18-34 Year Old Segmentation Study PRESENTATION – JUNE 2016

Minnesota Lottery 18-34 Year Old Segmentation Study PRESENTATION – JUNE 2016

What are the Challenges?

Agenda What are the Segments?

How and Where Do We Reach Them?

Discuss the Findings

Population Spend 2015 in past 12 months $546,900,000 9% 45% 2002 2015 2002 5,019,000 5,489,600 $377,000,000 Penetration % played any lottery game in past 12 months 51% 14% 43%

2002 2015

% change Players by Age (2002 vs. 2015) 22% 23% 2% 14% 66% 62% 62% 60% 61% 56% 47% 57% 56% 57% 51% 51% 51% 52% 50% 49%49% 5% 47% 45% 45% 43% 44% 41% 39% 7% 37% 37% 30% 28% 27% 26% 24%

n/a n/a Total 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74* 75+

1.2 Million 2002 2005 2010 2015 People Source: Minnesota Lottery SCSU Survey

What are their attitudes towards life?

. Are their regional differences?

How do they consume news and information?

How they view technology and its role in their life?

Where and how do they shop?

Meet Darcen 1.0 Meet Darcen 2.0 In his 30’s In his 30’s Income - $1234 Income - $1234 Casual Player Casual Player

Shops at Target Shops on Amazon

Uses apps to find new restaurants Eats at McDonalds

Goes to craft beer festivals Hangs out at the mall

Is saving for retirement No thought for tomorrow

Likes to call people Likes to Snap people

You can’t be everything to everyone. You want to grow the pie among those where an opportunity presents itself

But where? And how?

Those aged 18-34 is a subset of the general population. • It consists of Minnesotans of the same age, however, it is otherwise heterogeneous. General Population 18-34 Year Olds Segmentation looks for similarities between people in this market and clusters them together into different groups based on these similarities. • The resulting segments are made up of people that are a lot alike internally. • While individuals in each segment are similar, individuals between 18-34 Year Old Segments segments are not.

NewsCareer/FinanceEntertainmentSocialTechnologyShopping & Information Media

Tech-Dependent Homebodies Social Trend- Surfers Rational Planners

Traditional Risk- Takers

Phase 5: Presentation and Workshop - Workshopping new segments

Phase 4: Consumer Behaviors Study - Understand behaviors of new segments

Phase 3: Qualitative Review and Segment Naming - Qualitative Mini Groups: Deep Dive - Naming the Segments

Phase 2: MN 18-34 Online Survey - Quantitative Survey - Segments identified

Phase 1: Qualitative Exploration of 18-34 Attitudes in Minnesota - Mini Groups in Duluth, Minneapolis, Mankato

The world is becoming increasingly MOBILE IPSOS HAS DEPLOYED AN APPROACH FACTS ABOUT 18-34 YEAR OLDS IN MINNESOTA CALLED “DEVICE AGNOSTIC”

• OPTIMIZED VIEWING EXPERIENCE OWN A • FRIENDLY NAVIGATION SMARTPHONE* • REPRESENTATIVE RECRUITING 89% • ANY DEVICE (TABLET, PHONE, DESKTOP) • ANY BROWSER

OF THE TIME THE SMARTPHONE IS WITHIN ARMS REACH* 81%

USE THEIR

PHONE ACCESS THE INTERNET

10 EVERY SINGLE 77% DAY*

18-34 year olds in Minnesota 1 are playing the lottery less than they used to

How do we understand the 2 nuance differences that exist within 18-34 year olds?

How and where do we 3 reach 18-34 year olds in Minnesota?

A healthy It is It is work/life important for important in balance is life to have a I need a job important to me to be secure job that allows for continued me financially growth stable

It is I feel It is important to I have long- optimistic important to think about term about my own a home what I want personal future at some point in life goals in your life

© 2016 Ipsos 13 Areas of Consensus - Agree Entertainment helps me Sometimes it It is escape from is important important to It is my day to day to stay in on make time important to life the weekend for just budget some myself money for to relax “fun” Technology helps me It is I believe it is connect with important to important for Technology people I care have a me to develop makes my life about healthy my own world more lifestyle view convenient

Celebrity I consider I never give endorsements I prefer to myself out my email influence stay close to morally address to what home when I opposed to companies products I buy travel gambling

I enjoy I am more I prefer to I would spending likely to communicate rather have time in large purchase a with my lots of casual crowds more product if I see friends using friends than a than in small a celebrity I short videos few close groups like actually or pictures friends using it

Minnesota Lottery and Ipsos participated in a Segment Naming Workshop on June 2nd to understand the segments and come up with the segment names.

1 2 3 4

Rational Planners Tech-Dependent Social Trend- Traditional Risk- Homebodies Surfers Takers

% of 18-34 Year Olds % of PY Spending on Lotteries

11% 21% 27% Traditional Risk-Takers 10% Social Trend-Surfers 45% Tech-Dependent Homebodies Rational Planners 29% 22% 35%

% of PY Lottery Players % Other gaming – Ever play

22% 26% 41% 59%

21% 37%

32% 48%

© 2016 Ipsos 18 SEGMENTATION SUMMARY Rational Planners – Over Index It is important to me to take It is It is time to important for important to I like to read disconnect me to be have a reviews from financially healthy before technology lifestyle making a stable purchase Established Diligent Research-savvy It is important I enjoy planning I spend time for me to have what I’m going to Adventurous do next weekend thinking Conservative a job where I about my can contribute I enjoy planning retirement Rational to society for the future savings

Base: Rational Planners (n=274) © 2016 Ipsos 19 SEGMENTATION SUMMARY Rational Planners – Under Index I use social media to find I am among deals or I enjoy the first to promotions (i.e. playing purchase a I actively avoid contests/ games on my new advertisements Sweepstakes) smart phone technology whenever or on social possible media

A gambler Gambling can It’s fun to Gambling can be a be a nice fun way to spend distraction gamble even time with friends A lottery if I don’t win from my Gambling can be a player everyday fun part of an routine evening’s entertainment

40% 60% 27.0 Male Female Mean

30% 37% 33% Second Self Identification Traits 18-24 25-29 30-34 Education An animal lover 77%

A leader 66%

A homebody 57% 10% 21% 57% 12% Someone who Income Employment lives for the 43% moment 35K or Full-time 64% 14% A concert goer 33% less Part-time 11% Homemaker 5% 35K to A risk-taker 30% 75K 39% Self-employed 3% Retired 0% 75K to Student A lottery player 8% 150K 34% 13% Military 0% 150K or Unemployed A gambler but looking 4% 5% more 6% Unemployed and not looking 1%

Base: Rational Planners (n=274) © 2016 Ipsos 21 SEGMENTATION Rational Planners I've purchased in I've purchased in the last 12 I've purchased, but not I've heard of this game, I've never heard the past month months, but not in the past month in the last 12 months but never purchased it of this game

Any Game Participation 17% 34% 18% 30% <[VALUE]

Any Game Purchase Frequency Lottery Play Past Year Other Gaming Participation (Top 3 Mentions)

1% 3% Almost every day 7% 12% 51% Every draw 17% 19% 16% 12% Paper Gambling at casinos Purchasing 29% Weekly Past Past Pulltabs in Minnesota or raffle tickets Month Year neighboring states Past Year Lottery Players Past Year/Month Spending Monthly (Any Game Mean excl. 0)

Every couple of 49% months

Less than every $65.50 couple of months $17.50 22% Any Game Past Month Past Year Spend Spend

% of Past Base: Rational Planners (n=274) Year Spend © 2016 Ipsos 22 11% SEGMENTATION SUMMARY Tech-Dependent Homebodies – Over Index I use social Technology media to helps me follow brands connect with I would I find it easy to I like or to people I care rather do my hibernate find deals/ about and keep shopping promotions up with my online during winter friends

Homebody When I wake up I am most likely to Netflix in the morning, Social media is get my news Introverted one of the first the primary through my phone things I do is way I Hibernators check my social communicate I primarily get my media accounts with friends news from social media, like Facebook

Base: Tech-Dependent Homebodies (n=223) © 2016 Ipsos 23 SEGMENTATION SUMMARY My ideal Tech-Dependent Homebodies – Under Index vacation includes Exercising is a I like live activities like chance for music while I I love getting hiking, biking me to have am out with into nature or nature and away walks some alone my friends from time technology I like competing with friends or family for fun

I would I prefer to go I enjoy a rather work out, rather challenge where I I watch news can pit myself with people than stay against the odds on TV than by home on the myself weekend

29% 71% 26.3 Male Female Mean

40% 26% 33% Third Self Identification Traits 18-24 25-29 30-34 Education A homebody 83%

An animal lover 78%

A leader 43% 28% 26% 40% 6% Someone who Income Employment lives for the 33% moment 35K or Full-time 52% 27% A concert goer 25% less Part-time 12% Homemaker 10% 35K to A risk-taker 14% 75K 45% Self-employed 2% Retired 0% 75K to Student A lottery player 8% 150K 21% 14% Military 0% 150K or Unemployed A gambler but looking 6% 7% more 1% Unemployed and not looking 4%

Base: Tech-Dependent Homebodies (n=223) © 2016 Ipsos 25 SEGMENTATION Tech-Dependent Homebodies I've purchased in I've purchased in the last 12 I've purchased, but not I've heard of this game, I've never heard the past month months, but not in the past month in the last 12 months but never purchased it of this game

Any Game Participation 20% 41% 16% 23% <[VALUE]

Any Game Purchase Frequency Lottery Play Past Year Other Gaming Participation (Top 3 Mentions)

2% 7% Almost every day 61% 19% Every draw 20% 19% 11% 11% Gambling at casinos Paper Purchasing 26% Weekly Past Past in Minnesota or Pulltabs raffle tickets Month Year neighboring states Past Year Lottery Players Past Year/Month Spending Monthly (Any Game Mean excl. 0)

Every couple of 48% months

Less than every $62.80 couple of months $18.40 21% Any Game Past Month Past Year Spend Spend

Social Trend-Surfers – Over Index Celebrity endorsements influence what I enjoy products I buy playing I prefer to go I am among the I am more likely to games on first to purchase purchase a product out, rather social media if I see a celebrity I than stay a new like actually using it home on the technology weekend

Socialites I like online ads Trendy I enjoy that are targeted I trust social Brand /Image specifically to me media conscious spending FOMO - want to be time in large I am more likely websites with able to/ confidence crowds more to view ads that my personal to contribute to than in small show up in one of information conversation my social media groups feeds

Base: Social Trend-Surfers (n=295) © 2016 Ipsos 27 SEGMENTATION SUMMARY Social Trend-Surfers – Under Index A healthy work/life It is It is It is important balance is important for important to to important to me to be think about build/improve me financially what I want my credit stable in life rating

Sometimes it Gambling is is important I find it easy to I actively avoid wasteful to stay in on hibernate advertisements the weekend during winter whenever to relax possible

61% 39% 25.4 Male Female Mean

45% 32% 24% Youngest Self Identification Traits 18-24 25-29 30-34 Education An animal lover 69%

A leader 57% Someone who lives for the 53% moment 26% 27% 37% 10% Income Employment A homebody 42% 35K or Full-time 50% 33% A concert goer 41% less Part-time 19% Homemaker 4% 35K to A risk-taker 38% 75K 32% Self-employed 3% Retired <1% 75K to Student A lottery player 22% 150K 25% 15% Military <1% 150K or Unemployed A gambler but looking 6% 15% more 4% Unemployed and not looking 1%

Base: Social Trend-Surfers (n=295) © 2016 Ipsos 29 SEGMENTATION Social Trend-Surfers I've purchased in I've purchased in the last 12 I've purchased, but not I've heard of this game, I've never heard the past month months, but not in the past month in the last 12 months but never purchased it of this game

Any Game Participation 37% 33% 12% 16% 2%

Any Game Purchase Frequency Lottery Play Past Year Other Gaming Participation (Top 3 Mentions)

6% Almost every day 7% 70% 37% 17% Every draw 19% 15% 15% Gambling at casinos Paper Purchasing 16% Weekly Past Past in Minnesota or Pulltabs raffle tickets Month Year neighboring states Past Year Lottery Players Past Year/Month Spending 23% Monthly (Any Game Mean excl. 0)

Every couple of months $143.20 31% Less than every couple of months $40.50 32% Any Game Past Month Past Year Spend Spend

challenge Gambling can be a where I can Hunting and fun part of an fishing is a evening’s pit myself entertainment, a against the fun source of fun way to spend It’s fun to time with friends or odds recreation – a nice distraction gamble even ideal vacation from my everyday if I don’t win routine

Someone When I pay, I prefer to interact with a store clerk who lives for over a machine I actively follow the moment at least one I enjoy the interaction I prefer to pay with a clerk at a store Minnesota pro sports team with cash over I feel comfortable asking debit or credit store staff about promotions and deals

Base: Traditional Risk-Takers (n=209) © 2016 Ipsos 31 SEGMENTATION SUMMARY Traditional Risk-Takers – Under Index I prefer to I am more pay by likely to shop I would credit/debit somewhere rather do my I prefer to card rather with a shopping pay my bills than pay in rewards/ online cash loyalty online program

If I purchase I like to post I’d take a job gas, I would I don’t like my vacation that’s the prefer to pay taking risks on social most fulfilling at the pump with my media over the one rather than money that pays the pay in-store most money

Base: Traditional Risk-Takers (n=209)

71% 29% 27.1 Male Female Mean

33% 28% 39% Oldest Self Identification Traits 18-24 25-29 30-34 Education An animal lover 80%

A leader 69% Someone who lives for the 67% moment 28% 34% 35% 4% Income Employment A risk-taker 63% 35K or Full-time 55% 36% A homebody 43% less Part-time 17% Homemaker 4% 35K to A lottery player 41% 75K 39% Self-employed 4% Retired 0% 75K to Student A gambler 39% 150K 19% 8% Military <1% 150K or Unemployed A concert goer but looking 8% 33% more 2% Unemployed and not looking 2%

Base: Traditional Risk-Takers (n=209) © 2016 Ipsos 33 SEGMENTATION Traditional Risk-Takers I've purchased in I've purchased in the last 12 I've purchased, but not I've heard of this game, I've never heard the past month months, but not in the past month in the last 12 months but never purchased it of this game

Any Game Participation 51% 31% 7% 9% 3%

Any Game Purchase Frequency Lottery Play Past Year Other Gaming Participation (Top 3 Mentions)

11% Almost every day 82% 2% 51% 24% Every draw 37% 30% 18% Gambling at casinos Paper Purchasing Weekly Past Past in Minnesota or Pulltabs raffle tickets neighboring states 17% Month Year Past Year Lottery Players Past Year/Month Spending Monthly (Any Game Mean excl. 0)

26% Every couple of $221.80 months

Less than every 20% couple of months $48.90 26% Any Game Past Month Past Year Spend Spend

Lottery Participation Adjusted Mean $ Last Year excl. 0 Played past month Played past year, not past month (among PY players of any game)

Total $130.40 (n=1,001) 31% 35% 66%

Traditional Risk-Takers [A] 51% BCD 31% 82% $221.80 BCD (n=209)

Social Trend- Surfers [B] 37% CD 33% 70% $143.20 CD (n=295)

Tech-Dependent Homebodies [C] 20% 41% AB 61% $62.80 (n=223)

Rational Planners [D] 17% 34% 51% $65.50 (n=274)

Significantly higher than Base: All respondents ABCD other subgroup. Q26. Which of the following statements best describes your involvement with the following lottery games?

Tech- % Played Last Year Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners Total (n=1,001) (n=209) (n=295) (n=223) (n=274) [A] [B] [C] [D]

Any Game 65% 82% BCD 70% CD 61% D 51%

Powerball 53% 66% BCD 53% 52% 44%

Scratch Games 44% 69% BCD 46% D 40% D 28%

MegaMillions 23% 33% CD 27% CD 16% 17%

Hot Lotto 11% 17% CD 16% CD 5% 5%

Gopher 5 11% 14% CD 18% CD 5% 6%

Northstar Cash 9% 15% CD 13% CD 4% 4%

Progressive Print-n-Play Games 9% 14% CD 15% CD 3% 3%

Daily 3 8% 12% CD 11% CD 5% 3%

All or Nothing 8% 17% CD 12% CD 4% 2%

Lucky for Life 8% 13% CD 15% CD 3% 3%

Significantly higher than Base: All respondents ABCD other subgroup. Q26. Which of the following statements best describes your involvement with the following lottery games?

Entertainment / Events

© 2016 Ipsos 39 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Awareness & Usage of Social Media Tech-Dependent Homebodies [G] (n=277) Platforms Rational Planners [H] (n=298) I am registered Visited the site, but Aware of the site, I am not aware with this site am not registered but have not visited of this site

91% 4% 5% 86% 5% G 8% G 88% 6% G 5% 1% 96% EFH 1%2% 91% 4% G 5% 73% 24% 3% 74% H 24% 2% 78% H 17% 4% 1% 76% H 23% 2% 63% 34% EFG 2%1% 58% 8% 31% 3% 48% 8% 42% FG 2% 63% E 12% H 21% 4% 60% E 8% 30% F 2% 58% 5% 36% F 2% 57% 19% 23% 2% 53% 21% 23% 3% 61% 19% 20% 1% 58% 17% 23% 2% 53% 19% 26% 3% 56% 19% 23% 3% 44% 20% 33% FGH 2% 47% 22% 24% G 8% EGH 68% EFH 16% 15% 1% 59% EF 18% 23% G 1% 54% 20% 26% 1% 39% 21% 40% FGH 1% 63% EH 17% 18% 2% 61% EH 17% 21% 47% 23% 30% FG

Significantly higher than Base: All respondents EFGH other subgroup. B1. Please response for each of the following social networking sites listed below.

© 2016 Ipsos 40 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Awareness & Usage of Social Media Tech-Dependent Homebodies [G] (n=277) Platforms (continued) Rational Planners [H] (n=298) I am registered Visited the site, but Aware of the site, I am not aware with this site am not registered but have not visited of this site

53% 15% 29% 3% 37% 14% 47% FGH 2% 59% E 18% 18% 6% GH 58% E 12% 28% F 2% 52% E 15% 32% F 1% 45% 16% 30% 9% 35% 14% 37% 15% GH 35% 23% EGH 28% 14% GH 50% EF 13% 29% 8% H 57% EF 12% 29% 2% 19% 25% 47% 10% 11% 27% 51% F 11% 23% EH 24% 37% 15% GH 26% EH 20% 47% F 7% 12% 27% 53% F 7% 17% 23% 44% 17% 13% 26% 44% F 18% 27% EGH 26% 31% 17% 15% 21% 46% F 18% 10% 21% 54% F 16% 11% 30% 44% 16% 9% 30% 42% 19% G 10% 32% 36% 21% GH 14% 29% 46% F 12% 9% 28% 50% F 13% 5% 9% 36% 50% 4% 6% 29% 62% FGH 5% 14% EGH 36% 44% 8% H 6% 37% 50% 3% 7% 39% E 51%

Significantly higher than Base: All respondents EFGH other subgroup. B1. Please response for each of the following social networking sites listed below.

© 2016 Ipsos 41 18-34 (n=945) BY SEGMENT Traditional Risk-Takers [E] (n=138) Social Trend-Surfers [F] (n=270) Activity Participation on Social Tech-Dependent Homebodies [G] (n=266) Networking Sites (continued) Rational Planners [H] (n=271) Several Once A couple of Once a Less than times a day a day times per week week once a week Never

64% 18% 7% 4% 4% 4% 61% 16% 7% 6% G 4% 6% G Browsing my feed to see what's new 56% 20% 10% G 5% G 4% 6% G 76% EFH 15% 4% 1%3% 2% 62% 18% 8% 4% G 5% 3%

17% 11% 23% 13% 28% 8% 16% H 15% GH 30% H 9% 23% 8% Share pictures or videos 26% EGH 16% GH 22% 11% 16% 10% 18% H 7% 26% H 13% 29% F 7% 8% 7% 17% 19% EF 43% EFG 7%

17% 12% 17% 10% 22% 22% Follow brands, celebrities or 11% 9% 14% 11% 24% 31% FG companies I'm interested in 23% GH 17% GH 20% 11% 17% 13% learning about 21% GH 11% 19% 8% 21% 21% F 9% 9% 15% 12% 26% 29% FG

17% 15% 17% 10% 18% 23% Searching the site for specific 19% H 12% 17% 14% 16% 23% news 22% H 18% 23% GH 9% 13% 16% 19% H 15% 15% 10% 20% F 21% 9% 14% 14% 11% 21% F 31% FG

16% 12% 17% 12% 27% 17% Participate in a group chat or 13% 10% 17% 14% 23% F 22% message 26% EGH 16% H 17% 12% 15% 15% 15% H 11% 14% 14% 30% F 16% 10% 8% 19% 9% 38% EF 17%

Significantly higher than Base: Those registered with Facebook EFGH other subgroup. B3. How often do you do the following activities through a social networking site?

© 2016 Ipsos 42 18-34 (n=945) BY SEGMENT Traditional Risk-Takers [E] (n=138) Social Trend-Surfers [F] (n=270) Activity Participation on Social Tech-Dependent Homebodies [G] (n=266) Networking Sites (continued) Rational Planners [H] (n=271) Several Once A couple of Once a Less than times a day a day times per week week once a week Never

15% 12% 19% 12% 26% 16% 18% H 9% 28% FG 18% FH 17% 12% Share articles or links 23% H 19% EGH 16% 10% 17% 16% 16% H 10% 17% 16% H 29% EF 12% 6% 9% 21% 9% 36% EF 21% EG

11% 7% 7% 5% 18% 52% 17% GH 10% H 10% H 6% 17% 41% Play games 18% GH 12% GH 12% GH 8% GH 14% 37% 9% H 5% 6% H 3% 22% F 54% EF 3% 3% 2%2% 18% 72% EFG

8% 6% 10% 8% 21% 47% 6% 5% 15% GH 7% 17% 50% F Click and view ads 16% EGH 13% EGH 15% GH 8% 16% 31% 4% 3% 8% 11% 26% F 48% F 4% 3% 5% 7% 23% 59% FG

3% 2% 3% 4% 14% 74% 2%2% H 5% H 3% 14% 74% F Purchase a product or service 7% GH 6% GH 7% GH 9% EGH 18% H 54% 2%1% 2% 1% 14% 80% F 1%1% 2% 9% 87% EFG

Significantly higher than Base: Those registered with Facebook EFGH other subgroup. B3. How often do you do the following activities through a social networking site?

© 2016 Ipsos 43 18-34 (n=756) BY SEGMENT Traditional Risk-Takers [E] (n=118) Social Trend-Surfers [F] (n=238) Activity Participation on Social Tech-Dependent Homebodies [G] (n=211) Networking Sites (continued) Rational Planners [H] (n=189) Several Once A couple of Once a Less than times a day a day times per week week once a week Never

19% 15% 13% 7% 15% 31% 19% 13% 19% GH 7% 10% 33% F Browsing my feed to see what's new 24% H 21% H 17% GH 6% 10% 22% 21% H 14% 10% 6% 17% F 32% F 10% 10% 10% 7% 22% EF 41% F

11% 12% 13% 10% 18% 36% 15% 8% 9% 12% 16% 40% Searching the site for specific H F news 15% H 20% EGH 18% EGH 12% 11% 26% 11% H 8% 11% 7% 22% F 41% F 4% 9% 10% 12% 24% F 42% F

11% 10% 13% 7% 20% 38% Follow brands, celebrities or 13% 10% 12% 4% 24% F 37% companies I'm interested in 15% H 15% H 21% GH 7% 14% 29% learning about 11% 9% 10% 8% 20% 41% F 6% 5% 9% 8% 25% F 47% F

6% 8% 8% 6% 21% 53% 6% H 11% H 6% 10% G 18% 49% Share pictures or videos 9% H 11% H 15% EGH 6% 18% 39% 5% H 7% H 3% 3% 23% 59% F 1%3% 4% 5% 24% 63% EF

6% 7% 8% 6% 16% 57% 4% 7% 4% 5% 16% 65% F Click and view ads 12% EGH 13% GH 15% EGH 7% 14% 39% 4% H 4% 5% 5% 18% 65% F 1%2% 7% 6% 17% 68% F

Significantly higher than Base: Those registered with YouTube EFGH other subgroup. B3. How often do you do the following activities through a social networking site?

© 2016 Ipsos 44 18-34 (n=756) BY SEGMENT Traditional Risk-Takers [E] (n=118) Social Trend-Surfers [F] (n=238) Activity Participation on Social Tech-Dependent Homebodies [G] (n=211) Networking Sites (continued) Rational Planners [H] (n=189) Several Once A couple of Once a Less than times a day a day times per week week once a week Never

5% 5% 4% 3% 8% 75% 5% 5% 3% 3% 13% 72% Participate in a group chat or G F message 8% H 11% GH 8% GH 5% H 10% 58% 4% 2%2% 2% 5% 85% EF 1%2% 2% 1% 6% 88% EF

4% 5% 3% 3% 5% 80% 7% GH 4% 4% 4%GH 5% 75% F Play games 6% GH 10% GH 6% H 8% GH 7% 63% 2%2% 2% 1% 5% 89% EF 1%1%1% 4% 94% EF

4% 6% 6% 7% 13% 64% 7% H 7% H 7% 10% 12% 58% Share articles or links 8% H 13% GH 10% GH 8% 15% 47% 3% H 5% H 4% 4% 10% 75% EF 1%2% 5% 16% 76% EF

3% 3% 5% 2% 10% 78% 4%GH 6% GH 5% 4%GH 6% 76% F Purchase a product or service 6% GH 6% GH 9% GH 5% GH 13% 62% 1%1% 2% 8% 88% EF 1%1%1% 8% 89% EF

Significantly higher than Base: Those registered with YouTube EFGH other subgroup. B3. How often do you do the following activities through a social networking site?

© 2016 Ipsos 45 18-34 (n=607) BY SEGMENT Traditional Risk-Takers [E] (n=76)* Social Trend-Surfers [F] (n=192) Activity Participation on Social Tech-Dependent Homebodies [G] (n=166) Networking Sites (continued) Rational Planners [H] (n=172) Several Once A couple of Once a Less than times a day a day times per week week once a week Never

39% 20% 11% 4% 8% 17% 29% 27% 18% 5% 9% 13% Browsing my feed to see what's new 46% E 20% 10% 5% 5% 13% 38% 17% 12% 5% 15% FH 14% 37% 18% 10% 3% 6% 26% EFG

33% 14% 19% 8% 14% 13% 19% 12% 32% FG 15% G 15% F 9% Share pictures or videos 40% E 18% 15% 9% 9% 10% 31% 15% 14% 5% 19% 17% 33% E 10% 22% 8% 13% 14%

15% 9% 10% 6% 13% 47% 10% 7% 13% 9% 12% 50% Participate in a group chat or message 21% EGH 13% G 14% H 5% 9% F 39% 12% 4% 10% 6% 17% 51% F 12% 11% G 6% 7% 13% 51% F

12% 14% 11% 5% 12% 47% Follow brands, celebrities or 7% 5% 15% 5% 11% 57% F companies I'm interested in 18% EH 26% EGH 12% 6% 10% 29% learning about 13% H 10% 9% 7% 15% 47% F 6% 9% 9% 3% 12% 62% FG

7% 7% 6% 5% 8% 68% Searching the site for specific 8% H 6% 12% GH 3% 9% 63% news 14% GH 11% G 9% GH 9% GH 8% 50% 5% 3% 3% 3% 8% 78% EF 2% 6% 3% 2% 7% 80% EF

Significantly higher than Base: Those registered with Snapchat * Small base size, interpret with caution. EFGH other subgroup. B3. How often do you do the following activities through a social networking site?

© 2016 Ipsos 46 18-34 (n=607) BY SEGMENT Traditional Risk-Takers [E] (n=76)* Social Trend-Surfers [F] (n=192) Activity Participation on Social Tech-Dependent Homebodies [G] (n=166) Networking Sites (continued) Rational Planners [H] (n=172) Several Once A couple of Once a Less than times a day a day times per week week once a week Never

5% 3% 3% 3% 4% 82% 8% 2% 3% 3% 6% 77% Play games 8% 8% GH 6% 5% G 4% 69% 4% 1%2% 1% 5% 88% EF 1%1%1% 3% 2% 93% EF

5% 4% 5% 5% 8% 72% 7% 1% 11% 7% 3% 71% F Share articles or links 10% 9% EGH 8% 6% 10% E 57% 4% 2%2% 2% 10% 80% F 2% 3% 3% 4% 7% 81% F

5% 4% 5% 4% 8% 75% 3% 3% 3% 5% 5% 81% F Click and view ads 10% GH 10% GH 10% GH 6% 8% 56% 3%1% 2% 2% 9% 83% F 2%2% 2% 2% 7% 85% F

2% 3% 4% 2% 6% 83% 4% 5% 1% 9% 81% F Purchase a product or service 4% 8% EGH 8% GH 6% GH 7% 68% 1%1%1% 1% 4% 93% EF 1%2% 1% 6% 91% EF

© 2016 Ipsos 47 18-34 (n=579) BY SEGMENT Traditional Risk-Takers [E] (n=71)* Social Trend-Surfers [F] (n=144) Activity Participation on Social Tech-Dependent Homebodies [G] (n=189) Networking Sites Rational Planners [H] (n=175) Several Once A couple of Once a Less than times a day a day times per week week once a week Never

20% 14% 18% 10% 25% 13% 17% 15% 12% 9% 26% 21% Browsing my feed to see what's new 26% 15% 17% 11% 19% 13% 17% 16% 16% 8% 31% F 11% 19% 10% 25% EG 11% 22% 12%

9% 7% 12% 8% 22% 43% 6% 6% 11% 11% 30% F 37% Share pictures or videos 16% GH 9% 10% 12% H 16% 38% 7% 7% 13% 7% 25% 42% 5% 5% 14% 4% 22% 50% F

8% 7% 16% 8% 22% 38% 9% 9% 12% 12% 24% 34% Share articles or links 13% H 11% 14% 12% H 16% 35% 8% 6% 17% 7% 23% 38% 4% 5% 19% 5% 24% 43%

8% 8% 12% 9% 22% 41% Follow brands, celebrities or 7% 7% 11% 13% 19% 44% F companies I'm interested in 15% GH 13% H 18% G 10% 17% 27% learning about 6% 7% 9% 7% 25% 47% F 6% 6% 12% 8% 25% 44% F

8% 9% 12% 10% 18% 43% Searching the site for specific 7% 14% H 11% 11% 20% 38% news 10% 17% GH 15% 14% 11% 34% 7% 7% 10% 9% 25% FH 43% 7% 4% 14% 9% 14% 51% F

Significantly higher than Base: Those registered with Pinterest * Small base size, interpret with caution. EFGH other subgroup. B3. How often do you do the following activities through a social networking site?

© 2016 Ipsos 48 18-34 (n=579) BY SEGMENT Traditional Risk-Takers [E] (n=71)* Social Trend-Surfers [F] (n=144) Activity Participation on Social Tech-Dependent Homebodies [G] (n=189) Networking Sites (continued) Rational Planners [H] (n=175) Several Once A couple of Once a Less than times a day a day times per week week once a week Never

5% 5% 6% 6% 15% 64% 10% GH 3% 10% H 3% 11% 63% F Click and view ads 10% GH 8% 9% H 11% 15% 48% 3% 5% 5% 5% 13% 70% F 2% 3% 2% 5% 18% 71% F

4% 4% 6% 3% 11% 73% 6% 6% GH 4% 3% 17% 65% Participate in a group chat or 7% GH 11% GH 8% 5% 11% 58% message 2%1% 5% 2% 9% 81% EF 2% 6% 4% 10% 79% EF

3% 2% 3% 3% 15% 75% 5% H3% H 4% 1% 12% 75% F Purchase a product or service 6% H 5% GH 5% 6% GH 20% 58% 2%0% 2% 2% 13% 81% F 2% 1% 15% 82% F

3% 3% 2%1% 4% 86% 5% 6% H 4% 5% 81% Play games 6% H 8% GH 6% GH 2% 6% 72% 3%2% 1% 2% 4% 90% F 1%1%1% 2% 96% FGH

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H]

All of the time 30% 26% 25% 36% 34%

Most of the time 29% 30% 28% 28% 31%

Some of the time 14% 12% 20% 10% 12%

Rarely 4% 6% 8% 2% 2%

Never 2% 3% 5% 1% 1%

Don't remember 0% - - <1% -

I don't watch recorded TV 20% 25% 15% 24% 20%

Base: Respondents 18 to 34 C1. When you watch recorded TV, how often do you typically skip through the ads?

© 2016 Ipsos 51 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Television Program Viewing Frequency Tech-Dependent Homebodies [G] (n=277) Rational Planners [H] (n=298) Frequently (at least Occasionally (a few Rarely (once a once per week) times per month) month or less) Never

30% 24% 24% 20% 41% GH 25% 19% 13% Local news 35% GH 28% G 22% 14% 21% 20% 26% 30% 27% 25% 27% E 20%

29% 22% 21% 26% 30% G 22% 23% 24% Sports 38% G 23% 16% 20% 15% 19% 22% 39% EFH 32% G 24% 22% 21%

22% 24% 26% 25% 19% 24% 29% 28% F Reality shows 33% EGH 26% 23% 16% 21% H 21% 28% 26% F 13% 27% 26% 33% F

19% 28% 25% 26% 22% 35% FH 27% 14% Science fiction 22% H 25% 26% 25% E 21% 28% 23% 25% E 14% 26% 25% 33% EFG

19% 23% 30% 26% Cooking shows/ 18% 31% FH 26% 24% Food Network 21% 22% 32% 24% 19% 24% 25% 29% 17% 21% 33% G 27%

Significantly higher than Base: All respondents EFGH other subgroup. C2. For each of the following types of TV programs please indicate if you frequently, occasionally, rarely, or never watch each type.

© 2016 Ipsos 52 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Television Program Viewing Frequency (continued) Tech-Dependent Homebodies [G] (n=277) Rational Planners [H] (n=298) Frequently (at least Occasionally (a few Rarely (once a once per week) times per month) month or less) Never

18% 23% 27% 30% 22% 26% 24% 27% Home improvement 21% H 25% 24% 28% shows 15% 20% 25% 37% EFH 15% 23% 33% FG 28%

16% 25% 29% 28% 21% GH 33% GH 27% 19% Game shows 21% GH 33% GH 25% 20% 13% 20% 30% 34% EF 11% 19% 34% F 35% EF

12% 15% 26% 45% 14% 14% 31% 40% Morning shows 19% GH 22% EGH 25% 31% 8% 9% 26% 54% EF 8% 13% 24% 53% EF

11% 18% 32% 37% 10% 19% 37% 34% Talk shows 20% EGH 23% GH 29% 26% 9% 15% 32% 41% F 6% 15% 31% 46% EF

© 2016 Ipsos 54 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Radio Services Usage (Hours Per Day) Tech-Dependent Homebodies [G] (n=277) Rational Planners [H] (n=298) Less More I don’t listen 0 than 1 1-2 3-4 4-5 6-7 than 7 to the radio

14% 31% 29% 10% 4% 3% 5% 5% 9% 29% 31% 10% 4% 6% H 5% 7% AM/FM 13% 22% 26% 18% EGH 7% G 3% 6% 7% 18% E 35% F 27% 6% 3% 3% H 4% 4% 13% 38% F 31% 6% 4% 1% 4% 4%

20% 23% 24% 13% 5% 3% 8% 5% Streaming 24% 21% 19% 12% 3% 5% H 10% 7% (i.e. Pandora, Spotify, 18% 18% 25% 14% 7% 3% 8% 7% Apple Music) 24% H 22% 20% 14% 3% 4% H 8% 4% 16% 28% F 28% G 12% 6% 1% 5% 4%

67% 13% 9% 4% 1%1% 1% 5% 75% F 8% 7% 1%1% 2% 7% Podcasts 55% 16% E 12% 5% G 3% 2% H 1% 7% 72% F 12% 8% 2% 1% 1% 4% 70% F 12% 8% 5% G 1% 4%

74% 9% 7% 3%1% 1% 1% 5% 72% F 11% 4% 4% 1%1% 2% 7% Satellite radio 59% 12% H 14% EGH 4% H 3% GH 1% 1% 7% (i.e. Sirius) 82% EF 8% 4% 2%1% 4% 84% EF 7% 4% 1%1% 4%

Significantly higher than Base: All respondents EFGH other subgroup. C3. On a typical day, about how many hours do you spend listening to these types of radio services?

Currently Use Prefer To Use

75% 45% 79% 57% 75% Pandora 38% 66% 42% 79% 50% 50% 30% 34% 14% 57% Spotify 34% 51% 31% 48% 32% 24% 7% 15% 5% 37% Apple Music 11% 17% 8% 21% 4% 18% 5% 20% 9% 26% Google Play 6% 11% Music All Access 4% 15% 4% 3% 3% 2% Amazon/ 2% 18-34 (n=780) 1% Amazon Prime 1% 4% Music 4% Traditional Risk-Takers [E] (n=112) 4% 5% Social Trend-Surfers [F] (n=230) 3% 2% 6% 3% Tech-Dependent Homebodies [G] (n=200) 2% iHeartRadio 1% Rational Planners [H] (n=238) 4% 2% 3% 2%

Base: Listen to radio streaming services C4. Which of the following online music services do you currently use? Then, please indicate which service you most prefer to use.

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=989) (n=149) (n=285) (n=267) (n=287) [E] [F] [G] [H]

In the car 89% 91% 86% 87% 94%

At home 57% 54% 64% 53% 55%

At work 42% 41% 46% 37% 44%

Other 1% 1% 1% 1% 2%

Nothing <1% - - 1% -

Don't know <1% - <1% - -

Base: Listen to the radio C5. Where do you listen to the radio?

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=989) (n=149) (n=285) (n=267) (n=287) [E] [F] [G] [H]

Morning (6 am-10 am) 65% 59% 63% 60% 76%

Midday (10 am-3 pm) 42% 47% 42% 45% 37%

Afternoon (3 pm-7 pm) 63% 67% 58% 62% 67%

Evening (7 pm-Midnight) 34% 36% 43% 30% 30%

Overnight (Midnight-6 am) 7% 9% 10% 6% 4%

I don't listen to the radio on weekdays 3% 3% 3% 4% 2%

Base: Listen to the radio C6. Thinking of an average weekday, when do you usually listen to the radio?

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=989) (n=149) (n=285) (n=267) (n=287) [E] [F] [G] [H]

Morning (6 am-10 am) 23% 20% 25% 20% 25%

Midday (10 am-3 pm) 46% 50% 43% 49% 45%

Afternoon (3 pm-7 pm) 51% 54% 55% 50% 46%

Evening (7 pm-Midnight) 39% 39% 44% 35% 37%

Overnight (Midnight-6 am) 10% 15% 16% 8% 5%

I don't listen to the radio on weekends 18% 13% 11% 22% 23%

Base: Listen to the radio C7. Thinking of an average weekend, when do you usually listen to the radio?

© 2016 Ipsos 59 18-34 (n=989) BY SEGMENT Traditional Risk-Takers [E] (n=149) Social Trend-Surfers [F] (n=285) Radio Program Listening Frequency Tech-Dependent Homebodies [G] (n=267) Rational Planners [H] (n=287) Frequently (at least Occasionally (a few Rarely (once a once per week) times per month) month or less) Never

45% 28% 12% 15% 34% 31% 13% 21% F Pop 53% EH 27% 9% 12% 46% E 29% 11% 14% 43% 26% 16% F 15%

35% 26% 20% 19% 45% FG 24% 17% 14% Rock 33% 32% G 19% 17% 32% 22% 23% 23% E 36% 26% 19% 20%

31% 15% 16% 38% 38% GH 14% 12% 36% F Country 39% GH 21% GH 15% 26% 24% 12% 19% 45% F 26% 14% 16% 44% F

28% 25% 22% 25% 31% G 20% 22% 27% Hip hop/rap 34% G 30% EG 19% 17% 20% 22% 27% F 31% 28% G 24% 20% 27%

27% 28% 20% 26% 23% 26% 24% 27% Alternative 28% 31% G 20% 22% 27% 23% 18% 33% FH 29% 30% 19% 22%

Significantly higher than Base: Listen to the radio EFGH other subgroup. C8. For each of the following types of radio programs, please indicate if you frequently, occasionally, rarely, or never listen to each type.

© 2016 Ipsos 60 18-34 (n=989) BY SEGMENT Traditional Risk-Takers [E] (n=149) Social Trend-Surfers [F] (n=285) Radio Program Listening Frequency (continued) Tech-Dependent Homebodies [G] (n=267) Rational Planners [H] (n=287) Frequently (at least Occasionally (a few Rarely (once a once per week) times per month) month or less) Never

17% 23% 24% 35% 18% G 19% 26% 36% F R & B 23% G 31% EH 24% 22% 11% 24% 23% 42% F 17% G 18% 25% 41% F

15% 17% 20% 48% 10% 20% 29% G 46% News or newstalk 19% EG 20% 24% G 38% 11% 13% 15% 60% EFH 16% 17% 19% 49% F

14% 12% 15% 59% 16% G 10% 20% G 55% F Sports or sports talk 22% GH 22% EGH 16% G 40% 8% 6% 9% 77% EFH 11% 10% 17% G 62% F

11% 22% 23% 45% 10% 18% 26% 46% Adult contemporary 11% 29% EG 25% 36% 10% 15% 20% 55% FH 12% 22% G 21% 45% F

© 2016 Ipsos 62 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Store Type Shop Frequency Tech-Dependent Homebodies [G] (n=277) Rational Planners [H] (n=298) Several Once a A few times Once a Less than once Daily times a week week a month month a month Never

4% 16% 20% 25% 10% 18% 7% 9% GH 25% FGH 26% GH 19% 6% 12% 4% Convenience stores 6% H 17% H 27% GH 25% 10% 9% 7% 2% H 15% H 17% 26% 12% E 20% EF 7% 9% 13% 27% 12% 29% EFG 10% E

3% 24% 34% 26% 8% 4% 1% 5% H 19% 29% 32% F 9% 5%F 1% Big box stores such as Target or Wal-Mart 5% H 25% 35% 22% 10% 2%2% 3% 29% 30% 28% 6% 5% F 1% 20% 39% EG 25% 9% 5% F1%

2% 17% 35% 25% 11% 7% 4% 3% 18% 29% 25% 16% FH 5% 5% Supermarkets 3% 21% G 36% 22% 9% 7% 3% 2% 14% 32% 26% 12% 9% 6% H 1% 15% 38% 29% 9% 6% 2%

1% 6% 12% 23% 18% 26% 15% 3% GH 7% 10% 25% 19% 24% 14% Independently owned local businesses 3% GH 7% 17% GH 25% G 16% 17% 15% 4% 8% 18% 17% 37% EFH 18% 7% 11% 24% 19% 28% F 12%

Base: All respondents Significantly higher than EFGH D1. Thinking of the various products you use around your home, such as groceries, snacks, and various household items, how other subgroup. often do you shop at each of the following types of stores?

© 2016 Ipsos 63 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Store Type Shop Frequency (continued) Tech-Dependent Homebodies [G] (n=277) Rational Planners [H] (n=298) Several Once a A few times Once a Less than once Daily times a week week a month month a month Never

1% 4% 8% 12% 10% 31% 34% 2% 8% 8% 12% G 25% 45% FH Natural food stores 2% H 9% EGH 13% G 18% EGH 9% 24% 25% 1% 4% 9% 6% 34% EF 45% FH 3% 8% G 9% 13% G 38% EF 28%

1% 4% 9% 25% 21% 29% 11% 1% 5% H 8% 22% 22% 28% 14% Drug stores or pharmacies 1% 7% H 14% G 30% H 20% 20% 9% 4% H 6% 25% 21% 34% F 11% 1% 9% 22% 22% 34% F 12%

3% 10% 17% 16% 23% 29% Warehouse club 3% 9% 16% 17% 23% 33% F stores such as Costco 1% 6% GH 16% GH 23% GH 17% 17% 20% or Sam's Club 2% 6% 15% 16% 23% 39% FH 2% 8% 15% 16% 31% FG 28% F

3% 11% 14% 14% 30% 28% 4% G 10% 19% 13% 25% 30% F Farmers markets (in season) 1% 5% G 19% EGH 13% 17% 25% 20% 1% 5% 11% 12% 32% 40% FH 4% G 9% 15% 14% 34% F 24%

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H]

Debit card 48% 46% 40% 61% 44%

Credit card 35% 17% 34% 31% 49%

Cash 15% 35% 21% 8% 6%

Gift Card 1% - 2% - <1%

Pay with mobile device (i.e. Apple Pay, Google Wallet) 1% 2% 3% <1% 1%

Check <1% 1% 1% <1% -

Don't know <1% - <1% - <1%

Base: Respondents 18 to 34 D2. Thinking of all the purchases you make in-store, which of the following payment methods do you use most often?

Tech- Proportion (Mean excl. 0) Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H]

In-store 73% 77% 69% 75% 74%

Online 29% 27% 33% 27% 27%

Base: Respondents 18 to 34 D3. Of all the shopping you do, what proportion do you do online vs. in-store?

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H]

I use them when it's convenient 46% 55% 39% 45% 51%

I love them and use them whenever I can 38% 31% 43% 39% 35%

I can't find them for the things I like to buy 10% 9% 10% 12% 8%

They're more trouble than they're worth 7% 5% 9% 5% 7%

Base: Respondents 18 to 34 D4. Which statement comes closest to your use of coupons?

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=873) (n=138) (n=249) (n=232) (n=254) [E] [F] [G] [H]

I prefer coupons I can download on my mobile device 33% 17% 37% 32% 38%

I prefer coupons on paper 25% 28% 30% 22% 22%

I don't care if they're electronic or on paper 42% 54% 33% 46% 40%

Base: Those who use coupons at their convenience/whenever they can D5. How do you like to get coupons?

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H]

Pay at pump 66% 27% 62% 71% 87%

Pay clerk inside 25% 59% 27% 21% 10%

Pay clerk outside at walk-up window 2% 2% 3% <1% <1%

I don't usually purchase gas 7% 12% 8% 8% 3%

Base: Respondents 18 to 34 D6. When buying gasoline, what is your primary method of payment?

Tech- Traditional Social Trend- Dependent Rational Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H] Social Media 65% 58% 63% 74% 62%

From friends or family 65% 66% 53% 68% 72% Online (i.e. own personal search) 62% 54% 55% 68% 67%

Television 46% 53% 51% 41% 43%

Radio 40% 47% 39% 34% 41% Online (websites that notify you of upcoming events) 30% 27% 27% 29% 35%

At an event 17% 15% 19% 12% 19%

Coupons 17% 16% 22% 11% 16%

Billboard 10% 15% 14% 6% 8%

Direct mail 10% 7% 15% 7% 8%

Other 1% 2% <1% - 1%

Don't know <1% - <1% <1% -

Base: Respondents 18 to 34 E1. Where do you look to find out about entertainment options?

© 2016 Ipsos 71 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Minnesota Event Participation Tech-Dependent Homebodies [G] (n=277) Rational Planners [H] (n=298) I’ve attended this I’d like to attend this I attended this event event, but not in event, but haven’t I’m not interested I’m not familiar in the past year the past year had the chance in this event with this event 64% 24% 5% 5% 2% 61% 26% 9% GH 4% 1% Mall of America 61% 20% 9% GH 4% 6% EGH 65% 27% F 4% 4% 69% 24% 1% 6% 1%

48% 33% 12% 5% 2% 46% 32% 18% H 4% Minnesota State Fair 54% G 26% 12% 4% 5% 38% 42% EFH 13% 7% 1% 54% G 31% 9% 6%

14% 30% 30% 21% 6% Minnesota 17% 29% 37% 14% 4% Renaissance Festival 18% G 23% 28% 19% 12% EGH 11% 32% F 28% 24% E 5% 12% 36% F 28% 22% E 2%

7% 9% 31% 21% 33% 5% 7% 34% G 18% 36% H Red Bull Crushed Ice 12% EGH 11% G 31% G 16% 29% 3% 3% 24% 29% EFH 42% FH 6% G 11% G 36% 21% 26%

6% 13% 22% 18% 41% 5% 5% 22% 21% 48% H Uptown Art Fair 9% G 15% E 23% 15% 38% 3% 10% 18% 22% F 48% FH 5% 18% EG 25% G 17% 35%

Base: All respondents Significantly higher than EFGH E2. Below you'll see a list of events that take place in Minnesota during the year. For each one, please select the response that other subgroup. best represents your experience with that event.

© 2016 Ipsos 72 18-34 (n=1,041) BY SEGMENT Traditional Risk-Takers [E] (n=160) Social Trend-Surfers [F] (n=305) Minnesota Event Participation (continued) Tech-Dependent Homebodies [G] (n=277) Rational Planners [H] (n=298) I’ve attended this I’d like to attend this I attended this event event, but not in event, but haven’t I’m not interested I’m not familiar in the past year the past year had the chance in this event with this event 5% 9% 33% 18% 37% 1% 9% 30% 14% 47% FH Basilica Block Party 6% EG 10% 36% G 18% 29% 2% 6% 25% 20% 47% FH 7% EG 9% 39% G 16% 29%

3% 9% 31% 34% 23% 4% G 10% G 43% GH 23% 19% WE Fest 6% GH 14% GH 34% GH 25% 21% 1% 4% 25% 41% EF 30% EFH 2% 7% 26% 44% EF 22%

3% 7% 25% 18% 47% 5% GH 6% 26% 16% 47% F Soundset 6% GH 11% G 30% GH 15% 37% 1%3% 22% 21% 53% F 1% 7% G 22% 20% 50% F

2% 5% 24% 14% 55% 0%3% 22% 13% 62% F Rock the Garden 6% EGH 8% G 25% G 16% 45% 0%2% 17% 16% 65% FH 1% 6% G 30% G 11% 52%

1% 4% 16% 20% 60% Bayfront Blues 1%2% 18% G 21% 59% Festival 2% 6% EG 21% G 21% 51% 1%2% 7% 21% 71% EFH 2% 4% 19% G 17% 59%

© 2016 Ipsos 73 BY SEGMENT Impression of Minnesota Based Events % Love it (Rated 5, 6, 7 on 7-point scale) Tech- % Love it Traditional Social Trend- Dependent Rational Rated 5, 6, 7 on 7-point scale Risk-Takers Surfers Homebodies Planners 18-34 (n=varies) (n=varies) (n=varies) (n=varies) (n=varies) [E] [F] [G] [H]

Minnesota State Fair 78% 82% 80% 74% 75%

Mall of America 70% 70% 77% 72% 64%

Minnesota Renaissance Festival 52% 64% 48% 50% 50%

Red Bull Crushed Ice 49% 55% 54% 39% 49%

Basilica Block Party 44% 27%* 46% 39% 51%

Soundset 40% 41%* 46% 34% 38%

Rock the Garden 38% 27%* 38% 30%* 47%

Uptown Art Fair 37% 29%* 44% 33% 36%

WE Fest 34% 41% 39% 28% 31%

Bayfront Blues Festival 28% 24%* 31% 17%* 33%

Base: Have experienced [INSERT EVENT] * Small base size, interpret with caution. E3. Using the scale below, please rate your overall opinion of the events you said you have heard about or attended. Even though you may not have attended, we still want to know what your impression is.

© 2016 Ipsos 74 BY SEGMENT Sports Entertainment Participation % Attended a Game in the Past Year Tech- % Attended a Game Traditional Social Trend- Dependent Rational in the Past Year Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H]

Minnesota Twins 34% 31% 40% 21% 43%

Minnesota Wild 19% 21% 23% 8% 25%

Minnesota Vikings 16% 18% 20% 9% 16%

University of Minnesota sports 14% 15% 21% 4% 16%

Minnesota Timberwolves 12% 8% 20% 4% 14%

A rodeo 7% 8% 11% 5% 4%

Minnesota auto racing 5% 9% 11% 1% 2%

Minnesota Lynx 4% 4% 7% 2% 3%

Minnesota United Soccer 4% 3% 9% 1% 3%

Base: All respondents E4. For each item indicate (a) if you have attended a game in the past year, (b) if you've watched a game on TV in the past year, and (c) if you regularly follow news articles/stories for that team.

© 2016 Ipsos 75 BY SEGMENT Sports Entertainment Participation (continued) % Watched a Game on TV in the Past Year Tech- % Watched a Game on TV Traditional Social Trend- Dependent Rational in the Past Year Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H]

Minnesota Vikings 51% 57% 50% 44% 56%

Minnesota Wild 41% 47% 43% 27% 48%

Minnesota Twins 40% 45% 45% 30% 42%

Minnesota Timberwolves 26% 28% 35% 15% 25%

University of Minnesota sports 25% 28% 31% 15% 25%

Minnesota Lynx 13% 17% 16% 9% 11%

Minnesota United Soccer 7% 8% 11% 3% 7%

Minnesota auto racing 6% 8% 12% 2% 4%

A rodeo 6% 7% 11% 1% 5%

© 2016 Ipsos 76 BY SEGMENT Sports Entertainment Participation (continued) % Regularly Follow News Articles/Stories Tech- % Regularly Follow News Traditional Social Trend- Dependent Rational Articles/Stories Risk-Takers Surfers Homebodies Planners 18-34 (n=1,041) (n=160) (n=305) (n=277) (n=298) [E] [F] [G] [H]

Minnesota Vikings 23% 26% 26% 17% 24%

Minnesota Twins 20% 23% 21% 15% 24%

Minnesota Wild 20% 24% 24% 12% 23%

University of Minnesota sports 15% 16% 20% 8% 16%

Minnesota Timberwolves 14% 16% 22% 9% 12%

Minnesota Lynx 10% 7% 16% 7% 10%

Minnesota United Soccer 8% 6% 13% 3% 8%

Minnesota auto racing 6% 9% 9% 2% 4%

A rodeo 5% 5% 12% - 3%

• Facebook remains king for registrations, and is followed by YouTube as the secondary network, with tertiary social networks including SnapChat, Google +, Pinterest, Twitter, Instagram and LinkedIn. • Social Trend Surfers – over index on almost EVERYTHING; from browsing feeds to catch up on Social news, to sharing pictures and video, group chats, clicking on ads, following brands, playing Media games, and purchasing products. If Social Media offers it, they do it. • Despite some social media channels having more registrations from other segments, including Pinterest which appeals to Tech-Dependent Homebodies and Rational Planners, and LinkedIn for Rational Planners, Social Trend Surfers are still more active

• Three-in-five skip through ads on recorded TV, but it’s the Traditional Risk Takers, and the Social Trend Surfers who are least likely to do this • Traditional Risk Takers – peaking interest in watching TV news and Sci-fi TV • Social Trend Surfers – their love of celebrities is matched with their love of reality TV shows • Interestingly, our Tech Dependent Homebodies are lower on the scale for home improvement shows, game shows, morning shows, and talk shows.

© 2016 Ipsos 79 KEY TAKEAWAYS How To Reach These 18-34 Year Old Segments? • While most still listen to traditional radio (AM/FM), in terms of the number of hours per day that 18-34 year olds are engaged, its streaming music that has greater concentration. • Pandora use is prevalent for streaming radio, followed by Spotify. Where preference for Pandora is evident across most segments, Social Trend Surfers have similar levels of preference, shared between Pandora and Spotify. Radio • In terms of music preference, most are fans of Pop, but Social Trend Surfers are more interested in rock. • The car is the most likely place to listen to the radio, with Rational Planners listening in the car on their way to work. Opportunities exist to reach both Traditional Risk Takers and Social Trend Surfers for late night radio opportunities, both during the weekdays and over the weekend.

• Convenience stores, big box outlets and Supermarkets are the most visited locations, with Traditional Risk Takers more partial to Convenience stores, while Social Trend Surfers and Tech-Dependent Homebodies more likely to visit Big Box Stores and Supermarkets. • Tech Dependent Homebodies are not going to visit more niche, specialized stores such as independents, natural food locations, or farmers markets • While the debit card followed by credit card is the most used form of payment, Rational Shopping Planners get out the credit card most often. For Traditional Risk Takers, the option of cash is also high • Of all shopping, most is done in-store, with Traditional Risk Takers the least likely to shop online. Almost all shop online, but this trends higher among the Social Trend Surfers • Gas at the pump is the domain of the Traditional Risk Taker • Use of coupons is dependent upon access and convenience, with many preferring the option © 2016 Ipsos of electronic 80

KEY TAKEAWAYS How To Reach These 18-34 Year Old Segments?

• There are 3 major sources of information for entertainment options; Social Media, Word of Mouth from family/friends, and personal online searches. • Mall of America and the State Fair have the greatest level of attendance, but there are other niche opportunities for different segments; • Social Trend Surfers – Red Bull Crushed Ice, Rock The Garden and WE Fest Entertainment • Crossover opportunities exist at Basilica Block Party for Social Trend Surfers and Rational Planners • In terms of sporting events, the Twins are the most attended, but it’s the Vikings that grab the greater attention in terms of TV and following news articles • There are however some niche opportunities to grow among key player segments Traditional Risk Takers and Social Trend Surfers, particularly around the Minnesota Lynx, and Auto Racing.

The Untrained Cashiers have a heavy reliance on the Trained Cashiers, so without the Trained Cashiers issue resolution could be a concern when there are technical LX2.0 issues. Untrained Cashiers did not know what steps to take as it was not part of their training (if they received it) which could cause unnecessary delays. There’s also a risk of a breakdown in knowledge with LX2.0 if the Trained Cashiers were to ever leave the store/quit the company.

Workshop Collaborative effort to bring the segments to life

Tracking Incorporated in to ongoing tracking so the Lottery can monitor shifts in segment patterns and segment sizes over time

Business Plan With support from Ipsos, The Lottery can use segments to target efforts and grow the business

PAUL LAUZON JASON ALLSOPP DARCEN ESAU ROSE WONG SENIOR VICE PRESIDENT VICE PRESIDENT ASSOCIATE VICE PRESIDENT RESEARCH MANAGER