2. it’s all changing
…and this is important we understand the change within the:
who, how, when and where….

3. who how when and
where
The The media
customers that got us The way we have sold
that got us here, won‟t to customers in the past
here, won‟t work as well won‟t work as well into
get us there anymore the future

4. Forget Baby boomers, Gen Y (11-29
years of age) is now the largest and
it’s all changing potentially
most influential group of consumers in
Australia.
27% of the Australian population*
They Eat, Pray, Love and do just about
everything else differently
* ABS Australian Demographics Statistics, Jun 2010

5. 1. WHO
1. Gen Y 5.85M
2. Gen Z 3.06M
2. WHAT THEY
Connecting 3.WHAT THEY ARE
VALUE
• Family
CONCERNED ABOUT • Friendships
with youth is (PERSONALLY) • Health
• Body Image
complicated but • Family conflict
• Coping with stress
necessary
4. ONLINE
• 85% want to pay
7. HEALTH 6. SOCIAL MEDIA 5. ATTITUDES TO for online content
• Losing sleep to • Very wide ON-LINE • Downloaded music
gadgets spread (RETAILING) without paying
• Not enough fruit • Creating & BRANDS AND (28% as their
& veggies sharing SHOPPING primary source of
• Not enough their ??? music)
physical activity • Protective of their
to have health online identity

6. Defining Who

7. gen y
Born 1982 - 2000
Age: 11 – 29
5.85 Million
27%
Sources: The Australian Bureau of Statistics

8. gen z
Born 2001 +
Age: < 11
3.06 Million
14%
*Also termed Generation I (Internet) or Generation M (Multitasking)
Sources: The Australian Bureau of Statistics

9. what young
people value…
Top 3 across all age groups:

10. 1 family
2 friendships
3 health
Source: National Survey of Young Australians, 2010

11. School/study
satisfaction was highly
valued by a greater proportion of
11-19 year-olds
(30%) compared to 20-24
year-olds (14%)
Source: National Survey of Young Australians, 2010

12. Young adults were
more likely to highly
value financial
security and being
independent than
their younger
counterparts
Source: National Survey of Young Australians, 2010

13. what issues
are of concern?

14. 1. Personal Concern
Top 3:
Body Image,
Family conflict
Coping with stress
(up 8.6% compared to 2009)
Differences by age groups:
11-14 years – bullying in 3rd place
20-24 years – depression in 3rd
Differences by gender: Alcohol top ranked issue for males
Source: National Survey of Young Australians, 2010

15. 2. Concern
for Australia
Top 3:
Environment (45.7%)
Alcohol and Drugs (37.1%)
Crime, Safety & Violence (21%)
Source: National Survey of Young Australians, 2010

16. how do young
people feel about the future?

17. 64.3%
felt positive or very positive
27% felt neither
positive nor
negative
8.7% felt negative
or very negative
about the future
Source: National Survey of Young Australians, 2010

18. Where do young people
turn for advice?
TOP 3
Friends (85.9%)
Parents (74.9%)
relative/family friend (60.9%)
25.5% of respondents identified
the internet as an important
source of advice. Consistent
growth of internet as source of
advice over last years
(up 10% from 2002)
Source: National Survey of Young Australians, 2010

19. What activities are young
people involved in?
TOP 3:
sports as a participant (71.3%)
sports as a spectator (57.2%)
arts/cultural activities (31.2%)
Source: National Survey of Young Australians, 2010

20. Miss Gen Y
• Traditional skills (cooking, baking, gardening) on the
decrease
– 51% of women aged under 30 can cook a roast
compared with 82% of baby boomers
– 23% can grow a plant from cutting, compared to
78% of baby boomers
• New skills on the rise
– Working full or part-time
– Taking on men’s tasks: of the under 30 year-old
women, 77% mow the lawn, 70% wash the car
Source: Gen Y Women losing female skills such as cooking, ironing, and sewing, The Sunday Mail, 2011

21. health

22. 14%
of the students were found to meet
both the recommended daily intake
of vegetables and fruit
Source: “Survey of Australian school students reveals they are overweight and a 'chronic disease
time bomb‘” couriermail.com.au, Feb 2011

23. 85%
of the students did not engage in enough
activity for it to have a health benefit

24. Young Australians
and money matters

25. 54% of 12-18 year old teenagers
used their bank accounts for saving money
33% of Gen Y believe they will be permanently
locked out of owning a house
21% save for clothes and education
Sources: Money matters, www.dailytelegraph.com.au, June 2011; Money matters www.heraldsun.com.au, 2011

26. 35%
save for a tech gadget
32%
save for a car
Source: "Teenagers are on the money" www.dailytelegraph.com.au, June 2011

27. • 25% of Gen Y would consider moving back home with their parents in a effort to
gather enough cash to enter the property market.
• Job motivation: Almost 33% of Gen Y indicate money as the main motivator,
compared with 15% of Gen X and 9% of Baby Boomer respondents.
Sources: "One third of gen [..] heraldsun.com.au, April 2010; "Gen Y, [..] news.com.au, 2007

28. Defining How?

29. Internet &
online behaviour

30. the conservative, „ethical‟ generation”
Source: Gen Z – the conservative, ethical generation mumbrella.com.au, June 2011

31. Meet
gen Z, the
digital natives
who will shape
the future”
Source: Meet Gen Z [..] mediahunter.com.au, Oct 2010

32. – 50% say online is their favourite type of media (up from 37% in
2009)
– Top online pastimes: playing games (31%), chatting (27%), social
networking (22%)
– 84% have accessed the internet via their mobiles; 25% do it
constantly
– Most popular app on the phone is social networking
– More than 41% prefer TV as their main source of news; 22% online
newspaper/magazines (up from 16% in 2009)
– 37% identified comedies and sitcoms as the most popular programs
– Cross-task: 10% said they surf the net on TV or watch TV on the
internet (up from 4% in 2009)
Source: Gen Z – the conservative, ethical generation mumbrella.com.au, June 2011

33. – 28% claim to never pay for
online content.
– Online activity encourages
teens to engage more with
their real life contacts
– Teens keep their online
identities true to
themselves
– When using an online
‘avatar’ identity, teens are
protective about
revealing their identity
Source: Meet Gen Z [..] mediahunter.com.au, Oct 2010

34. “Australian Teens Protective
of their Online Identity”
– Online relationships are considered fun, not
serious. Real life relationships are more important
than online ones
– Online activity encourages teens to engage more
with their real life contacts
– Teens keep their online identities true to
themselves
Source: Australian Teens [..] australianwomenonline.com., Feb 2010

35. Online
behaviour – risky
“Teenagers open to
web dangers, survey
reveals”
Source: Teenagers open [..] news.com.au, Jan 2011

36. More than a quarter of Australian teens
surveyed said they were allowed unsupervised use
of the internet at home
Source: Teenagers open [..] news.com.au, Jan 2011

37. More than57 % of Australian teens were
allowed to use computers in their bedrooms
Source: Teenagers open [..] news.com.au, Jan 2011

38. 24% of children aged eight and under are
using the internet without supervision
Source: "Oz Teens Security Online" motherinc.com.au, Jan 2011

39. Half admitted to occasionally hiding details of
their online activities from parents
Source: Teenagers open [..] news.com.au, Jan 2011

40. More than 60% don't believe it is safe to reveal
a password to a friend they trust, while 46% won't
open an unfamiliar attachment
Source: Teenagers open [..] news.com.au, Jan 2011

41. “Survey finds free internet
downloads primary
music source for teenagers”
– 28% of Australian teens
nominated ”downloading from
the internet without paying” as
their primary source of music
– 26% of Australian teens admit
they ”at least sometimes”
download or stream movies,
compared with a global
average of 46%
Source: “Arr, we pillage [..] theage.com.au, Dec 2010

42. losing sleep
over
gadgets
Source: “Gen Z [..]” theaustralian.com.au, June 2011

43. social media

44. “Habbometer” – Habbo Hotel research
• Habbometer: survey tool to survey teens on Habbo Hotel
• Launch: Sep 2010
• Habbo Hotel:
Virtual community and social game for teenagers
200 million registrations = virtual characters (Jan 2011)
Users from over 150 countries
Founded 2000
Source: sulake.com, media-freaks.com

45. What role do social networking sites play?
• Widespread usage of social networking sites (Facebook,
bebo, flickr, etc):
– 90% of 12 – 17 year olds
– 97% of 16-17 year olds
Source: Literature review of the Cooperative Research Centre for Young People, Technology and Wellbeing

46. How do users
communicate on
social network sites?
• Predominantly by updating and customising their profile,
commenting on photos, posts and walls, and instant
messaging.
• By creating and sharing their own ‘small media’ in their
everyday communicative, creative and social activities.
• By combining online and offline worlds as one in a physical
and temporal sense.
Source: Literature review of the Cooperative Research Centre for Young People, Technology and Wellbeing

47. Defining When and Where

48. attitude to online
(retailing), brands and
shopping

49. “Enthusiastic embracers”
communicate on the go
• Market segment “enthusiastic embracers” are
– 18-30 years old
– knowledgeable about new services and technology
– engage heavily with 3G mobile and internet services
• 95% of 24-35-year-olds have a mobile phone
• 79% of 18-24-year-olds use their mobiles more often than a fixed-
line service
• VoIP services adoption rate highest among 25-34 and 45-54-year-
old, above early adopters (18-24-year olds), likely due to cost
Source: Convergence and Communications acma.gov.au, March 2009

50. 18-24 year olds have
highest level of full mobile
substitution.
⅓ of Australians in this age
group live in a mobile-only
household (significantly
higher rate than any other
group).
Source: Convergence and Communications acma.gov.au, March 2009

51. Mobile phone preferences
• Attitudes of children
(aged 6-13) to their
mobile phone
Who pays?
59% of cases: parents
34% of cases: the child
Source: Mobile phones and the consumer kids, Australia Institute Research Paper No. 41, Feb 2007

52. Smartphone market Australia
50% of Australians with a
mobile phone own a
smartphone
• More than ¼ of • Shopping and banking via the smartphone?
smartphone owners
– Only 6% have used it to pay for
have an iPhone
(compared to 17% something in a shop
globally) – ⅕ of Australians have used mobile
• 6% have a BlackBerry banking
• 4% have Android
phones (compared to
25% globally)
Source: “iPhone dominates Australian smartphone market” connectedaustralia.com, May 2011

53. Parents’ view of kids’
internet and mobile phone usage
• Internet access of children (5-17 year olds) mainly
determined by age
– 72% access the internet in an open family space
(e.g. living or family room)
– 17% use the internet in a private space (e.g. their
bedroom)
• Types of online activities shift with age
– 5-10 year olds most likely to play online games
– 12-17 year olds most likely to use SNS and email
– 91% (across all age ranges) use the internet for
educational activities
• Average time spent online (parents’ estimate) 7.1
hours per week with more time spent as children get
older
• One in two children has access to a mobile phone,
with 16% of the mobiles linked to the
internet
Source: Australian Children’s Cyber-safety and E-Security Project, June 2010

54. Talking about your generation
Young Australians (16-30 year olds) are looking to
their friends to validate who they are, what they
consume and what’s important in life
Source: Urban Market Research 2010/11

55. More young people have mortgages
(up from 11.5% last year to 14% this year)
Source: Urban Market Research 2010/11

56. 80% do other things while surfing the web
and being active on social networks
Source: Urban Market Research 2010/11

57. 47% live with their parents
24% rent and
15% live in a share house
Source: Urban Market Research 2010/11

58. TV lives: 21% of respondents watch 10 hours or
more each week. Masterchef, the Simpsons
and the Big Bang Theory are the favoured shows.
TV is also the number one way young people
access news and current affairs (68%)
Source: Urban Market Research 2010/11

59. An internet connection and mobile
phone were rated the two top things respondents
couldn’t live without (30% and 20%
resp.)
Source: Urban Market Research 2010/11

60. Nokia (still) the leading brand (41%)
followed by iPhone (22% up from 0%)
Source: Urban Market Research 2010/11

61. Shopping habits across generations
• 85% of Gen X
love and like to
shop
Source: “Shopping – A consuming passion” Directional Insights, 2007

62. Gen Y’s
attitude
to shopping

63. • Consumer segmentation study defining 7
categories: Gen Y:
-Shopaholics
– Shopaholics (“addicted” to buying, often - Price sensitive (¼)
buy on impulse)
⅓ of this segment made up of Gen Y
– Shopaphobes
– Shopping tolerators
– Quality seekers
– Price sensitive
– Traditionalists
(no credit/ loyalty cards,
not shopping online)
– Online geeks
Source: “Shopping – A consuming passion” Directional Insights, 2007

64. Gen Y, more than any other generation, is less
likely to purchase items that have a high cost,
become dated quickly, or aren’t
used very often
Source: “Gen Y shift from ownership to access “ dynamicbusiness.com.au, April 2011

65. Gen Y hires, swaps, and shares
products, from electronics and white
goods to fashion items
Source: “Gen Y shift from ownership to access “ dynamicbusiness.com.au, April 2011

66. ¾ of under 30 year-olds are concerned
about debt level they will be committed to
when purchasing a property
Source: “Gen Y shift from ownership to access “ dynamicbusiness.com.au, April 2011

67. Gen Y is experiential:
• Changing jobs more frequently
than any generation in the past
• Travelling more
Source: “Gen Y shift from ownership to access “ dynamicbusiness.com.au, April 2011

68. Online shopping habits – by age and category
• Age has great impact on the likelihood of online shopping: The younger the more
likely to purchase online only or a mix of online and physical store, independent
of category. Examples:
Purchase likelihood online/offline across all ages
– Technology: 62% of 18-24 year-olds
purchase from online only or mix
– Inexpensive everyday fashion 21% of
18-24 year-olds, 3% of 65+ purchase
from mix
– Household goods: 40% of 25-34 year-
olds purchase from mix
– Local holidays: 42% of 25-34 year-olds
purchase from mix
– Overseas holidays: 30% of 25-34 year-
olds purchase online only
Source: Australia’s shopping intent report, Feb 2011

69. Gen Y’s favourite jewelery
and watch brands • Most liked and recognized
• Brand consciousness among Gen Y brands
– 65% of women • Tiffany, Cartier, Rolex,
Bulgari
– 61% of men are conscious of brands • Most disliked brands
• Louis Vuitton
• Burberry
• Most luxury brands are
purchased in physical store;
however, 54% of females
purchasing on discount websites
(gilt.com, net-a-porter.com)
Source: “Study reveals Gen Y favourite brands" jewellermagazine.com, May 2010

70. Children as main
decision-makers for
purchases
• Children (aged 6-13) as main decision-makers
for purchases:
– 53% are the main decision makers “In terms of marketing in the first instance
when it comes to buying games and (your product) has to be really appealing to
toys the children because they’re the ones racing
– 46% decide which breakfast cereal is to their parent or guardian and trying to
purchased influence them to purchase it [..] The next
– 42% decide which computer and challenge is to convince parents that your
console games are purchased product is worth purchasing.”
Lisa Tartaglia, Australian Centre for Retail Studies at Monash University
Source: “Child pester power on the rise” startupsmart.com.au, Feb 2011

71. so what…

72. who
Gen Y look set to fuel future business
growth and they are very different to
the Boomers who have fueled the last
30 years of business
Everything from body shape to media
consumption to technology is different
It’s ALL changing than the baby boomer generation.
Enormous implications on Telco's
Telstra cannot give up on them. You
can engage but it will need to be a very
different experience than MTE

73. how
Reaching Gen Y and Z is going to be
different as media consumption, trust
and attention is different
Moving from mass communications to
one on one marketing offers that are
tailored.
It’s ALL changing
Enormous implications for Telco’s
What people say about us (WOM) is
almost all that matters

74. when and
where
From traditional retailing in store to online to mobile.
It’s ALL changing The rules will be different.
Trust and reputation in the online retailing/online
transaction space will be critical moving forward.
Enormous implications for Telco’s
The market is shifting in the same direction as Telstra.