Millennial Marketing

Millennials have different values, attitudes and media habits than previous generations.

They have a unique culture.

They ‘think different’  and they behave differently, as well.

These differences can be seen in everything from the brands they like to the way they shop. They are evident in the way they consume media and interact with marketers.

Marketers are waking up to the differences.

But it is one thing to understand Gen Y is different from youth markets of the past, and another to know what to do about it. Here are six ways Millennial marketers need to think and act differently to connect with their Millennial target:

1. Participate in Their Hyper-Social World.

Millennials are connected. They interact with more people more often than any preceding generation. Consequently, they define value in terms of social currency, as well as product and service utility.  Marketers need to participate in this world, by bringing something to the party that helps create social value, not just the traditional benefits of low price, convenience and product performance.  Shareability is paramount. If your product is not inherently about sharing, you need to find a way to become part of the conversation. Examples: Coca-Cola Open Happiness Video, Pepsi Refresh Everything.

2. Stop ‘Advertising’ and Start Communicating.

Most discussions of Millennials emphasize the importance of authenticity. That’s the positive way of putting it, but the underlying theme  is a strong distrust of marketing messages. Millennials will not tolerate being ‘sold’, even if it is done in a culturally relevant way. Miracle Whip is not inherently a Gen Y brand, and its ‘We Will Be Heard’ advertising campaign isn’t fooling anyone otherwise.  If it looks like an ad, talks like an ad and walks like an ad, it’s an ad and will not be heard.

3. Leverage GroupThink.

Millennials are famously consensus oriented. They don’t make decisions quickly and without asking for advice, from parents, friends, mentors, and even strangers (Yelp!). Marketing to Millennials bears a lot in common with marketing to a B2B buying group.  It’s not enough to target the decision-maker, you also need to target their influencers. This is particularly true of big ticket items like college educations, cars and financial services. But it is also true of more mundane decisions like clothing, beer and wine, cell phone plans and restaurant choices. Savvy retailers are adding larger dressing rooms to accommodate social shoppers. Online feedback tools are critical for making the sale online.

4. Talk About Your Experience, Not Your Stuff.

Millennials are sponges for experiences, but less inclined to accumulate material goods. Some of this is of necessity – their generation is unlikely to enjoy the prosperity their parents did. But much of it is by choice. They want to travel light through the world and leave a low carbon footprint. They are more interested in what goes in their memory banks than into their closet and cupboards. They place a high value on travel, eating out, entertainment and educational experiences.

5. Tell Them Who You Are.

Millennials want to know who are the companies they deal with as much as what those companies can do for them. They make choices based on brand values and citizenship, not just price/value.  It’s not enough to make good products and services, you also must be a good corporate citizen – and walk the talk.  Brands that do not incorporate a societal marketing message will not resonate with Millennials.

6. Seek Their Time, as Well as Their Money.

Millennials think of their resources in terms of both time and money.  Attention is a resource and they make strategic decisions about how they will spend it. In order to gain their trust, a brand has to show respect for their time as well as their money. They look particularly for products and services that contribute to their quality of life by making their lives more efficient.  They are constantly looking for tools like Bing, Mint.com, and Google Wave that can make their lives run more smoothly.

For more articles on what makes marketing to Millennials different, see:

The Six Be’s of Millennial Marketing

Millennial-Friendly Advertising: What Connects?

Engaging Millennials: How Marketers Can Break Through

Gen Y Marketing: Don’t Forget to Meet the Parents

According to a new report by the industry blog, WineandSpiritsDaily, Millennials are now the recommended prime target for wine marketers:

“The wine industry can take comfort in the fact that consumption continues to grow in the United States, said John Gillespie, president of the Wine Market Council, at the Council’s 5th Annual Presentation of US Wine Consumer Trends in Dallas. Not only are older generations drinking wine, but the industry has a big champion in the millennial generation. By process of being younger, millennials were not as hurt by the economy and feel more comfortable spending money on wine as an affordable luxury. They don’t view wine as elitist and enjoy, rather than feel intimidated by, all the choices that wine presents.” (“Millennials Drive Growth, Core Consumers Trade Down”, Wine and Spirits Daily, Jan 26, 2010).

2. MILLENNIALS ARE TRADING BEER AND SPIRITS FOR WINE.  32% of millennials traded over to wine, which means young people are increasingly favoring wine over beer and spirits.  This compares to 9% who are trading off among the drinking population as a whole.

3. MILLENNIALS ARE MORE ADVENTUROUS. They consume more imports than other generations, are more likely to belong to a wine club, and dine out more often.

4. MILLENNIALS VIEW WINE AS AN AFFORDABLE LUXURY. Millennials view wine as an affordable luxury. They don’t see wine as elitist or unattainable but believe it denotes maturity and sophistication not given by beer or spirits. This age group is also the first truly gender neutral generation when it comes to drinking wine.

Wine producers have no time to waste. Many Millennials do not feel that marketers have spoken to their generation.

Megan Leap, a Millennial living in South Florida, says she loves wine, but has no particular brand affinity: “No specific wine brands. I’m budget conscious. I don’t think wine marketing is geared toward millennials. More 30+.”

While it’s true that Millennials are price sensitive, they also care about brands. According to Mintel, the % of 21-24 year olds who say they decide based on brand (55%) is higher than the number who say they decide by price (48%).

Reaching Millennials now could shape their wine preferences for a lifetime. So wine producers, what are you waiting for?

Photo from Daniel Prager, http://danielprager.posterous.com/dove-bars-and-wine-is-the-new-going-out-on-we

Ten days ago, Coke released a video for its ‘Open Happiness’ campaign that it hopes will become a global viral sensation. The video, titled “Happiness Machine” has so far had over 1,110,000 Youtube viewings. The effort is part of a global effort on the ‘Open Happiness’ theme that includes other social media efforts, including teams sent all over the world to identify ‘stories of happiness’.

Here is how Mediapost described the effort last week.

The video, shot on the Queens, N.Y., campus of St. John’s University, concludes with a title asking: “Where will happiness strike next?” and a message encouraging viewers to “Share the happiness, share the video.”

A.J. Brustein, global senior brand manager, Coca-Cola, says the video was conceived as a way to connect with teens and young adults outside of TV ads and online games. “We wanted to give them something that would spread a bit of happiness and something they could pass on to their friends to keep the happiness flowing,” he sums up.

Coke acknowledges that the effort is an experiment and future videos will depend on the success of this one.

So I asked my MBA students for their opinion via our class blog, whether or not this is a good approach for a powerful brand like Coke to use to connect with younger drinkers? Three out of four liked it and thought it was a great effort. Nearly all said it had viral potential. They especially enjoyed the essential kindness of delighting others without expecting anything in return. Here’s a sample of what they had to say.

Kathryn: “This video was an absolute delight to watch. I could not help smiling throughout the whole thing! Without getting far too philosophical, I think our society has somewhat forgotten that a small deed of good and happiness has powerful ramifications for people and how they feel. This campaign plays on that emotion very nicely, and in a way that connects that feeling with the product. Free Coke in a fun way = Happiness.”

Jack: “I think this campaign from coke is a great strategy for connecting with consumers. From an imaginative stand point I think it would be hard for someone to watch this video without wondering what else they were passing out, how they rigged that machine, or if they were going to do it again (hopefully at Notre Dame).”

Lindsay: “I enjoyed this commercial. It’s heartwarming to see how the unexpected presence of simple, pleasant things—extra cokes, pizza, flowers, balloon animals—can bring people together. It’s fun to watch a shared laugh become a celebration.”

Matt: “Coke = Good! (or happy) That’s all I could think of after watching this commercial… I think it does a great job of spreading the happiness vibe that Coke is trying to convey, particularly when you see the huge smiles of all of the college student’s faces. I think the video will go ‘viral’. It has that ‘wow’ factor that a lot of people (I know a lot of my friends will) share on social websites like facebook or twitter. Pure entertainment always sells. Go Coke! Keep entertaining me! I like it!”

Katie: “Loved it! The premise reminded me of a funnier version of the Liberty Mutual ads from a couple years ago – the ones showing people helping out strangers and other people seeing the “good Samaritanism” and in turn helping out someone themselves. I think that “feel good” aspect can really go far in our society…”

Suzy: “Super fun video! I think Coke did a great job creating an enjoyable, happy sentiment amongst viewers – a sentiment that can easily be associated with their brand after watching the clips and reactions of students.”

Robert: “The gratitude of the random act of kindness is innate in most of us, and this ad taps into that about as well as a large company could ever hope to. I am not cynical about this being unable to convince people to buy, no doubt in my mind this will have a significant impact on the buying habits of shoppers unconsciously.”

This effort reminds me of VW’s recent “FunTheory” viral campaign in its simplicity and appeal. The “Piano Stairs” video has already experienced over 10 million views on YouTube. Given the relatively low cost of production and media, if the Coke video is as successful, I think we can expect to see other big brands follow suit. It certainly isn’t a replacement for an ad campaign but offers a great way to amplify the message via social media.

Millennials are a high potential target for banks and credit unions.

According to a September 2009 report by Mintel on “Echo Boomers and Finance”,  just 56% of 18-24 year olds own any banking product, usually a savings account (41%). But this figure jumps to 70% among those 25-29.

Credit Unions have been making the most of their historic opportunity to attract Millennials.

According to Mintel, several credit unions have launched “Young & Free” sites. These sites feature young spokespeople and include blogs, listings of “free items” or promotions available in the credit union’s local area. They also provide calendars of events, and financial literacy tools on topics thought to be of special relevance to Echo Boomers. These topics include:

• car buying versus leasing
• establishing and maintaining good credit scores
• saving money tips
• finding an apartment.

It only took a quick Google search to turn up several of these “young and free” initiatives, like this one in Alberta from Servus Credit Union. The site features spokesperson, Myles Peterson, who tweets, blogs and creates videos all focused on what’s happening in Alberta and with the Young and Free account at Servus. The site seems to have done its Gen Y homework: it is up to date, provides useful information and apps in a Millennial-friendly format.

There are other Young and Free efforts in Alabama (Listerhill Credit Union), South Carolina (South Carolina Federal), and Texas (TDECU). While the format is similar, each has its own spokesperson and unique content. There is substance as well. For example, South Carolina Federal offers special deals for 18-25 year olds:

• fee refunds—the idea is that young people make mistakes with managing their checking accounts and the credit union gives them one free fee refund per quarter in recognition that they are still learning how to manage their accounts
• online budgeting tools
• mobile access
• debit cards
• no monthly maintenance fees
• additional dividends on deposits.

Analyst, researcher and Millennial, Dane Coalson on CreditUnion.com provides a “Personal Gen Y Perspective” on which features are most meaningful:

Personal recommendations: “The first place I turn to before I purchase a product or utilize a service would be my friends and family for recommendations. I want feedback directly from someone who can tell me about their personal experience, and I’m not alone.”

Help establishing credit: “Helping us build credit is a great opportunity for credit unions to actually differentiate themselves and provide a service that Gen Y needs!”

A fresh, well-designed web site: “If your website looks like it is stuck in the past, this can leave a bad impression.” (Duh!)

Plain English: “Don’t get wrapped up in using what you consider to be the coolest, hippest jargon.  Gen Y does not want to be pandered to, they just want easy access to straightforward, clear information.”

Details matter: “I believe that younger members can be easily swayed by seemingly insignificant details such as the ability to exert some control over how their personal card looks.”

Financial Institutions will never be ‘cool’ – this should not be your goal: “Instead, focus on showing them how you can provide better rates, help them build their credit, and actually are an honest institution that genuinely has their best interests in mind. Like anyone else, younger individuals are simply looking for a safe, efficient, non-problematic institution that they can trust with their money.”

Focus on what could draw Millennials into a financial institution today: “High interest products include direct deposit and bill pay,  good rates on individual product offerings, such as an auto loan, CD, high-interest checking or savings accounts.”

This is great advice for any marketer, not just financial services.

Coalson concludes by emphasizing his belief that there is “a window of opportunity” to attract members as they leave college.  But cautions that “once they start their jobs, set up multiple accounts, and become comfortable, it becomes much harder to entice them to switch.”

Kudo’s to Credit Unions for getting ahead of the curve.

This week we’ve been discussing iconic brands in our MBA Brand Strategy class at University of Notre Dame. We considered questions like What makes a brand ‘iconic? How do brands become icons? Why do brands sometimes lose iconic status?

I asked students to reflect specifically on why there are so few Millennial-specific iconic brands,  and what brands do you think have the potential to become iconic for adults currently 18-29?  This led to a lively discussion on our class blog, BrandStrategyMBA. Here are some of the highlights:

1. Many said it will take time to know which brands will stand the test of time, or which values will come to define this generation.

Jack: “This is a difficult topic to talk about since most iconic figures and brands don’t get that title until years after their time. When the Beatles first appeared did their fans truely feel that they were icons or did that title form over the decades that followed?”

Michelle: “I believe that in today’s culture, the so-called ‘popular’ brand is too quickly replaced by the ‘next best thing’ to even reach the beginning of iconic status. In fifteen years we will be able to identify those brands that are the past generation’s icons but it is very difficult to identify those at this moment. “

Kathryn: “Our generation seems to value instantaneous information and “the opportunity for everyone’s brand to be infamous.” When considering something in our society that does this, I immediately thought of Urbandictionary.com.  It’s tagline was written to resonate with our generation: “Urban Dictionary is the dictionary you wrote. Define your world.” It doesn’t get much more appealing to our generation than that.”

Joe: “Iconic brands are things of the past. No, really. It takes a lot of time for anything to become iconic – we don’t see airports named after living presidents (do we?) and we won’t see iconic brands until they’ve at least had a solid opportunity to die. The ones that don’t – they’ll be icons someday. GE is an icon not because it’s a great company, but because it has weathered so many storms.”

Dan: “One of my first thoughts before this year would have been Tiger Woods, but now I definitely do not think he will be known as clearly as an icon. To become an icon in my opinion, you have to stand the test of time, which will only be known in time.”

2. A second theme was that Gen y is too individualistic to crown any particular brand as ‘iconic’.

Brian: “Pegging Gen Y to a single, overarching culture is difficult…and risky. In our modern age of social media and globalization, many different cultures can easily exist within the same geographic space. I believe there are many cultures within Gen Y, each currently with their own “mini icons.”

Sarah Louise: “First, I agree that we will have to take the wait and see approach with this generation’s iconic brands. Many years will have to pass before the ripple effects of today’s celebrities, politicians, etc will be completely felt. Who knew how much Michael Jackson meant to the generation until he was gone? …Second, because we have so often been told to be individuals, this generation looks to role models less. We are told be innovators, not imitators. We are segmented so much, down to the single person, that brands will have difficulty appealing to this generation as a mass market.”

3. Some students ventured that brands like Google, Apple and Facebook would become iconic by representing  this generation’s relationship to readily available information.

Chris: “…at least one of the iconic brands for adults 18-29 would be the iPod. This generation feels the same way about information accessible on the internet that some people feel about the weather in the Midwest and that is if you don’t like it wait 5 mins and it will change. … They can provide information and if it proves wrong they can just as easily provide a retraction. For that reason I feel that blogging brands will be iconic. Most specifically I feel that blogspot with the backing of Google will remain one of the more identifiable/iconic brands.”

Mauricio: “… GOOGLE with only 12 years of life the brand is used for the 90% of Internet users and still growing. In 2005 It became the 38th brand in the world (Interbrand), but in 2009 ranking is the 7th brand in the world just behind Coke, IBM, Microsoft, GE, Nokia and McDonalds. My second brand will be FACEBOOK…“

Katie: “I’d have to agree with Chris that the iPod – or, more broadly, Apple – will end up being an iconic brand. …One more to just throw out there is Target. While it was not founded during this generation, the big expansion and huge gain in popularity was a more recent occurrence. Maybe it’s just because I shop there ALL the time, but to me, Target has definite iconic brand potential!”

Forrest: “From my observation, the Gen Y people hope they can been treated as special and important. So they really want to have their own personalities and want to be different from others. So we can expect the brands expressing uniqueness and individuality will become their icons, like Iphone, Itouch, Ipod….. The word “I” can really make them feel special.”

4. Others ventured that the personal brand or social networks would become the iconic ideals of this generation.

Sarah: “Who needs icons when we have a rotating cast of the Jersey Shore or The Bachelor?? =) I remember that Time Magazine that came out and declared that our generation is our own brand. I do agree but I don’t think that lends itself to a culture or a time period that creates icons although I guess time will tell. If I had to add someone to the list, I’d add Obama.”

Kate: “As for iconic brands for our generation, we are ourselves our most iconic brand, and not just because Time Magazine told us so in 2006 with You: as the Person of the Year. Who better for us to be the first to ‘discover’ our brands? …We now like Lady Gaga because there’s no one else like her, and shun N Sync and boy bands because there are a million copy cats.”

Lindsay: “It’s difficult to pinpoint an iconic brand for Generation Y because we have become our own icons. Armed with a sense of self-efficacy and self-definition, members of Generation Y define their ideals and values individualistically rather than as a collective whole. We clamor for attention; we are the generation of “me”… which is not necessarily a negative. Mes are doers. They have confidence in themselves and their ideas. They believe that they can accomplish and some have/will eventually achieve something that renders them worthy of iconic status. Still, considering this “generation me” perspective, I think that what may be the iconic brand of our generation is, in fact, the social network. The collective set of venues through which we become our beloved “mes”.

Cole: “As others have mentioned, the rapid changes in technology are not limited to the newest electronic devices but rather change the way we live and interact with one another. … In this regard, iconic brands are affected as well, and as speed and efficiency become more and more important I believe iconic brands will rise and fall more rapidly as well.”

5. Some students challenged the whole notion of generation-specific brand icons.

Amy: “I do think that the strongest iconic brands are able to transcend multiple generations, continuously reinventing themselves to remain relevant to the current culture. Along with Coke, I would say Nike is another iconic brand and one that really took off with our generation. I don’t recall owning another brand of tennis shoes from about the third to twelfth grade. But, Nike is so much more than shoes and has been able to integrate its products into other iconic brands of our generation, such as through its Apple ipod partnership. Nike has also helped define many of the iconic athletes of our generation – Jordan, Tiger, the Williams’ sisters, Lance.”

Mathew: “Bono is an ironic choice, but still relevant.  However, I do think the choice is relevant, since he has transformed himself into a credible celebrity humanitarian activist. Building on this theme of transformation, I actually remember being referred to as the Nintendo Generation in the ’80s. Now, Nintendo has reinvented itself as an interactive gaming juggernaut with the Wii that appeals oddly to every generation…Perhaps many of the icons of Generation Y will be reinventions of past icons. Madonna laid the foundation, Lady Gaga seems to be the next generation. A few more examples would be: Lord of the Rings replacing Star Wars, Twilight replacing The Lost Boys, American Idol replacing Star Search, The Prius replacing the Metro, The Killers replacing New Order, Coachella replacing Lollapolooza, and Facebook replacing Myspace.

Kristin: “I have definitely been a Bachelor follower for some time. But I really didnt jump on the Jersey Shore bandwagon til a few weeks ago. It is shows like this that get so many people talking, tweeting, facebooking, and blogging about them which then cause people who normally wouldnt watch to go watch and be part of hype. Now I am not sure if either show at this point are iconic.  I do agree with the previous comments that time will tell if things become iconic. But I do think social media will certainly speed up the process of determining what is iconic.”

Jonathan: “I agree …iconic brands in the traditional sense have gone the way of the dodo, simply because of the fractured nature of consumer experiences in the new millenium.  Just as we’ll never see another Michael Jackson or Rolling Stones, and just as we’ll never see NBC or the other broadcast networks have the kind of ratings dominance they once had, the era of mass popular appeal has come to an end as digital technologies have allowed people to form their own communities around their own interests and establish their own dominant brands within their different social circles.”

Ali: “Most of the technology related brands mentioned above may be hugely popular amongst 18-29 year olds, but most all of them are also popular beyond just this demographic. Hence, in my mind, these brands pass more as icons for the period in which they are popular rather than for a specific demographic. Youtube for example is a recent phenomenon. So is Gmail, the iphone, ebay, and the internet in general. But do these ‘brands’ represent 18-29 year olds any more than they do current 29-35 year olds? I think not!  What about the Obama brand? While Obama won the election largely on the strength of 18-29 year olds, is his brand an icon for this demographic, or is it more an icon for the post-bush sentiment for something different?”

Rob: “The biggest part of an icon is that it has to transcend just the product, and companies simply don’t control that. For that reason, I would agree that the idea of a generation-specific iconic brand is inconsistent with being an icon. It’s the difference between, say, Google and Intel. Google has more or less come to represent the combined benevolent power of the internet. .. Intel has been a brand I have been a lot more exposed to it, but it lacks the same resonance with our generation that Google encompasses.”

Suzy: “One reason why I think that it has become more challenging for brands to become icons in our time is that we are a very instant gratification generation. We know what we want, (which is usually the newest, best innovation) and we want it now, if not, yesterday. As a result, our attention span is also a lot shorter and we may not give brands the time and thought that they would have otherwise received generations ago.”

6. Nevertheless, a few names did emerge as potential generational icons, especially the idea that celebrities or people brands would be the most likely to endure:

Laura: “Red Bull / Rockstar / Other awful tasting energy drinks – Okay I am a little biased on this one, but here is another opportunity to create an iconic brand. Red Bull did not make a huge appearance into mainstream culture until the 18-29 age group was an ideal target market. Because of this, they have a product that currently associates with this generation.”

Matt: “I’d have to agree with Sarah that Obama has to be what I would call an ‘instant icon’ for our generation. Up to the time of the election, our generation has been known for being less than productive, and thus associated with the negative economic aspects of recent years…and so when Obama came on the scene as an ‘agent of change’ (I believe that’s what he ran on), it stuck to our generation as an instant icon. Hopefully if things turn out okay with Obama’s years in office, hopefully we can be known as the generation that restored our nation to greatness and prosperity.”

Paul: “Traditional brands and products have extremely short life-cycles now Very few brands stay in the public’s consciousness long enough to turn a profit let alone turn into icons for a generation. When I think about the icons of my childhood, I think about people and memorable events. I remember Michael Jackson doing the moonwalk while performing Billie Jean. I remember Michael Jordan taking off from the free-throw line. People, regardless of their attention span, will remember transcendent people and performances. No technological development can replicate the feeling of awe we feel when we witness a spectacular act, even if it’s in something as mundane as music or sports. This is why the icons for our generation will come from “people brands”.”

The unaptly named “Spring” semester has commenced at The University of Notre Dame, where I teach marketing.  The standard issue apparel is, without a doubt, North Face.  North Face puff jackets, shiny coats and fuzzy fleeces are everywhere. The logo is nearly as ubiquitous as ND’s own.  (Yes, I am wearing North Face, as well. Why not? They are WARM and South Bend in January is NOT).

With this kind of popularity, one would think the North Face brand could relax a bit. But no, they are suing an enterprising Missouri teen for trademark infringement.

Jimmy Winkelman, 18,  has been making and selling his “South Butt” logo-wear for two years. It was a side job. Winkelmann told ABC News he turned a profit of about $4,000 the first year, selling about 200 items in total. “I was like, ‘How did they even find me?’” Winkelmann said. “It was ridiculous.”

With the advent of the North Face suit, his ‘ridiculous’ company and parody products have garnered so much publicity (NPR Marketplace, etc.), he now makes in a day what he made in years. In fact, he seems to have funded his entire college education.

As a marketer, I certainly can appreciate the damage done by knockoff and counterfeit brands. But this is clearly a parody, only made possible by the enormous popularity of North Face.  (Apparently Patagonia suffered something similar with Ratagonia-labeled products in the past).  It is more of a compliment than a threat. No one who sees this brand could possibly think it was related to North Face. And the idea that it is damaging the incredible equity of the North Face brand or diminishing its sales is simply ‘ridiculous’. Here is the ‘disclaimer’ on the South Butt web site, in case there are any lingering doubts of its non-affliliation with North Face:

“We are not in any fashion related to nor do we want to be confused with The North Face Apparel Corp. or its products sold under “The North Face” brand. If you are unable to discern the difference between a face and a butt, we encourage you to buy North Face products.”

My advice to North Face? Lighten up, else they find themselves apologizing ‘for being a butt’.

Sample Twitter Stream Today:

JamesKChou: I have greater respect for Conan O’Brien - http://bit.ly/5YBDmp#Conan #obrien #nbc #leno

ChrisTashima: NBC is so spineless. They really need to get over Leno – the rest of the country has. This is embarrassing.

DmitrySocial: Conan has become the web’s fastest rising brand..why would he want to stay on TV and risk irrelevance?! http://post.ly/IjQl

DrewFromNY: If you don’t think #Conan is funny, read his 2000 Class Day speech at Harvard. http://www.allowe.com/Humor/book/COBspeech2k.htm

DavidInIndy: #Conan *actually* put the Tonight Show on Craigslist: Here’s the link http://bit.ly/4SJkSB Love it! #teamconan

Conan O’Brien may reach Millennial icon status as a result of NBC’s decision to favor Leno over O’Brien for the coveted 11:35 Tonight Show slot.

As the New York Times put its, “They may not have watched (O’Brien’s) “Tonight Show” regularly — or at all — but boy, are they angry now.” According to the Times, Mr. O’Brien fell short in NBC’s attempt to gain younger viewers at 11:35 p.m., yet he is by far the favorite in online viral buzz and voting. There are petitions, Facebook pages, “I’m with CoCo T-shirts, and a steady Twitter stream of support for ‘CoCo’.  Sentiment is said to be running 50:1 for O’Brien over NBC/Leno.

Why now, with all the other news in this currently very heavy news cycle (Haiti, China/Google, McGwire) has this story managed to mobilize so many young adults?

I’ll hazard a few hypotheses:

1.  NBC’s decision violates Gen Y’s sense of fair play. Leno’s failure in prime time was not O’Brien’s fault. He is the victim of others’ poor decisions, not unlike Millennials themselves.

2. O’Brien acted in a classy way. He didn’t overreact, he maintained his dignity and acted gracefully. His open letter to the “people of the earth” seemed reasonable and honest. “The most-recommended comment about NBC on nytimes.com read, “I haven’t been a fan of Conan’s show but this letter is complete class.” Johnny Carson, a former long-running “Tonight” host, “would be very proud,” the commenter added. “I’m a fan now.”

3. O’Brien fills a vacuum. I’ve commented before that as a generation,  Millennials have surprisingly few ‘iconic’ celebrity brands.  Yes, there’s Colbert, Stewart and Lady GaGa. But who else?

4. The imbroglio is tailor-made for social media. In my class this week, we speculated how much faster the whole New Coke episode might have unraveled if it had happened in the era of the social graph.  The speed with which Gen Y has mobilized word of mouth in support of O’Brien is testament to their facility with the tools of digital social influence.

5. Leno is “so Boomer.” Let’s face it, Leno isn’t coo;, he’s the guy your parents watch(ed).

6. O’Brien is genuinely funny. Millennials love to laugh and this has provided Conan with an opportunity to shine. It’s his moment and he’s making the most of it.

What have I missed?

Brands looking for advocates would do well to target Millennials.

Compared to other age groups, Gen Y is more inclined to share their opinions about purchases, both online and off line.

New data from Synovate, reported by Emarketer this week (see chart left), provides strong evidence that making and taking friends’ purchase recommendations are more important to younger consumers  than older groups.   The chart to the left shows the youngest groups (those 18-24 and 25-34)  were more likely than other age groups to have participated in nearly every one of the nine listed activities. Not surprisingly, the largest gaps between age groups were seen for online activities.

What makes this chart particularly interesting, however, is that it shows the desire to share  links / provide advice /rate /review / recommend was not limited to online formats.

In fact, one of the largest age gaps was seen for “Taking an active role in organizing an offline event or meet up for a group that originally met online”.  The figures by age for this activity closely parallel the figures for “Publishing a blog”. This alignment strongly suggests that young bloggers are more influential than older consumes both offline and online.

Chart and data from “Harnessing Active Brand Advocates“, E-Marketer, Jan 11, 2010.

Youth marketing has traditionally been about understanding what the ‘cool kids want’ and then translating those insights and trends to influence the broader youth market.

Yet in an age where everyone who wants a voice can have one, is the idea of ‘influential trendsetters’ as relevant?

I love this graphic to the left (click on it to enlarge) because it laughs at the whole idea that anything is particularly hip, or unhip.  One recent blog hilariously suggested that ”Eighties Nerds are Contemporary Hipsters“.

Today’s hipster can take many forms. Outlaw Consulting, a leading expert on understanding trendsetting youth for companies like Levi’s, Diageo and Nike, features this quote on their web site’s home page:

“Everyone wants to be a hipster, which makes being a hipster tricky and nearly obsolete.”

In a recent interview, Outlaw’s President, Barbara Bylenga had this to say about what Makes Gen Y different from earlier generations.

BYLENGA: “Millennials, or Gen Ys, are definitely different. They seem to feel more empowered – and more entitled– than any generation before them. They have an innate team orientation that makes them excellent collaborators. And the ideas about issues like marriage and career are radically different. Their “American dream” isn’t about the picket fence; it’s a flexible freelance career and a life defined by passion. … Gen Ys see themselves as change-makers. But they’re also busy trying to have a middle-class life, so their protests take different form than youth protests of the past. They see corporation’s as having lots of power but little heart, and they try to create change by using their dollars. The “aha” for corporations is to recognize that values and authenticity are important to this generation — and that directly affects how they spend. American Apparel, for example, has been totally embraced by youth because of its labor practices. Shopping there make them feel like they’re spending money in the right place. Companies that really “walk their talk” about core values will be endeared. If you want to be relevant to Gen Ys, you need to understand their mindset.”

Today’s social currency seems to have more to do with being ‘authentic’ than with being avant garde.

According to Outlaw Consulting’s brand report, some brands, like Converse’s Chuck Taylor shoes, are cool because they’re grounded in the past. Others, like Apple and Nike are cool for the opposite reason: they embody change and constantly reach towards the future. But there is a third category of cool brands, those that appeal to Millennials’ inner nerd. Pop culture has celebrated the nerd/geek culture for many years (Napoleon Dynamite, Jimmy Neutron, Sand Lot). Millennials are not afraid to admit to a dorky side and they admire brands that can do the same. According to Outlaw, Trader Joe’s, Jet Blue and In N Out Burger have won the love of Millennial trendsetters simply by being their quirky selves, doing things they own way and never apologizing: “(Trader Joe’s employees) wear these tacky Hawaiian shirts and publish that ridiculous newsletter. But it’s their own style. And it’s so much more inviting than the normal rigid grocery store.”

In short, the very definition of ‘coolness’ seems to have shifted.

In focus groups, Gen Y tells us that the cool kids today are the ‘DOERS’ — the ones who are fixing, leading, changing, advocating, entrepreneuring in order to make a difference in the world. When you stop to think about it, that ‘s a radical shift….being influential by actually influencing something!

In consumer marketing there is (generally) one person making the decision, in contrast to business marketing where there are usually multiple influencers – or even a buying group.  Someone initiates the purchase, others might do the legwork and make recommendations, and someone else ultimately decides whether or not to buy or what to buy.

In the case of Gen Y, they are unlikely to make decisions without parent’s input, especially for major decisions like investments, automobiles and housing. In this sense, Millennial purchase decisions can sometimes resemble a business-to business decision more than a consumer decision.

Here are three reasons why marketers need to consider the parents when targeting Millennials.

1. Parents may be underwriting the cost of the purchase, directly or indirectly.

According to a new Deloitte study of Gen Y and the automotive industry, one of every three Gen Y’ers who own or lease a car say they have a vehicle ‘my parents bought or leased for me’.  41% drive the same vehicle brand their parents drive now or have driven in the past.  This may have something to do with the fact that 40% still live with their parents or an older relative.  According to a study by Vibrant.com, 37% of Boomer women have an adult child living with them and 44% are helping a child or grandchild financially.  Financial dependency means Millennials are not entirely free to make their own big ticket decisions.

2. Millennials trust their parents’ advice.

Gen Y likes their parents, they get along.  Millennials have been relying on their parents for major decisions like picking a college and a major all their lives, so they aren’t going to stop now. An AARP survey on the financial state of Gen X and Gen Y found “70 percent of Gen Xers and Gen Yers look to their parents for personal finance advice and guidance.”

3. Millennials don’t entirely trust their own ability to make decisions.

Recently I posted that Millennials don’t feel entirely grown up.

Millennial blogger Blake Sunshine writes: “I do not feel like an adult. I support myself, have a job and live 818 miles away from my Mom and Dad, but I still feel like a child most every day. And I know I’m not the only one. Millennials everywhere are having a hard time growing up.” A corollary to not feeling grown up is not being ready to make grown up decisions. The AARP survey cited above says, while “86 percent of Gen Xers and Gen Yers know they should be more prepared for a “rainy day,” many report that they know more about their iPod (40 percent very knowledgeable) than they do about filing their taxes (26 percent), buying a home (21 percent), investing outside of work (15 percent) and saving for retirement (15 percent).

For Marketers, this means considering Millennials they way a B2B marketer might consider a business purchaser, with carefuly consideration to who is playing which roles, and the different needs of each target. Upfront research that involves recent decision-makers and their parents can provide extra illumination on the purchase process and how the ultimate decision is made.  In the car category, Millennials may be looking for something cool, and green with low gas mileage.  But their parents may have something else in mind. Knowing who will have the final say can mean the difference between sale and no sale. At minimum, it’s critical to give Gen Y the ammunition they need to make their parents feel they have done their homework and are making a sensible decision.

Universities have long understood this dynamic. Ask any college kid who made the decision about what college to attend and they will tell you it was their decision alone. Yet admissions officers know parents are critical at framing the consideration set, and often have the final say once it comes down to dollars and cents. Many universities start early in the junior year of high school with mailings targeting parents as much as teens.

For financial services and automotive marketers, a similar approach may prove worthwhile.