traditional media outlets to accomplish the same marketing goals.

The most obvious example of this change in marketing can be seen with companies that are targeting the younger generation – those in high school and college. Unlike other generations that watched one of three television networks and spent most of their free time playing outside, the current generation grew up with hundreds of television channels, high-tech video game systems, powerful computers, cell phones and the World Wide Web. Because of all these gadgets, free time is now split between hundreds of media outlets instead of just a handful. This fracturing is making it much more difficult to efficiently target individuals “where they are”. However, savvy marketers are now implementing campaigns that are integrated across many channels of new and traditional media to hit prospects where they work, study and play. One great case study for how to target young consumers is an integrated campaign that Jeep recently launched to promote its new Compass SUV.

Here are some of the elements of the campaign:

· Jeep has launched a nationwide concert series named “Uncharted: The Jeep Compass Music Tour".
· Jeep has created a MySpace page where fans can add Jeep as a "friend" to receive information on concerts in their areas.
· Jeep has also created a profile page on Facebook where concert updates are sent to friends' pages or via text message.
· Jeep is using banner ads on MySpace and Facebook to drive traffic to the Jeep profile pages.
· Jeep is one of the first advertisers of MobiTV, a self-described "cable TV network for mobile phones" that has half a million subscribers for its live TV and content subscription services.
· Jeep has launched a karaoke website and viral video contest where visitors to the site can create an avatar for themselves and choose from three songs, which can be sung into a computer microphone or over the phone via a 1-800 number. Users can then email the video to friends who can vote for the performances.
· Jeep has purchased online ads on AOL, MSN, Yahoo and entertainment, fashion and music sites like Daily Candy, MTV's Real World, Yahoo Music and Batanga.
· Jeep has also created a contest where users can create their own Jeep ad online. Once the ad is reviewed, it will be posted on the web, allowing users to vote for the best ads.
· Jeep has also purchased advertising on TV and the web (Jeep and Compass homepages, YouTube and Lat34.com), as well as print and radio.
· Jeep is also launching an outdoor advertising campaign including billboards, bus shelters, painted walls, building wraps and buzz marketing at beaches and clubs.

This is what marketing experts had in mind when they coined the term “integrated marketing” years ago. Jeep has launched a campaign that hits everywhere – online, TV, radio and print. While most marketers have yet to launch campaigns this sophisticated, the Jeep example is what it will take to target consumers in our ever-changing, ever-fracturing marketplace.

A little side note on MySpace. This social-networking site recently surpassed Yahoo! Mail and Google as the most popular U.S. website, according to Hitwise. In the week ended July 8, 2006, 4.5% of all U.S. web visits were to MySpace.com. Visitors to the site have grown 132% in the last year and 4,300% in the last two years combined.

One marketer taking advantage of the popularity of social-networking websites is Chase. Chase is running banner ads on Facebook asking members to join a Facebook-hosted group page of people who want to learn about or sign up for Chase's new "+ 1" credit card. Students can earn rewards points by getting a card, referring a friend and other actions.

Other marketers targeting the young are adding customized ads in downloadable college textbooks. The ads can be posted as long as an advertiser wishes, and they can be swapped out so advertisers can change their messaging depending upon the season. Colleges currently participating in the program include the University of Michigan, Georgia Tech, Fordham, Clemson and Carnegie Mellon. The books will be available on 150 campuses, with the potential to reach 250,000 students.

Campus Media Group is targeting college students with ads and special offers via mobile phones. To date, 3 million students have opted to receive the ads on their cell phones with messages consisting of text, images, audio or video. Students opt in through their wireless providers to receive the messages, and Campus Media Group limits the number of messages to four per month. According to the company, approximately 20% of people forward messages to a friend.

A study by Experience, Inc. reported some other statistics to consider when marketing to the younger generation:

· 98% of college students said they have made a purchase of a product or service online
· 52% said they have purchased a product or service based on an online advertisement
· 34% find online advertising the most influential means to get them to learn more about a product or service
· 41% said online advertisements would resonate if they are related to the content being read or viewed
· 34% said a contest or promotion that presents them with some value would motivate them to act on the advertisement
· 17% said they would respond to a banner ad that is based on their profile or online behavior

While the marketers in the examples I have included are using new media to target the young, I would argue that these techniques are actually showing us a glimpse of the future. Soon, you will see similar techniques used across all age groups as older generations master new technologies. Also, young consumers are aging everyday. Sooner than we think, these “new media” consumers will make up the majority of society. Just remember, according to the Entertainment Software Association the average video game player is now 33 years old and 25% of Americans over the age of 50 played video games in 2005. Integrated marketing campaigns can no longer include only TV, radio and print media. The sophisticated consumer of today must be reached via the proper mix of online, offline, new and traditional media. Gone are the days of mass marketing, and we welcome the days of niche and one-to-one marketing. Well I better run, Madden 07 just came out and I need to go online to take another beating from a 12-year old.

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