I. Executive Summary

Introduction
• A Market Moving to the Mainstream
Demographics
• A Market 78 Million Strong in 1996
• More Than 44 Million 18- to 29-Year-Olds
• Figure 1-1: Generation X Population, 1996 (number)
• Xers Are Products of Divorce
• The First Generation of Latchkey Children
• Xer Living Arrangements
• Wealth Has Shifted from Young Adults to Older Americans
• Xers Are Non-Ideological
• Xers See Themselves As America's Clean-Up Crew
• Xers' Aggregate Income a Hefty $1.1 Trillion
• Table 1-1: Mean Full-Time Earnings and Aggregate Income of Xers: By Age, 1994 (dollars and number)
• Spending Power Will Grow as Xers Age
• Market to Grow by Two-Thirds in Next Five Years
• Table 1-2: Projected Market Growth, 1996-2001 (dollars)
Xer Spending on Consumer Products and Services
• Overall Xer Spending Tops $765 Billion
• Nearly $290 Billion in Discretionary Spending
Media
• Xers Even More Media-Oriented Than Boomers
• Conventional Media Targets Xers
• Yet Xers Are Hard to Reach Via Television
• Radio a Key Medium for Xers
• Print Was First Medium to Fill Void in Xer-Targeted Media
• Electronic Media the Wave of the Future
Marketing to Xers
• Generation X Comes of Age
• Xers Creating Effective Advertising for Their Own Generation
Scope and Methodology
• Market Definition
• Report Methodology

II. Demographics

Market Overview
• Generation X: A Market Moving to the Mainstream
• Figure 2-1: Generation X Population, 1996 (number)
Population
• Introductory Note
• The Second-Largest Group of Young Adults in U.S. History
• More Than 44 Million 18- to 29-Year-Olds
• Table 2-1: Estimated Population of 18- to 29-Year-Olds: By Age (number and percent), 1996
• Another 7 Million Xers are Teenagers
• Table 2-2: Estimated Population of 16- to 17-Year-Olds: By Age, 1996 (number)
• 27 Million Are Already in Their 30s
• Table 2-3: Estimated Population of 30- to 35-Year-Olds: By Age, 1996 (number)
• Share of Xer Population by Age
• Table 2-4: Share of Xer Population by Age: 1996 vs. 2001 (number and % share)
• Share of Xer Population By Gender
• Table 2-5: Share of Xer Population, by Gender, 1996 (number and percent)
• The Most Diverse Generation in American History
• Table 2-6: Share of Xer Population: By Race, 1996 (percent): White, African-American, Hispanic, Asian-American, Native-American, All
• Xers Include 20th Century's Highest Percentage of Naturalized U.S. Citizens
• One of the Most Important Immigrant Generations in U.S. History
• Regional Distribution Follows National Trends
• Table 2-7: Share of Xer Population by Region, 1993 (percent): Northeast, Midwest, West, South,
• Locality of Xers
• Table 2-8: Share of Xer Population: By Locality (percent): Urban, Suburban, Rural
Family Status
• Xers Are Products of Divorce
• The First Generation of Latchkey Children
• More Than 50% of Young Adults Live with Parents
• 45% of Xers Live with Spouses
• Other Xer Living Arrangements
• Figure 2-2: Xer Living Arrangements: By Age, 1994 (percent)
• Xers Defer Marriage
• Table 2-9: Percent of Young Women Who Have Never Married: 1970 vs. 1994 (percent)
• Xer Women Delay Childbearing
• Table 2-10: Percent Childless and Births Per 1,000 Women: 1994 vs. 1976 (percent)
• Many Births Out of Wedlock
• Table 2-11: Demographic Characteristics of Women Age 15-29 Who Had a Child Within the Last Year, 1994 (number and percent)
• Projected Births
• Table 2-12: Lifetime Births Expected per 1,000 Women: Selected Years from 1976 to 1992 (number)
• Both Spouses Work in Xer Households
• The Impact of AIDS
Educational Status
• The Most Educated Generation in History
• Percent Pursuing Graduate Degrees Up Slightly
• Table 2-13: Educational Attainment of 18- to 29-Year-Olds, 1995 vs. 1993 (number and percent)
Employment
• Xers Face High Unemployment
• Job Market Bleak for College Graduates
• Bleaker Still for High School Graduates
• Career Paths Blocked by Boomers
• On-the-Job Antagonism Between Xers, Boomers
• Many Xer Shortcomings a Boomer Myth
• Xers Know Their Way Around a Computer
• Xers Not Workaholics
• Xers Want Responsibility, Feedback
• Xers Motivated by Different Rewards
• Xers Prefer Different Awards and Incentives
• Apple Computer Knows How to Keep Xer Talent
• Xers Self-Directed, Non-Hierarchical
• But Also Work Well in Teams
• Majority of Xers Want to Be Their Own Boss
Economic Status
• Wealth Has Shifted from Young Adults to Older Americans
• Table 2-14: Median Weekly Full-Time Earnings by Age, 1979, 1993, 1995 (dollars)
• Starting Salaries Have Dropped
• Many Xers Saddled with Student Loans
• Most Xers Cannot Afford Home Ownership
• Yet Xers Have Considerable Disposable Income
• Economic Prospects Likely to Improve as Xers Age
Politics and Social Issues
• Xers Are Non-Ideological
• Xers See Themselves As America's Clean-Up Crew
• Xers as Voters
• Politically Conservative, Socially Liberal
• Xers Make Peace in War Between the Sexes
• Xers More Comfortable With Diversity, Gays
• Xers Oppose Political Correctness
• Xers Seek Service to the Community
• Xers Shun Dogma, Seek Personal Faith
• Xers Will Become More Traditional as They Age
• In Next 20 Years, Xers Will Lead

III. The Market

Market Size and Growth
• Xers' Aggregate Income a Hefty $1.1 Trillion
• Table 3-1: Mean Full-Time Earnings and Aggregate Income of Xers: By Age, 1994 (dollars and number)
• Aggregate Income of Xer Consumer Units Is $824 Billion
• Nearly $290 Billion in Discretionary Expenditures
• Table 3-2: Discretionary Spending by Xer Consumer Units: By Age and Category, 1994 (dollars)
• Spending Power Will Grow as Xers Age
• Table 3-3: Mean Earnings For Xers in Their 20s: By Gender, Age, and Education, 1994 (dollars)
• Xers Delay Big-Ticket Purchases
• Xers Spend Big on Clothes, Eating Out, Entertainment
• Xers Spend Big on Fast Food
• Xers Listen to Music, Watch TV, Movies
• Xers Will Replace Boomers as Dominant Market Force
• Figure 3-1: Projected Growth of Generation X Aggregate Income, 1996-2001 (dollars)
Projected Market Growth
• Xer Population Growing, Income Increasing
• Xer Income to Increase by Two-Thirds in Next Five Years
• Table 3-4: Projected Growth of Generation X Aggregate Income, 1996-2001 (dollars)

IV. Xers as Consumers

Xer Shopping Patterns
• Xers Have Been Shopping All Their Lives
• Xers Consider Shopping a Form of Entertainment
• Xers Have Yet to Establish Brand Loyalties
• Xers Want Lots of Choices
• Time and Convenience Important to Xers
• Xers Seek Value
• Xers Will Pay More for Products That Deliver More
• Xer Value-Consciousness Extends to Manufacturers
Xer Spending on Consumer Products and Services
• Overall Xer Spending Tops $765 Billion
• Younger Xers Spend More Than They Make
• Spending Reflects Living Arrangements
• Table 4-1: Consumer Expenditures by Category: Xers 18-34 vs. All Consumer Units, 1994 (dollars)
• Xers Spend Heavily on Cars
• Clothing Tops Xers' Personal Spending
• Table 4-2: Average Annual Expenditures on Apparel and Services: By Age of Consumer Unit, 1994 (dollars)
• Xers Spend Big on Eating Out
• Xers Spend Heavily on Entertainment
• Xers Spend Big on Home Furnishings and Equipment
• Xers Spend More on Health and Beauty Care
• Xers Spend More on Exercise and Fitness
• Despite Their Health Consciousness, Xers Drink
• Table 4-3: Average Annual Expenditures on Alcoholic Beverages: By Age of Consumer Unit, 1994 (dollars)
• Xers' Dollars Also Go Up in Smoke
At the Retail Level
• Ambiance Is Important
• The More Choices, the Better
• Service, Efficiency Important to Xers
• Xers Want Knowledgeable Salespeople
• Xers Like to Try Products in Store
• The Gap Has Bridged the Generation Gap
• Xers Frequent Shopping Centers, Malls
• Boutique Departments Add Retail Appeal
• In Short, Xers Want It All

V. Xer Media

Television
• Xers Even More Media-Oriented Than Boomers
• Conventional Media Target Xers
• Yet Xers Are Hard to Reach Via Television
• Early Programming Attempts Failed
• Programming Must Start with an Idea, Not a Demographic
• MTV Maintains Leadership Position with Xers
• Fox Has Successfully Targeted Xers
• Other Cable Networks Do Well Among Xers
• NBC Most Successful of Big 3 Networks in Attracting Xers
• Xers Tune into Boomer Re-runs
• Syndicated Shows as Popular as Network Programs
Radio
• Music Important to 18- to 29-Year-Olds
• Radio a Key Medium for Xers
• Yet Radio Gets Heavy Competition from Personal Stereos
Print
• Medium Was First to Fill Void in Xer-Targeted Media
• Rolling Stone Skews Younger as Years Go By
• Mademoiselle Strives for Female Xers
• Media Must Start with Content, Not a Demographic
• Details Created for Men in Their 20s
• Wired: The Computer Magazine for the Discriminating Xer
• Spin Is the Xers' Rolling Stone
• New Publications Target Racially Diverse Xers
• Xers Launch Their Own Publications
New Media
• Electronic Media the Wave of the Future
• Web Site Quality an Important Factor
• College Television Network Reaches Xers on 225 Campuses
• "Digizines" Another New Media Development

VI. Marketing to Xers

Overview
• Generation X Comes of Age
• Xers Creating Effective Advertising for Their Own Generation
• No Easy Answers When Marketing to Xers
• Xers Span Several Market Segments
• Demographic Density Further Segments Xer Market
• Xers Know Advertising
• But Traditional Values Frequently Underlie Xer Cynicism
• Xers Have Established Few Brand Loyalties
• Yet Xers Are Loyal to Certain Brands
• Xers Seek Immediate Gratification
• Xers Want Information
• Xers Appreciate Advertising as a Form of Popular Culture
• A Challenge for Cause-Related Marketers
Use of Language When Marketing to Xers
• Language Can Be Key
• Hipness Will Backfire if Not Credible
• Beware Being Outdated
• Slang, Hipness Can Be Offensive
Use of Celebrities When Marketing to Xers
• Spokespeople a Risky Investment
• Xers Make Good Spokespeople
Marketing Fundamentals
• Rule Number One: Do Your Homework
• Rule Number Two: Get Legit
• Rule Number Three: Include but Don't Target
• Emphasize Product Over Lifestyle
• Emphasize Value—and Deliver
• Yet Value Is Not Merely a Function of Price
• Rule Number Four: Don't Take Yourself Too Seriously
• Rule Number Five: Xers Want to Have Fun
• Test-Market Your Humor
• Sexist Advertising Panned, but Sex in Advertising Alive and Well
Consumer Promotions and Public Relations
• Events Offer Chance to Niche Market
• Event Marketing Combines Fun, Chance to Try New Products
• Lollapalooza Tour a Major Xer Event
• College Campuses a Good Place to Find Xers
• Sprint Investing Heavily in College Market
• Other Events Successful with Xers
• The Web Another Place to Find Xers

VII. Examples of Strategies and Campaigns Targeted to Xers

Clothing
• Lee Produces Outstanding Campaign for "Brand That Fits"
• Levi's Have Timeless Appeal
• Tommy Hilfiger and Calvin Klein Target Xers
• Guess, Mossimo, and Other Marketers Also Shoot for the X-Mark
• "Outdoor" Footwear a Hit
• Nike Competes for Xers
• Reebok Espouses Xer Values
• Timberland: Selflessness Sells
Fast Food
• Fast Food Restaurants Compete for Xers, Stress Value
• McDonald's "Arches" Commercial Likely to Offend
• Pizza Purveyors Also Emphasize Value, Avoid Xer "Target"
• Smoking Policies Reviewed
Beverages
• Beverage-Makers Target Xer Males
• Coke and Pepsi Lead the Soft Drink Wars, Battle It Out in Advertising
• Coca-Cola Features Xers, But Takes Universal Approach
• Mountain Dew Also Goes After Young, Male Xers
• Sprite Takes Anti-Ad Approach
• Dr Pepper Rejects Overt Xer Appeal for Broader "Americana"
• Sport Drinks Another Battleground for Male Xers
• Alcoholic Beverage Marketers Battle for Xers: The Beer Wars
• Coors Enters Fray with Coors Light Channel
• Non-Alcoholic O'Douls Scores with Humorous Spot Aimed at Xers
• Other Alcoholic Beverage Marketers Seeking Xer Market
• Sauza Tries to Overtake Jose Cuervo
• Bacardi Limon Also Targets Xers
Electronics
• Print, Web Pages Are Media of Choice
• Microsoft Markets to GenX
• Sony Stands for Quality
• Apple Targets Xers
• Humor Works for Electronics, Too
• Xers Appreciate a Good Idea
Automobiles
• GM Includes Xers in "People in Motion" Campaign
• Geo Takes a Low-Key Approach
• Saturn Is Also Xer-Friendly
• VW Jetta Takes Aim at X
• Ford Gets Uneven Results from Youth Council
• Chrysler Hits the Mark with Neon
• Nissan Emphasizes Value to Lure Xers and Boomers

appendix: examples of advertising