November 20, 2007 Toronto Webcast Deloitte Survey Offers Reality Check On Millennial Generation's Media Consumption. Surprising insights to be discussed In today’s NAB panel: “The Future of Media: Profiting From Generational Differences”
The State of the Media Democracy: Are You Ready for the Future of Media?
To shed light on how different generations are “consuming” media — and what their future media preferences are likely to be — Deloitte & Touche USA LLP’s Technology, Media and Telecommunications (TMT) practice commissioned an extensive survey on the evolving role of media in America. This State of the Media Democracy survey offers a generational reality check on the usage of current media platforms/devices and what the future may hold.
Fielded by Harrison Group (an independent research services firm) from February 23 through March 6, 2007, the survey used an online methodology to collect information from 2,200 U.S. consumers between the ages of 13 and 75.
The survey results provide keen insights into the different generations and their media consumption habits. The summary below is a small sampling of the numerous trends and data points the survey revealed. Firms of Deloitte & Touche USA are meeting with clients to share these insights and strategize on how they can help their businesses.
EXECUTIVE SUMMARY
Millennials are leading the way, embracing new technologies, games, entertainment platforms, user-generated content and communication tools — creating a “trickle up” effect where the older generations are learning from them. The survey found that despite their eagerness to embrace new media, Millennials have an affinity for “traditional” media, such as print publications and television. Almost 6 in 10 survey respondents (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.
When Millennials find something they like, they broadcast it, and the power of their amplification is extensive. The Millennials surveyed maintain large instant messaging (IM) and texting lists that average 37 people, compared with just 17 for the entire sample. And when they find a particular television show or Web site they enjoy, they tell an average of 18 people, compared with only 10 people for all age groups. According to the survey, word of mouth is the most common reason for Millennials to visit a Web site, followed by an ad on television. Almost half (48 percent) visit television Web sites in a typical week.
Generations Xers enjoyed the explosion of new entertainment in their youth and continue to embrace entertainment today. They are the most interested in general lifestyle/personal interest information, including celebrity and entertainment news. They are also most likely to be visiting television show Internet sites.
Baby Boomers are in their peak earning years and are entering their empty nesting life stage — retirement is still a few years away, but certainly on their radar screens. Boomers are still very dependent on newspapers and spend the most time with local news and weather content. They do spend a lot of time on the Internet, but do not match the younger generations as far as embracing the new media platforms. Across many measures, Boomers seem to split the attitudinal and behavioral differences between Xers and the Matures.
The Matures spend the most time with national and world news content, as well as financial information. Not surprisingly, Matures are the most likely to embrace print media. However, there is a significant percentage of Matures embracing electronic media, as well as participating in electronic forms of communication and user-generated content. A significant minority of Matures also participate in:
LAS VEGAS, April 16, 2007—Deloitte’s Technology, Media & Telecommunications industry group today released insights from a survey of U.S. media consumption that contradicts conventional wisdom about the Millennial generation (current ages 13-24, also known as “Gen Y”).
Deloitte’s 2007 State of the Media Democracy survey, conducted by Harrison Group, an independent research company, found that, despite their eagerness to embrace new media, Millennials have an affinity for “traditional” media, such as print publications and television. Almost 6 in 10 survey respondents (58 percent) say they use magazines to find out about what's cool and hip, such as clothes, cars and music. Perhaps more importantly, almost three-quarters (71 percent) enjoy reading print magazines even though they know they could find most of the same information online.
“Our survey offers a reality check on Millennials and sheds new light on their distinctive blending of both traditional and new media. While it confirmed that Millennials are leading the way with newer forms of communications such as text messaging, the survey also highlighted their desire for more time for hanging out with friends – a perennial teenage favorite, and decidedly low-tech,” said Tony Kern, principal with Deloitte & Touche LLP and Media & Entertainment sector leader. “And, notably, even when using high-tech communications, such as instant messaging (IM) or text messaging, their most frequent topic of conversation is quite traditional: their favorite TV shows.”
Millennials Have Extensive Reach and Amplification
When Millennials find something they like, they broadcast it, and the power of their amplification is extensive. The Millennials surveyed maintain large IM and texting lists that average 37 people, compared to just 17 for the entire sample. And when they find a particular television show or website that they enjoy, they tell an average of 18 people, compared to only 10 people for all age groups. According to the survey, word of mouth is the most common reason for Millennials to visit a website, followed by an ad on TV. Almost half (48 percent) visit TV websites in a typical week.
High Demand for User-Generated Content
The survey confirmed the growing popularity of user-generated content; in fact, Millennials in the survey spend about equal amounts of time consuming user-generated content and commercially produced content online. “It’s clear that young people are increasingly creating videos, personal pages, blogs and more; the question has been whether anyone was watching,” continued Kern. “Our survey shows that while a large number of Millennials – 58 percent – create personal content in a typical week, an even greater proportion – 71 percent – regularly consume it.”
Notably, user-generated content is not just for kids – there is a ‘trickle up’ effect, and the older generations are creating and consuming personal content as well. In fact, over a third of Matures (current ages 61-75) – 36 percent – reported that they regularly consume user-generated content.
“Clearly, Millennials are the generation whose tastes, behavior and demands will define the future of media,” concluded Kern. “But, all generations have in fact been affected by convergence and the resulting media democracy. The big issues for the broadcast industry, as well as device manufacturers, are understanding how consumer behaviors will impact ad dollars, what devices need to be developed, and how internal operations need to be realigned.”
NAB 2007 Panel Discussion: April 16, 12-1:30pm
These and other survey findings will be discussed today at the Deloitte Lunch Panel: “The Future of Media - Profiting from Generational Differences.” Hosted by Tony Kern, managing principal of Deloitte’s Media & Entertainment practice, this panel will include highlights from Deloitte’s 2007 State of the Media Democracy survey, and will provide an insider view of the new “media democracy” in which users are creating their own content, media companies are delivering content across multiple platforms, and younger generations are consuming media in dramatically new ways.
Joining Tony Kern will be panelists:
· Dan Goodman, Chief Digital Officer, Ogilvy, New York
· Todd Johnson, SVP of Global Marketing, Verisign
· Laura Martin, Founder and CEO, Media Metrics
· Peter Winkler, Chief Marketing Officer, Teletrax
About the Survey
The online survey was commissioned by Deloitte & Touche USA LLP and conducted by Harrison Group, an independent research company, between February 23 and March 6, 2007. The survey polled 2,211 consumers between the ages of 13 and 75. The survey results have a margin of error of plus or minus three percentage points.
About Deloitte
Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 6,800 people in 51 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. The firm is dedicated to helping its clients and its people excel. Deloitte is the Canadian member firm of Deloitte Touche Tohmatsu. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other related names. Services are provided by the member firms or their subsidiaries and not by the Deloitte Touche Tohmatsu Verein.
Contact:
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