GenX has more Affluents than Baby Boomers

Part of media strategy includes understanding the generation shifts in the consumer marketplace. For years, the Baby Boomers have had the majority of Affluent status in America. A new report shows that Generation Xers have recently become the majority, which is a first.

According to the Center for Media Research, the 2015 Ipsos Affluent Survey USA reports the following generation breakdown for American Affluents.

American Affluents by Generation (At Least a HHI of $100K)
Generation	Share of Affluent Population	Median Self-Reported Annual HHI
Millennials (18-33)	25%	$516K
GenX (34-50)	37%	$552K
Baby Boomers (51-69)	33%	$913K
Seniors (70+)	5%	$1.42M

The Affluent group consists of the top 23% of American households. This group is defined as adults living in households with a minimum annual household income of $100,000.

While the GenX population has topped the largest share amongst the Affluent, the Baby Boomers and Seniors still index high on the annual household income.

In addition, the study reflects how even people within the same generation can respond more like other age groups. Findings show that the younger side of GenX acts similar to Millennials in the marketplace, and the older side tend to be more like-minded with Baby Boomers.

Marketers will have to absorb this generation move and evaluate what this will mean for a brand. Strategies may have to be altered.

African-American media usage by the numbers

Part of effectively building advertising plans to reach the intended audience is doing research. Who do you want to reach? What kind of media do they consume? When are the peak times that the audience is navigating media? Why are some media forms preferred over others? How much do they use? Once these questions can be answered, it can help a buyer start plotting in the essential media forms for that particular audience.

For example, Nielsen along with Essence conducted a survey to see how African-Americans consume media. The Center for Media Research reports the following findings from the study:

·        Overall, this audience over-indexes on almost all media forms compared to the general population as a whole.

·        Total time spent on traditional television is about 201 hours and 43 minutes per month. General population is about 141 hours and 19 minutes.

·        About 52% of those surveyed read magazines compared to 22% of the general population. The report shows that print content typically focuses on culture and heritage specific to the African-American community.

·        About 12 hours a week is spent listening to the radio which is double the total audience at six hours a week. Results show that the peak listening times generally are 10 a.m. – 3 p.m.

·        Smartphones have about 81% saturation in the market. On average, this is about 7% more than the general audience.

·        Approximately 56 hours a week are spent using apps or mobile Internet browsers on smartphones. Another two hours and 30 minutes a week are spent watching video content on a mobile device.

Knowing the above general criteria will help an advertiser create competent messaging if wanting to reach this particular audience. 

Is "smartphone-dependent" the new norm?

As smartphones take the foothold of the mobile phone marketplace in the United States, a term has surfaced to describe those individuals who primarily utilize a smartphone to have access to the internet. These people are called “smartphone-dependent.” The Center for Media Research released details from a series of surveys orchestrated by Pew Research Center and Jon S. and James L. Knight Foundation about such mobile users.

Of the American smartphone owner population, the following statistics can be extracted:

·        10% of users do not have broadband internet in the home

·        7% of owners do not have broadband available in the home and do not have easy access to internet services on anything other than a smartphone

·        15% of smartphone users between the ages of 18 and 29 are deemed “smartphone-dependent”

·        About 13% of people who have an annual household income lower than $30,000 are “smartphone-dependent”

·        1% of people who have an annual household income above $75,000 are also “smartphone-dependent”

·        Demographic breakdown of the dependent population:

o   12% African Americans

o   13% Latinos

o   4% Caucasian

As more people utilize mobile phones as his/her internet access point, it will be necessary for advertisers to keep that into consideration when creating campaigns.

How many households do not have landlines?

New research reports that US households without landlines are growing steadily. The Center for Media Research recapped the findings from GfK Mediamark Research’s recent interviews with US adults.

Approximately 44% of adults in the United States do not have landline telephones in the household but do have cell phones. By comparison, there were only 26% of households in 2010 that only had cell phones. That is a growth of about 70% over the last few years.

The research further broke down the percentages of cell-phone-only households by age groups.

·        64% of Millennials

·        45% of Generation Xers

·        32% of Baby Boomers

·        13% of Pre-Boomers

Overall, about 93% of all adults in the US have cell phones according to recent accounts. Time will tell in how the cell-phone-only households’ growth will trend.

How do college students get product information?

For advertisers that have a target demographic that skews to younger adults, more than likely, these advertisers are interested in the millennial generation. Approximately 19 million+ of them are college students in the United States. The potential of this population’s spending power is highly attractive.

eMarketer reports on a survey produced by the Student Monitor in fall of 2014. One of the questions inquired how students like to receive information on a product or service. The top five methods were:

Word-of-mouth: 48%

Ad on the internet: 39%

Ad on TV: 31%

Free samples in a store: 29%

Information on the internet: 21%

From reviewing the responses, an advertiser can glean that college students trust peers, the ability to see the product and try it out prior to purchasing, and will notice details in Television and internet ads in addition to websites.

Try working a marketing plan based on those parameters and see if there is a measurable difference between previous campaigns and the current plan. If it helps improve the return on investment (ROI), continue. If it doesn’t, re-evaluate to see what the least effective component to the plan is likely and remove it.

Teens listen to music more on online streaming than radio

How do US teenagers primarily listen to music? Radio? Streaming? Owned music? For advertisers, it can be extremely important in knowing how a target audience seeks out media and entertainment. eMarketer recently reported on a fall 2014 study conducted by Edison Research. The focus was discovering how teens listen to music.

The study considered teenagers to be people between the ages of 13 and 17. As of fall 2014, online streaming platforms like Spotify and Pandora are ranked with more time spent listening than terrestrial radio. Teens spend about 64 minutes per day listening to online streaming and spend about 53 minutes a day with radio. In most other age categories, radio outperforms online streaming. In addition, teens have access to music through downloaded/owned music, etc.

With teenagers having a relatively easier access to computers, tablets, smartphones, and MP3 players that have Wi-Fi than traditional radios, it’s not surprising that there is a shift in listenership. Think about a bus commute, the time going to and from school on a bus could be new time spent listening to music.

It will be interesting to see if the gap between the time spent listening between radio and streaming will broaden over time as this age group matures out. The introduction of driving on a more regular basis where traditional radio is readily available may play a factor overall. 

Media consumption for Millennial men

Nielsen recently released new research on spending habits of American consumers namely focusing on Millennial men. It reports that in addition to being the most diverse generation racially in U.S. history, the consumer group varies in media consumption by ethnicity.

Center for Media Research explains that African-American men within the Millennial age group spend more time watching traditional television vs. the Millennial men group as a whole. On average, African-American Millennials watch about 33 hours a week with traditional TV and 3 hours a week of video online. Compare this to the fact that Millennial men spend approximately 20 hours a week watching TV and 2 hours 15 minutes watching videos on the Internet. Hispanic Millennial men tend to watch less traditional television and online video at 19 hours and less than 2 hours respectively. The study reports that Asian-American Millennial men spend about 4 hours a week watching videos online, which is more than any other. However, this group tends to watch the least amount of traditional TV at 11.5 hours a week.

It is reported that about 88% of all men in this age group listen to the radio each week for about 11 hours and 42 minutes. This amount of radio consumption is more than the Millennial female counterpart at 10 hours and 46 minutes.

What advertisers need to glean from this is your target audience may have different media consumption habits from others within the same age group. It is the advertiser’s responsibility to evaluate each tier within the target audience and determine which media will be most effective.

New research studies evaluate online offers and what consumers prefer

Retailers could find it beneficial to sales if special offers are given to consumers. However, the kind of offer is important to the customer which may translate to more revenue for advertisers.

eMarketer reported on two studies conducted in regards to which special offers online consumers prefer. A poll produced by Retention Science asked which the most effective online customer incentive was for retailers. Results showed that close to a third of responders liked percentage discounts like a 20% off coupon. Immediately following was free or discounted shipping at almost 22%. The third top offer was a certain amount discount like a $15 off coupon.

The second study, which was done by Flagship Research for BlueHornet, looked to see if the age demographic affects how customers react to an advertiser offer. It appears that research supports that younger adults 18-45 prefer discount offers over free shipping options. In contrast, older adults 46-75 enjoy free shipping over discount coupons.

What advertisers need to take away from these two studies is that the consumer finds value in a “good deal.” So, know your target audience. This will help optimize selling your product or service to your customer. 

How Millennial Moms research and make purchases with digital devices

American consumers have a lot of choices on how to access the internet these days with desktops, mobile phones, and tablets. A new study focused on how Millennial Moms, women who are between the ages 18-34 and have at least one child, navigate their digital devices in regards to research and purchasing. For the study’s purposes, it focused on the four categories: retail, consumer electronics, consumer goods, and automotive.

MediaPost reports that the new study was conducted by Millennial Media and commissioned by the agency Ansible.

Details released include that roughly 30% of responders stated that smartphones were used in the “inspiration” and research phases of shopping. Twenty one percent used smartphones to make a purchase.

Looking at tablets, 25% used the device for research, and 18% used it for purchasing.

PCs seem to get the biggest research time when the consumer is looking for a high consideration purchase, like a car. A bigger screen and other available shopping tools give desktops the advantage.

It is suggested that advertisers focus on the context that each screen reaches the Millennial Mom. Meaning, if that consumer is using a certain device at home, at work, or in a store, it’s important to make the advertising messages relevant to each location and device.

Electronic devices top lists for back-to-school shopping

With the passing of Labor Day, the swimming pools close down, and the schools start up for another year. Parents and students alike need to shop in order to prepare for a new term. Recent research shows that 2014 is anticipating a 5% increase in overall back-to-school shopping.

According to eMarketer, research conducted by ebiquity on behalf of American Express reports that electronic devices are the most expensive item on the shopping list. Below is a list that shows the average back-to-school spending for the last few years according to US Parent Internet users.

Category	2012	2013	2014
Electronic Devices			$529
Textbooks	$209	$193	$270
Clothing and Accessories	$241	$236	$265
Shoes	$102	$111	$129
Outerwear/Jackets	$97	$114	$114
Schools	$79	$102	$109

Interesting to note is that clothing and accessories had the most expensive category up until 2014 when electronic devices and textbooks usurped it.

Another report from PunchTab notes that mothers used smartphones to aid in shopping this year. About 48% of mothers surveyed planned to use smartphones to look for coupons or sales. The next reason at 30% is to compare store prices with other vendors. Approximately 37% of those surveyed do not plan to use a smartphone while shopping for supplies.

Television is still prime media choice for US' youth

With all of the hype surrounding new technology and how the younger generations adapt earlier, it can lead to the question, what happens to the older technology? The simple answer is it is still there. eMarketer recently reported on a few studies that researched how younger audiences still consume television in spite of other newer digital options.

While the exact amounts of television consumption across younger age ranges differ amongst the research studies, each come to relatively the same conclusion. That is, television is still the primary media consumed by children. One study by Nielsen found that kids, between the ages of 2 and 11, watched approximately 111 hours and 10 minutes per month of “traditional” TV. These kids also spent another 10 hours and 45 minutes watching timeshifted television. In regards to content viewed on a DVD or Blu-ray player, children watched about 9 hours and 18 minutes per month. Another report by Joan Ganz Cooney Center at Sesame Workshop put 8 to 10 year-olds as watching 1 hour and 24 minutes of TV per day. This information was according to the children’s parents.

With the introduction of streaming sites like Netflix, Hulu, YouTube, or Amazon, kids have more access to on-demand programming. While the adult counterparts have been accused of “binge viewing” TV and movie content, the term “déjà view” has become a moniker for younger audiences. This term describes the habits of repeatedly watching the same episode or movie many times. If you have kids, how many times have you seen Frozen?

Younger American audiences are watching TV. While researchers may argue the exact amounts, the fact remains that television consumption is still high with the younger audiences.

New report shows how college kids spend income

While most post-college grads have some woeful story about being a poor, broke college kid, it may not be the case today. In a recent poll conducted by Shweiki Media and Study Breaks, it showed that nearly all college students spend money at a restaurant at least once a month.

eMarketer reported on the study’s findings and released information on other products/services college students spend their money on:

·        99% of those surveyed spend money at restaurants

·        87% spend on travel

·        76% spend on beauty

·        70% spend on bars

·        70% spend on fashion

·        60% spend on electronics

·        59% spend on live music

·        57% spend on media

·        38% spend on fitness (This refers to off-campus gyms.)

Unsurprisingly, the students’ parents were reported as the main source of income. This was the largest group of responders at 45%. In contrast, about 40% list primary income as the product of working, and another 15% rely heavily on student loans to succeed financially. 

Core radio listeners and digital media

Digital media has changed the landscape for advertisers over the last few years. While some media feared that digital meant the death of traditional forms, it really has not been substantiated. With the case of terrestrial radio, it’s allowed the medium to reach the core audience in more ways.

The Center for Media Research recently summarized the findings of a Jacobs Media study about core radio listeners. Some of the facts to note were:

The digital breakdown of a core radio listener

·        75% of those surveyed own a smartphone

·        51% have a tablet

·        55% stream audio at least once a week

·        67% watch online video content during the week

·        95% listen to traditional, broadcast radio per day

·        17% of broadcast radio listening occurs on digital platforms like computer or mobile streams, etc.

Another fact reported was that 30% of respondents favored radio stations that interacted with them. In fact, they would listen more. Interaction may include sharing online content through social media, the station’s website, email blasts, etc.

In addition, broadcast radio still holds the majority at 51% as the go-to source for new music. The report suggests that listeners feel that radio stations can be trusted.

The takeaway is that core radio listenership may dip at some point, but if the radio station can broaden its reach with the incorporation of digital media, the audience will continue to be loyal.

Social Habits of 2014 High School Grads

Marketers are constantly tracking the demographics for social media in terms of the younger and upcoming generations. It is evident that social media can take many forms such as Facebook, Instagram, Twitter, Google+, Tumblr, etc., but Facebook continues to hold the lead in the realm of popularity. According to eMarketer, nearly nine in 10 of every 2014 US high school graduate have remained active on Facebook since graduating.

Research conducted by Niche shows that 87% of 2014 US high school graduates use Facebook, and 68% of the same demographic are active on Instagram. Forty-seven percent of Facebook users access their account multiple times a day, while a close 43% of Instagram users do the same.

Experts do mention a shift in terms of age of the high school generation. According to McAfee, 58% of social network users ages 13 to 15 use social media during school, compared to the 75% of users ages 16 to 18. As far as gender is concerned, the users are nearly equal, with 52% of males and 54% of females active on social media during school hours.

In terms of searching and browser history, two-thirds of 2014 US high school grads report closing or minimizing a window when a parent walked in the room, and 67% of these older teens clear their browser history.

Hispanic Gen Xers have highest rate of tablet usage

Recent studies indicate that US Hispanics possess more smartphones and tablets than the rest of the general population. With this, it is evident that they are popular users of mobile technology. Amid the US Hispanic demographic, it is the Gen Xers who lead in the realm of daily tablet usage.

Research, produced by PricewaterhouseCoopers (PwC) and reported by eMarketer, displays that approximately 64% of the US Hispanic population between the ages of 35 and 49 use a tablet daily followed by 57% of 50 to 59-year-olds. The PwC survey concluded that 53% of Hispanic mobile users own a tablet. In comparison, 51% of non-Hispanics own the device.

In terms of the demographic shift regarding Hispanic millennial consumers, only 36% of Hispanics between the ages of 18 and 24 used a tablet every day. The older age groups have a surprisingly higher usage rate of around 50%, which supports the statement that Hispanic Gen Xers lead in daily tablet usage amongst both Hispanic and Non-Hispanic groups.

Hispanics spend less time on PCs and more time on mobile phones

A lot of advertisers have a very broad audience with secondary niche groups. It can be helpful for advertisers to keep track on how these communities of people grow and adapt in media consumption habits. For those advertisers who aggressively go after the Hispanic community, did you know that collectively Hispanics overindex for smartphone usage?

eMarketer recently reported Hispanic media consumption results from Experian Marketing Services. In general, the Hispanic and non-Hispanic spend within an hour the same amount of time with radio, magazines, and newspapers. TV was the dominant medium for both groups with Hispanics watching about 27 hours within the week and non-Hispanics watching approximately 28 hours and 11 minutes. These results came from a summer 2013 survey.

Where the research saw a difference was with time spent on PCs. Non-Hispanics spent approximately 11 hours and 50 minutes per week on a PC at work and 9 hours and 5 minutes on a PC at home. Hispanics spent considerably less time at work with 9 hours and 1 minute per week and at home with 6 hours and 26 minutes. A theory is that because the mobile usage is more for Hispanics at 8 hours and 41 minutes per week than non-Hispanics at 7 hours and 47 minutes, the Hispanic community is using mobile phones for internet access and other media.

Teenagers digital activities shift from 2012 to 2013

With the integration of mobile and tablet devices, US teenage usage has increased over the recent years. According to eMarketer, a new study was released by Family Online Safety Institute and Hart Research Associates.

From 2012 to 2013, Americans between the ages of 13 and 17 went from 43% of mobile users having smartphones to 64%. Tablet use also showed a steep increase from 45% in 2012 to 67% in 2013.

Of those teenagers polled, digital activities slightly changed from the previous year to today.

·        In 2012, 86% of teens sent or received text messages. In 2013, it increased to 87%.

·        About 90% of teens sent emails in 2012, and that number decreased in 2013 to 81%.

·        Online social networking saw a small dip from 88% to 81% of respondents in 2013.

·        Again online instant messaging saw a decrease like social networking. Approximately 78% of respondents utilized instant messaging in 2012; this decreased to 71% in 2013.

·        In 2012, 0% of teens polled posted video or posted/received comments on Vine. Activity increased to 23% in 2013.

Overall, teenage mobile and tablet use has increased. The digital activities may have changed since last year, so it’s very helpful for advertisers to stay current on media usage.

Post-millennial media consumption on the rise

How much media are post-millennial viewers actually consuming? MediaPost reports from a new study conducted by Nickelodeon that kids born since 2005 are viewing more media than historically measured.

Here are some of the research highlights:

·        Media consumption is now at 35 hours a week, which calculates a growth of 7% within the last four years.

·        About 27% of the daily media consumption is from gaming consoles and computers.

·        Gaming is the number one activity for all devices. Approximately 96% of kids use computers for playing games with tablet following at 88% and smartphones at 86%.

·        TV usage is up by 12% compared to Nielsen data from nine years ago.

·        Tablet usage is about 8% of kids’ daily consumption.

New study reveals women feel the most ugly on a Monday

A key component for any advertising campaign understands the target audience. This is why so many resources are funneled into research. Ad campaign misfires do occur; however, with the proper planning, the right product can be put in front of the right consumer.

According to MediaPost, Omnicom’s PHD recently conducted a study to determine which days and times of the week American women feel the least attractive and the most beautiful. The purpose is to know what kind of beauty product messaging is the most effective depending on the moods and perceptions of the audience.

The majority of respondents, approximately 46%, agreed that Monday was the day of the week in which she felt the ugliest. Sunday was close behind with a 39% response. Researchers found a variety of reasons on why these were two days where women felt less flattering. One reason is Monday is the start of the work week and signifies the end of the weekend, while Sunday can show the results of a socially active Saturday on women’s faces. Also, early hours of the day between 5 a.m. and 7 a.m. and the later hours after 10 p.m. did not help women feel attractive either.

While a day of the week where women feel the most attractive wasn't listed, the study did denote that between the hours of noon and 3 p.m. women had the most positive outlook about their looks.

In knowing when women typically feel attractive and ugly reportedly will help this advertiser launch an “Encourage/Empower” strategy. Basically, the advertiser can run messaging that helps women feel good during least attractive times. In the window where the audience feels beautiful, the advertiser can run ads that maintain that image of beauty for women.

Overall, being sensitive to the target audiences feelings on a variety of topics, whether it is personal appearance or lawn equipment, can help advertisers avoid missteps which may end up offending the consumer.

Study shows that upscale Hispanics are on the rise in the U.S.

The Nielsen Company has recently conducted a study to measure the amount of upscale Hispanics in the United States. The Association of Hispanic Advertising Agencies released the findings. To summarize, the upscale portion of the American Hispanic population is growing at a fast pace.

According to MediaPost, the study depicts the upscale population as Hispanics in households with an annual income between $50,000 and $100,000. To date, that subgroup is an estimated 15 million people, which translates to roughly three of 10 Hispanic homes. Or, in a broader context, this group is about 12% of all U.S. households. Nielsen further explains that about $500 billion of the total $1.3 trillion in Hispanic consumer spending is done by the upscale group, which is almost 40%. Researchers expect growth to about 18 million by 2015 and to 35 million by 2050.

From the study, it was ascertained that this group of individuals are typically bilingual. A little more than half speak most or all English the majority of the time, and also about 75% speak some Spanish. In addition, this group spends about 52% of the TV viewing time on Spanish-language networks and 48% on English-language networks.

In conclusion, this group within American consumers has the added bonus of being reachable in a variety of media platforms. It is the advertisers’ responsibility to acknowledge the growth of this group which will lead to the increased influence on the consumer culture as a whole.