by TristanJuly 14, 2009

Intern's Teen Media Report Has Finance World Buzzing

teen-media-consumption

190 comments for the Guardian online, 1000+ tweets all across the world, the UK Financial Times’ front page, “one of the clearest and most thought-provoking insights we have seen” (Edward Hill-Wood, executive director of Morgan Stanley's European media team)… What? Who? How?

Answer: Matthew Robson’s research note on teen media habits at Morgan Stanley. Robson is a 15-year-old intern. He compiled this “research” from his own opinions and those of his friends.

Corporations, especially financial institutions, are obviously—painfully—desperate to stay on top of this monumental shift in communications that is happening from the bottom up. They are so hungry for knowledge that one intern can have the ear of an entire industry. Is this really the best way to glean insights? Well, any market researcher would give you a resounding “No,” but these types of POVs can often provide directional—if not scientifically sound—information.

So what exactly does Robson say?

On Television

Most teenagers watch TV, but only during certain periods like soccer season, or to follow a specific show. They are starting to watch less TV because of video sites (BBC iPlayer) that contain less ads and offer desired programs at any time.

We say: The format of TV is definitely changing as TiVo is ubiquitous, video streaming is mainstream (Hulu),and content is moving to mobile (especially sports like soccer). Still there are lots of cross-platform opportunities to create real-time communication around a piece of content.

On Internet/Social Media

Every teenager has some access to the Internet and is active on several social networking sites. Facebook is the most popular site, with teens connecting more than 4 times a week. Twitter, on the other hand, is not used by teens because no one follows them and texting to tweet uses their cell phone credit. He goes on to say that teens use Google, and YouTube.

We say: Teen social network usage is indeed through the roof and most are on a few sites, crafting and experimenting with a few difference personae. The issue with Twitter might have more to do with the fact that teens have less control of their community, rather than some texting charges (one text to twitter is cheaper than one text to all your friends). Actually, as of June 2009, 65% of tweeters are under 25 (of those who actually disclosed their age), with 8% being under 17.

As one reader pointed out on The Guardian’s site: “This is what we call a generalization. I know many teenagers who absolutely love Twitter, myself included. The idea that online advertising is irritating is no huge revelation; why do you think so many sites allow you to pay for a premium service (Spotify, Last.fm etc.) where you don't have to see them?”

On Viral/Outdoor Marketing

Teens enjoy and support viral marketing because it is funny. Online ads have no effect on teenagers as they never click on them because they know that it is for selling purposes only. Outdoor advertising does not trigger any reaction by teens, unless they “oppose it” (like the Benetton baby ads). Teens are used to billboards so they don’t pay attention to them, and they are not geared towards them (except film).

We say: One-way advertising is losing ground with younger generations, who are so used to controlling what they want and when they want it. We think that once digital out of home becomes more prevalent, teens will think differently about billboards. Even add a short code to a print advertisement (which teens do recognize and respond to) and you have instant location-based interaction.

On Mobile Phones

99% of teenagers own a mobile phone. Sony Ericsson is perceived as the best brand for its features and price. Teens usually have pay-as-you-go, because they cannot afford a monthly bill and do not want to commit to an 18-month long contract. Main usage for teens is calling and texting as other services (like video calling, video messaging) cost too much. Chat is not a main feature for teens because it requires an expensive data plan. Bluetooth is an essential feature for teens, as they use the technology to send songs and files to each other. Ringtones and wallpapers do not sell anymore because of bad press on the cost of such services, and the ability to do all that for free now. Teens don’t use email either, and can usually wait “one hour” to get home and use the internet. Concerning phone upgrades, teens usually do it every two years, on their birthdays.

We say: There’s a danger here of extrapolating this from the UK to other countries. Culture and carriers play a large role in young people’s relationships with their handsets. For the US, the penetration rate is still not 99% even for the oldest teens. Also, here teens do not usually have pay-as-you-go (or prepaid), the majority of youth are on family plans. In fact, most teens don’t pay for their plans at all--more than 50% are on family plans and pay nothing or a minimal amount. However they might pay if they go over their minutes.

Data is still a luxury for teens her too though, so that does cut down on chat usage. Bluetooth is definitely a regional thing, we’d say most teens in the U.S. don’t use it, but it’s been incorporated into British culture fairly well so they are used to it now. Teens are using ringtones less and less, opting to put their phones on vibrate (especially if they brought their phone to class). Look for ringbacks to supplant them in popularity though. We’d agree that most don’t email. When these kids get jobs and better phones, though, they will, and it will become pretty synonymous with SMS.

On Movies

Teens go to the movies a lot, regardless of what is on. That’s because cinema is about the experience and getting together with friends. After 15, they go less because the price goes up, and buying pirated DVD versions is cheaper than the movies.

We say: The emphasis here is about the shared experience, which becomes something in common they can talk about. Same reason online shopping will never replace the mall.

On Music

Teenagers listen to a lot of music while doing something else. Paying for music is not popular, as teens prefer to download. The downloaded song can then be uploaded to their mobile device and shared with friends. Rich kids use iPods to listen to music while poor kids use mobile phones.

We say: In fact, we are seeing downloading on the decline, replaced by streaming in both the US and the UK (as reported by YPulse yesterday). For teens, its not about ownership so much as always-on access. Though this model won't take over for good until teens get data plans and networks improve, so they can stream on the go. And I think we can agree that "rich" and "poor" here are just poor word choices and extremely relative at that.

On What is Hot...

  • Anything with a touch screen is desirable.
  • Mobile phones with large capacities for music.
  • Portable devices that can connect to the internet (iPhones)
  • Really big tellies

...and What Is Not

  • Anything with wires
  • Phones with black and white screens
  • Clunky ‘brick’ phones
  • Devices with less than ten-hour battery life

We say: Can’t argue with these, but we’d add QWERTY keyboards to the “hot” list and just laugh at the “anything with wires” comment. It’s definitely a wireless world, we just can’t wait for wireless recharging!


Putting aside the dubious accuracy of these stats,and the absurd amount of coverage this “report” has gotten, we have to say that Morgan Stanley is on the right track. Honestly the best thing a company can do right now is listen to its young employees with open ears and an open mind.

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