Generational Use of Technology Matthew Bick, Door C at Carlson Marketing Worldwide

1. Introduction At this point in the technological evolution, it is fair to say that nearly everyone uses technology, spanning all generations. From the Greatest generation to the Baby Boomer generation, and as far as the Millennial Generation, technology penetration has reached a huge proportion. However, there are major differences in how each generation uses technology. A member of the Greatest Generation probably uses e-mail, but is unlikely to use Facebook or MySpace. A Millennial almost certainly uses a social network, but may even think that e-mail is an archaic means of communication. Finding these differences, and more importantly the reasons they exist, are crucial to marketers, especially with respect to the Millennial generation. This generation will have a large proportion of the purchasing power in the United States’ economy, as throughout the rest of the world. By discovering trends in the Millennial generation’s behavior and discerning the “why” behind each trait will help marketers will have a roadmap for tomorrow, today. Generational Use of TechnologyMatthew Bick, Door C at Carlson Marketing Worldwide The Insights Throughout the process of this project, six major “insights” arose. Each insight is a trend seen in the Millennial demographic as demonstrated in the focus group and survey process. Usability and Security on Social Networks The Immediacy of Communication Fear of Unknown = Purchasing from Familiar Millennials Want Things On Their Own Terms Millennials Multitask With Technology Millennials Have a Built-In “BS” Detector Please Click Here to Read Instructions Before Viewing

2. Instructions for Viewing • To navigate from Insight Pages to Research and Analysis Pages, hover the mouse over a piece of text or picture in the “By the Numbers,” “By the Industry,” or “By the Audience” sections. If the mouse arrow turns into a pointing hand, there is further detail available. Click once to go to that fact or figure’s Research and Analysis Page. • To start/stop video, click once on video image. • Please click the home button in lower right corner to return to Generational Use of Technology Home Page. • Please click the image in the upper right corner to return to individual Insight Pages. • Please click the U arrow button in lower right corner to return to last slide viewed. • To view further detail on chart and video slides (denoted by” Further Analysis in Notes Pane in Normal View” at the bottom of the page), hit “ESC” key once. Further detail is located in the notes panel at the bottom of the screen When finished reading, please click on the small projector screen icon near the bottom left of the slide view panel (third icon from left) to return to slideshow mode.

3. BACKGROUND Social networking is not a new concept. In fact, it’s one of the most basic of human instincts: to congregate and communicate. However, the ways in which we network has changed drastically as technology has improved our ability to communicate. Those of the Greatest generation would go to the same diner to eat everyday and talk with the same buddies. Those of the Baby Boomer generation would spend hours on the phone at night, driving their parents and the phone bill through the roof. And Millennials? We created another new way to network: a social networking site. Facebook, MySpace, and other such sites are the Millennial generation’s answer to the call for networking and communication among peers. However, a new concern has risen with social networking sites: the possibility of internet predators and other “creepers.” Therefore, a new criteria has been added to the fold in the need for security while communicating. Usability and Security on Social NetworksMillennials want to communicate easily…without having to worry about creepers online. BY THE NUMBERS BY THE INDUSTRY BY THE AUDIENCE • 87% of US online consumers said that knowing that the process…is secure and that the information they provide online will be kept private are important factors.” • . • . • . • . • 89% use social networks for communication purposes. • 81% value the ease of communication while using a social network. • 67.9% value security while using a social network. • 15.6% have parents who have a similar social networking page. • Only 7.7% of the above 15.6% use a social networking page to keep tabs on their children’s page. Learn More About this Insight

4. The Insight • The war between Facebook and MySpace still goes on, but in large part, Facebook attracts many more people because of two key elements: security and uniformity. When Millennials are online and using a social network, they are putting information about themselves out on the web for public viewing. The difference between Facebook and MySpace, and part of the reason for Facebook’s ascension, is the fact that Facebook has many more optional security features. Users can control who sees their profile, and a large number of other things. This is in contrast to MySpace, which is notorious for it’s relative openness. There were several instances of cyber stalking and online predators using MySpace to scope out “targets” because of MySpace’s relatively loose security options. Therefore, the ability to put oneself “out there” on the internet while still being able to exercise some measure of control, is one overall drive behind the move to Facebook. • Facebook’s relative uniformity has also led to it’s rise. More specifically, the ease and simplicity of use that Facebook offers facilitates much quicker and easier communication between users, and that is the primary purpose of a social network in the first place. Facebook offers customization of the content and organization of the content, as opposed to MySpace which offers customization to an extreme. Every single aspect of the profile page on MySpace can be customized, but therein lies the problem. The customization was taken so far that most profiles appeared hard to read, and thus difficult to use. Text was sometimes illegible, links not accessible, and most pages were simply just too cluttered to be useful. Hence, when Facebook came along with customizable content in a consistent theme, it had achieved great popularity. Facebook’s usability made the act of actual networking far simpler than it had been on MySpace. Most personal information for each profile is located right next to a main picture of the person’s profile, containing name, age, high school, relationship status…most of the answers “get to know you” type questions. Getting to know someone new became as quick and easy as checking out their Facebook. For instance, there are two profiles above. One is a Facebook profile (right), and the other is from MySpace (left). Which one is easier to read? If you had to find a moderate amount of information about someone in a short space of time, which would you use? It’s easy to see from the screenshots above that the Facebook profile is clean-cut and easy to use. There’s a picture at the top, and right next to it is all the basic personal information or each person…and each person can, of course, put in as much or as little information in that space as they please. In the MySpace profile, yes, you can see a few pieces of information. Name, age, and a name (although a pseudonym is an accepted name for MySpace profiles). However, other information is put on the page wherever the user wants. This makes it intensely difficult to find similar information between two profiles on MySpace. On Facebook, however, it’s as simple as looking at the top of the page…every time.

5. The Primary Research – Focus Groups The video above shows Millennials responding to a question about security while on a social network.

6. The Primary Research – Focus Groups The video above shows Millennials responding to a question about social network customization and content.

7. The Primary Research – Survey Analysis Click on Chart for Further Analysis

8. Why do you use a social network (please check all that apply)? • The results totaled in the chart indicate a few important pieces of information about social network use that support the insights seen in the focus groups. The data above shows that the greatest reason (numerically) that Millennials use a social network is in order to communicate with friends. This backs up the idea that Millennials have a need to communicate simply and quickly. Further, this data supports the hypothesis that Facebook has begun to overtake MySpace in popularity among Millennials due in large part to the site’s usability. Other conclusions that can be drawn from this data related to the large percentage of respondents who valued entertainment from a social network. This desire for entertainment via a social network can create inroads for marketers to reach Millennials via the most entertaining parts of social networks. These vary, but can include popular applications on Facebook and popular recording artist pages on MySpace. Return to Research

9. The Primary Research – Survey Analysis Click on Chart for Further Analysis

10. Which of the following are important to you when on a social network (please check all that apply)? • The results from the data shown in the chart are very supportive of the security and usability insight. 81% of Millennials who responded to this survey valued ease of communication, along with 67.9% valuing security. These numbers once again jive with the results of the focus group series, in which the panel discussed at length the problems with MySpace’s security and functionality. They subsequently praised Facebook’s security and usability, saying that the site has more security features, as well as better functionality. They attributed the greater functionality to the site’s consistent theme for every page, with the customization coming in the content of each profile, not the appearance. Return to Research

11. The Primary Research – Survey Analysis Click on Chart for Further Analysis

12. Question 3: Do your parents have a profile on Facebook, MySpace, or a similar social network? • The data in the chart indicates very strongly that most parents are not keeping tabs on Millennials that use social networking sites. What does this mean? It simply shows a major gap in the use of this particular technology between the current youth generation (Millennials) and the preceding one (Baby Boomers). This is significant because it proves that social networking technology is a huge part of the Millennial lifestyle and is not likely to disappear. It also hints at the potential need for increased security. Because parents are either not able or willing to attempt to monitor their Millennial’s social network use, greater care must be taken both by the sites and the Millennials to ensure their own safety. Return to Research

13. The Secondary Research • From Forrester… • “Privacy and security are paramount. Web shoppers expect the process to be secure and their information to be kept private. A very large percentage (87%) of US online consumers said that knowing that the process…is secure and that the information they provide online will be kept private are important factors.” Click on Text for Further Analysis

14. Forrester’s research has shown that the security of information while online is something that is, to quote the author, “paramount.” But why is this the case now? Why is security more a necessity for the Millennial demographic than it has been in previous generations that also use the Internet? It’s simple; Millennials have heard all the horror stories of internet use gone bad. The stalkers on MySpace, the murderer who ensnared his victim via Craig’s List…all of these incidents are fresh in Millennials’ minds because they happened to persons in their age group. The thought “it could have been me” runs through their minds constantly. With that in mind, security issues have come to the forefront for the generation. Their first experiences in the social networking phenomenon were largely via MySpace, which was fairly insecure from it’s inception. Other than the numerous reports of cyber stalking, and other dangers brought to the mainstream on television shows such as NBC’s “To Catch A Predator,” users of MySpace experienced technical issues. Specifically, viruses popped up frequently on the site, and Tom (MySpace’s creator and everyone’s first cyber-friend) couldn’t keep up with the sheer number of malicious viruses and bugs floating around the huge network. The insidious viruses and bugs of course worked their way into computers across the world, leading to the rise of another social network: Facebook. Click for Continuation on Next Slide

15. Click for First Half of Analysis • Facebook’s idea was simple; create a site for people to upload photos and share while they’re in college. After all, it is fairly difficult to keep up with high school friends when they may be on the other side of the country, or world for that matter. Facebook learned from MySpace’s mistakes in the security sector, building in much appreciated features into the site from the outset. More importantly, the developers of Facebook continued to build the security features as the needs grew, something MySpace has been slow to keep up with. Facebook’s security options leave it up to the individual user to decide just how stringent they want to be with their profile. They can have it open to anyone, available to be seen on any search of their name, or they can choose to have their profile only visible to those friends they deem appropriate. Additionally, they can take their names off the list of profiles that are searchable; they can essentially disappear from sight of those they want to hide from. This level of security while online allows for a strange sense of comfort, brings to light the ability to put all of one’s information out on the internet with much reduced risk of fraud. Put simply, the added security features take most of the risk out of networking online. It is this comfort that draws Millennials to Facebook over MySpace, but more importantly, this theme is the cause of many purchasing actions by the generation. Return to Research

16. The Secondary Research Click on Any Chart for Further Analysis

17. As shown above, American teens are posting large amounts of information about themselves online. Many post their age, pictures of themselves, even the name of their school. Clearly, with such information floating around the internet, there is a large need for obvious security measures. The fact that only 19% of US teens believe that they are either somewhat or very safe when posting information on the internet presents an interesting contradiction, which makes the need for safety and security on the internet all the more important. Facebook has risen to meet this call with several of it’s features which are much more comprehensive than MySpace’s measures. For example, most of the time, MySpace profiles are not limited in their viewing. This means that all browsers on the site may see pictures, videos, or any other piece of information that are put on the site. Granted, there are measures that are optional for MySpace users to increase security, but there is a subtle yet important problem: MySpace profiles start out as publicly viewable at their inception. A user must then seek out the security settings to make the changes. Part of MySpace’s reasoning in having this process is that the majority of their current demographic uses the site for music sharing and discovery. Many new bands use MySpace as a vehicle to get their name into the mainstream music scene. Click for Continuation on Next Slide

18. Click for First Half of Analysis • This is in contrast to Facebook’s settings. Upon creation of a Facebook profile, a panel for security settings pops up automatically. The contrast here is that Facebook places the options in front of the user, and in fact wants the user to create their own level of security at which they feel comfortable. MySpace, on the other hand, puts the onus on the user to seek the security features, and some users do not even realize that they begin their accounts with no privacy features. This is likely what made cyber stalking simple in the first place – eager teens and preteens not even thinking about security settings. The general “I am invincible” perception that most teens and preteens have in the first place does not help combat this mentality in the least. This is why having the security settings appear during registration for Facebook has made a big difference. Return to Research

19. The Secondary Research • "On campus, social network sites remain a key place for communication, socializing and goofing off." • -Debra Aho Williamson, senior analyst at eMarketer Click on Any Chart for Further Analysis

20. From the focus group information as well as survey data, we can see that Facebook has become more attractive, in large part due to it’s security and the ease of communication it provides. eMarketer found last year that for the first time, Facebook was more popular among both male and female users than MySpace, marking a milestone in Facebook’s growth. At the heart of this shift are two simple ideas: security and ease of communication. Return to Research

21. BACKGROUND Millennials use their cell phones and mobile devices…a lot. They are constantly using them, regardless of their location. Whether they are in school, at work, or hanging out with friends, a cell phone or mobile device is almost always present for the majority of Millennials. However, there are two main uses for mobile devices that accomplish the same purpose: getting in contact with another person. But why are there two methods that appear equally as popular to use? The theory that there is value in the relative immediacy of communication explains this double dominant service. This insight dictates that Millennials know they cannot control if they are contacted, but they can control how they are contacted and when they respond. The Immediacy of CommunicationMillennials want to be able to choose how and when someone communicates with them. BY THE NUMBERS BY THE INDUSTRY BY THE AUDIENCE • . • . • 93.6% use mobile devices for voice calling features. • 84.4% use mobile devices for text messaging or other SMS services. • 53.2% of Millennial respondents prefer calling a peer to texting. • 42.6% of Millennial respondents prefer texting a peer to calling.. • 44.7% choose texting vs. calling based on its ease and convenience • 37.6% choose texting vs. calling based on its appropriateness given the situation. • . • . Learn More About this Insight

22. The Insight • The idea of control over one’s personal communications has become a common theme, seen throughout the focus group and survey processes. Much of this is motivated simply by the want to have control over one’s communications in a world where there are so many different ways to get a hold of a person. For instance, if a student is in class and his or her cell phone receives a text message, he or she has the ability to ignore the message until they are ready to respond to it. Thus, they accomplish their goal to have control over when they someone communicates with them, all in the midst of the myriad ways to actually communicate with someone via technology. In fact, they have the ability to simply never answer the message. Additionally, the issue of texting vs. calling has also taken root in this immediacy of communication idea. At this point, an actual call seems to indicate much more urgency, as many Millennials realize that their peers are in class or at work. A text message indicates something probably worth attention, while a phone call, because of the possibility of disruption on the part of the listener, indicates urgency.

23. The Primary Research – Focus Groups The video above shows Millennials responding to a question about cell phone use.

24. The Primary Research – Survey Analysis Click on Chart for Further Analysis

25. Question 9: Which of the following do you use your cell phone for (please check all that apply)? • This data pertains to the immediacy of communication insight seen in the focus group sessions. As shown above, 93.6% of respondents said that they use their cell phone for the voice capabilities, followed by 84.40% of respondents using their mobile devices for texting purposes. Only 5.0% did not have a cell phone. This data shows that both texting and voice calling are used in high quantities, relatively close to one another. As both are clearly used to high extent, the need for an explanation as to why they are used in tandem has to exist. The immediacy of communication insight explains the pair of dominating technologies used in conjunction with mobile devices. Return to Research

26. The Primary Research – Survey Analysis Click on Chart for Further Analysis

27. Question 10: When using a cell phone, are you more likely to text or call a friend? • The data here indicates just how close the relationship is between which technology is preferred; texting vs. voice calling. Once again, by showing such similarities, we allow for the immediacy of communication insight to exist. Because these two technologies are so close together, there must be a reason that one hasn’t become the dominant technology among Millennials. Therefore, we can assume that the immediacy of communication is the reason for this trend. We can eliminate ease of operating each technology as both are equally simple to operate, as well as cost, considering most of the focus group members already had plans that covered both texting and voice calling. Return to Research

28. The Primary Research – Survey Analysis Click on Chart for Further Analysis

29. Question 11: Why are you more likely to do this? (This is in reference to question 10 on the preceding slide.) • The data that can be taken from the question above helps to dig deeper into the all-important “why” in relation to the trends that Millennials are exhibiting. Almost half of the respondents point to ease and convenience of being able to either text or call. Perhaps the more important statistic is that the appropriateness given the circumstance answer racked up 37.6% of respondents. This dovetails with the immediacy of communication insight, as Millennials constantly need to evaluate when they are calling their peers. Cell phone calls in class are a large distraction and are hard to ignore (five or six rings or buzzes), whereas a text message only buzzes or sounds off once per message. Return to Research

30. The Secondary Research Click on Chart for Further Analysis

31. The chart above has been taken from Forrester.com, an leading internet marketing research entity. The chart demonstrates the theme that text messaging is the leader across the board in most used feature, other than making voice calls. But every teen already knew this, so why is it important? Well, the answer to that question is, to play on words a little bit, a matter of reading the message. We see here that text messaging ranks at the top of cell phone use for Millennials, next to calling. The question must be raised, then, why do there need to be two means of communication using the exact same device when one would surely suffice? Would I, as a Millennial, feel the need to both call and text someone with the exact same information. Logically, of course, the answer is an emphatic, “What, seriously,” followed by, “C’mon, I’m not THAT stupid…geez.” On the whole, no Millennial feels the need to send the same message two ways in quick succession. So what, then, must be the cause of the split mobile device use? • The only option left is that one or the other fits a certain situation best. Among Millennials, each type of communication carries a different connotation. It appears from survey data that a cell phone call carries more urgency than a simple text message? Once again, why is this the case? Time. The rationale for the Millennial in this case is simple. A call will ring on a mobile device several more times than a text message, which only rings once. The increased number of rings, or longer duration in the case of a ringtone, indicates to the Millennial that someone is still on the other end of the line. The person making the call is taking the time out of their day to actually hold on the line for the Millennial to answer, when they could have just as simply sent a text message. In light of this, we see that the immediacy of communication is the underlying principle guiding mobile device use. But what does this term mean? Click for Continuation on Next Slide

32. Click for First Half of Analysis • Simple put, the term refers to a very basic human need: to exercise some measure of control over how and when someone is communicated with. Thinking logically, would someone want to be interrupted during a class or other important event? No. Would they take offense at such an interruption? Probably. But what if I need to get a hold of someone? Where is the compromise? • The differences in calling vs. texting allows for the compromise to exist. Because a call indicates immediacy, it’s a simple matter of logic that a Millennial will answer their phones, wherever they are. This is supported by the observation that, in general, Millennials recognize this same “call vs. text” distinction. As demonstrated in the focus group sessions, the only demographic that still almost exclusively calls a Millennial is that person’s own parents. And, of course, if a parents calls their child during school hours, or during some other important time, there is a good chance there is some urgency in the call. On the other hand, what if the person sending a message of some kind (call or text) doesn’t need an immediate answer? For instance, if it’s 3:00 in the afternoon on a Friday (the general time when most high schools adjourn for the day) and a Matthew Millennial wants to make some plans to see a 7:00 movie? He has four hours to get a response. Will he feel need to call immediately? Likely, he won’t. He will probably text the person first with something like, “Do you wanna see (movie title here) @ 7?” He’ll then wait for a response, maybe give the person an hour or three to respond. Afterall, there’s no need to pressure someone into a decision, the movie doesn’t start for four hours! Maybe by 6:00, Matthew Millennial will call, because now he actually does need to figure out his evening. And therein lies the essential difference between calling and texting. The immediacy of communication. A person receiving a text message can choose to respond now. Or later. Or not at all. But if they receive a call, they can really only choose to answer or not to answer. This is also compounded by one’s circumstances. It isn’t easy to raise one’s hand and say to the teacher, “Excuse me, I have to leave because my phone is ringing and I happen to value this call over and information you give.” Although that is an obvious exaggeration, the principle is the same. Texting can be accessed at any time, and is thus invaluable to Millennials who are constantly on the go. The calling feature remains heavily used as an immediate means of communication. No more phone tag is needed, all a Millennial thinks about is when to change from sending texts to actually hearing the other person’s voice. Forester refers to this as the “User In Charge” approach. This theme is seen several other places throughout this report. Return to Research

33. BACKGROUND During their infant and youth years, all children are not given the choice of what to eat, what to wear, or what to play with. They are very simply given these things. Their parents provide for them and thus make all the choices. At this early age, Millennials begin to associate and recognize a product or a brand. A Millennial that exclusively was given Coke as a 4 or 5 year old will more than likely continue to drink Coke for the rest of their lives. This is nothing new either, as it is a simple human reaction. Fear of the unknown, in this case an unknown company, drives Millennials toward purchasing products from companies or brands that they are already familiar with. What does this mean for companies? Well known, and respected companies have the upper hand in reaching Millennials at an early age Why? Simple! Parents tend to buy products that are recommended to them by magazines and other parents. In this manner, a brand grows in profitability and visibiilty, thus the advantage with respect to Millennials. Fear of Unknown = Purchasing from FamiliarMillennials will choose products from companies familiar to them over comparable productsfrom companies that are either unknown or lesser known to them BY THE NUMBERS BY THE INDUSTRY • . • Several short paragraphs dictate the influence that familiarity has on Millennial purchasing behavior. . • 81.6% of Millennials would not click on a regular online advertisement on a social networking site, but just 51.3% of Millennials would not click on an ad from a company they know. This demonstrates a nearly 13% increase in click likelihood. • 88.6% of Millennials prefer to purchase products from companies or brands they are already familiar with, as opposed to similar products from new or unknown companies. Learn More About this Insight

34. The Insight • From an early stage in a Millennial’s life, he or she is given products to use. They aren’t able to choose them of their own volition as of yet. Because of that, they already build up a strong association to a product, as well as feel that they know something about the product or the company. Later on in life, when Millennials are able to choose for themselves, they gravitate toward products or companies they know. This is a simple human reaction: fear of the unknown drives Millennials to the familiar.

35. The Primary Research – Survey Analysis Click on Either Chart for Further Analysis

36. 5. In general, how likely are you to click on ads on social networking sites? • By observing these two questions in tandem, we can see the difference in a Millennial’s views towards a product based on familiarity. In the upper chart, representing question five, we see that 96.5% of Millennials would be either “not at all likely” or “somewhat unlikely” to click on an add on a social networking site. However, in the lower chart, we see that the combined total of negative results becomes 83.7%, a decrease of 12.8%. In other words, a Millennial is nearly 13% more likely to click on an ad from a company they know. This statistic is very interesting, not to mention beneficial for large, well known companies. It also further proves the idea that Millennials are much more likely to purchase products from companies they are already familiar with. Return to Research

37. 6. In general, how likely are you to click on an ad from a company you are familiar with on any site? • By observing these two questions in tandem, we can see the difference in a Millennial’s views towards a product based on familiarity. In the upper chart, representing question five, we see that 96.5% of Millennials would be either “not at all likely” or “somewhat unlikely” to click on an add on a social networking site. However, in the lower chart, we see that the combined total of negative results becomes 83.7%, a decrease of 12.8%. In other words, a Millennial is nearly 13% more likely to click on an ad from a company they know. This statistic is very interesting, not to mention beneficial for large, well known companies. It also further proves the idea that Millennials are much more likely to purchase products from companies they are already familiar with. Return to Research

38. The Primary Research – Survey Analysis Click on Chart for Further Analysis

39. 7. In general, if you know or are familiar with a certain company, do you prefer its product over a similar product from a company you know less about or are not familiar with? • The data in the chart shows conclusively that Millennials will, in fact, gravitate toward products from companies that they already know or are familiar with. This means, from a marketing perspective, that there is a direct relationship between the current visibility and popularity of a company. Subsequently, this will dictate what strategies should be employed to best help the client…from trying to achieve higher brand recognition to reminding the masses that the brand is still a major player. Return to Research

40. The Secondary Research • From Forrester.com, a highly respected online marketing research database: “30% of research on a new purchase or account opening consists of recommendation from family and friends.” “Researchers have an idea of the product/provider they want before they research. Financial services shoppers come to the table with some idea of what they are looking for. Just 12% of those who started the research process did not know which product or provider was best for them at the outset. Twenty-six percent of US online researchers already knew the product and provider they wanted and used research to validate their choice.” “Recommendations often drive product purchases. A recommendation from family or friends tops the list of research methods. Thirty percent of US online consumers who did research said that family recommendations drove their decision process. Few shoppers use offline media like magazines and newspapers; just 9% report using these offline sources.”

41. This statistic shows a clear trend that happens in virtually every generation, but is even more applicable with the Millennial generation. From Day 1, a child is not given the choice of what baby food to eat, or what liquid to drink, these items are simply put in front of them. As Forrester describes, 30% of new purchase information comes from family or friend recommendations. What does this mean for a business? Millennials are trusting the information they receive directly from an advertisement (TV commercial, etc.) much less now than previously. They instead turn to empirical information; first hand experiences from people the consumer is familiar with who both know the consumer and the potential purchase. Consumers trust this information much more simply because of the trust that is inherently placed in a friend or family member. The idea that friends and family have one’s best interests in mind is prevalent. Furthering the familiarity approach is the fact that only 12% of people starting to do research on a product knew nothing about the product before the process. This is an enormous revelation; nearly 90% of those with purchasing power in the market already have some kind of knowledge, and in many cases an allegiance to a product. So, what does this mean? • In short, personal allegiances develop well before the typical Millennial is even in kindergarten. This trend continues through life as they turn to family and friends (those with whom they are familiar) for their product information. Return to Research

42. BACKGROUND In the current stage of the technological evolution, there exists the ability to choose. Not simply choosing what do, but choosing how do it, when to do it, and where to do it. Millennials are the first generation to have actually gone beyond acknowledging this existence. Instead, they expect to have these choices available to them. This manifests itself in several ways. Technologies such as TiVO and DVR have been around for a few years now, but Millennials are taking On My Terms beyond even this level. Companies such as Apple. NBC, and myriad other companies are now providing content on their websites. Apple has recently began to offer movie rentals via the iTunes music store. Not even downloads – a person can rent a movie online, then return the file to the iTunes store. NBC.com offers full episodes from all major shows just an hour after originaial airtime, and many other websites float around the Internet for the sole purpose of profiting off of Millennial’s expectations of content on demand. On My TermsHow, When, and Where Millennials Want to Do Things BY THE NUMBERS BY THE INDUSTRY BY THE AUDIENCE • . • . • . • 61.7% of Millennials have already used the internet to view on demand video content (TV shows, etc.). • 17.7% said that the ability to watch content on-demand via the Internet is very important. • 39.0% responded with either “very important” or “somewhat important” to the ability to watch on-demand content via the Internet. • Many respondents gave reasons for their preferences. • . • . Learn More About this Insight

43. The Insight • Millennials like to be able to have things happen on their terms, at their leisure, when they have time for it. This is to say that, because technology has progressed to the point where many things can happen or be viewed on demand, such as TV shows and movies, Millennials strongly gravitate towards services that allow them to have many options for a low price. The idea of a TiVO would seem to fit with this, but technology outpaced the need for this product. Now, networks are putting their TV shows online for small fees or free, in some cases. • The ability for Millennials to watch what they want, when they want it, where then want it, and how they want to is something they not only desire, some actually expect it. Simply put, the desire for simply the ability to have choice and control drives the Millennial generations gravitation toward these services. Even more interesting is the fact that mainstream media outlets are quickly moving to accommodate this need.

44. The Primary Research – Focus Groups Further Analysis in Notes Pane in Normal View

45. The Primary Research – Survey Analysis Click on Chart for Further Analysis Further Analysis in Notes Pane in Normal View

46. The Primary Research – Survey Analysis Somewhat important Click on Chart for Further Analysis Further Analysis in Notes Pane in Normal View

47. The Primary Research – Survey Results • “Because I have a lot to do and can't always be home to watch it.” • “If you have a hectic schedule you can still watch your shows.” • “It would be a way to watch a show that you missed and to shorten the amount of commercials.” • “So you can watch it at a time that works for you instead of the time that it's on.” The sentences above are responses as to why online streaming video is important.

48. The Secondary Research Click on Either Chart for Further Analysis

49. This slide and the next show secondary research found via eMarketer.com, a respected online marketing database. The information in these charts supplements that information already found via the focus group and survey process. We begin with the chart on the left hand side of the previous slide. The chart shows that 25% of teens, as well as 27% of adults, use internet capabilities to get into sites dedicated to video content. Youtube and other sites like it have certainly risen in popularity quickly over the last few years, but now other companies are beginning to understand the value of online video content. As demonstrated, NBC has added free online viewing for all of it’s major shows. Popular programs such as The Office and 30 Rock are now available for anyone to watch on their own time. On their terms. Sports related websites have actually offered this type of video content for a while. Every page on ESPN.com offers video highlights and reporting on all the major sports stories of the day. Whether it’s highlights of the pitching duel between the Twins and the Tigers or the purported biggest trade of the NFL off-season, ESPN has content available to cover it and feed the sports hungry Millennial. This trend has been observed over the past few years by eMarketer, as seen in the chart on the right side of this slide. Consistent growth is seen in the percentage of households that have on-demand technology, further supporting the idea that “on my terms” is engrained into the Millennial’s thought process. Return to Research (Two Charts Slide) Return to Research (Chart and Text Slide)

50. The Secondary Research • “More people will watch more TV and video content in the future, not less. They will just be doing so in different ways — via the TV, the Internet, the PC and their portable devices. eMarketer predicts that VOD will be in 30% of US TV households by the end of 2007 and that DVRs will be in 30% of TV households by 2009. “ • -eMarketer Click on Chart for Further Analysis