JUST NOISE... YOUTH MARKET TUNES OUT:
Report Shows Brands Struggling to Connect with Youth Market.
A study amongst young Australians has found that the vast majority of
brands are not connecting with the $62 billion youth market.
The study which examines the attitudes, behaviours and purchasing power of 16 to
30 year olds found that only 15% of 16-30s could recall a brand communication that
resonated with them, markedly down from 27% in 2010. This is despite ever-increasing
volumes of brand communication through traditional and online channels.
The brands that had best recall with 16-30s were Coca-Cola (9%), Bonds (7%) and
CEO at Lifelounge, Dion Appel said the report showed that unless brand communication
genuinely engages the youth market, investment will continue to provide diminishing
"16-30s have around 13% of Australia's total household expenditure, or approximately
$62 billion. They have clout, are cashed-up, and know what they want. They are also
savvy, requiring brands to work hard for their money," said Dion.
The Lifelounge/Sweeney report found that of the youth market's $62 billion expenditure,
over two thirds (68%/$42.16 billion) of this is on discretionary expenditure such
as entertainment, technology, clothing, travel and loan repayments. 32% ($19.84
billion) is spent on necessary household expenditure.
"16-30s have a massive proportion of their income free to spend on their 'I Wants'
as opposed to their 'Have To's. It's a huge opportunity for marketers but also a
huge challenge - how to connect with this market," said Dion.
In 2011/12, experiences matter most to 16-30s: "Experiences define them even more
than the influence of friends. This is a telling insight for marketers – that if
communication doesn't cut through by involving, inspiring or engaging... it's just
noise and the youth market will tune out".
"Coca-Cola, Bonds and Nike have built strong brand equity with 16-30s through a
platform that is carefully targeted through mass customisation. They have created
a solid emotional connection with experiences that matter to this market, cleverly
utilising both digital and traditional channels," said Dion.
BACKGROUND AND COVERAGE:
The Lifelounge Sweeney Urban Market Research (UMR) Report is the country's ultimate
guide to 16 to 30 year old Australians. A long term research study that explores
the values, behaviours and attitudes of the young adult market segment. The research
spans all of the core pillars of young adult lives - finance, employment, travel,
music, sport, fashion, entertainment, technology, relationships, health, social
issues and communication.
Lifelounge is Australia's pre-eminent youth marketing and communications company.
Sweeney Research is one of the country's largest independent research agencies.
Together, this gives you the best of both worlds – and a clear insight into the
attitudes, behaviours and purchasing power of young adults.
WHAT WE DID:
The research is underpinned by a minimum of 1000 comprehensive interviews each quarter
to deliver a dynamic and representative profile of 16-30 year old's in Australia.
As an overlay, the research also leverages the latest in cutting-edge smartphone
research, with select groups of young Australians reporting back via video and audio
on their experiences and thoughts while they are out and about. Since the commencement
of the study, over 14,000 16-30 year old Australians have been interviewed.