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OCTOBER 17, 2013

Canada Demographics:Age-Based Digital Behaviors

Paul BriggsAnalyst, Canada

©2013 eMarketer Inc.

Agenda

� Demographics overview: Patterns and future

outlook.

� Digital influences: Psychographic and

economic.

� Age-based digital proclivities: Children/teens

(0-19), millennials (18-34), Generation X (35-44), boomers (45-64), seniors (65+).

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Demographic overview: Population

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Two major and opposing forces are impacting Canada’s demographics

Canada’s population is aging

� 2012 median age of 39.9 years* (vs. 37.1 in the US)• Up from to 36.4 in 1999 and 26.2 in 1971• Forecasted to reach 44 by 2030

� Seniors are fastest-growing demographic• 14.9% of the population in 2012• Rising to 18.5% by 2021, and 22.8% by 2031

� Why?• Lowering fertility rates, baby boom aging, increase in

life expectancy *All data Statistics Canada

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Two major and opposing forces are impacting Canada’s demographics

Immigration of younger people

� Highest per capita immigration in the G7

� Net immigration of 267,160 in the 12 months ending July 1, 2012• Equals 172% of the natural population increase

(births minus deaths) of 129,356 (US = 62%)

� Median immigrant age in 2011 was 31.7, significantly lower than Canada’s median age

� New immigration point system favors younger applicants

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All age demographics in Canada are digitally engaged

2012 internet user penetration: 86.8%; youth 15–24: 99.5%—International Telecommunications Union, “Measuring the information Society 2013,” Oct. 7, 2013

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Facebook penetration by age

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Digital behavior drivers:

Psychographic and economic

Demographic Psychographic Economic

Kids/Teens Discovery Indirect

Millennials Identity,authenticity

Value

Gen X Family care Balance

Boomers Retirement Wealthy

Seniors Health andwellness

Sustaining

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Distinct digital patterns exist within

each major age demographic

� Children and Teens. Many screens.

� Millennials. Social seekers.

� Generation X. Ecommerce.

� Baby Boomers. Loyalty programs.

� Seniors. TV dominates; internet use growing.

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Kids and teens: Screens, screens,

screens

Almost three-quarters of homes in Canada with children younger than 12 had at least one gaming console.

—CBC Media Technology Monitor, April 2013

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The role of technology in family connectedness is undeniable

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Television time is lower among children and teens than among adults

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Millennials: Social seekers

“Overall, through our online mediums, we see the highest number of interactions and engagement from millennials.”

—Shelagh Stoneham, senior vice president and general managerof brands at Rogers Communications

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Millennials value social media more than older groups do

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Facebook led by far, but millennials’ Twitter use rose 70% in 2012

30% of US millennialson Twitter - Pew, May ‘13

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In 2013, millennials account for 57% of LinkedIn’s 8 million users in Canada

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Millennials lead the pack among

cord-cutters

Canada’s cord-cutters:

• one in four 18-to-24s• one in five 25-to-34s• 15% of 35-and-olders• “Value” main incentive

—comScore/Google, April 2013

Cord-cutting: The act of suspending traditional cable TV service and instead turning to the internet for streaming content

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Financial struggles are common for young people in Canada

The Great Recession lingers. Poor entry-level job

market forcing many to accept positions below their post-secondary qualifications.

Student debt. 2013 research by BMO Financial found

the average student will graduate with CA$26,297 in debt and take 6.4 years to pay it off.

Delaying marriage. In 2011, almost three-quarters

(73.1%) of Canada’s population ages 25 to 29 had never been married, according to Statistics Canada data, compared to 26% in 1981.

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Targeting millennials: Rogers

Communications

“Roommate Horror Stories” campaign promoting

unlimited student internet sharing plan

� branded content on YouTube depicting housemates “candidly” interviewing new roommates

� media buys in social forums Funny or Die and College Humor� user content (30 influential horror stories)� 225,000 downloads in first few weeks (>360K currently)

“What is sometimes overlooked is how access to information and transparency provided by the internet has made millennials more marketing savvy than any other generation.”

–Shelagh Stoneham, senior vice president and general managerof brands and marketing communications at Rogers Communications

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Generation X: Online shoppers

Gen X Mothers: July 2013 eMarketer report shows mothers in Canada leading the way as online shoppers

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Most of Canada’s internet-using mothers

shopped online in 2012 at least once

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Generation X leads all age groups in Canada for online purchasing of family items like books, toys, computers and movies

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Generation X is more likely than other age groups in Canada to use a tablet or smartphone to make a purchase

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Baby Boomers: Loyalty programs

“Boomers have higher mileage accumulation, are more likely to have frequent flyer status or an Aeroplan co-branded financial card, and more likely to redeem at more frequent levels.”

—David Klein, vice president of marketing at Aeroplan

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Boomers

have shown

the

strongest

interest in

loyalty

programs

of all age

groups in

Canada

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Boomers are marketers’ most lucrative demographic in Canada

Concentrated wealth

� Boomers hold 80% of Canada’s financial wealth, according to boomerwatch.ca.

Retirement planning is on boomers’ minds

� In a 2012 Manulife Bank survey of homeowners in Canada ages 30 to 59, 82% placed high importance on sufficient retirement income, ranking behind only “having good health” (94%) and being “debt-free” (85%).

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Targeting boomers: Manulife

“The 50- to 59-year-old is a particularly interesting age group because they’re the ones that are actually doing a lot of information seeking online, particularly about preparedness for retirement.”

- Jeronimo De Miguel, vice president of branding and creative

at Manulife Financial

“Real Retirement” campaign promoting financial footing

“in as little as 15 years”

• digital Retirement Hub to be populated over next three years with videos, essays, case studies

• Integrated media buys in online, print, TV to promote the hub• 107,943 visits to hub in two-month summer 2013 campaign• 27% of visitors asked for more info

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Seniors: TV still dominates, but online activity is growing quickly

Internet penetration in Canada among people ages 75 and older rose from 5% in 2000 to 27% in 2012

—Statistics Canada

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Seniors spend almost twice as much time with TV than do kids, teens or millennials

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Seniors’ internet hours now exceed their time spent with newspapers

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Conclusions

• While Canada’s population is aging, digital

adoption is advancing in sync. Boomers and

seniors are showing growing reliance on digital tools.

• Key differences exist between age groups that

go beyond digital adoption. Understand each

group’s psychographic and economic impulses.

• Cross-media campaigns deliver the best

engagement for all ages. But lead with age-based.

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You will receive an email tomorrow with a link to

view the deck and webinar recording.

Paul Briggs

Insights and Data on the State of the

Canadian Digital Marketplace

©2013 eMarketer Inc.

Q&A Session

Canada Demographics:

Age-Based Digital Behaviors

You will receive an email tomorrow with a link to

view the deck and webinar recording.

Paul Briggs

Learn More at www.emarketer.com

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