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Marketing to Young Adults - Canada - April 2018

"The young adult demographic is a unique group of consumers who present a potentially long-term benefit for brands. They are transitioning from childhood to adulthood, while planning out their career and life goals. The opportunity for brands is to establish a relationship with these consumers that they can continue as they age and, in many cases, increase their income levels and spending power."
- Scott Stewart, Senior Technology and Media Analyst

This Report looks at the following areas:

  • Traditional advertising is not reaching as many young adults
  • Online advertising is less predictable than traditional channels
  • Push notifications on mobile devices are risky

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Traditional advertising is not reaching as many young adults
            • Figure 1: Source of new product and service information, TV/radio/print, by age, February 2018
          • Online advertising is less predictable than traditional channels
            • Push notifications on mobile devices are risky
              • Figure 2: Correspondence analysis – Word associations among young adults, February 2018
            • The opportunities
              • Young adults are looking for engagement with brands
                • Figure 3: Appeal of advertising messages, by age, February 2018
                • Figure 4: Purchase motivator: social media, by age, February 2018
              • Unique messages that can pique the interest of young adults
                • Figure 5: Purchase motivators and ad message appeal, by age, February 2018
              • Leverage online word of mouth
                • Figure 6: In-person and online word of mouth, by age, February 2018
                • Figure 7: Social media purchase influences, by age, February 2018
              • What it means
              • The Market – What You Need to Know

                • Young adults are a more diverse age group
                  • Young adults are in a unique life stage
                    • Young adults have a positive outlook on their finances
                    • Demographic Factors

                      • Young adults are a more diverse age group
                        • Figure 8: Race of respondents, by age, February 2018
                        • Figure 9: Sexual orientation of respondents, by age, February 2018
                      • Young adults are in a unique life stage
                        • Figure 10: Living situation, by age, February 2018
                        • Figure 11: Employment status, by age, February 2018
                        • Figure 12: Marital status, by age, February 2018
                        • Figure 13: Parental status, by age, February 2018
                      • Young adults have a positive outlook on their finances
                        • Figure 14: Financial situation, by age, February 2018
                    • Key Players – What You Need to Know

                      • Young adults are heavy users of social media
                        • Ad blocking is increasing
                          • Housing costs are a concern for young adults
                            • The potential for augmented reality advertisements
                              • Smart speakers and online streaming means adaptations for ads
                              • What’s Working?

                                • Young adults are heavy users of social media
                                  • Figure 15: Website/app usage (daily), by age, February 2018
                              • Challenges

                                • Ad blocking is increasing
                                  • Housing costs are a concern for young adults
                                    • Shift to online streaming services puts pressure on TV
                                    • What’s Next?

                                      • The potential for augmented reality advertisements
                                        • Growth of smart speakers means adaptations for ads
                                        • The Consumer – What You Need to Know

                                          • Young adults are more engaged with online ads
                                            • Enjoyable ads and endorsements resonate with young adults
                                              • Word of mouth is a key source of information
                                                • Push notifications are a risky tactic
                                                  • TV is still an effective medium for advertising
                                                    • Discounting is an effective go-to strategy for all ages
                                                    • Engagement with Online Ads

                                                      • Many advertising channels available for marketers
                                                        • Figure 16: Source of new product and service information, 18-24 vs over-25s, February 2018
                                                      • 18-24s more likely to see ads online than through traditional media
                                                        • Figure 17: Source of new product and service information: online (net), by age, February 2018
                                                        • Figure 18: Source of new product and service information: social media, by age, February 2018
                                                        • Figure 19: Source of new product and service information: TV/radio/print, by age, February 2018
                                                      • Young adults respond to interaction with brands
                                                        • Figure 20: Appeal of advertising messages, by age, February 2018
                                                        • Figure 21: Purchase motivator: social media, by age, February 2018
                                                        • Figure 22: Advertising behaviour, by age and gender, February 2018
                                                      • Young adults are more positive about online ads
                                                        • Figure 23: Ads are “interesting”, by age, February 2018
                                                        • Figure 24: iPad – Homework – Apple, March 2018
                                                        • Figure 25: Ads are “useful”, by age, February 2018
                                                    • Enjoyable Ads and Endorsements Targeting Young Adults

                                                      • Young adults are more responsive to funny/enjoyable ads
                                                        • Figure 26: Purchase motivator: funny/enjoyable ads, by age, February 2018
                                                        • Figure 27: The Perfect Fit ft. Chris Pratt – Michelob Ultra, January 2018
                                                        • Figure 28: Advertising behaviour, by age, February 2018
                                                        • Figure 29: Finding TV ads annoying, by age and gender, February 2018
                                                        • Figure 30: Finding online video ads annoying, by age and gender, February 2018
                                                        • Figure 31: #GuacWorld – Avocados from Mexico, January 2018
                                                      • Celebrities and age-focused messages are effective with young adults
                                                        • Figure 32: Effect of celebrity endorsements, by age, February 2018
                                                        • Figure 33: Appeal of advertising messages, by age, February 2018
                                                        • Figure 34: Appeal of advertising messages (select), by age, February 2018
                                                        • Figure 35: Appeal of advertising messages (select), 18-24s by gender, February 2018
                                                        • Figure 36: Calling all creators – Adidas, December 2017
                                                    • Word of Mouth is a Key Source of Information

                                                      • Word of mouth is more prevalent among young adults
                                                        • Figure 37: In-person and online word of mouth, by age, February 2018
                                                      • Young women are more likely than men to engage in word of mouth
                                                        • Figure 38: In-person and online word of mouth, 18-24s by gender, February 2018
                                                      • Word of mouth is a purchase influencer
                                                        • Figure 39: Effect of word of mouth on purchases, by age, February 2018
                                                        • Figure 40: Agree to “Social media influencers have affected purchase decision”, by age, February 2018
                                                    • Push Notifications Are a Risky Tactic

                                                      • Young adults have a negative opinion of push notifications
                                                        • Figure 41: Correspondence analysis –Word associations among young adults, February 2018
                                                      • Push notifications can be useful to young adults
                                                        • Figure 42: Finding ads useful, 18-24s, February 2018
                                                        • Figure 43: Aerie, mobile app promotion, March 2018
                                                    • TV Advertising

                                                      • TV maintains a positive position in the opinion of young adults
                                                        • Figure 44: Correspondence analysis – Word associations among young adults, February 2018
                                                      • Young adults actively seek out TV ads online
                                                        • Figure 45: Watching big-event ads online, by age, February 2018
                                                        • Figure 46: Budweiser – Wayne Gretzky anthem, February 2018
                                                    • Discounting as a Go-to Strategy

                                                      • Discounts and special offers are still a top driver of engagement
                                                        • Figure 47: Appeal of discounts in ads, by age, February 2018
                                                        • Figure 48: Discount/value deals as purchase motivators, by age, February 2018
                                                      • Value-adds present an alternative to discounting
                                                        • Figure 49: Purchase motivators, 18-24s, February 2018
                                                    • Appendix – Data Sources and Abbreviations

                                                      • Data sources
                                                        • Consumer survey data
                                                          • Consumer qualitative research
                                                            • Correspondence maps
                                                              • Abbreviations and terms
                                                                • Abbreviations
                                                                  • Terms

                                                                  Marketing to Young Adults - Canada - April 2018

                                                                  US $4,395.00 (Excl.Tax)