Millennials And Microgiving


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Tunheim Partners' David Erickson's and Eliza Appert's presentation at the 2008 Minnesota Council on Nonprofits conference, Nonprofits & Government: Partnerships & Policies in a Time of Retrenchment on Millennials & Micropayments: Social Giving & ePhilanthropy.

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  • Millennials And Microgiving

    1. 1. Millennials & Micropayments Social Giving & ePhilanthropy Minnesota Council on Nonprofits Annual Conference Nonprofits & Government: Partnerships & Policies in a Time of Retrenchment October 3, 2008
    2. 2. 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.
    3. 3. Presenters <ul><li>Eliza Appert, account executive, Tunheim Partners </li></ul><ul><ul><li>Millennial </li></ul></ul><ul><ul><li>e-Strategy team member </li></ul></ul><ul><ul><li>Experience in online marketing and communications, cause marketing, corporate social responsibility and corporate communications </li></ul></ul><ul><li>David Erickson, director e-Strategy, Tunheim Partners </li></ul><ul><ul><li>Gen X </li></ul></ul><ul><ul><li>Uncle to Millennials </li></ul></ul><ul><ul><li>13 years Internet marketing experience </li></ul></ul>
    4. 4. <ul><li>e-Strategy </li></ul><ul><ul><li>Tunheim Partners’ specialty full service Internet marketing practice </li></ul></ul><ul><ul><ul><li>Search Engine Marketing/Optimization </li></ul></ul></ul><ul><ul><ul><li>Email Marketing </li></ul></ul></ul><ul><ul><ul><li>Social Media Marketing </li></ul></ul></ul><ul><ul><ul><li>Ecommerce </li></ul></ul></ul><ul><ul><ul><li>Online Reputation Management </li></ul></ul></ul><ul><ul><ul><li>Blog Marketing </li></ul></ul></ul><ul><ul><ul><li>Video Marketing </li></ul></ul></ul><ul><ul><ul><li>Mobile Marketing </li></ul></ul></ul><ul><ul><li>Experienced leadership, strong team </li></ul></ul>Tunheim Partners – e-Strategy Service Offering
    5. 5. Millennials in Context <ul><li>Millennials were born between 1982 and 2002 (Class of 2000 - currently 26 years old). </li></ul><ul><li>They are the largest living generation, outnumbering living Baby Boomers. </li></ul><ul><li>Millennials are: </li></ul><ul><ul><li>Children of Xers & Boomers </li></ul></ul><ul><ul><li>Millennials: Cute baby movies, precocious children, child safety laws & products, school shooting laws, amber alerts, MySpace scares, Brangelina </li></ul></ul><ul><ul><li>The GI Generation – Civic generation, Institution Builders, Mark Zuckerberg </li></ul></ul><ul><ul><li>Most supervised generation in history – Surveillance is normal </li></ul></ul><ul><ul><li>Structured lives & Group Play </li></ul></ul><ul><ul><ul><li>Team workers </li></ul></ul></ul><ul><ul><li>Pushed to succeed and doted over </li></ul></ul><ul><ul><ul><li>Everyone’s A Winner </li></ul></ul></ul><ul><ul><ul><li>Confident, Can Do </li></ul></ul></ul><ul><ul><li>Civic minded, volunteering, child voting programs </li></ul></ul><ul><ul><li>Diverse, Tolerant & International – Global Internet access </li></ul></ul><ul><ul><li>Technology is a given </li></ul></ul><ul><ul><li>Coming of age during a time of crisis – 9/11, Iraq, Katrina, Recession </li></ul></ul>
    6. 6. Millennials in Context <ul><li>Millennials are fascinating and important for: </li></ul><ul><ul><li>Growing up digital </li></ul></ul><ul><ul><li>How they work – collaboratively </li></ul></ul><ul><ul><li>What they believe - that they can make the world a better place to live </li></ul></ul><ul><ul><li>How they are living their lives - green, connected, passionate, idealistic yet practical </li></ul></ul>Source: Social Citizens BETA, 2008
    7. 7. Life of a 15-29 year old <ul><li>Don’t read newspapers </li></ul><ul><li>No land-line phone </li></ul><ul><li>Television on their terms </li></ul><ul><li>Trust peers more than experts </li></ul><ul><li>Will pay for digital content </li></ul><ul><li>Internet experience is social </li></ul><ul><li>Content is going mobile </li></ul><ul><li>Television is for video games </li></ul><ul><li>Portable content </li></ul><ul><li>Want to be heard (user generated) </li></ul><ul><li>Texting (and IM) </li></ul><ul><li>E-mail is for parents </li></ul><ul><li>Like online video </li></ul><ul><li>Time & place shifting </li></ul><ul><li>On demand content </li></ul>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
    8. 8. Millennials Online <ul><li>“ 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.” </li></ul><ul><li>-Pew Research “The Ties That Bind” </li></ul>
    9. 9. 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…
    10. 10. Millennials are Social Citizens <ul><li>“ Let’s forget apathetic, ambivalent and passive, and instead consider active, energized and connected – a powerful combination for future success…” </li></ul><ul><li>-Kari Dunn Saratovsky, Director, Social Investment, The Case Foundation </li></ul><ul><li>A 2008 study by The Case Foundation provides a positive outlook for Millennials </li></ul><ul><li>They are Social Citizens, representing a nascent model and era of citizen participation that combines idealism, digital fluency, and immersion in social causes. </li></ul><ul><li>Social Citizens are: </li></ul><ul><ul><li>energetic and passionate about social causes </li></ul></ul><ul><ul><li>brimming with new approaches and ideas for problem-solving </li></ul></ul><ul><ul><li>disposed towards sharing the responsibilities and rewards of affection change in the world </li></ul></ul><ul><ul><li>equipped with the digital tools and people power to make it happen. </li></ul></ul><ul><li>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. </li></ul>Source: The Case Foundation, 2008
    11. 11. Millennials are Social Citizens <ul><li>Volunteering: </li></ul><ul><ul><li>61% of 13 to 25 year olds feel personally responsible for making a difference in the world. (Cone, Inc and AMP Insights) </li></ul></ul><ul><ul><li>81% of 13 to 25 year olds have volunteered in the past year </li></ul></ul><ul><ul><li>Volunteerism by college students increased by 20% from 2002 to 2005 (Federal Corporation for National and Community Service) </li></ul></ul><ul><li>Voting: Millennials experience the largest increases in voting and registration rates from 2000 to 2004 relative to all other age groups. </li></ul><ul><ul><li>2004: 47% of 18 to 24 year olds reported voting </li></ul></ul><ul><ul><li>2000: 36% of 18 to 24 year olds reported voting </li></ul></ul><ul><ul><li>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) </li></ul></ul><ul><ul><li>19% of college Millennials are likely to volunteer on a campaign (Readers Digest poll) </li></ul></ul><ul><ul><li>Nearly half have attempted to influence the vote of a friend or peer in 2008 election, often by using Facebook (Readers Digest) </li></ul></ul><ul><ul><li>One-fourth have lobbied one or more of their parents on politics. (Readers Digest) </li></ul></ul>Source: U.S. Census Bureau
    12. 12. Micropayments & ePhilanthropy <ul><li>Micropayments – Low cost online transactions </li></ul><ul><ul><li>Spare Change Application – 25 cent tips </li></ul></ul><ul><ul><li>iTunes - 99 cent songs </li></ul></ul><ul><ul><li>Ringtones </li></ul></ul><ul><ul><li>Video game virtual property </li></ul></ul><ul><ul><ul><li>Weapons </li></ul></ul></ul><ul><ul><ul><li>Cars </li></ul></ul></ul><ul><ul><ul><li>Clothing </li></ul></ul></ul><ul><ul><li>eBooks </li></ul></ul><ul><li>Microgiving – Giving small amounts of money online to social causes: $10, $25, $50 </li></ul><ul><li>ePhilanthropy – Socially networked giving. </li></ul><ul><ul><li>Facebook Causes </li></ul></ul><ul><ul><li>Kiva </li></ul></ul><ul><li>The world of philanthropy is changing. </li></ul><ul><ul><li>Philanthropy (then): slow-moving, risk-averse, and institutional </li></ul></ul><ul><ul><li>Philanthropy (now): faster, less hierarchical, creative, and democratic. </li></ul></ul><ul><li>The philanthropists of the 21st century will be smaller in size, but much larger in numbers then the philanthropists of the last century. </li></ul>
    13. 13. Millennials: Giving Trends <ul><li>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. </li></ul><ul><li>They are committed to causes, not tied to organizations </li></ul><ul><ul><li>Unlikely to be lifelong donors to their local United Way or Sierra Club. </li></ul></ul><ul><ul><li>They will engage enthusiastically in specific campaigns about which they feel passionate, but their institutional support is likely to vanish once that campaign ends. </li></ul></ul><ul><li>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. </li></ul><ul><li>Just ask and ask in the right way. </li></ul><ul><ul><li>“ A lot of Millennials can easily give $100, but in our experience, organizations are only asking them for $25 or $50 gifts.” </li></ul></ul><ul><li>-Shaun Keister, annual giving consultant, Campbell & Company </li></ul><ul><li>“ I want to know where my money is going and what my individual impact is.” </li></ul><ul><li>-Ben Rattray, </li></ul>Source: Social Citizens BETA, 2008
    14. 14. Giving Rates by Generation Source: “Generational Differences in Charitable Giving and in Motivations for Giving” Campbell & Company and Center on Philanthropy at Indiana University
    15. 15. 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
    16. 16. 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
    17. 17. Online Giving: A Growing Trend <ul><li>Global giving in 2007 is estimated to have surpassed $20 billion (USD). </li></ul><ul><li>Total online giving in USA reached $10.44 billion (estimate) in 2007, a 52% increase over 2006 estimates. </li></ul><ul><li>Increase online giving driven by: </li></ul><ul><ul><li>creativity in strategy </li></ul></ul><ul><ul><li>unprecedented use of the Internet by individuals for non-disaster and disaster support efforts. </li></ul></ul><ul><li>The US represents slightly more than 50% of the world-wide online giving . (2007) </li></ul><ul><li>More nonprofits are getting serious about raising major and midsize gifts (those of $500 or more) on the Internet. </li></ul>Source: Ted Hart’s Annual Estimates 2007
    18. 18. Millennials, the Internet and Social Activism <ul><li>Millennials are using social media to improve the world, changing the face of philanthropy and developing new approaches to activism, fundraising and information sharing </li></ul><ul><li>Online social networks are the backbone of Millennial activism </li></ul><ul><li>“ People want to feel that they are part of a critical mass of people dedicated to one overriding cause.” </li></ul><ul><li>-David Smith, founder of </li></ul><ul><li>Online networks are more effective than traditional methods at reaching and mobilizing Millennials. Barack Obama campaign. </li></ul><ul><li>Millennials use the Internet to learn about causes, build networks around common goals, donate, participate and share : </li></ul><ul><ul><li>Social Networking Sites: Facebook and MySpace </li></ul></ul><ul><ul><li>Blogs </li></ul></ul><ul><ul><li>Websites </li></ul></ul><ul><ul><li>Cell phones </li></ul></ul>
    19. 19. User-Initiated Philanthropy <ul><li>“ Facebook and other social networking sites mimic existing relationships, making users feel more pressure to get involved.” </li></ul><ul><ul><li>-Joe Green, Causes for Facebook founder </li></ul></ul><ul><li>Peer-to-peer philanthropy </li></ul><ul><li>Millennials use social networks to support causes, start philanthropic movements and educate their peers </li></ul><ul><li>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 </li></ul><ul><li>Anyone can start a movement for change… It’s easier than ever before </li></ul>
    20. 20. Online Millennials by the Numbers <ul><li>93% of teens use the internet </li></ul><ul><li>64% of 12-17 year olds have participated in one or more content-creating activities, up from 57% of online teens in 2004 </li></ul><ul><li>39% of online teens share their creations online , up from 33% in 2004 </li></ul><ul><li>26% remix content they find online into their own creations, up from 19% in 2004 </li></ul><ul><li>75% of teens read news online . </li></ul><ul><li>85% participated in social networking , and 57% reported involvement with blogs . - PriceGrabber survey, 2008 </li></ul><ul><li>Only 1% of Amherst college 2008 freshman have landlines , 99% have Facebook accounts </li></ul><ul><li>88% of teens have mobile phones . </li></ul><ul><li>27% are very likely to listen to a friend's recommendation and 52% are somewhat likely . Don Tapscott, author of Wikinomics </li></ul>Source: Pew: Teens and Soclal Media Report
    21. 21. Millennial Influencers by the Numbers
    22. 22. Millennials Word of Mouth by the Numbers
    23. 23. Credit Cards = Online Donations <ul><li>The vast majority of Millennials have credit cards, making it EASY for them to donate online </li></ul><ul><li>College Age Credit Card Use </li></ul><ul><ul><li>56% percent of college undergraduates get their first card at age 18 </li></ul></ul><ul><ul><li>91% of college students have at least one credit card by their final year </li></ul></ul><ul><ul><li>56% of students carry four or more cards by college graduation </li></ul></ul><ul><ul><li>The number of incoming college freshmen with credit cards tripled between 1999 and 2002. </li></ul></ul><ul><li>High School Age Credit Card Use </li></ul><ul><ul><li>Approximately 1/3 and possibly as </li></ul></ul><ul><ul><li>much of 40% of all High School Seniors </li></ul></ul><ul><ul><li>AND Juniors have a credit card today. </li></ul></ul><ul><li>18 to 24 year olds are the fastest-growing group of credit card users . </li></ul><ul><li>Nearly six out of 10 US teens have made a purchase online . (2008 OTX and The Intelligence Group study) </li></ul><ul><li>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) </li></ul>Source: Nellie Mae, National Bankruptcy Research Center and JumpStart Coalition for Personal Financial Literacy
    24. 24. Millennials’ Ecommerce Channels
    25. 25. Millennials’ Use of Cell Phones <ul><li>18 to 24 are the most talkative on their phones (averaging 290 calls a month in 2007) </li></ul><ul><li>Text messaging is highest among 13- to 17 -year-olds (who averaged 1,742 texts a month in 2008) Neilsen Mobile. </li></ul><ul><li>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 </li></ul><ul><li>More than 140 million mobile subscribers worldwide will use social networks on their phones by 2013. - ABI Research's September 2008 &quot;Mobile Social Networking&quot; study.  </li></ul><ul><li>57%   of mobile subscribers have data plans - Nielsen </li></ul><ul><li>Mobile Internet has 15.6 percent penetration in the US (40 million regular users). - Nielsen Mobile </li></ul><ul><li>Smart-phone sales in North America were up 106 percent in 2008 from the first quarter of 2007. - Gartner </li></ul><ul><li>Smart Phones </li></ul><ul><ul><li>Ubiquitous WiFi/Broadband </li></ul></ul><ul><ul><li>Smart Cameras </li></ul></ul><ul><ul><ul><li>Barcode readers </li></ul></ul></ul><ul><ul><li>Portable Video </li></ul></ul><ul><ul><ul><li>Watch, Record, Live TV </li></ul></ul></ul><ul><ul><li>Text , Instant Messages, Email </li></ul></ul><ul><ul><li>Full Browsing </li></ul></ul><ul><ul><li>Music/Podcasts/Streaming audio </li></ul></ul><ul><ul><li>Video Games </li></ul></ul><ul><ul><li>GPS – Location-based Marketing </li></ul></ul><ul><ul><li>Mobile Commerce </li></ul></ul>
    26. 26. Communicating with Millennials <ul><li>Communicating with Millennials requires an adapted approach, prolonged outreach and the ability to be part of their conversations. </li></ul><ul><li>How do you reach Millennials with your message? </li></ul><ul><ul><li>Get digital : online communications most convenient for Millennials. </li></ul></ul><ul><ul><li>Get personal: Face-to-face still matters </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>Get simple: if you can’t say it in less than 100 words, you won’t have any takers. </li></ul></ul><ul><ul><li>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. </li></ul></ul><ul><ul><li>Get original : an original and creative idea (sticky) has a better chance of getting these folks to take the next step. </li></ul></ul>Source: Cool People Care
    27. 27. Social Media = Word of Mouth <ul><li>The barrier to entry is near zero </li></ul><ul><li>Facebook, MySpace, YouTube, Blogs </li></ul><ul><li>Common Attributes of Social Media </li></ul><ul><ul><li>RSS </li></ul></ul><ul><ul><li>Status Updates </li></ul></ul><ul><ul><li>Friends/Fans </li></ul></ul><ul><ul><li>Comments </li></ul></ul><ul><ul><li>Subscribing </li></ul></ul><ul><ul><li>Internal Email </li></ul></ul><ul><li>Profiles, Pages & Groups </li></ul><ul><li>Conversational Marketing </li></ul><ul><li>Friends/Fans = Endorsement </li></ul><ul><ul><li>Tap into social network </li></ul></ul><ul><ul><li>Trusted Source </li></ul></ul><ul><ul><li>Icon marketing </li></ul></ul><ul><ul><li>Network broadcasts </li></ul></ul><ul><li>Search </li></ul>
    28. 28. Example: Facebook Causes <ul><li>Facebook Activism Application </li></ul><ul><li>269,988 daily active users </li></ul><ul><li>Leverages communities of common interests </li></ul><ul><li>Allows direct (and immediate) donation </li></ul><ul><li>Well funded developers </li></ul><ul><li>Average donations are $10 - $40 </li></ul><ul><li>“ We’re putting tools into the hands of individuals to mobilize their friends and ultimately build social and political movements.” </li></ul><ul><li>-Sean Parker, Facebook founding president, 27. </li></ul><ul><li>“ 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.” </li></ul><ul><li>-Causes for Facebook founders </li></ul>
    29. 29. Example: MySpace Impact <ul><li> </li></ul><ul><li>Nonprofit fundraising contest </li></ul><ul><ul><li>Ends October 13 </li></ul></ul><ul><li>Social network fundraising </li></ul><ul><li>Micropayments </li></ul><ul><li>Widget marketing </li></ul><ul><ul><li>Online wizard </li></ul></ul><ul><li>Portable content </li></ul>
    30. 30. Example: Obama Mobile <ul><li>Groups – Text your friends </li></ul><ul><li> </li></ul><ul><li>VP Announcement </li></ul><ul><li>Zip – Location based marketing </li></ul><ul><li>Forward to 5 friends </li></ul><ul><li>Mobile content </li></ul><ul><li>Watch the debate </li></ul><ul><li>Come to the rally </li></ul><ul><li>Voter registration information </li></ul><ul><li>Volunteer </li></ul><ul><li>Give to Red Cross for Hurricane relief </li></ul>
    31. 31. Web Form Design <ul><li>Minimize the pain </li></ul><ul><ul><li>Make it as easy as possible to fill out </li></ul></ul><ul><ul><li>Progress indicator </li></ul></ul><ul><ul><li>Forgiving inputs, validation </li></ul></ul><ul><ul><li>Clear, helpful error messages </li></ul></ul><ul><li>Ask for only the information you need, when you need it </li></ul><ul><li>Make action button highly visible </li></ul><ul><li>Remove reset button </li></ul><ul><li>Eliminate unneeded navigation </li></ul><ul><li>Crystal clear labels </li></ul><ul><li>Smart defaults – e.g. List of states </li></ul><ul><li>Enable tabbing </li></ul><ul><li>Top-aligned labels cut eye fixations in half </li></ul><ul><li>Uniform field lengths but long enough for data </li></ul><ul><li>Completion verification </li></ul><ul><li>Example of well designed nonprofit donation system </li></ul><ul><ul><li>United Way: </li></ul></ul>
    32. 32. Trends <ul><li>Broadband Ubiquity </li></ul><ul><li>Wireless </li></ul><ul><li>Mobile </li></ul><ul><ul><li>Smart Phones get smarter </li></ul></ul><ul><ul><li>Mobile commerce </li></ul></ul><ul><li>Smart cameras </li></ul><ul><ul><li>Barcode readers </li></ul></ul><ul><li>GPS – Location-based marketing </li></ul><ul><li>Broadband TV </li></ul><ul><ul><li>Internet Access </li></ul></ul><ul><ul><li>HD </li></ul></ul><ul><ul><li>RSS </li></ul></ul><ul><li>Video Game Consoles </li></ul><ul><ul><li>Entertainment centers </li></ul></ul><ul><ul><li>Downloadable content </li></ul></ul>
    33. 33. Resources <ul><li>Facebook Causes </li></ul><ul><ul><li> </li></ul></ul><ul><li>Facebook Pages </li></ul><ul><ul><li> </li></ul></ul><ul><li>MySpace Impact </li></ul><ul><ul><li>myspace.ocm/paypal </li></ul></ul><ul><li>Spare Change </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li>Micropayment social networking application </li></ul></ul><ul><li> </li></ul><ul><ul><li>Fundraising widget </li></ul></ul><ul><li> </li></ul><ul><ul><li>Fundraising page wizard </li></ul></ul><ul><ul><li>7.5% transaction fee </li></ul></ul><ul><li>Mobile Giving Foundation </li></ul><ul><ul><li> </li></ul></ul><ul><li> </li></ul><ul><li> </li></ul><ul><ul><li>Social network for activists </li></ul></ul>
    34. 34. Thank you <ul><li>For a copy of this presentation go to: </li></ul><ul><li>For more information contact: </li></ul><ul><li>David Erickson </li></ul><ul><li>952-851-7242 </li></ul><ul><li>[email_address] </li></ul><ul><li>Eliza Appert </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>