| Hip, wired, cool, outgoing, active, insecure, constantly | | | | youth marketing. It is significant to notice that most |
| online - is this the image of the youngster or | | | | of the biggest brands online (11) today are digital |
| young-minded person brands marketer in the | | | | channels themselves. That is, if more than 80 % of |
| Westernised economies are chasing after? Why is | | | | all online sessions include a search (12), isn't it essential |
| this segment so important for marketing planning? | | | | to be strongly present in this medium?Satama |
| What should modern marketers know about the | | | | believes that brands need alternative means for their |
| digital channel and how should they use it? How can | | | | advertising: alternative ways are needed to get their |
| they reach this important market and how should | | | | message across among youth and beyond. The best |
| they communicate with it?PHENOMENON: Youngsters | | | | digital marketing can mean digital services instead of |
| are better informed than brand marketers.In the | | | | advertising. Not everything has to go digital though, |
| global launch of Sony's PSP, several Asian consumer | | | | people still value tangible things, something for all the |
| electronics vendors were sued. Sony felt obliged to | | | | senses. The digital channels enable youth to DO |
| take this action because youngsters and other eager | | | | "things" (e.g. they can get, create, share and influence |
| gamers, especially from Europe, saw the chance to | | | | things that are relevant to them in a certain situation |
| get their PSPs already in summer 2005, while PSP | | | | and/or time. Moreover, brands can listen to their |
| was only introduced to the markets in autumn 2005. | | | | target groups through digital channels - interactivity is |
| Consumers placed their orders via the Internet to | | | | the nature of these channels.Consequently, the |
| Asian vendors and goods were shipped via global | | | | borders between marketers and content providers |
| delivery channels to gamers. For Sony, these | | | | are blurring. At least, brands may be facilitating |
| companies were endangering its distribution and | | | | content. It seems that brands are forced to realize |
| launch strategy. The question remains: was this sort | | | | that stories are becoming more important than |
| of legal counterpunch really worth it - and will similar | | | | products. Target groups want to associate |
| cases become a natural part of our global business | | | | themselves with the fascinating story of the brand |
| reality?Reaching and influencing the young-minded | | | | and are willing to pay a premium of this connection. |
| segment is ever more challenging. Consumption | | | | Thus we see that content can still be the king. We |
| patterns are shifting from mass-media toward | | | | see also that the content can be professionally or |
| micro-media for the masses. Savvy | | | | end-user generated. But does it even matter how it's |
| media-empowered consumers, often under 25 years | | | | generated, if end-users want it! Satama believes |
| of age, are being influenced by trends from all over | | | | strongly that increasingly there will be interesting and |
| the globe. The knowledge and adaptation of these | | | | surprising partnerships established between different |
| trends is sometimes even carried out at a faster | | | | parties, old brands, and new digital brands. Movies, |
| pace than local marketers can introduce their | | | | music, sports, retails, etc.Innovative channels are |
| products to the markets. At the centerpiece of this | | | | needed. A few examples of these are in-game |
| revolutionary behavior lies the broadband-accelerated | | | | advertising and event marketing. First, the gamer's |
| Internet.At first glance, global consumerism seems to | | | | world is different (see box). Rules of human behavior |
| be great news for marketers: Global marketing | | | | and limits do not extend to this world. Anything is |
| works, campaigns are rapidly localized, consumers do | | | | possible. So why do even the most modern |
| the marketers work themselves and thus fewer | | | | marketers stick to putting their brand in a game only |
| resources need be allocated to domestic promotions. | | | | as a billboard, static ad or what-so-ever. "Hello Mr. |
| Yet, is this really so? For many brands, marketing to | | | | Brand! The world it different out there!" This new |
| the empowered youth and young-minded segment is | | | | virtual space can also influence how a game player |
| simultaneously a dream and a nightmare. For example, | | | | perceives the real world. Computer and console |
| knowledge such things as product bugs and negative | | | | games form not just a "tiny hobby area for boys" - |
| experiences about features, design and usability, | | | | they totaled a ~€23bn area of business in |
| fly through the globe via networks as fast as the | | | | 2005! Look at gaming rules. What if they were the |
| trends themselves. Consumers can tune into to the | | | | rules of modern marketing - what would you do in |
| global opinion databases of any product 24 hours a | | | | this world for and with your brand? Could it be so |
| day (1). The internet-empowered consumer has more | | | | that the best means for modern marketing emerge |
| perfect market information available than ever, and | | | | from the multi-complex world of game design, in a |
| more and more them are aware of their new | | | | way similar to how field interactive marketing sprang |
| powers.As rumors and experiences jump from one | | | | from birth of the digital channel in mid 1990s?Second, |
| country to another, the message the brand's agency | | | | Satama says that marketers have to invest in |
| tried originally to communicate does not remain | | | | making their events more innovative. It is good to |
| uninfluenced. Marketers easily lose control over their | | | | have an event and sponsor it. Yet, to make a lasting |
| campaign messages. In our wired and wireless world, | | | | memory among, for example, music festival |
| it can be a major challenge to repair this damage with | | | | participants, they need to be involved with the brand. |
| local initiatives, such as when a product obtains | | | | With over 500 event solution deliveries behind us, |
| negative feedback from consumers. For example, in | | | | Satama can now confidently state that using digital |
| 2004-2005, the famous lock manufacturer, | | | | channels is the key to building before-during-and-after |
| Kryptonite, had to spend a substantial amount of its | | | | event experiences for participants. Segments, |
| marketing budget in activities to recover its | | | | especially the youth, try out new things more freely |
| reputation after an online site posted instructions | | | | when the involvement of the brand is higher - touch, |
| demonstrating how easy it is to open Kryptonite | | | | feel, smell, experience - but use digital means to |
| locks with a plain ball point pen.Satama thinks that | | | | expand it beyond the conventional. For example, |
| modern marketing is all about creating a useful and | | | | Satama produced in 2005 for a Malaysian telecom |
| sustainable dialogue between the brand and the | | | | operator, Celcom, an integrated 3G marketing |
| segment. With this we state that brands need to | | | | campaign formatted around a TV reality show. The |
| shift from one-way push-marketing into listening to | | | | show was supported by a website, two mobile sites, |
| their target groups more carefully, and be ready to a | | | | a viral campaign, push SMSs, MMS blogging, plus |
| dialogue with the target group in ways that | | | | engagement marketing on the streets for Kuala |
| encourage them to be part of the brand experience. | | | | Lumpur. The outcome was outstanding: the target |
| Moreover, if an average Western consumer living in a | | | | group, youth, was extremely passionate about the |
| city is daily exposed to more than 3500-5000 | | | | show and the campaign became one of the most |
| marketing messages (2), we argue strongly that it is | | | | popular TV programs during its |
| more than essential to find the means and methods | | | | existence.RECOMMENDATIONS:What might work?To |
| to cross the constantly increasing attention barrier. | | | | conclude, we've listed a number of recommendations |
| Satama sees that that this hurdle will not be crossed | | | | below that modern marketers should execute in |
| using only traditional means of marketing - new | | | | modern marketing planning. These best practices |
| approaches are needed.BEHAVIOUR:I'm alive - I am | | | | expand beyond the youth segment; they are actually |
| @ MSN - contact me!There will be over 600 million | | | | the core variables for realizing fresh, appealing, and |
| broadband connection subscribers worldwide by 2015, | | | | impact-oriented marketing operations. Moreover, we |
| versus about 200 million at the end of 2005 (3). Thus, | | | | claim that there is no brand that should not |
| who cares about numbers anymore? Who cares | | | | re-consider the impact of the internet on their brand |
| whether it is going to be 600 million people on | | | | positions.1. BE INNOVATIVE AND DARE TRY OUT: |
| broadband or 400 million or 800 million? Offline versus | | | | The best way to understand |
| Online - could not matter less - it's all about reaching | | | | the emerging channels is through trial and error. |
| the target in the new mass location. Online life is here | | | | Knowledge about how consumers behave is gained |
| - and the markets are massive. The youth segment | | | | by making exploration rounds. In marketing planning, |
| is obviously the most experienced and skilled with | | | | observational and various testing methods are |
| regard to digital channels. They've grown up with | | | | needed, while in the execution phase proof is |
| them and thus these channels play a natural part in | | | | collected by measurement and metrics. Yet learning |
| their life on daily basis.When looking at the online | | | | happens more and more through try and error. Thus, |
| presence of the young-minded segment in more | | | | allow errors, but learn from them!2. ACTIVATE THE |
| detail, the findings are convincing. More than 78% of | | | | LOGICAL SIDE OF MARKETING: Marketing is |
| the 18-24 age group was online in the US in late 2004 | | | | extending beyond creative concepts - managers |
| (4) and more than 85 % of them had been online | | | | increasingly call for ROI from marketing. Tracing and |
| more than three years. Europe lags a bit behind in | | | | calculating the effects of marketing in the digital |
| this, but the trend is clear. There is only one | | | | channel is more possible than in any other channel. |
| conclusion a brand can take from this - being online is | | | | We are committed to a process in which the |
| a must for successful campaigning!Furthermore, | | | | measurement of marketing should be planned as |
| Internet users from 12-17 years old say email is best | | | | carefully as well as the creative concepts currently |
| for talking to parents or institutions, but they are | | | | are within the conventional advertising channels. We |
| more likely to use instant messaging when talking to | | | | see that brands should do much more to ensure that |
| each other (5). This is reflected even in common | | | | communication motivates the segment to follow up |
| language expressions: "Being @ MSN" is a common | | | | one action with another.3. BUILD BEHAVIOURAL |
| status of being alive, to exist amongst one's peers. | | | | KNOW-HOW.: More than ever, target groups are |
| The number of active friends in a typical MSN hotlist | | | | hopping about from one medium to another. It is |
| for the active segment aged below 16 lies | | | | crucial to be present wherever the target group is. |
| somewhere between 20 to 40 invitees. | | | | As the online channel plays a significant role in modern |
| Consequently, the Dutch telecom service operator, Hi! | | | | behavior, it should be a high priority in any corporate |
| (A subsidiary of KPN Mobile), leverages the MSN | | | | planning. Satama believes that knowing a target |
| phenomena aggressively in its marketing. Its | | | | group's behavior and developing your digital service |
| "Chatman" character offers a subscription though | | | | based on their needs, is the key to online success.4. |
| which youngsters (or any other MSN Messenger | | | | OPINION LEADERS BRING CREDIBILITY: Each peer |
| user) can be "present" in the chats though not in | | | | group is influenced by its thought leaders. Especially |
| front of their screens, thus appealing to the | | | | for the youth segment, involving leaders involves the |
| self-esteem of the identity seekers. Check me out - | | | | target group and extends events into virtual space |
| I am always online!In the broadband era there is no | | | | by building before-during-after experiences. Leverage |
| returning to life before it. Generation C (C=Content) | | | | the mobile channel innovatively with leading consumer |
| (6) is producing its own content with powerful PCs | | | | brands and remember to also market offline.5. |
| and making it available to their peers via dedicated | | | | LISTENING AND NETWORKING: Understanding the |
| sites or Peer-to-Peer networks. While baby boomers | | | | context of communications is the key to making |
| (born before 1960) had to learn what mass media is; | | | | communications work effectively with your target |
| and while Generation X (born 1960-1975) grew up | | | | group. A successful marketer must dare to listen and |
| with television and 1st generation video games (and | | | | react - it's not about push, its about listening skills. |
| are now focusing on their peaceful family lives with | | | | Relationships with challenging target segments, such |
| high debt ratios); the new Generation Next/Idols | | | | as youth, take place across the innovative spectrum |
| Content (Born after 1975) member is a born media | | | | of relevant media channels. We believe that the |
| multi-tasker. If their own preferences are not met | | | | creation of online communities and the provision of |
| with the offering from traditional channels, there is | | | | tools for natural networking can help a brand grow |
| always an alternative: the online service.The new | | | | closer to youth.6. PARTNERING: Dare to take |
| on-demand-consumption (7) of content is something | | | | innovative approaches and to closely co-ordinate with |
| of a Pandora's Box. Once opened, the consumers | | | | partners. It is not about trying to do thing alone - |
| learn that there is access to a basically limitless | | | | other brands are struggling with the same challenges. |
| amount of content within one's own preference | | | | Why not to find credible allies to boost one's own |
| setting (8). Consumers will no longer be happy and | | | | goals? It's all about intensifying openness, discussions |
| satisfied only with content fed to them by media | | | | and trials with different kinds of partners. For the |
| companies. They want to influence, get what they | | | | youth segment, it is of utmost importance to do |
| want - now, everywhere, anytime. And they demand | | | | marketing with partners who are credible for the |
| this from the media company who is now struggling | | | | segment. Find them and work with them!7. FRESH |
| with decreasing profits - not an easy equitation to | | | | AND UNIQUE: Satama believes that brands should |
| handle. Look at the music industry's falling sales | | | | provide |
| figures and the reality of more music being available | | | | more and more unique content. The target should |
| then ever. Who is losing, who is winning? | | | | be to increase the number of regular visitors by |
| Gatekeepers losing, consumers winning? The "long | | | | offering fresh, up-to-date, and attractive content. |
| tail" (9) effect enables more streams than just the | | | | Investments into one's own IPR creation and |
| few offered by media conglomerates. We will see a | | | | imagination may prove to be very successful in |
| lot more popular performances and peer group stars | | | | making the difference. The digital environment allows |
| outside music charts and mainstream movies.FRESH | | | | for faster reactions and launches than any channel |
| APPROACH FOR MARKETEERS;Be part of living - | | | | before it.8. CREATE SUSTAINABLE |
| online!Young-minded people are much more | | | | COMMUNICATIONS: We see that brands should aim |
| heterogeneous in their needs for marketing than | | | | to establish a dedicated communications channel for |
| more settled "30-somethings" with family and kids. | | | | its segments. This communications platform is a much |
| Youngsters are constantly in a process of finding | | | | more powerful approach than transitory online |
| defining their own identity/independence. The needs | | | | campaigns. Content within this kind of marketing |
| of a 14 year old differ radically from the ones of an | | | | focused online service should be based on specific |
| 18 year old. This identity seeking is often expressed | | | | interest areas to create a communications arena that |
| through subcultures (skaters, Goth, manga, | | | | is more like a media channel operation than a |
| sudoku-players, ravers, etc.) and identification with | | | | marketing-only operation.At Satama we believe that |
| strong opinion leaders' behavior (pop-stars, idols, | | | | marketing planning should move from advertising |
| sport-stars). If a marketer wants to segment the | | | | planning toward planning and measuring the actual |
| youth market, they should carefully distinguish trends | | | | impact of integrated actions. In the 1990s the key |
| and subcultures within the age groups and | | | | slogan most marketers were repeating throughout |
| demographics.When affiliating with subcultures | | | | the globe was: "The media is the message". In |
| (skateboarding / snowboarding / DJ-ing / graffiti) or | | | | today's turbulent, networked, and dynamic business |
| artists (Pepsi and Britney Spears) brands need a | | | | Satama asserts that: "Behavior is the message". It is |
| deep, long term commitment to actually gain | | | | not only about where you are, but how strong an |
| credibility amongst youth. This can be gained only by | | | | impact you can create with your target group!You |
| being positively credible among the peers and | | | | can download this article with images from our |
| locations where the segment naturally moves and | | | | corporate blog, See e.g. or |
| meets. A brand should never pretend to be a | | | | 2 J. Walker Smith, 2005 |
| teenager when its not. The way young people | | | | 3 Quantum-Web, 2005 |
| communicate is unique, and pretending will show | | | | 4 ComScore Media Metrix, 2004 |
| through. The greatest thing a brand can attract to | | | | 5 Pew Internet and American Life Project, 2005 |
| itself and benefit from is a passionate end-user | | | | 6 Trendwatching.com, 2005 |
| community, for example Apple's fanatic user base, or | | | | 7 Business Week, Nov, 2005 |
| MTV's outstanding success since 1980s.The digital | | | | 8 so called "long tail", Wired, May, 2004 |
| channels are on a winning streak for the time and | | | | 9 See |
| attention span of the youth segment. Thus, they are | | | | 10 IRC= Internet-relay-chat, see |
| extremely important for marketers. Even as recently | | | | |
| as early 2000, the digital channels' key role in | | | | 11 e.g. Google, AOL/Warner, Vodafone, MSN, Skype, |
| communication was to support other channels, like | | | | iTunes |
| print or TV. Now, at the dawn of the broadband era, | | | | 12 Google, 2005Tommi Pelkonen (tommi.) works as |
| it seems that TV, radio, and print media are like | | | | a senior consultant specialising in mobile |
| "gateways" to digital channels. Viral marketing through | | | | telecommunications, digital marketing communications |
| forum discussions, IRC channels (10) etc. are already | | | | and business strategy formulation at Satama |
| used. Traditional advertising methods (including | | | | Amsterdam. He has worked on multiple |
| internet advertising, e-mail marketing, and search | | | | mobility-related business projects. Prior to Satama, |
| marketing) do not provide enough answers. It is not | | | | Tommi Pelkonen worked as project manager and |
| about whether to use digital channels or not, it is | | | | senior researcher in LTT-Research Ltd ( analysing the |
| rather about what other channel to use to get traffic | | | | developments in the Finnish interactive service |
| to the online channel.The very diverse digital channels | | | | provision markets. (Econ.) Pelkonen has authored |
| and ways of communication are still difficult terrain | | | | several publications of the North European digital |
| for advertisers. Satama thinks that the role of digital | | | | media landscape. His latest report (2006, forthcoming) |
| channels becomes important when they allow for | | | | was analysing the mobile industry evolution in Finland. |
| communication between the members of a group or | | | | In addition, Mr. Pelkonen has worked as IT-project |
| when they allow for the projection of icons. In other | | | | supervisor and lecturer in the Information Technology |
| words, allowing communication between the target | | | | Program (ITP) at the Helsinki School of Economics ( |
| group members is one of key success factors in | | | | Tommi publishes also his own personal blog in Finnish. |