Millennials And Microgiving

Millennials & Micropayments Social Giving & ePhilanthropy Minnesota Council on Nonprofits Annual Conference Nonprofits & Government: Partnerships & Policies in a Time of Retrenchment October 3, 2008

Who We Are: About Tunheim Partners Well-regarded thinking and crisp execution – these are the building blocks of Tunheim Partners. Our clients turn to us to help them capitalize on important communications opportunities. We respond with insightful counsel and service to help them achieve their objectives.

Presenters
Eliza Appert, account executive, Tunheim Partners
Millennial
e-Strategy team member
Experience in online marketing and communications, cause marketing, corporate social responsibility and corporate communications
David Erickson, director e-Strategy, Tunheim Partners
Gen X
Uncle to Millennials
13 years Internet marketing experience

e-Strategy
Tunheim Partners’ specialty full service Internet marketing practice
Search Engine Marketing/Optimization
Email Marketing
Social Media Marketing
Ecommerce
Online Reputation Management
Blog Marketing
Video Marketing
Mobile Marketing
Experienced leadership, strong team
Tunheim Partners – e-Strategy Service Offering

Millennials in Context
Millennials were born between 1982 and 2002 (Class of 2000 - currently 26 years old).
They are the largest living generation, outnumbering living Baby Boomers.
Millennials are:
Children of Xers & Boomers
Millennials: Cute baby movies, precocious children, child safety laws & products, school shooting laws, amber alerts, MySpace scares, Brangelina
The GI Generation – Civic generation, Institution Builders, Mark Zuckerberg
Most supervised generation in history – Surveillance is normal
Structured lives & Group Play
Team workers
Pushed to succeed and doted over
Everyone’s A Winner
Confident, Can Do
Civic minded, volunteering, child voting programs
Diverse, Tolerant & International – Global Internet access
Technology is a given
Coming of age during a time of crisis – 9/11, Iraq, Katrina, Recession

Millennials in Context
Millennials are fascinating and important for:
Growing up digital
How they work – collaboratively
What they believe - that they can make the world a better place to live
How they are living their lives - green, connected, passionate, idealistic yet practical
Source: Social Citizens BETA, 2008

Life of a 15-29 year old
Don’t read newspapers
No land-line phone
Television on their terms
Trust peers more than experts
Will pay for digital content
Internet experience is social
Content is going mobile
Television is for video games
Portable content
Want to be heard (user generated)
Texting (and IM)
E-mail is for parents
Like online video
Time & place shifting
On demand content
Source: The Impact of the Internet--Year Six Report, 2006 Surveying the Digital Future—The World Internet Project – USC Annenberg School--Center for the Digital Future

Millennials Online
“ Teens and Generation Y…are significantly more likely than older users to send and receive instant messages, play online games, create blogs, download music, and search for school information.”
-Pew Research “The Ties That Bind”

A New Way of Communicating and Organizing Trusting the opinion or friends Trusting the opinions of the experts Researching by surfing Wikipedia Researching using an encyclopedia Giving 10 bucks online Writing an annual check to charity Embracing causes as a moral imperative Embracing causes as a political act Internationalism Nationalism “ Side-by-side” leadership Hierarchical leadership Buycott Boycott Achieving goals through social connections Achieving goals through public policy Mobilizing through online social networks Mobilizing through rallies and petitions Blogging Pamphleteering Spreading the word by email and text message Spreading the word by mail or phone Socializing and shopping online Socializing and shopping at the mall Getting news through the Internet Getting news through the paper or TV This is now… That was then…

Millennials are Social Citizens
“ Let’s forget apathetic, ambivalent and passive, and instead consider active, energized and connected – a powerful combination for future success…”
-Kari Dunn Saratovsky, Director, Social Investment, The Case Foundation
A 2008 study by The Case Foundation provides a positive outlook for Millennials
They are Social Citizens, representing a nascent model and era of citizen participation that combines idealism, digital fluency, and immersion in social causes.
Social Citizens are:
energetic and passionate about social causes
brimming with new approaches and ideas for problem-solving
disposed towards sharing the responsibilities and rewards of affection change in the world
equipped with the digital tools and people power to make it happen.
Millennials truly believe they can change the world, that it is their moral imperative to help others – through small donations, simple volunteerism and responsible purchases.
Source: The Case Foundation, 2008

Millennials are Social Citizens
Volunteering:
61% of 13 to 25 year olds feel personally responsible for making a difference in the world. (Cone, Inc and AMP Insights)
81% of 13 to 25 year olds have volunteered in the past year
Volunteerism by college students increased by 20% from 2002 to 2005 (Federal Corporation for National and Community Service)
Voting: Millennials experience the largest increases in voting and registration rates from 2000 to 2004 relative to all other age groups.
2004: 47% of 18 to 24 year olds reported voting
2000: 36% of 18 to 24 year olds reported voting
Exit polls in 22 states estimate that more than 3 million voters under the age of 30 participated in Democratic primaries this year, up from about 1 million four years ago. (New York Times)
19% of college Millennials are likely to volunteer on a campaign (Readers Digest poll)
Nearly half have attempted to influence the vote of a friend or peer in 2008 election, often by using Facebook (Readers Digest)
One-fourth have lobbied one or more of their parents on politics. (Readers Digest)
Source: U.S. Census Bureau

Micropayments & ePhilanthropy
Micropayments – Low cost online transactions
Spare Change Application – 25 cent tips
iTunes - 99 cent songs
Ringtones
Video game virtual property
Weapons
Cars
Clothing
eBooks
Microgiving – Giving small amounts of money online to social causes: $10, $25, $50
ePhilanthropy – Socially networked giving.
Facebook Causes
Kiva
The world of philanthropy is changing.
Philanthropy (then): slow-moving, risk-averse, and institutional
Philanthropy (now): faster, less hierarchical, creative, and democratic.
The philanthropists of the 21st century will be smaller in size, but much larger in numbers then the philanthropists of the last century.

Millennials: Giving Trends
Millennials are just as likely to give to a cause than any other generation – in many circumstances, they are more socially conscious than any previous generation.
They are committed to causes, not tied to organizations
Unlikely to be lifelong donors to their local United Way or Sierra Club.
They will engage enthusiastically in specific campaigns about which they feel passionate, but their institutional support is likely to vanish once that campaign ends.
Millennials want to support causes and organizations that aim to make the world a better place and organizations that develop new approaches to solving social problems.
Just ask and ask in the right way.
“ A lot of Millennials can easily give $100, but in our experience, organizations are only asking them for $25 or $50 gifts.”
-Shaun Keister, annual giving consultant, Campbell & Company
“ I want to know where my money is going and what my individual impact is.”
-Ben Rattray, Change.org
Source: Social Citizens BETA, 2008

Giving Rates by Generation Source: “Generational Differences in Charitable Giving and in Motivations for Giving” Campbell & Company and Center on Philanthropy at Indiana University

Average Total Giving by Generation Source: “Generational Differences in Charitable Giving and in Motivations for Giving” Campbell & Company and Center on Philanthropy at Indiana University

Motivations for Giving by Generation Source: “Generational Differences in Charitable Giving and in Motivations for Giving” Campbell & Company and Center on Philanthropy at Indiana University

Online Giving: A Growing Trend
Global giving in 2007 is estimated to have surpassed $20 billion (USD).
Total online giving in USA reached $10.44 billion (estimate) in 2007, a 52% increase over 2006 estimates.
Increase online giving driven by:
creativity in strategy
unprecedented use of the Internet by individuals for non-disaster and disaster support efforts.
The US represents slightly more than 50% of the world-wide online giving . (2007)
More nonprofits are getting serious about raising major and midsize gifts (those of $500 or more) on the Internet.
Source: Ted Hart’s Annual Estimates 2007

Millennials, the Internet and Social Activism
Millennials are using social media to improve the world, changing the face of philanthropy and developing new approaches to activism, fundraising and information sharing
Online social networks are the backbone of Millennial activism
“ People want to feel that they are part of a critical mass of people dedicated to one overriding cause.”
-David Smith, founder of Mobilize.org
Online networks are more effective than traditional methods at reaching and mobilizing Millennials. Barack Obama campaign.
Millennials use the Internet to learn about causes, build networks around common goals, donate, participate and share :
Social Networking Sites: Facebook and MySpace
Blogs
Websites
Cell phones

User-Initiated Philanthropy
“ Facebook and other social networking sites mimic existing relationships, making users feel more pressure to get involved.”
-Joe Green, Causes for Facebook founder
Peer-to-peer philanthropy
Millennials use social networks to support causes, start philanthropic movements and educate their peers
Social networks connect social entrepreneurship with mass markets of consumers (peers) – they link the motivation behind a cause/philanthropy with the desire to create change
Anyone can start a movement for change… It’s easier than ever before

Online Millennials by the Numbers
93% of teens use the internet
64% of 12-17 year olds have participated in one or more content-creating activities, up from 57% of online teens in 2004
39% of online teens share their creations online , up from 33% in 2004
26% remix content they find online into their own creations, up from 19% in 2004
75% of teens read news online .
85% participated in social networking , and 57% reported involvement with blogs . - PriceGrabber survey, 2008
Only 1% of Amherst college 2008 freshman have landlines , 99% have Facebook accounts
88% of teens have mobile phones .
27% are very likely to listen to a friend's recommendation and 52% are somewhat likely . Don Tapscott, author of Wikinomics
Source: Pew: Teens and Soclal Media Report

Millennial Influencers by the Numbers

Millennials Word of Mouth by the Numbers

Credit Cards = Online Donations
The vast majority of Millennials have credit cards, making it EASY for them to donate online
College Age Credit Card Use
56% percent of college undergraduates get their first card at age 18
91% of college students have at least one credit card by their final year
56% of students carry four or more cards by college graduation
The number of incoming college freshmen with credit cards tripled between 1999 and 2002.
High School Age Credit Card Use
Approximately 1/3 and possibly as
much of 40% of all High School Seniors
AND Juniors have a credit card today.
18 to 24 year olds are the fastest-growing group of credit card users .
Nearly six out of 10 US teens have made a purchase online . (2008 OTX and The Intelligence Group study)
90% of Barack Obama’s online contributions were under $100 . 40% were $25 or less , and 10,000 people gave $5 or $10 to the campaign. (TechCrunch, Feb 2008)
Source: Nellie Mae, National Bankruptcy Research Center and JumpStart Coalition for Personal Financial Literacy

Millennials’ Ecommerce Channels

Millennials’ Use of Cell Phones
18 to 24 are the most talkative on their phones (averaging 290 calls a month in 2007)
Text messaging is highest among 13- to 17 -year-olds (who averaged 1,742 texts a month in 2008) Neilsen Mobile.
21 percent of 18-34 year old consumers use their cell phone for mobile banking transactions , compared to about 10 percent of the general population. - 2008 Opinion Research Corp. survey
More than 140 million mobile subscribers worldwide will use social networks on their phones by 2013. - ABI Research's September 2008 "Mobile Social Networking" study.
57% of mobile subscribers have data plans - Nielsen
Mobile Internet has 15.6 percent penetration in the US (40 million regular users). - Nielsen Mobile
Smart-phone sales in North America were up 106 percent in 2008 from the first quarter of 2007. - Gartner
Smart Phones
Ubiquitous WiFi/Broadband
Smart Cameras
Barcode readers
Portable Video
Watch, Record, Live TV
Text , Instant Messages, Email
Full Browsing
Music/Podcasts/Streaming audio
Video Games
GPS – Location-based Marketing
Mobile Commerce

Communicating with Millennials
Communicating with Millennials requires an adapted approach, prolonged outreach and the ability to be part of their conversations.
How do you reach Millennials with your message?
Get digital : online communications most convenient for Millennials.
Get personal: Face-to-face still matters
Get relevant: your message must blend in with their interests and passions, but it also has to make sense in the context of their lives.
Get simple: if you can’t say it in less than 100 words, you won’t have any takers.
Get practical : don’t ask for a big donation or ask them to attend a stuffy cocktail reception; ask them to do something during a commercial or to donate spare pocket change – you want to create loyalty so they keep coming back once they have more time and money.
Get original : an original and creative idea (sticky) has a better chance of getting these folks to take the next step.
Source: Cool People Care

Social Media = Word of Mouth
The barrier to entry is near zero
Facebook, MySpace, YouTube, Blogs
Common Attributes of Social Media
RSS
Status Updates
Friends/Fans
Comments
Subscribing
Internal Email
Profiles, Pages & Groups
Conversational Marketing
Friends/Fans = Endorsement
Tap into social network
Trusted Source
Icon marketing
Network broadcasts
Search

Example: Facebook Causes
Facebook Activism Application
269,988 daily active users
Leverages communities of common interests
Allows direct (and immediate) donation
Well funded developers
Average donations are $10 - $40
“ We’re putting tools into the hands of individuals to mobilize their friends and ultimately build social and political movements.”
-Sean Parker, Facebook founding president, 27.
“ This is a natural evolution of social networking. Leveraging real world social networks is an important part of activism, fundraising, and political campaigning. This is especially true of grassroots activism, local-chapter style nonprofit organizations, and the walks/runs used by many charities to raise money. Given all this, it’s a bit surprising that online social networks haven’t been more aggressively leveraged until now.”
-Causes for Facebook founders

Example: MySpace Impact
MySpace.com/PayPal
Nonprofit fundraising contest
Ends October 13
Social network fundraising
Micropayments
Widget marketing
Online wizard
Portable content

Example: Obama Mobile
Groups – Text your friends
ObamaMobile.mobi
VP Announcement
Zip – Location based marketing
Forward to 5 friends
Mobile content
Watch the debate
Come to the rally
Voter registration information
Volunteer
Give to Red Cross for Hurricane relief

Web Form Design
Minimize the pain
Make it as easy as possible to fill out
Progress indicator
Forgiving inputs, validation
Clear, helpful error messages
Ask for only the information you need, when you need it
Make action button highly visible
Remove reset button
Eliminate unneeded navigation
Crystal clear labels
Smart defaults – e.g. List of states
Enable tabbing
Top-aligned labels cut eye fixations in half
Uniform field lengths but long enough for data
Completion verification
Example of well designed nonprofit donation system
United Way: liveunited.org

Trends
Broadband Ubiquity
Wireless
Mobile
Smart Phones get smarter
Mobile commerce
Smart cameras
Barcode readers
GPS – Location-based marketing
Broadband TV
Internet Access
HD
RSS
Video Game Consoles
Entertainment centers
Downloadable content

Resources
Facebook Causes
apps.facebook.com/causes
Facebook Pages
facebook.com/pages/create.php
MySpace Impact
myspace.ocm/paypal
Spare Change
sparechangeinc.com
Micropayment social networking application
ChipIn.com
Fundraising widget
FirstGiving.com
Fundraising page wizard
7.5% transaction fee
Mobile Giving Foundation
mobilegiving.org
MobileActive.org
Change.org
Social network for activists

Thank you
For a copy of this presentation go to: http://www.slideshare.net/tunheimpartners/millennials-and-microgiving-presentation/
For more information contact:
David Erickson
952-851-7242
[email_address]
Eliza Appert
[email_address]
Tunheim.com
e-Strategy.com
EcoLogicblog.com

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Millennials And Microgiving

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