In contrast to a people who, at the dawn of the millennium, lived for the powerful guzzling SUV, Generation Y has gone Euro. Compact is back, and it is not just about gas prices this time. According to a recent study from Iconoculture, Millennials are interested in smaller cars more than ever before; this is interesting because our generation grew up during the age of mini vans and SUVs. I even went to high school with kids who drove trucks and Hummers. It wasn’t just guys who got behind these big rides though.

Over winter break I was catching up with one of my high school friends and somewhere in the conversation we started talking about our first cars. She drove a 1999 Land Rover and I used my parents’ old Ford Expedition. When asked why she loved her Land Rover at the time, she said the size made her feel powerful. However, for the record, my friend no longer drives a SUV and instead owns a more affordable sedan. The great appeal powerful muscle cars have on male Millennials does not necessarily fall out of the lines toward a smaller sedan, such as the Mazda 3, Volkswagen Jetta or Suburu WRX.

So why the change of heart? Environmental awareness and the economy have changed our perspective on living. Many Millennials are transitioning from that stage of receiving financial support to gaining complete independence from their parents. As the reality of growing up sets in,Millennials are figuring out what important purchases they will eventually have to make. For many, a car will be one of them.

Female Millennials are more career driven than marriage focused today, so getting the family mini van isn’t a big concern to them right now. A safe, economical, and good looking car is essentially all they need. Male Millennials will often desire agile, quick and efficient cars that represent an ideal of environmental consciousness and the freedom of the road. Additionally, smaller cars in some ways can take on more of a human spirit.

The automotive industry has to evolve with Gen Y’s fast paced lifestyle, similar to what Ford is trying to do. Ford has created buzz with its plans to introduce Twitter, Pandora, and other applications in cars to coincide with its SYNC technology. It’s likely that other automakers will do something similar in order to gain a following with Millennials , but to get their attention cars need more than fancy apps. Import cars make up a large portion of the automobile market, and American auto brands like Ford have a stigma among Gen Y.

Aside from providing great gadgets, automakers have to produce attractive cars or Gen Y won’t buy them. An America that is moving away from the Big Mac and toward the gym with a Subway sandwich in hand will choose “healthier” car options as well. With that in mind, a smaller car is reflective of a culture that likes to bop around in simple fashion while feeling the bumps of the road.

Photo Credit: jiazi

But the most recent development to the SYNC system has me wondering whether Ford is following their step forward with two giant leaps back.  Their goal is to use SYNC to introduce an option allowing drivers to turn their vehicles into Wi-Fi hotspots.  At first glance – and second, and third – this seems like a (potentially fatally) terrible idea, certainly one that contradicts the safety-focused image that Ford has worked so hard to project.

In Ford’s defense, they don’t intend for it to be a dangerous mechanism.  It’s meant to allow for otherwise idle pre-teens to check their Facebook and MySpace accounts, and to stream video, and for spouses in the passenger seat to pay bills and stay connected with the office.  However, with e-mailing, texting, and tweeting already a distraction worthy of Congressional discussion, how long will it be before we start spotting drivers typing away with one hand on mini-laptops delicately balanced on the opposite forearm?

Ford unwittingly raises the ongoing question: how necessary is it for us to stay open to and connected with our peers at any given moment?  And moreover, what will the Wi-Fi addition to the SYNC system bring that isn’t already available via smartphone?  I can certainly think of things I would rather do on my laptop, but I can’t think of a single thing that I can’t take care of using my BlackBerry.

The original Ford SYNC was almost certainly something I would have considered paying extra for, whether a one-time fee tacked on to the cost of a vehicle, or a small monthly charge.  On the other hand, the Wi-Fi feature is something that I would absolutely avoid at all costs, to the point where I would probably decline the original features when packaged with Wi-Fi as an all-or-nothing offer, if only to impress the strength of my opinion on Ford.  I couldn’t bring myself to spend my money on something in which I see so little benefit and so much potential detriment.

I can’t deny that it’s an interesting concept; it’s unique in the way that it targets Gen-Y, zeroing in on our constant craving for connectivity.  As we become more and more dependent on Aircards and smartphones I can see this concept taking off (although whether it will be a luxury or an indispensable feature is an entirely different story).

Perhaps Ford would consider providing Internet in vehicles’ own display panels – that way, the system could be locked while cars were in motion.  This seems like the direction in which we’re headed, but regardless of the solution, the system simply must be developed further to account for safety.

Go on, Ford:  build it tough.

Photo Credit: Q4RadioGuy/Flickr

Consumers demand control.

Create interactive experiences.

Consumers want to be involved.

But not really. It’s not that easy. The problem is twofold: poorly executed “participatory” marketing and the average consumer’s apathy. In fact, a recent emarketer study revealed that the majority of millennials spend most of their free time watching tv.

I think there’s a lot of ineffective check-listing going on among marketing executives regarding consumers and interactive marketing campaigns. For instance, I’ve seen a number of “fun, interactive” quizzes in advanced tv campaigns and on Facebook. Really? You think someone wants to take the time to do a quiz about BMW automobile parts or a word scramble about Vaseline on tv in their free time?

It seems as though putting up an interactive quiz on tv, online, etc. has become a check mark for marketing executives that “yes,” they have involved the consumer in their marketing campaign. The truth is that the average consumer doesn’t want to go through too much hassle unless there is something worthwhile to get from participation. There could be a variety of incentives. For the tech-savvy/blogging type, fame and notoriety may inspire them to participate. But for the average millennial, it’s going to take a bit more to get us on board and engaged in your brand. That’s not to say that brands can’t become passion points for us, because they are. But you really have to connect with our values. If you develop a participatory program, make sure it has real value and provide the right incentives. Give us money, give us free stuff, donate to a charity on our behalf. Think Kraft Feeding America, HP You on You, etc.

However, despite current ad agency rhetoric, not all marketing programs need to be participatory. As I alluded to earlier, some millennials are looking for lean-back experiences in their downtime. Not to suggest that my boyfriend and his friends can represent all millennials, but in observing their behavior, it occurred to me that it is more important to think about consumers and what they value than to arbitrarily conceive of a participatory marketing effort. For instance, they spend every Saturday and every Sunday watching football. They enjoy watching and betting on the teams as well as participating in fantasy football.

Fantasy football is a crucial part of the whole experience in that it can involve friends across the country. Instead of attempting to persuade these couch potatoes to actively do something, Ford simply sponsored a CBS Sports Fantasy Football mobile application that brought these guys a truly valuable service. Because the mobile application improved their quality of life (not an exaggeration) and fulfilled an actual consumer need (to be updated in real time), they could effectively recognize that Ford understood them.

When appropriate co-creation and participatory marketing can result in extraordinary outcomes, but it’s not always about persuading people to participate in your brand, sometimes all you need to do is show them you get it, by helping them out – providing real utility.

Dylan's Fiesta

Earlier this year, Ford Motor Company announced a social media experiment which drew over 4,000 applications. At the end of April 2009, 4,000 were narrowed down to the one hundred who would represent what was called the Fiesta Movement. These hundred people were given the title of Agents in this movement, and, with that title, obtained a brand new Ford Fiesta well in advance of its 2010 US launch. Over the ensuing six months Agents received free gas and insurance in return for sharing their experience in the car with their social networks. Today, we’re featuring an interview with Agent 96, Dylan Klymenko.

Q:  What made you want to join the Ford Fiesta movement?

Honestly? It was the thought of having a car again. While I was in college my younger brother totaled my car once he reached driving age. Granted, the auto was a year younger than me, so we got some good miles out of it. Still, when I returned back home after graduating, that left me with nothing but a few area friends to rely on for my transportation. My life almost had to be planned around their schedule, otherwise I would have been a burden. In a way, I viewed the movement as a chance to regain my independence in a big way, and, from what I heard, have fun while doing it.

Q:  How hard was it to become one of the 100 participants?

This might be a question best fielded by Action Marketing Group since they coordinated the whole thing, but I can give you my side of it. Pretty hard. There were over 4,000 people that applied for this contest. To be chosen as one of the hundred from the selection process that followed is a miracle–I usually have problems when my odds are fifty-fifty!

Q:  What specifically did you have to do to get in?

The first requirement was to create a 2-5 minute video explaining why you deserve the Ford Fiesta. Seeing as I didn’t have a car anymore, I decided to play off that idea in a fun way. I grabbed two of my friends for it and we shot it all in one afternoon. When I sent the video I also included a form I had to fill with general information including interests and involvement with social media. The second phase was a phone interview and an incredibly rigorous background check. Thankfully, I wasn’t the one who totaled my old car. They wanted someone with a record as clean as untracked snow. This seemed extreme at first, but I immediately recognized the logistics they were dealing with. I mean, they’re planning to give out a car–it made perfect sense.

Q: Did that exercise alone make a good impression on you?

When it came to the video entry all I could think was, “Man, that was a lot of fun.” Even if it never worked out, I would’ve been happy that I gathered my friends, made a video, and had a blast while doing it. As a student of marketing and advertising, I was also impressed with how things were handled in the initial stages; their questions were poignant and they knew they were seeking people with a balance of personality and, what I guess could be called online credibility.

Q:  You had assignments each month?  What did you get out of them?

The assignments were great! They were called Monthly Missions. There were six in all and each month had it’s own unique theme (Travel, Technology, Style/Design, Social Activism, Adventure, and Entertainment). The system worked in a way that provided a huge list of suggested missions given the theme of that month. This list was compiled by Mission Control (MC) and each of the 100 agents was assigned a direct contact at MC. Of course, these missions were first come, first served. So you always tried to finish your last mission soon enough to have first grabs at the next month.

This experience was made a million times richer by the missions. They forced you to reconsider the area around you and involve yourself in activities you’ve never done before. I took my first road trip to Philly, eating as many cheesesteaks as my friends and I could stand. I investigated speakeasy bars in NYC–something I never would have considered before the fiestamovement. I got involved with a children’s organization called AmericaSCORES and was able to help tell their story to potential donors. And, all things being cyclical, I returned to Philly for my last mission, attending Game Four of the playoffs with the Dodgers. In case you missed it, this game was incredibly dramatic. It felt like a movie, which worked for me since I usually root for the best story rather than any specific team.

Not to mention, I learned how to drive stick.

Q:   How important was the community?   Did you have contact and interaction with each other?  Did that shape your opinion of the program?

Definitely. Some agents more than others, but overall there was a community factor. It can’t be helped when you’re one of 100, you’re like an endangered species–you look out for each other, listen to what you’re all doing. It was so cool to play part in this community since it was filled with diverse people all over the country. One of the agents was a host for a show I used to watch on G4TV. It still baffles me that this program connected so many of us.

Q:   Prior to the experience, what was your opinion about Ford and its cars?

I wasn’t what you’d call a Ford enthusiast, but I wasn’t a hater either. I felt sort of blah about them and most car companies. To tell the truth, I never felt like any car company prior to this identified with me. Sure, some of the companies had cool commercials that I enjoyed, but their cars were way out of my price range given my situation or just didn’t feel very me. I know that’s weird to say, but it’s true.

Q:   Did the experience change your perception about the Ford brand or the company?

Though I was blah before the experience, I was not blah about the Fiesta. It actually looked pretty sexy and this experience brought all the pieces together. Now I feel more positive about Ford as a company and the car itself. In my eyes, this helped set them apart from the phrase “Big 3.”

Q:   If you were brand manager, would you attempt to replicate this program?

Yes, but a carbon copy cannot expect the same press impact. This was the first program of its kind for a car company. That alone aided in the buzz it received. However, this contest has the ability to be repeated in the same way Doritos has done with its SuperBowl contest: by upping the ante. The importance is to keep it fresh and fun with every reincarnation. After all, what better way to excite and influence a specific market than to let them experience your product and share that experience with others?

Q:     Any advice for Ford as to how to make a better car?

Every month we gave them feedback. I was very candid regarding things I found lovable and loathsome with the vehicle. Overall, it’s a solid product and most of my dislikes were minor. For example, at night when you open the back door, there’s no light to illuminate the interior, so you can’t see a thing. Another minor gripe I had was with the power window’s one-click function (this allows you one press for it to roll all the way down or up). I felt this function should apply for all windows, not just the driver’s.

Of course, I also recommend they remember to innovate. The cannot rest on the laurels of their current WOW factors: Door lock key-sensor, voice-controlled climate/radio/phone, push button start; they’re all cool, but overtime we’ll come to expect them as standard and we’ll be looking for something new.

Q:   What was it like to have to give the car back?

Sad. My whole summer was in that car. And, I didn’t cry…it’s just, something got caught in my eye–both of them–at the same time.

Q:    What kind of car are you driving now?

I wouldn’t call it a “car” as much as, “my left and right leg.” Now I’ll be walking a lot more, using the train, and relying on friends again. I might consider leasing something, but I’m not exactly a wealthy man at the moment.