Why the Mobile Wallet Might Get More Traction than Mobile Payments

The "mobile wallet" (essentially, stored credentials and accounts on a smart lphone) might find greater success than mobile payments (using the mobile to complete a retail transaction) in the near term, a new study of Millennials might suggest. 

Using a mobile device as a substitute for carrying a plastic loyalty card is the top requested mobile payment application for Millennials (over 25 percent  expressed interest). Only 10 percent of  Millennials surveyed expressed interest in using a mobile device as a credit or debit card.

Millenial interest in loyalty programs also suggests a wallet approach might have more value than mobile payments.



Millennials respond to loyalty offers, the study sponsored by Aimia and conducted by Harris Interactive  has found. The online study found that more than 75 percent of U.S. consumers surveyed participate in loyalty and reward programs.



And more than 75 per cent of Millennials say they are more likely to choose a brand that offers a loyalty or reward program over a brand that doesn't offer one. Some 78 percent of U.S. respondents also indicated they would be more likely to do business with a company after earning a reward as well.,



In unprompted responses, Millennials rate loyalty rewards as the top incentive they look for in exchange for sharing personal information with marketers.



Nearly half of Millennials are willing to promote products or brands through social media in exchange for rewards.



Millennials view the option to download coupons or reward certificates as most enticing reason to use a rewards program application on a smart phone.



Some 57 percent of U.S. Millennials use mobile devices to perform price comparisons before making a purchase in a store.



What Millennials value

63% of Millennials Use Social Media to Engage with Brands

About 63 percent of Millennials use social media to engage with brands, a new study by McKinsey & Company has found.

A Majority of the the Emerging Affluent Uses Social Media to Engage with Brands

Teen E-Mail Use Drops

In the last year, time spent using e-mail sites like Yahoo and Hotmail has fallen 48 percent among 12- to 17-year-olds, according to comScore, at least time spent with e-mail on computers. That might not come as a surprise. Virtually all studies have shown similar results.

ComScore also found a decline of 10 percent in time spent on Web-based email among 18- to 24-year-olds, about the same as it found for people up to the age of 54.

E-Mail's Big Demographic Split - NYTimes

Moms and Millennials

The millennial generation is in one sense not a "market segment," but rather an indication of where all future markets are headed. As you might guess, behaviors of Generation X, sandwiched between Boomers and Millennials, have some characteristics of both preceding and succeeding generations, though it is the differences that normally get the attention.

In a more immediate sense, Millennial behavior is important because it influences the behaqvior or older age cohorts, thus driving behavior now, and not simply in the future.

Moms and Millennials

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Millennials are in one sense not a "market segment," but rather an indication of where all future markets are headed. As you might guess, behaviors of Generation X, sandwiched between Boomers and Millennials, have some characteristics of both preceding and succeeding generations, though it is the differences that normally get the attention.

In a more immediate sense, Millennial behavior is important because it influences the behaqvior or older age cohorts, thus driving behavior now, and not simply in the future.

Digital Natives are Different

In an intensive, three-month study of the media and social habits of 100 consumers between the ages of 18 and 24, French marketing firm BVA found that “Digital Natives,” don’t trust authority, doesn’t want anyone telling them what to think and don’t like to pay full retail prices.

Digital Natives don’t trust politicians, social institutions, the media or corporations. Rather, they rely largely on themselves and their peers to decide what to think, what to do and what to buy.

Is it any wonder social media and social networking have gotten traction?

Digital Natives view life as a game of outsmarting authority to beat a system they disdain. Whether catching up on the news or shopping for a car, Digital Natives enjoy the challenge of acquiring and manipulating information as much as the outcome to which it leads.

“The Digital Native enjoys using all tools available in his arsenal to outsmart the merchant system and to find the best deal,” research director Edouard Le Marechal says. “He doesn’t trust the brand. Like in a game, the brand is the enemy to defeat.”

Those are challenging ideas for most sellers of products and services, advertising, marketing and media, and would suggest marketing and media will be different in the future, more socially constructed, at the very least.

http://newsosaur.blogspot.com/2010/10/digital-natives-more-different-than-you.html

Is Digital Behavior Gap Growing?

Over time, differences in technology adoption across generations or between regions tend to close. So some might argue the differences between younger users and older users in the U.S. market suggest a gap is widening.

Others might argue the differences in adoption only mean older users are going to start using the same tools younger users favor.

Gen Y is particularly mobile savvy, Forrester Research notes. Some 85 percent of consumers in the Millennial demographic regularly send or receive text messages, compared with 57 percent of all US consumers over the age of 18.

About 27 percent of Millennials access social networks on their mobile devices (compared with 14 percent of all US consumers) and 37 percent of Millennials access the mobile Internet, compared with 23 percent of all US consumers.

I tend to think this means older demographics increasingly will adopt those behaviors as well. It seems to have happened with virtually all earlier online and mobile behaviors, and one would do well to bet with the historical trend, rather than against it.

Forrester Research

For Millennials, Byte-Sized Is Best

One of the common observations (complaints) about Millennials is that they lack the ability to sustain attention, and as a corollary, that they don't read much. Contrary to common perceptions, Millennials do read.

But according to the New York Times, 15 to 24 year olds spend on average 50 minutes a day reading and ‘pursuing other interests’. This is much higher than 25-64 year olds who spend just 32 minutes doing so.

Also, according to a U.K. McKinsey study, the average person consumed 72 minutes of news a day, up from just 60 minutes in 2006. What’s more, the increase was driven almost entirely by people under the age of 35.

All that noted, Millennials have a tendency to want content short, condensed and artfully presented with colorful graphics, bold type and simple headings. And they want condensed content.

For Millennials, Byte-Sized Is Best

Are Millennials A Predictable Part of the Generational Cycle? | Millennial Marketing

That "Millennials" might be different from their parents, but neither generation arguably is so "unique and different" as sometimes might appear. Nearly 20 years ago, William Strauss and Neil Howe wrote “Generations,“ which suggested there is a repeating four-generation pattern in American history.

If at all accurate, Millennials are part of a pattern. Though their common generational experiences mark them as different from the three preceding generations in the cycle, the cycle will repeat, with Millennials in turn succeeded by a generation with different, but broadly predictable outlooks.

Sometimes we mistake the forest for the trees, focusing on how much "technology" is simply a background factor for Millennials. What we overlook is the pattern that suggests why their values and views are different from that of their parents, but also that those values are part of an old pattern.

If so, yet another turn is coming.

Are Millennials A Predictable Part of the Generational Cycle? | Millennial Marketing

Internet Access Big Library Attraction

Generation Y "Millenials" (age 18-30) are most likely to turn to libraries for problem-solving information of all generational groups, say researchers at the Pew Internet & American Life Project.

Faced with a problem in the past two years that they needed to address, about one in eight adults (13 percent) say they turned to their local public library for help and information. And it appears computer availability is a reason.

Some 65 percent of adults who went to a library for problem-solving help said that access to computers, particularly the Internet, was key reason they go to the library for help.

Also, 62 percent of adults who went to the library for help actually used the computers at the library. At the same time, 58 percent of those with problems to solve said they used library reference books.

About 42 percent of those with problems to solve said they read library newspapers and magazines.

The problem most likely to be cited by those who went to libraries seeking information was an educational issue such as making a decision about a school, getting more training, or finding financial resources to do so. That reason was cited by 20 percent of the adults who went to libraries for help.

Asked whether they would go to a library in the future to help them solve problems, 40 percent of Gen Y respondents said it was likely they would go, compared with 20 percent of those over age 30.

About 53 percent of American adults report going to a local public library in the past 12 months. The profile of library users shows an economically upscale, information-hungry clientele who use the library to enhance their already-rich information world, Pew researchers say.

Public library patrons are generally younger adults, those with higher income and
education levels, and those who are Internet users. Parents with minor children living at home also are very likely to be patrons. There are no significant differences in library usage by race or ethnicity, Pew researchers say.

User Generated Content Catches On

Some 40 percent of 2,200 U.S. consumers between the ages of 13 and 75 surveyed by Deloitte & Touche are making their own entertainment by editing movies, music and photos. You might not be surprised that 56 percentof all Millennials (ages 18 to 24) do so. But you might find it interesting that a quarter of users (65 or older) do so.

More than one in 10 Millennials are actively uploading their own videos on the Internet and 51 percent of all survey respondents are watching or reading content created by others. Some 71 percent of Millennials watch or read content created by others while 56 percent of Gen Xers do.

About 53 percent of Millennials say they would download more videos if connection speeds were faster.

But the survey also shows that traditional media, including television and magazines, remain part of the user mix. About 58 percent of Millennials say magazines help them learn about what’s “in.” Also, about 64 percent of users say they tend to pay greater attention to print ads in magazines or newspapers than advertising on the Internet.About 58 percent say they use magazines to find out about what's "cool and hip," such as clothes, cars and music. Perhaps more important, almost three-quarters (71 percent) enjoy reading print magazines even though they know they could find most of the same information online.

Millennials, though, are most receptive, as you would guess, in just about any area of "converged" or "new media" experience. About 64 percent want to easily connect their television to the Internet for viewing videos and downloading content to their television. About 60 percent want the ability to move their content to any device they own without any problems. Some 57 percent want an entertainment and communication device that lets them "do everything." Nearly half (49 percent) want a computer or similar device that will be the center of their household media experience.

Why It is So Hard to Do Media These Days

Different audiences now prefer different media. Older users continue to be more comfortable with traditional media. For users 41 and younger, the Web makes more sense.

The Web surfing habits of boomers and over-60s are more firmly rooted in traditional media than those of their younger counterparts, according to a Deloitte & Touche study conducted by the Harris Group.

The study found that 67 percent of boomers visited Web sites after seeing ads on TV or in print. Matures, those between 61 and 75, were just as likely to be driven to the Web by print ads and less likely by TV ads.

Yet these two age groups were less likely than Generation X (25 to 41) or Millennials (13 to 24) to visit the Web as a result of an Internet search engine or ad on another site.

A Lumin Collaborative study reinforced the connection between boomers and traditional media. The company found that boomers, defined as those currently ages 42 to 62, spent an average of 2.69 hours a week online, versus 2.83 hours watching TV and 1.93 hours listening to the radio.

The trends were flipped among the echo boomers (ages 18 to 31) and Gen X (32 to 41), who spent more time online than watching TV or listening to the radio and whose time spent online also exceeded that of their boomer counterparts.

Lumin also noted that only 39 percent of respondents in the boomer demographic regarded the Internet as their primary channel of information about companies or products. This rate was substantially less than Gen X (53%) or echo boomers (60 percent).

Boomers were the most likely group to choose newspapers, broadcast TV or magazines as their main source of information.

All of which means all content has to be delivered dual mode these days: Web for people under 41. Other traditional media for users older than 41, to a certain extent. But the direction of the shift is inexorable. The Web wins.