From 'My Generation' to 'My Media Generation:' Yahoo! and OMD Global Study Finds Youth Love Personalized Media

Yahoo! and OMD Study of 13-24 Year Olds Shows Interactive and Wireless Technologies Have Unleashed the First Global Generation to Demand Personalization, Changing the Advertising and Marketing Equation

NEW YORK, Sept. 27, 2005 — In the 1960s, television and FM radio launched a generation of youth bent on creating new forms of community and self-expression, forcing advertisers and marketers to adapt. According to an in-depth study of 13-24 year olds in 11 countries titled, "Truly, Madly, Deeply Engaged: Global Youth, Media and Technology," released today by Yahoo! Inc. (Nasdaq: YHOO), a leading global Internet company, and OMD Worldwide, one of the world's foremost leaders in communications, in the 21st century, youth's use of interactive and wireless technologies has created a global generation highly accustomed to personalizing their experiences with interactive media. This so-called "My Media Generation," driven by a desire to personalize their media, has given rise to very different attitudes and responses toward advertising and marketing messages. The results will be released today at Yahoo! and OMD's event for marketers at the Reuters Building in New York as part of Advertising Week 2005.

Like the youth celebrated in The Who's classic song "My Generation," the "My Media Generation" is highly motivated by the need for community and self-expression. But the Internet, mobile phones, and the availability of digital music have allowed that community to go global for the first time.

What really sets today's youth apart is the expectation that they can customize and personalize everything in their world and daily experiences in ways previous generations never could. From individual playlists on MP3 players to personalized avatar wardrobes on instant messaging programs, to wallpaper and ring tones on mobile phones, the My Media Generation demands products and services that suit their moods and desires. And, they will actively search for, modify, or create their own tailored products and services. As one study participant put it: "Using an Avatar, you can express your mood to other people and what you feel at that moment."

"We've moved from broadcasting to podcasting in just a short period of time," says Wenda Harris Millard, chief sales officer, Yahoo!. "The My Media Generation increasingly filters the flow of advertising messages — letting in only those that are relevant, entertaining, or delivering value. While that raises serious challenges for marketers, it also brings the promise of new, more powerful channels for reaching youth and having them willingly and enthusiastically engage with brands."

The study showed that as advertising channels become more personal, receptivity to seeing or hearing advertising through that channel decreases. Advertising in traditional media is generally considered more acceptable to youth than advertising in new media channels. However, receptivity to advertising via "their" media (established media), vs. "our" media (the Web) vs. "my" medium (personal devices) varies considerably by country. In fact, in some countries, receptivity to advertising in new media is higher than receptivity to advertising in some traditional media outlets. Sixty three percent of Indian youth agree that it is okay to see advertising on web sites, while only half (51 percent - 52 percent) found advertising acceptable on outdoor, movie theaters or radio.

Multitasking and "Media Meshing"

The study has also revealed that members of the My Media Generation have developed an immense capacity to multitask.

"A key finding from this study is that members of the My Media Generation can fit up to 44 hours of activities in just one day," said Joe Uva, president and CEO, OMD Worldwide. "Their ability to perform up to three tasks simultaneously, using multiple technologies, allows them to potentially increase their media consumption during their average waking hours. Combine this with the demand for personalization, and there's a clear message for marketers on the need to personalize and possibly increase the frequency of their messages in order to reach today's youth."

According to the study, on average the global My Media Generation performs approximately three to four other tasks while surfing the Internet and approximately two to three other tasks while watching television. Young people who live in Mexico, the United Kingdom, Germany, and Australia perform the highest number of other activities while surfing the Internet.

Globally, the My Media Generation finds itself faced with more tasks than time to accomplish them — on a daily basis — and, as a result, has become highly adept at multitasking and "media meshing."

Media meshing is a behavioral phenomenon that occurs when people begin an experience in one medium, such as watching television, then shift to another, such as surfing the Internet, and maybe even a third, such as listening to music. The explanation for this behavior is the constant search for complementary information, different perspectives, and even emotional fulfillment.

Music, the Internet, and Mobile Devices

My Media Generation's three core needs: community, self-expression, and personalization, are best met through music, the Internet, and mobile devices. Traditional media (television, radio, and print), are still heavily used by this generation, serving vital but increasingly niche functions. Traditional media are often pushed to "background" status in the "media-meshing" hierarchy. In each country, the Internet or mobile phone ranked highest for the most essential media to the My Media Generation.

As a constant presence in young people's lives, music continues to be a critical tool for meeting the needs of community and self-expression; although, with this generation music has taken on a new twist: personalization.

• The Internet has surpassed radio as the preferred medium for music among youth in all countries. This preference is especially pronounced outside the United States. Specifically, among American youth, 47percent prefer the Internet for music compared to 27 percent that prefer the radio. In many other countries, approximately 60 percent of youth prefer the Internet for music compared to 20 percent that prefer the radio.
• Favorite music styles and artists are used to express specific identities to the outside world. Music is featured in online profiles, homepages, and ringtones as important means of self-expression.
• Listening to music no longer means merely tuning in to the radio or buying CDs. Young people create music experiences for themselves that are highly personalized. Music downloading, custom playlists, and podcasting allow youth to listen to music on their own terms. And, they can continuously modify their playlists to suit their moods for the day or the activities in which they are participating.

The Internet has become integral to young people's daily lives and is used for a variety of different activities from homework and fact checking to shopping, entertainment, and making new friends. Given its heavy usage, the Internet provides youth with limitless opportunities for community, self-expression, and personalization. Avatars, emoticons, personal homepages, and blogs allow youth to express their personalities and thoughts with others. Blogging is much more prevalent among Asian youth than American or European youths and is used as a primary means of self-expression and community.

The My Media Generation doesn't recall a time before virtually everyone had mobile phones. According to one female study participant: "Without having a cell phone, I would just feel completely disconnected ... I'd be worried about people trying to contact me ... It would just be a disaster." (Female, Chicago, age 21)

Mobile phones accompany young people everywhere — and they aren't used just for talking. They are seen as personal appendages that enable self-expression, personalization, and community in a variety of ways.

• Decorations, such as charms, stickers, cases, ringtones, and wallpapers, are outward expressions of personality and style.
• Handset choice is personalized and made to suit the user's needs.
• And, mobile phone calling and text and picture messaging allow young people to constantly keep in touch with friends and stay connected to their social groups.

Importance of Traditional Media

While young people are increasingly turning to the Internet for content and functions traditionally served by other media outlets, they are still active users of TV, radio, magazines, and to a lesser extent, newspapers. TV serves as a mechanism for escape and entertainment. It is frequently on in the background, and "must see" shows like "The OC" are popular topics of conversation. For comedy, TV is the most popular medium cited by almost 50 percent of youth, while for fashion, magazines are the clear No. 1 choice.

Global youth read magazines that reflect their interests and moods, and they like the fact that they can share pages or issues with friends with similar interests. In fact, magazines are the No 1 choice for young people who want to learn about fashion and trends. Radio, given the importance of music to young people, is a popular outlet. It helps introduce youth to new artists and creates common bonds with peers around popular songs. Although newspapers are the least used form of media, they are still considered to be a good source of information for local news and events.

Advertising Receptivity — Variances by Region

The global My Media Generation is highly optimistic and looks forward to the future. While technology is perceived as an enabler of future success, especially in less developed countries, this generation is not made up of techno-utopians.

• Youth in mature online markets, such as the United States and Western Europe, are in some ways jaded about technology's ability to create a brighter future. The very ubiquity and familiarity of technology has shifted it somewhat from foreground to background in these more affluent and Web-penetrated markets.
• In developing countries, including Mexico, Russia, China, and India, this generation is much more likely to agree that technology will create a brighter future for them than youth in Western Europe, the United States, Hong Kong, and South Korea.

With these different attitudes, it isn't surprising to see marked differences in receptivity to advertising; although, advertising isn't necessarily always perceived as a nuisance by this generation.

• Youth in developing countries are more receptive to advertising:
  • 55 percent in Mexico, 54 percent in China, and 68 percent in India agree that advertising is a good way to learn about trends and things to buy

• The picture in developed countries is a little different:
  • Only 30 percent in France, 32 percent in Germany, and 35 percent in the United States agree that advertising is a good way to learn about trends and things to buy

Insights and Implications

The My Media Generation is the first to fully leverage the freedoms that new technology has provided, and they are putting it into practice in all aspects of their lives. Because this age group is less set in their ways, they've been able to quickly and easily integrate new tools into their lifestyles. Freedom involves having fewer limits and restrictions on what they can do and when they can do it. They have an expectation that their access to people, media, and information will be unfettered and "always on."

• Interpersonal Freedom. Friends are reachable 24/7 through a variety of channels, with each medium having its own specific application. Scheduling gatherings, arranging dates, or getting together casually has become much quicker and easier.

• Media Freedom. Unlike the old days of waiting for a program or song to "air," young people have taken media programming into their own hands. They aren't abandoning media content by any means, but they are seeking ways to schedule that content to meet their needs. Traditional media networks are giving way to personal networks, informed by blogs and programmed with media from a variety of online and offline sources.

• Information Freedom. News and information have been released from the confines of newspaper, magazines, or TV broadcasts to be available at any time. Also, the advent of blogging means that information content doesn't have to come from media conglomerates, allowing for new voices.

"Some of these behaviors and drives are intrinsically tied to this specific age group. For example, who doesn't remember being 18 when music meant everything?" said Michele Madansky, vice president of research, Yahoo!. "But it's our belief that many of these attitudes and media perceptions will carry though into this group's adult lives. As future generations grow up with the Internet and an array of self-programmable personal devices, all marketers, not just youth marketers, will need a clear understanding of how these behaviors impact advertising and marketing."

Methodology

The two-phased market research study included qualitative focus groups and in-home ethnographies, as well as a quantitative online survey.

"The study uncovered the rapid growth and evolving nature of new media. This means marketers don't have nearly enough data yet to effectively 'model' new media the way they do established media," said Mike Hess, director of Global Research and Communication Insights, OMD Worldwide. "To find what works and at what levels, we will have to test, test, test our way in these new areas. Marketers that take the time to test will be rewarded by being first to determine the cause and effect relationships between the new media vehicles and sales, and, in turn, ROI."

The qualitative phase, conducted by TRU — Teenage Research Unlimited — consisted of 16 focus groups and 15 in-home ethnographies in six countries. The research sessions were conducted in Chicago, Mexico City, London, Berlin, Seoul, and Shanghai. Participants represented teens, aged 15-18, and young adults, aged 20-22. Focus group and ethnography discussions centered on youth values, attitudes toward and usage of different media, and the role of digital media in their lives.

The quantitative online survey, conducted by Ipsos, included a total of 5,334 respondents, aged 13-24. Surveys were collected in July and August 2005. The sample was drawn from the Ipsos online panel and partner global online panels. Respondents represented Internet users in urban markets around the world. The survey contained questions regarding technology ownership and usage, traditional and digital media usage, media choices, receptivity toward advertising channels, and overall attitudes and values.

About Yahoo!

Yahoo! Inc. is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Yahoo! provides online products and services essential to consumers' lives and offers a full range of tools and marketing solutions for businesses to connect with Internet users around the world. Yahoo! is headquartered in Sunnyvale, Calif.

About OMD Worldwide

OMD (www.omd.com) is one of the largest and most innovative media communications specialists in the world, with more than 140 offices in 80 countries. In 2005, OMD had the distinction of winning more media Lions than any other media agency at the Cannes International Advertising Festival. The agency network is a unit of Omnicom Group Inc.

For additional information please contact: Nissa Anklesaria, Yahoo!, 212-381-6875, nissa@yahoo-inc.com Haley Boruszak, Fleishman Hillard (for Yahoo!), 415-318-4116, boruszah@fleishman.com Pat Sloan, OMD/Omnicom, 212-415-2109, pat.sloan@omd.com

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