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New digital american family
New digital american family
New digital american family
New digital american family
New digital american family
New digital american family
New digital american family
New digital american family
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New digital american family

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  • 1. April 2011The New DigitalAmerican Family:Understanding familydynamics, media andpurchasing behaviortrendsDoug AndersonSenior Vice President,Research and Thought Leadership,The Nielsen CompanyRadha SubramanyamSenior Vice President, Media Analytics,The Nielsen Company
  • 2. Overview The New Digital American Family is getting older, smaller, growing more slowly and becoming more ethnically diverse than at any point in history. Diversity in all its dimensions defines the emerging American Family archetype, with no single cultural, social, demographic, economic or political point of view dominating the landscape.The Takeaways• Ward and June Cleaver have left the building. The white, two-parent, “Leave It to Beaver” family unit of the 1950s has evolved into a multi-layered, multi-cultural construct dominated by older, childless households. Marketing budgets need to recalibrate to reflect the very different composition of the New Digital American Family.• Slow organic growth in the number of households with children (38 million) will force categories and brands to steal share from competitors or pursue category-expanding new product innovation.• Advertisers need to have a multi-channel strategy for reaching different types of families, one that accommodates differences in media preferences, device usage and time-shifting behavior.• Hispanics represent a huge and growing market with a distinctive culture, one that requires an equally distinctive marketing approach and rejects the two myths of Hispanic consumers: –– Myth: I can reach Hispanics through my general market campaigns –– Myth: Hispanics are late technology adopters, so I don’t need to use online and mobile in my campaigns• The New Digital American Family has arrived at a demographic inflection point that demands marketers adapt and adopt new technologies for communicating with the consumer. One example is the smartphone which has emerged as an equalizing agent across households of all income levels.Family Portrait: Ethnicity reporting lower divorce rates and more • High income families represent the time spent with children. heaviest Internet users, logging on to• Households with children under age 18 conduct research, check the news, access will be predominantly multi-cultural by • Marriage is so 20th century! In 1960, travel info and visit social networks. 2020 (Hispanic, African-American and 72 percent of the adult population Asian-American); 40 percent already are was married. By 2008, that number • Programming preferences vary with multi-cultural today due in large part to plummeted to 52 percent. The college- income, but programming genres like immigration. educated have the highest marriage sports unify the nation. rates; those with a high school education• Recent immigrants to the U.S. accounted • Low income households download more or less, the lowest rates. for 90 percent of population growth ring tones while upscale families rely on from 2000-2010 over-indexing for the • Moms rock, but are hard to reach, smartphones for mobile commerce and Hispanic and Asian communities. with mothering activities diminishing to download apps. media time.• Hispanics represent the fastest-growing • While only 11 percent of Hispanic segment of the multi-cultural nation, households bank online, 30 percent growing 40 percent in the past 10 years conduct banking transactions on their and numbering 50 million people. Family Portrait: Finance mobile phones.• A socio/demographic schism splits • High income families view less TV but families along education and income spend more time viewing with kids, using lines, with higher income, more time-shifted media four times more educated, less ethnic households often than low income households.Copyright © 2011 The Nielsen Company.1
  • 3. Households with Children: A Nielsen projections suggest that the percent multi-cultural. The proportion isShrinking Slice of the American Pie majority of families with children will even higher at 47 percent among those be multi-cultural before the end of this families with a head of household age 33Nowhere are the seismic changes in the decade. Fewer than half will be native- or younger and soars to 61 percent for theAmerican family more concentrated than born, non-Hispanic white. Families with lowest income families.among young people and households children already register more than 40with children. Once the sweet spotfor marketers, households with youngchildren now represent a shrinkingpercentage of the family marketplace (just Figure 1: Sizing the Current Family Marketplace33.6%), as well as a less homogeneous,less educated and less affluent targetaudience. By the mid-2030s, the share ofhouseholds with children is expected to 17.2% Baby Boomer & Olderdecline further to between 25-30 percent, w/o Kidsdepending on the economic outlook.When times get tough, parents often Generation X & Youngerdelay having children. 49.3% w/o KidsOver the next decade, families with 33.6% Households with Kidschildren will grow, albeit at a slower rate(4%) than the projected total householdrate of 7.8 percent. While the overallgrowth rate is relatively slow, the changeimpact is profound, with ferocious growth Source: The Nielsen Companyprojected for multi-cultural householdsleading and lower/middle income families.Growing Multi-Cultural Roots Figure 2: Very Slow Growth Rate But a Lot of FluxImmigration accounted for 90 percent of Total HHs with Kids Ten Year Growth Rate – 4.0%population growth over the last decade, (Half the Rate of Total HHs)bringing with it a surge of people in their 2010 – 2020 HH Growth Rates20s who have higher fertility rates andthe optimism to start families. Americansociety continues to blend cultural Hispanic Wealthyinfluences and present challenges to Other Affluentmarketers attempting to reach distinctethnic segments, especially Hispanics. Asian Upper MiddleMore developed global regions such as Black Lower Middlethe United States, Canada, Australia andWestern Europe will see growth rates White Strugglingdecline until 2035 when these countries -10 0 10 20 30 -3 2 7 12will lose population. % Change in number of Households Source: The Nielsen Company Copyright © 2011 The Nielsen Company. 2
  • 4. Generational Differences and someone to connect with during wee expected that the newest census numbers hour feeding times. will show co-habitation as the norm atFrom a generational perspective, Baby more than 50 percent. Median age at firstBoomers (born 1946-1964) started a A single device has successfully bridged marriage for men rose by six years sincetrend by having children later than any the digital and generational divides. The the middle of the Baby Boomer years.generation before them, though not smartphone has emerged as the greatnearly as late as the generations that leveler, providing low cost, easy access The second trend, especially pronouncedfollowed. Many Boomers still have Web connectivity to households of all among more downscale and less educatedchildren under 18 at home and account for income levels and ethnicities. Two out persons, is to never marry. Almost three-more than 30 percent of all households of three U.S. mobile subscribers use text fourths of Americans over age 18 werewith children. Generation X parents messaging. The age of anytime, anywhere, married in 1960, but only 52 percent are(born 1965-1976) represent the majority affordable access has arrived, a game- today. Young Americans are delaying(43.9%) of households with children. changer for marketers who now must marriage and the rates are plummetingSlightly more so-called “Brady” Boomers learn to leverage the unique attributes of among all ethnic groups. To further(born between 1956-1964) head up mobile into their campaign strategies. confound the situation, sociologists arehouseholds with children (23.3%) than do proposing a new way of thinking aboutMillennials born after 1977 (22.9%). marriage, summarized by the phrase “alone together.” This reflects moreRace and ethnicity within households with Marriage on the Wane independent spouses who live separatechildren varies strongly by generation. lives with fewer shared activities than Two trends impact the outlook forThe “Brady” Boomers are the least diverse their married predecessors. marriage, and as a result, the fate ofgroup with nearly two-thirds of families families with children: age at first marriage Interestingly, marriage rates correlatewith children headed by a native born, and opting out of marriage altogether. The with education with the biggest dropsnon-Hispanic white. Younger Millennials proposed factors delaying marriage are among high school only and the higheststand as the most ethnically diverse group, many: an extended period of adolescence, rates among the college-educated.with nearly half of families with children an economy with few available jobs, anddescribed as multi-cultural. Many of the Delaying marriage often, but not the highly publicized, single lifestylenative white households in the older age necessarily, means delaying childbirth. In modeled by celebrities, but co-habitationgroups are empty nesters, while multi- turn, marketers must learn to address the before marriage appears to be thegenerational, multi-cultural families still needs of older, savvier parents who exhibit dominant, driving force.have children under 18 at home. more knowledge about shopping and who In 1980, a mere 16 percent of adults have access to a wider array of research, lived together before marriage. By 2000, price comparison and transaction tools that number rose to 41 percent and it is thanks to the Internet and mobile apps.The Post-Digital GenerationAlong with youth comes a high comfortlevel with technology, one tantamount Figure 3: Marriage Has Become Less Prevalentto a digital birthright. For members of the (Marital Status of Population 18+)Post-Digital Generation, there has always 100.0been an Internet. Time-shifted viewing has 90.0become the norm. Three-screen lifestyles 80.0(TV, Internet and mobile) predominate. 70.0Social media usage continues to soar. 72% 60.0From travel to health, mere search has 50.0evolved into thorough online research on 52% 40.0every topic under the sun. 30.0The Internet is more than a way to study 20.0the world; it is a mechanism for forming 10.0community. Whereas prior generations 0turned to Mom for advice on child-rearing, 1960 1970 1980 1990 2000 2008Post-Digital Moms turn to a host of Married Sep / Wid / Div Never MarriedMommy bloggers and other online Momsfor trusted advice, a shoulder to lean on, Source: U.S. Census BureauCopyright © 2011 The Nielsen Company.3
  • 5. Family Fault Lines Class, Age and Media Preferences average, most likely because low income audiences are more likely to bypass a A demarcation separates American Socioeconomic class and age serve as key landline in exchange for a cell phone.families, a line defined by education and indicators of media preferences and shoppingaffluence. On one side of the Family habits. Upscale families watch less TV than Web preferences differ across income andSchism sits the married, educated, more the average household, but spend significant ethnic lines as well. High income familiesaffluent, less ethnic households with time with media and entertainment options, spend less time on Facebook and YouTubelower divorce rates who spend significant both alone and with families. but more time on the Apple websitetime with their children. On the other side than the average family, presumably High income households are huge downloading music or servicing theirsits the unwed family units with fewer kids devotees of time-shifting, which allows Macs. Educational options head theand higher divorce rates, struggling to find them to watch more with their children. list of the Top 10 indexing websitestime to spend with children, financially High income households use digital by income, with high income familiesstrapped and more ethnic in composition. video recorders (DVRs) four times more accessing Pearson Prentice Hall, Edline. often, purchase more video games and net, Teacherweb.com, ClassZone.com, more DVDs than the average household. Houghton Mifflin and Pbteen. They also buy fewer cell phones than theFigure 5: High Income Households are the Heaviest Internet Users <$50,000 $50,000-$74,999 $75,000+ 18% 17% 16% 16% 14% 12% 13% 12% 11% 10% 8% 8% 6% 4% 2% 0% % of the US Population % of the US Internet UniverseSource: Nielsen National People Meter/Homescan Fusion November 2010 – Index Households with Kids <18 Copyright © 2011 The Nielsen Company. 4
  • 6. Multi-Cultural, Multi Media Hispanics remain the single fastest-Increasingly multi-cultural, three ethnic growing ethnic group in the United States, the anchor for an increasingly Moms Matter and thegroups dominate the American familylandscape: Hispanics, African-Americans multi-cultural society. Some 50 million Rise of the Mommyand Asian-Americans. Hispanics tend to Hispanics call the U.S. home, and their cohort is increasing 10 times faster than Bloggersvisit Latin-influenced sites like Univision the non-white population. Moms 21-49 who visit blogs exhibitand MSN Latino while African-Americans Mobile serves as a key source of distinctive TV viewing preferences.gravitate to music sites and Asians prefertechnology sites. connectivity within the Hispanic • They spend less total time in front community. They are more likely than the of the TV watching live or otherAfrican-American media habits are average household to have cell phones programming, but more time on DVRTV- and mobile-centric. They own four with Internet (55%) and video (40%) playback.or more sets per household and spend capabilities and text more than any otheralmost 40 percent more time watching race or ethnicity, sending 943 texts per • Among the Top 10 network programTV, especially premium cable channels, month. With smartphone penetration of picks for blog-viewing Moms arethan the U.S. average. African-Americans 45 percent, Hispanic cell phone ownership Grey’s Anatomy, Private Practice,also run up more mobile voice minutes per matches that of Asians. The ubiquitous Biggest Loser 8, House, The Office,month—1,261—than any other group. nature of mobile phones explains why Modern Family, NBC Sunday Night Hispanics are three times more likely to Football, So You Think You Can Dance,Asian-Americans exhibit a huge appetite use their mobile phones for banking than Brothers & Sisters and CSI.for online media, logging 80 hours in PCtime and viewing 3,600 web pages, 1,000 online alternatives. Moms who aren’t visiting blogs watchpages more than any other ethnic group. While 77 percent of all U.S. homes many of the same programs, but preferAsian-Americans watch YouTube more boast Internet access, only 62 percent Desperate Housewives, Fox NFL Sunday,than any other demographic segment of Hispanic homes are connected. When Survivor: Samoa and The Mentalist.while white Americans spend time with Internet access is available, Hispanic Source: The Nielsen Company, Nielsen MRI DataFacebook more than multi-cultural users. households log just as much time online Fusion, November 2010Although Asian-Americans watch less TV (26 hours vs. 25.5 hours) compared withthan other ethnic segments, they stream the total U.S.double the amount of online video as theoverall average.Figure 6: Mobile Phone Trends: Look Who’s Talking… and Texting 1,261 943 888 777 Number of Billed SMS 687 628 Sent/Received 595 440 Voice Minutes Used Hispanic White African-American AsianSource: Nielsen Telecom Q4 2010Copyright © 2011 The Nielsen Company.5
  • 7. Sources:The data and insights in this report represent the intellectual property of The Nielsen Company. Kindly source all data in this reportusing the appropriate citations.U.S. Census BureauThe Pew Research Center - The Decline of Marriage and Rise of New FamiliesAlone Together: How Marriage in America is Changing - Paul Amato et alThe Nielsen Company, Nielsen MRI Data Fusion November 2010The Nielsen Company, Nielsen NetView Quarter 4 2010The Nielsen Company, Nielsen NetView November 2010The Nielsen Company, Nielsen Netview February 2011The Nielsen Company, Nielsen National People Meter/Homescan Fusion November 2010 – Index Households with Kids <18The Nielsen Company, Nielsen National People Meter, Persons 18-49, November 2010, Broadcast and cable ranked on Live AA%,Syndication rankings based on Live GAA% excluding programs < 10 minutesThe Nielsen Company, Nielsen National People Meter Households with Kids < 18 November 2010(11/01/2010- 11/28/2010)The Nielsen Company, Nielsen Mobile Survey June 2010The Nielsen Company, Nielsen Mobile Media view December 2010The Nielsen Company , Nielsen Mobile Insight Quarter 4 2010 Copyright © 2011 The Nielsen Company. 6
  • 8. About The Nielsen CompanyThe Nielsen Company (NYSE: NLSN) is a global information and measurement company with leading market positions in marketingand consumer information, television and other media measurement, online intelligence, mobile measurement, trade showsand related assets. The company has a presence in approximately 100 countries, with headquarters in New York, USA. For moreinformation on The Nielsen Company, visit www.nielsen.com.For more information visit www.nielsen.com.For more insights into the today’s American consumer go to www.nielsenwire.com.Copyright © 2011 The Nielsen Company. All rights reserved. Printed in the USA. Nielsen and theNielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other productand service names are trademarks or registered trademarks of their respective companies. 11/30337

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