CENTENNIALS © Quick Facts What’s Changing What’s in a Name? Formative Events Youth TRU-isms Now What? Brands & Marketing Quotes of Note Other Resources Download in One 2014 NOTE: This document is hyperlinked to allow for interactive navigation of the content. For the full functionality of this document, ensure you are connected to the Internet and viewing in slide show mode. If you opt to print this document, we recommend selecting full Black & White mode for printing to save ink. 1 CENTENNIALS Quick Facts An assortment of facts and figures providing a quick view of Centennials Born in or after 1997; the oldest Centennials are 17 in 2014 23% of the U.S. population (U.S. Census Bureau) 52% Non-Hispanic White; 24% Hispanic; 14% African American; 5% Asian American (U.S. Census Bureau) Centennials’ parents comprise both Xers and Millennials equally (42% for each; Boomers account for the remaining 14%) 63% own smartphones; 48% own tablets; just 22% own basic cellphones (TRU Youth MONITOR Consumers & Consumers 2014) 64% consider themselves “savers” rather than “spenders” (TRU Youth MONITOR Consumers & Consumers 2014) © 2014 82% report their fathers are employed full-time 49% report their mothers are employed full-time 47% live in the suburbs (TRU Youth MONITOR Perceptions & Priorities 2014) 85% are single; 8% are seeing someone casually; 6% are seeing someone seriously 2 CENTENNIALS VIGILANT OUTLOOK, TEMPERED EXPECTATIONS LESS SELF-ABSORBED, MORE SELF-ASSURED What’s Changing Shifting dynamics that businesses and brands must understand and address in reaching Centennials © 2014 3 CENTENNIALS BACK VIGILANT OUTLOOK, TEMPERED EXPECTATIONS: Born in a time of trials and traumas, Centennials’ parents have begun to shift from the Millennial-era emphasis on self-esteem and self-expression to a focus on resilience and integrity. This group plans for the future and tends to avoid frivolity and unnecessary risk. What’s Changing Shifting dynamics that businesses and brands must understand and address in reaching Centennials © 2014 30% of Centennials agree: “I like to do things considered risky or dangerous” (versus 44% of Millennials in 2004) 60% of Centennials would rather have the guarantee they would never become poor rather than the possibility they might become rich 4 CENTENNIALS BACK LESS SELF-ABSORBED, MORE SELF-ASSURED: Millennials were taught to value communication, cooperation and collaboration. As young people, they tended to aim for alignment with their peers, showcasing individual strengths as a way to stand out slightly from the crowd. Centennials’ world has always been fragmented, and they feel less compelled to conform. What’s Changing Shifting dynamics that businesses and brands must understand and address in reaching Centennials 4% 62% Make fun of them behind their back 49% Make fun of them to 4% their face Assume they're being 22% fashionable/trendy Ask where they 22% purchased clothes Compliment them 2000 29% Say or do nothing Reactions to peers’ “different” or “unusual” clothes (12-17s) 65% 2014 I care a lot whether my clothes are in style (among 12-15s) (2013 TRU Youth MONITOR) © 2014 5 CENTENNIALS What’s in a Name? We expect Centennials will be a generation smaller in scope than their Millennial predecessors. The Millennial cohort was a demographically large generation that came of age at the turn of the millennium. Young Millennials’ formative years were a time of plenty. The Centennial cohort—a product of falling birth rates—was born near the turn of the century and is intimately familiar with scarcity. If Millennials were taught to dream big, Centennials are learning to buckle down and work on the things they can control. LOWER BIRTH RATES GROUNDED EXPECTATIONS Values shaped by shared experiences in Centennials’ formative years © 2014 6 CENTENNIALS BACK LOWER BIRTH RATES: • The Xer generation’s birth rate bottomed out in 1975 when the U.S. birth rate hit 14.6 per 1,000 population. (U.S. Census Bureau) What’s in a Name? Values shaped by shared experiences in Centennials’ formative years • At the Millennial generation’s peak in 1990, the U.S. birth rate hit 16.7 per 1,000 population. (U.S. Census Bureau) • In 2002, five years into the Centennial generation, the U.S. birth rate fell to just 13.9 per 1,000 population. (U.S. Census Bureau) 25 Births per 1,000 20 19.4 16.7 14.6 15.6 15 1990 14.2 1975 13.9 2002 10 5 © 2014 1969 Gen X 1979 Millennials 1997 Centennials 7 CENTENNIALS BACK GROUNDED EXPECTATIONS: What’s in a Name? Values shaped by shared experiences in Centennials’ formative years As children, Millennials dreamed big dreams of wealth and fame. Early data suggest Centennials are adopting a more tempered outlook and smaller, more manageable expectations. Although Centennials will drive many of the changes we see going forward in the new century, Centennials aren’t saddled with impossible dreams. Standard of living compared to parents (among 12-15s) 2005 71% 2013 77% 59% 40% 19% 3% Better © 2014 About the same 2% Worse of Centennials agree: “Always having new stuff is overrated when what I have already is good enough” 8 CENTENNIALS Didn’t touch this section Centennials as teens and Millennials as adults will share similar challenges and opportunities; the difference will be the way each cohort addresses them. Many of these differences trace back to generation-specific formative experiences. Formative Events Values shaped by shared experiences in Centennials’ formative years © 2014 SOCIAL: TECHNOLOGICAL: NEAT vs. NUANCED EXPLORATION vs. SECRECY ECONOMIC: POLITICAL: ROBUST vs. AT RISK RESOLUTION vs. REVOLUTION 9 CENTENNIALS BACK SOCIAL: NEAT vs. NUANCED Formative Events For young Millennials, depictions of life were often pretty and polished. The Babysitter’s Club books, Saved by the Bell and Clueless featured problems that verged on trivial and were solved in due time. For Centennials raised on a diet of Lemony Snicket, The Fosters and Hunger Games, life is nuanced and messy. Centennials were never offered the false sense of security Millennials were; instead they’ve seen the celebration of grit and resilience. Values shaped by shared experiences in Centennials’ formative years Millennial pop culture © 2014 Centennial pop culture 10 CENTENNIALS BACK TECHNOLOGICAL: EXPLORATION vs. SECRECY Formative Events Values shaped by shared experiences in Centennials’ formative years Vigilance is second nature to Centennials, and it helps distinguish them from prior cohorts. Centennials and their parents have learned from the mistakes of digital pioneer Millennials—and so have brands. As a consequence, in addition to their lifestage sensitivities, Centennials have developed workarounds and altered their sharing practices to circumvent monitoring and show a healthy distrust of the darker sides of digital life. 35% Centennials (12-17) © 2014 Very/somewhat comfortable meeting someone in real life you only knew from online (2013 TRU Youth MONITOR) 52% Millennials (18-29) 11 CENTENNIALS BACK ECONOMIC: ROBUST vs. AT RISK Formative Events Values shaped by shared experiences in Centennials’ formative years In 2000, when many Millennials were 12 to 17 years old, the economy had enjoyed a long period of expansion. Teens at the time had only ever known economic plenty, and overworked parents often coped by over-scheduling their kids. Fourteen years later, Centennials’ experiences reflect the opposite: time is relatively plentiful—money, not so much. Complaints about daily life: (among 12-17s) 2000 2014 37% 26% 24% 17% Not enough money Not enough sleep (2014 TRU Youth MONITOR) © 2014 12 CENTENNIALS BACK POLITICAL: RESOLUTION vs. REVOLUTION Millennials’ post-Cold War foreign relations, like their entertainment, seemed neat and tidy, and the generation’s attention was largely focused inward. Formative Events The Centennials have grown up with interminable ground wars and social upheaval around the world. Frosty relations between Russia, China, and the West suggest a future of instability and risk. Centennials seem surprisingly aware of the uncertainty in the world around them, but they’re determined to persevere. Values shaped by shared experiences in Centennials’ formative years © 2014 54% 86% of Centennials agree: “I really like to keep up with what’s going on in the world of Centennials agree : “I enjoy and celebrate life despite its many obstacles and challenges” (Top 2 Box) (Top 2 Box) 13 CENTENNIALS The journey from childhood to adulthood hinges on forging independence and identity. The immense task takes place one step at a time. Using trial and error in a series of interrelated experience areas, teens build their identities on a foundation of personal growth, learning, and sharing. We call these areas “Youth TRU-isms,” because although individual experiences may differ, the process is a nearly universal one in the youth lifestage. SELFDETERMINATION & CONTROL Youth EXPERIMENTATION & SENSATION-SEEKING SELF-EXPRESSION & STATUS-SEEKING TRU-isms Three universal quests that define the teen years and the youth lifestage. © 2014 14 CENTENNIALS BACK SELF-DETERMINATION & CONTROL: While Millennials were told they were each special in their own way and that their futures were essentially assured, the younger cohort takes nothing for granted. Centennials are already concerned that they are not adequately prepared for the future. Centennials have adopted a level-headed consumption orientation. Youth TRU-isms Three universal quests that define the teen years and the youth lifestage. 68% © 2014 of Centennials say they worry about not being prepared for the future rather than saying they’re too young to worry about it 15 CENTENNIALS BACK EXPERIMENTATION & SENSATION-SEEKING: Millennials’ formative years were a time of relative prosperity; frivolity ruled the day and there seemed little reason or motivation to take on adult responsibilities and concerns early. Centennials’ experiences thus far have been completely different. Even as teens, they have a more sober relationship with the concept of “fun.” Youth Agree: “We’re about fun” TRU-isms Three universal quests that define the teen years and the youth lifestage. (among 12-17s) Agree: “I like to do things that could be considered risky or dangerous” (among 12-17s) 44% 52% 30% 26% 2000 2004 2014 2014 (TRU Youth MONITOR) © 2014 16 CENTENNIALS BACK SELF-EXPRESSION & STATUS-SEEKING: While Millennials pioneered the use of social networks to amplify one’s personal brand, there’s less emphasis on “show” and more on “tell” among Centennials. Millennials helped Facebook become the ultimate see-and-be-seen platform and have remained steadily engaged despite eroding privacy protections. Centennials are trading Facebook for smaller, more private virtual ecosystems. Youth TRU-isms Three universal quests that define the teen years and the youth lifestage. Facebook as most-used social network to connect with friends Facebook Instagram Vine Snapchat 77% 52% 44% 31% 37% 26% 16% 9% Centennials Millennials (TRU Youth MONITOR Consumers & Commerce 2014) © 2014 17 CENTENNIALS WHAT’S YOUR ISSUE? Now What? A roadmap for developing strategies related to Centennial lifestyles WHAT IS THE CENTENNIAL MINDSET? WHAT DOES CENTENNIAL SELF-EXPRESSION LOOK LIKE? WHAT CHALLENGES WILL CENTENNIALS POSE FOR ME? © 2014 18 CENTENNIALS BACK What factors inform the Centennial mindset? Now What? A roadmap for developing strategies related to Centennial lifestyles © 2014 1 2 3 LIFESTAGE COHORT MINDSET Centennials are comfortably ensconced in the youth lifestage—with all its attendant interests, wants, and needs. They’re eager to tackle the same milestones and quests that helped shape prior generations. Still, how this cohort interacts with these new frontiers and rites of passage has much to do with the world around them. Their current attitudes reflect a more sober take on fun and risk than Millennials showed at a similar age. Look for Centennials to temper youthful exploration with vigilance and temperance. This balance of marvel and maturity could result in a more nuanced and complex—and trickier—target than youth marketers are used to. 19 CENTENNIALS BACK How are Centennials changing the timeless youth need for self-expression? Now What? A roadmap for developing strategies related to Centennial lifestyles © 2014 1 2 3 COMFORT WITH NON-CONFORMITY CULTURALLY INTELLIGENT SELF-POSSESSED Though Millennials aren’t overly preoccupied with rigid conformity, they still appreciate the audience, attention and acclaim they find in broadcasting themselves. Centennials seem less focused on selfpromotion and the Facebook hive-mind. Raised amid unprecedented diversity, Centennials assume everyone comes to the table with different strengths. As such, they give wide latitude for differences in taste, style, and ability. They expect the same courtesy. Centennials are less compelled than their Millennial peers to find a platform and message that reaches the largest possible group. They don’t need to spend precious time convincing people they’re unique; they’d prefer to speak their mind and their truth. 20 CENTENNIALS BACK What does the generational shift mean for the marketplace—and my brand? Now What? A roadmap for developing strategies related to Centennial lifestyles © 2014 1 2 EXPECT EMBOLDENMENT OPEN THEIR PATH Much of the exciting technological progress that mobilenative Centennials see has come at a cost to the traditional market. If Millennials were savvy consumers expert at working the system, look for Centennials to be bold consumers ready to change it. Millennials were largely respectful of institutions and the marketplace, but Centennials may be less patient. An evergrowing number of tools allow them to create their own workarounds if your brand doesn’t spot and eliminate friction before they do. 3 INVITE THEM IN Centennials may not even give you a warning sign before they identify a solution—potentially one that doesn’t involve you. Be ready to give up some control and work with this generation to drive your strategies and tactics—or risk them taking you out of the equation. 21 CENTENNIALS Android: Apple is still winning with Centennials, but Android’s new campaign “Be Together. Not the Same” is custom-built for the Centennial generation. The ad in question celebrates boldness, personal bravery, and the power of millions all doing their own thing together—all Centennial attributes. VIEW AD Brands & Marketing Brands and campaigns that resonate with the values and lifestyles of Centennials Snapchat: Group-minded Millennials flocked to Facebook; it was a virtual stage from which they could broadcast their lives for public consumption and approval. Centennials, it seems, are looking for smaller, more intimate virtual environments. Using Snapchat, they’re able to communicate honestly and without much pretense to a limited group of their own choosing. VIEW AD Prudential Insurance: If Millennials often dreamed huge dreams but lacked concrete plans to achieve them, Centennials seem willing to down-shift their expectations and work out a strategy for success. Prudential shows consumers how baby steps they take today can add up over the long haul. VIEW AD Modern Family: One of the ABC comedy’s youngest characters, Manny Delgado, thrives in a rollicking polycultural family with poise and maturity beyond his years. In true Centennial style, he’s less frivolous and more industrious than youth stereotypes suggests he should be, and he’s outgoing without any of the self-consciousness so common to the youth lifestage. VIEW VIDEO © 2014 22 CENTENNIALS “[The Centennial generation] is innately liberal, overwhelmingly supporting gay marriage and transgender rights, for instance. Fifty-five percent of teenagers surveyed believe anyone should have the right to become a U.S. citizen regardless of how that person came to the U.S. And 64 percent say the U.S. gets involved in too many wars. That may reflect youthful idealism—previous generations, too, have started out as leftists and slid gradually toward the center—but [Centennials] may be different in being genuinely bigotry-proof. It may be the first generation for which diversity is a natural concept that will not be ruined by anything older people do or say.” (Will Gen Z Disconnect? Bloomberg) “Although I do have a Facebook, none of my other friends do. My friends just thought it was a waste of time. I decided to get a Facebook just to see what it was all about. I soon discovered that Facebook is useless without friends. My only friend is, like, my grandma. Teens are followers. That’s just what we are. If all my friends are getting this cool new thing called Snapchat, I want it, too! We want what’s trending, and if Facebook isn’t trending, teens won’t care. In the end, Facebook has been trying too hard. Teens hate it when people try too hard.” (I’m 13 and None of my Friends Use Facebook. Mashable) Quotes of Note Useful snippets of relevant “Teens today might have a mixed reputation, but there’s no denying their influence. They command content about millions of fans on Twitter and Vine, start companies with funds they raised on Kickstarter, steal scenes on Centennials to TV’s most popular shows, lead protests with global ramifications, and even win Nobel Peace Prizes.” (The 25 add color to these Most Influential Teens of 2014. Time) insights “Centennials are growing up with a less idealistic and more pragmatic edge. They’re facing situations that the Millennials didn’t have to deal with until early adulthood, and as a result, Centennials are growing up more savvy, in graver times when everybody doesn’t win and when choices are limited and success is harder to come by.” (Erik Medina, Head of the TRU Youth MONITOR, The Futures Company) © 2014 23 CENTENNIALS Other Resources Links to additional content on Centennials TRU Youth MONITOR The preeminent youth syndicatedresearch offering fully connects clients to U.S. teens and twentysomethings Learn More © 2014 MONITOR Download Download on Millennials MONITOR LIVE Spotlights November 2014: The Millennials Have Left the Building: Introducing a New Generation of Youth MONITOR Minute Growing Up Gritty Meet the Mamaculturals Other Sources Report Says YouTube Overtakes Facebook Among Teens, Mashable Will Generation Z Disconnect? Bloomberg Millennials Are Old News—Here’s Everything You Should Know About Generation Z. Business Insider Will Generation Z Disconnect? Bloomberg Gen Z Has Grand Ambitions for Homeownership. Entrepreneur Quiz: Me and Gen Z. Marketplace Portrait of Generation Z. Northeastern University Survey Finds Generation Z To Be Motivated Lot. Boston Globe Will Gen Z Be The Startup Generation That Never Retires? Upstart Business Journal 24 CENTENNIALS Download in One Share or save this Download © 2014 CLICK HERE to access the Interactive Download on Centennials All data are from the 2014 TRU Youth MONITOR, unless otherwise noted 25