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Engaging across generationsJapan Report ü January 2017

Engaging across generations

Contents

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• Introduction, methodology and summary of findings• Generational profiles• Challenges in connecting with generations through advertising• What each generation thinks of different ad formats• Strategies for overcoming ad avoidance


Introduction and objectives

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A new generation is approaching adulthood. Gen Z, sometimes called Post-Millennials or Centennials, are the first generation to have grown up with a smartphone in their hand. How radically different are their media attitudes and behaviors from people in the older Gen Y*(Millennial) and Gen X *(Baby Busters) generations? And how much of a challenge does this pose to marketers as they plan media and develop creative?

Concurrent with this generational shift, increased media fragmentation means marketers are scrambling to understand which channels and creative ideas are best used to reach and engage their target audiences. Options seem endless. The rapid rise of online video and mobile ad formats makes it hard to know what type of creative will work, and where best to place it.

Our previous AdReaction Video study (released October 2015) told us that Japanese audiences were still spending more daily minutes watching Live TV than watching video on digital devices, and receptivity to digital ads remained much lower than for live TV ads. It also provided valuable insight into how and why advertisers should adapt their videos for the digital and mobile world.

This new AdReaction study explores advertising receptivity across Gen X, Y and Z to understand when and where each group are most likely to respond positively. It also provides marketers with practical advice about how to overcome ad avoidance, and which creative approaches work best across the three generations.

* In Japan, Gen Y is generally named as Minimum Life, Pressured, or Yutori/Satori. Gen X is called as Bubble, Dankai Junior, Post DankaiJunior, or Employment Ice Age.


Methodology

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Sample size in Japan• Gen Z (16-19 year olds) = 154• Gen Y (20-34 year olds) = 220• Gen X (35-49 year olds) = 226• All data based on this sample unless specified otherwise

Online panel-based interviewing• All interviewing conducted via online self-completed questionnaire*• For each generation: 50% male and 50% female • This report refers to Japanese results only, but the same study was fielded in 38 other countries

(global data available at http://www.millwardbrown.com/adreaction/genxyz/)

Ad testing (Japan is not included)• 31 ads copy tested across10 countries (Australia, Brazil, China, France, Germany, India, Mexico, Spain, U.S. and UK)

— 11 TV, 8 Facebook video, 12 YouTube video • Total sample size = 8,986 interviews; approximately 100 Gen X, 100 Gen Y and 100 Gen Z per ad• All interviewing conducted via online self-completed panel-based questionnaire (Link for TV and Link for Digital)

Social Media Research (Only Japan)• Collected approx. 50M ad related posts on Twitter, picked up and analyzed their relative strength of response by generation

*Statistically significant generational differences noted within this report are tested at a 90% confidence level

http://www.millwardbrown.com/adreaction/genxyz/


Why a Spotlight on Gen Z?

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• The focus for marketers is shifting from Millenials to GenerationZ.• This mobile-native generation is growing with social media and on the cusp of entering the

workforce but still has a strong influence on the purchasing power of GenX and GenY parents.• It is said that Gen Z will shape the future of the Japan with their purchasing power. Therefore,

understanding Gen Z is increasingly important for marketers.


Summary of Findings

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§ In spite of high usage of digital, Gen Z is less receptive to digital ad formats and avoids ads instantly.§ Because of their life stage, Gen Z lives with parents and consume TV and OOH well with good receptivity.§ On the other hand, they are negative to legacy digital ad formats, especially formats without control such as pre-roll or auto-play, while shows better

receptivity toward new ad formats and branded contents.

§ Developing advertising to meet the needs of audiences will help advertiser to connect across generations§ Gen Z compels advertisers to consider discrete components like humor, story, visual appeal, and music, which are all essential and must form a

seamless fit with each other and the advertised brand.§ Knowing that audiences are turned off by invasive and interruptive formats, advertisers have a clear window of opportunity in short content that offers

audiences the ability to interact with and feel more in control of the advertising they receive.§ Increased focus on the experience of the creative can make branded and sponsored contents a good option for advertisers. Interest to category,

affinity to brand, and relevant offers should be integrated into creative idea with ownable manner.

§ Gen Z requires a 360 approach to media planning including offline media and optimization§ Media Planners must give sufficient weight to how factors like time of day, mood, and physical context influence favorability and optimize their media

to reach Gen Z in the times and places where they are most receptive to media. e.g. OOH & Mobile at commuting§ Targeting must be in lock step with creative development. There must be synergy between the advertised brand / category and the audience, yet at

the same time media must be contextually relevant to the places and spaces it’s running.


GENERATIONAL PROFILES

Who is Gen Z? From childhood, they can reach massive information through smartphone, and show themselves and know various peoples on social media. It’s possible that such a difference of environment cause the difference of values and behaviors.

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How Gen Z is described generally?

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Gen Z is really digital native, mobile native and growing with social & smartphoneUse multi-screens and multi-accounts, and always connected.

Good at search, i.e. experience

over information

More trust in influencers than

brand

Visual first and consume audio

well

Short attention span to ad, and

ad blocking

Conscious to privacy

Good at self-branding

Care about personality

Not expect completeness but

reality

Open minded to minority

Frankly usee-commerce

Marketing need to change to engage Gen Z.

U.S. Report9

Gen Z at a glance

Judging from the size of households, Gen Z seems to live with their parents and mentioned they are not very busy.

Opposed to global trend, TV is still a dominant media.

Gen Z spends more time outdoor as well as using mobile phones. Laptop usage is less compared to the other generation.

Demographics

Working status (part/full-time) 17%

Chief Shopper (all the time) 20%

Size of HH (3 or more ) 89% YX

Married 20%

Very busy 14%

Not very busy 32%

Media Usage (One hour or more per day)

TV 71%

Magazines 7%

Newspapers 6%

Radio 8%

Outdoor 45% X

Laptop 58%

Mobile 67% YX

What is your current working status?Are you the parent/guardian of any children under 18 who live in your household? Do you personally choose the items to buy from supermarkets and shops for your household….?

How many people are there living in your household, including yourself?What is your current marital status? How busy would you say you are?

U.S. Report10 Q: From the following statements choose all that you identify with more.

Tapping into Gen Z mindsetVALUES

• Digital privacy (18% X)• Content that feels honest and real (14%)• Diversity and individuality (29% X)• Spending time with like-minded people (35% YX)

BEHAVIORS• Turns to Google for queries (34%)• Starts new projects and activities (21% YX)• Keeps busy by multi-tasking (13%)• Enjoys access to always-on music (14%)• Share my activities, interests and hobbies online

with my friends.(33% YX)

Gen Z

MISCONCEPTIONS ABOUT GEN Z• Love selfies (Only 10% YX)• Receive lots of feedback on what they post (Only13% X)

The strongest feature of GenZ is seen in sharing interests online and spending time with like-minded people. They are open-minded, but careful about digital privacy. Social environment influenced their values and behavior.

Gen Z Gen Y Gen XI like to share my activities, interests and hobbies online with my friends. 33YX 17X 9

U.S. Report11 Q: Who are you more likely to discuss advertising with?

Advertising is a topic worth to talk with others

Audiences are discussing advertising with those closest to them.

Because of life stage, GenZdiscuss advertising with their friends, which means viral network is strong in GenZ’scommunity such as school and shared to the other generations through family.

50

54

60

62

40

36

8

15

24

17

27

22

Gen Z

Gen Y

Gen X

Other members of your family FriendsWork colleagues None of these

YX

Z

Z ZY


Why is Gen Z so influential?

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Social Media

GenX

GenZ

GenY

Established Media

Family

Share

SchoolHot topic on social

Social consumption

News

News

The evolving new generation is a trend setter and influencing upper generations with leveraging social.


Based on TNS’s Connected Life, as age becomes younger,User Generated Contents are more consumed.

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CHALLENGES IN CONNECTING WITH GENERATIONS THROUGH ADVERTISINGAs audiences have become more reliant upon their devices and skilled in finding the content that they are consistently adept at avoiding ads that they perceive to be interrupting, irrelevant or annoying.

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All generations try to avoid ads, especially Gen Z.Gen Z especially take advantage of ads offering control.

Gen X lack of interest.

Q. What actions have you taken to block or avoid ads on your desktop computer/ in your web browser/ on your mobile phone?

Technological Physical Advantage of Control Lack of Interest

Gen Z16-19

Gen Y20-34

Gen X35-49

53

35

51

35

73

35

39

41

53

30

64

34

Skip the ad

Look away from screenInstall ad

broker tool

* In US, ad blocking is more serious issue (51% of Gen Z)


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Q: What actions have you taken to block or avoid ads on your devices?

Advantage of control60%

Physical37%

Technological33%

Lack of interest51%

I don't mind ads while I'm online

I haven't taken any action

I didn't know there was anything I could do

I skip ads whenever I can

I'm willing to pay for premium versions of websites to avoid ads

I do something else on my device

I look away from the screen

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17

14

Gen ZGen YGen X

Total

Gen Z and Y rely on different avoidance strategies.

Gen Z is most likely to skip and look away.

Gen Y is most likely to install both the app and plug-in ad blocker.

Gen X has no idea about how to deal with ads.

24

22

20

Gen ZGen YGen X

18

22

20

Gen ZGen YGen X

31

22

23

Gen ZGen YGen X

48

49

Gen ZGen YGen X

12

11

14

Gen ZGen YGen X

6

10

8

Gen ZGen YGen X

11

16

18

Gen ZGen YGen X

17

30

37

Gen ZGen YGen X

Changed settings

I installed an ad blocker plug-in

I installed an ad blocker app 7

11

5

Gen ZGen YGen X

YX

YX

Z

ZZ

X


Use shorter formats and frontload essential content into the first 10 seconds of an ad

17 Source: AdReaction Gen X, Y, and Z global copy test, 2017

9.510.9

12.6

Gen Z Gen Y Gen X

Observed: Skip time among skippers (seconds)

Based on 12 YouTube ads

Gen Z click fast... And they click often...Attitude: “I skip ads whenever I can”

Base: Gen Z 7087 Gen Y 8490 Gen Z 8330

56

50

49

47

40

37

Desktop:

Mobile:

FORMAT & CHANNEL CHOICE


18Q: Why have you installed an ad blocker on your computer?

Ads are not only annoying but also interruptive for all generations since they are looking into some information.

Ads interrupt me when I want to do something else

Ads make it hard to find what I'm looking for

Ads distract me

Ads slow down computer/phone too much

Ads annoy me

Ads are boring

Ads are generally not relevant or helpful to me

Ads use too much data (mobile phones only)

56

51

40

38

35

32

29

28

52

43

41

44

45

30

43

30

60

36

28

42

40

28

43

22

Gen Z Gen Y Gen X


WHAT EACH GENERATION THINKS OF DIFFERENT AD FORMATS

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While each generation broadly attempts to avoid ads, they do not view advertising monolithically. Their receptivity to advertising formats varies greatly by both medium and format. Contextually-relevant formats marked by simplicity, control and reciprocity are most well-regarded by all generations.


Recap: Generational Media Consumption

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One hour or more per day Gen Z Gen Y Gen X

TV 71 68 78Y

Magazines 7 11 9

Newspapers 6 8 9

Radio 8 18Z 17Z

Outdoor 45X 37X 29

Laptop 58 79Z 82Z

Mobile 67YX 57X 29

MC1AB. Total Hours Watching Television (not Online)MC1AB. Total Hours Reading Magazines (not Online)MC1AB. Total Hours Reading Newspapers (not Online)MC1AB. Total Hours Listening To The Radio (not Online)MC1AB. Total Hours Travelling Or Walking Out And About

MC1AB. Total Hours Using The Internet On A Laptop Or PC For Something Other Than EmailMC1AB. Total Hours Using The Internet On A Mobile Device For Something Other Than Email

Overall, TV is still a dominant media across generations.

Gen Z spend more time outdoor as well as using mobile phones.

Gen Y and Gen X use laptops more since they use them at work.

Gen X use mobile significantly less than other generations in Japan; they keep using traditional feature phones.


21 Q: How would you describe your attitude towards each of the following formats of advertising?

Base: Without Doesn't know

Row AverageHigher than row average Lower than row averageStat testing at 90% confidence level:

Net +ve % Gen Z Gen Y Gen XCinema ads 43 YX 25 X 13

TV ads 37 25 34

Magazine ads 29 24 18

Billboard/Outdoor ads 25 X 18 X 11

Product placements in movie or shows 19 23 9

Newspaper ads 12 10 22 Z

Radio ads -3 4 4

Online search ads -8 X -8 X -20

Online display ads (laptop or PC) -22 -10 ZX -19

Online display ads (mobile) -25 -11 X -30

Video ads (mobile) -28 -13 -24

Video ads (laptop or PC) -32 -20 -23

Direct mail (postal) -33 -8 -14

High usage of mobile doesn’t mean good receptivity for GenZ

Gen Z love traditional media such as TV or OOH. On the other hand, their receptivity to mobile ads are rather negative.

For most digital formats, Gen Z’s opinions mirror those of their parents, Gen X.

Among all ad formats, all the generations are positive to TV ad. Gen Y and Gen Z are most receptive toward cinema ads. Gen X is more endorsed with traditional News paper.


22Q: How would you describe your attitude towards each of the following formats of online video advertising?


Row AverageHigher than row average Lower than row averageStat testing at 90% confidence level:

Net +ve % Gen Z Gen Y Gen X

Mobile app reward 3 X 5 -12

Skippable mobile app pop-up -13 -12 -24

In-banner click-to-play -16 -13 -22

Skippable vertical video -19 -10 -24

Social click-to-play -24 -12 -22

Skippable pre-roll -25 -11 -27

View to play -35 -22 -31

Social auto-play -38 -24 -32

Mobile app pop-up -48 -30 -41

Pre-roll -51 -34 -43

In-banner auto-play -51 -28 -33

Forced video is perceived negative across Gen, especially among Gen Z

Gen Z is the most sensitive audience to the control offering as seen in very negative receptivity in pre-roll or in-banner auto-play.

Mobile app reward is viewed rather positively, followed by ads offering control.


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In their own words: Gen Z receptivity to ad formats

For Gen Z, they value the freedom to dive into what interests them. Formats disturbing them were not acceptable.

Consequently, skippable ad formats are more valued to this generation.Some of them put static over video to avoid heavy load time of site.

バナー広告だけにして観たい動画の中にCMを入れるのをやめてほしい。また、バナー広告のページが勝手に下にずれるなどの現象もなくてしてほしい。 - Male

見ている動画、PLAYしているゲームなどと、かなり親密な関係にあるものを宣伝することが最も効果的であるかと。また、スキップが可能だが中毒性のあるリズム、音楽等が流れている宣伝は特に頭に残りやすいと個人的には思う。 - Male

サイトが重くならない広告。勝手に再生しない動画広告-FemaleGen Z

Respect my choice Don’t interupt me

スキップできる機能をきちんとつける。自分の意思でＣＭを見られるようにしてほしい - Female

動画広告が効果的ですが嫌い -Female

If a brand asked you the best way to speak to you and people of your age, what would you say?


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The other generations are also negative to forced approach.

For the other generations, wider issues are pointed out.

Experience of creative, placements, targeting, reward, data charge are also influencing to their receptivity.

興味のある人にだけ広告を提供する事。ブランドなら自分のサイト内で広告を提供するなら問題ないが、別に興味もないブランドの広告を見せられるのに我慢ならない。たとえばファッションブランドや車ブランドなど、ファッション雑誌やファッションサイト、車雑誌や車サイトで広告をすればいいのに、まったく関係ないサイトや動画で広告が出てきたらブランドイメージも落としている事にメーカーやブランドは気が付いた方がいい。だから広告削除のプラグインなどが流行っている事に気が付いた方がいい。誰も買わないだけではなく買おうと思っていた人ですら離れていく事に実際なっている。

シンプルでメッセージ性の高い、簡潔に正確に情報を提供するテレビCM、または、単純だが記憶に残るユニークな表現を交えたタイプのラジオCM、そして、ネット配信の場合には、貴重なパケットを奪って使われた、と感じさせない静止画の一枚広告。

Gen Y

Gen X

If a brand asked you the best way to speak to you and people of your age, what would you say?

見る側に見る事を強要する事がない広告。見る側にとってもメリットがある広告であれば苦痛ではない。具体的に言えば割引クーポン付き広告とかどうでしょう。

如何なる方法であれ、押し売りのような広告は逆効果。あざとさを感じない目を引く広告は興味を引く事もあるが他は邪魔でしかない


25 Q: And how would you describe your attitude towards each of the following formats of online advertising?


Some new ad formats are more accepted by Gen Z.

Native ads, Sponsored lenses are more welcomed by Gen Z.

Positive% Gen Z Gen Y Gen X

Native ads 28 24 14

Sponsored lenses 26 25 20

Sponsored filters 21 24 18

Expandable ads 20 24 18

Take over ads 17 23 16

26-49%76-100% 0-25%% Positive 50-75%


26Q: How would you describe your attitude towards each of the following kinds of branded content?


Further, Gen Z is more open to branded contents.

Compared to the Gen X, Gen Y and Gen Z are more open to branded contents.

As seen in Gen Z’s outdoor habits, their most favorite one is sponsored events.

26-49%76-100% 0-25%% Positive 50-75%

Gen Z Gen Y Gen XSponsored events 34 29 22

User reviews 34 33 31

Expert reviews 32 31 24

Celebrity content 31 25 19

Shopping content 30 31 22

Tutorials 30 29 24

Branded events 29 30 17

Brand information 27 33 20

Native articles 26 22 14

Social media feeds 25 27 16

Magazine advertorials 23 21 18

Social media celebrity content 23 23 17

What is branded contents?• Branded content is a form

of advertising that uses the generating of content as a way to promote the particular brand which funds the content's production.

• Contrary to embedded marketing, where the brand is placed within the content, branded content places the content within the brand.

Source: Wikipedia

https://en.wikipedia.org/wiki/Advertising

https://en.wikipedia.org/wiki/Product_placement

STRATEGIES FOR OVERCOMING AD AVOIDANCE

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Knowing new freedom means knowing inconvenience in the past. Cannot go back.Gen Z consume more digital, but they perceive digital ad formats as interrupting and try to avoid them.The hints of new communication can be found in the effort to meet their needs.


Advertisers must consider generational differences at each stage of the planning process

Will the creative idea resonate strongly enough with the target audience? Can your brand own it?

In addition to reach, what does each format and

channel need to do in order to accomplish the task?

Does each execution work to achieve its goal within the format and expected

consumer mindset?

How do you reach audiences in the right mindset, moment and

place?

CREATIVE IDEA

CREATIVE EXECUTION

MEDIATARGETING

FORMAT & CHANNEL CHOICE

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*Japan didn’t conduct Link for digital in this study, so we conducted social listening to roughly evaluate the generational engagement to the ad.


For the contents from here onwards, we will guide you face-to-face with case studies.

If you are the current customer, please contact to your account manager.

If you are new client, please contact us at the address below.

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MARKETER CHALLENGE #1: CREATIVE

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Developing creative and content that will resonate with different generational audiences

Developing advertising that works across all generations is tough. Marketers must consider generational differences during all stages of the planning process, including idea creation and creative execution.

While Gen Z can be broadly resistant or unreceptive to many forms of advertising, they are also very clear about the qualities of advertising that will break through for them.

The advertisers who are most attuned to these preferences and develop strategies for boosting receptivity will be the most successful in connecting with this emerging generation of consumers.

RELATED SOLUTIONS: •Pre-Link™ •Link for Digital Portfolio •Link for TV •Link for Video


MARKETER CHALLENGE #2: MEDIA

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Executing an efficient media strategy to reach audiences in the right mindset, moment and place

Audiences are getting more selective in how they receive advertising. They are finding more sophisticated ways to filter their content. Creative quality is more important than ever, but context and timing of Gen Z’s exposure to advertising must be synergistic with how they use their devices and consume media.

The advertisers who leverage generational insights to effectively connect with their audiences will be the most successful in developing a media strategy to amplify the power of great creative.

RELATED SOLUTIONS: • Connected Life • CONNECT• Growth Targeting• Social Clustering• Pre-campaign Insight• Brand Lift Insights • CrossMedia Research • DBA

http://kantar.jp/whatsnew/2016/09/_instagram_snapchat2.html

http://kantar.jp/whatsnew/0913_KantarGrowthTargeting09132016%20(2).pdf

http://kantar.jp/whatsnew/2013/05/15/NewsRelease_130515_AdIndexDash.pdf

http://kantar.jp/whatsnew/final2_KJ_topics-newsletter_Crossmedia_rev1.pdf

Engaging across generationsJapan Report ü January 2017

engaging across generations - kantar...engaging across generations why a spotlight on gen z? 5 •...

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