Gen Z marketing—everything brands need to know about reaching young consumers

The first members of Gen Z were born 26 years ago—and marketers have been obsessed with reaching them ever since. But while Gen Z marketing tactics have been around for years, brands must constantly refresh their playbooks in order to effectively reach this coveted generation, which included more than 68 million people as of 2021 in the U.S., according to the Annie E. Casey Foundation, a charitable foundation focused on improving the well-being of American children. After all, as any parent living with a teenager can tell you, Gen Zers can be quite fickle. And marketers must constantly assess the potential of new platforms. TikTok was born just six years ago, for instance, and Threads is still in diapers—though American Eagle's social team of Gen Zers is already living it up on the Meta-owned platform: Post by @americaneagle View on Threads Below, we summarize the latest data, strategies and insights brands should be aware of when engaging in the risky, yet potentially rewarding, practice of Gen Z marketing. But first, some basics. Ad Age Gen Z Contributor Column We welcome Gen Zers to submit fresh takes exploring Gen Z within the ad industry Learn more here What is the age range for Gen Z? Gen Z is defined as the generation born between 1997-2012, according to Pew Research. The oldest Gen Zers are now 26. They are the generation between millennials, often defined as being born between 1981-1996, and Gen Alpha, those born in the early 2010s-2025 (and marketers already have an eye on them). Gen Z makes up nearly a quarter of the U.S. population, according to The Harris Poll. Nearly half identify as Black, Indigenous or another person of color, according to The Harris Poll. How does Gen Z like to consume content? First off, linear TV probably isn’t the best use of ad dollars. Only 33% of Gen Z regularly watch traditional TV, according to a report by Super Awesome, an Epic Games-owned platform used to power kid-safe technology for appropriate ads. Gen Zers are far more likely to use streaming services, with 67% of them watching content this way every day. YouTube is also popular, with nearly 60% watching YouTube content a few times a day. And just over 1 in 3 Gen Zers watch a new show or movie that they saw in a YouTube ad. Related: How streaming TV platforms can keep Gen Z engaged When it comes to ads within digital content, Super Awesome also found there are some do’s and don’ts: 67% of Gen Z says they like advertising, especially if they can skip the ad, the ad uses a creator considered to be authentic with a modest follower count or the ad is holiday-themed. Gen Z viewers do not want to encounter unskippable ads or ads that play in the middle of videos. What are Gen Z’s favorite platforms? Gen Z spends a lot of time on social media—38% spend more than four hours a day across social apps, according to a December 2022 survey by Morning Consult. When it comes to social media apps, YouTube is king: 88% of Gen Zers watch YouTube, 76% use Instagram, 68% are on TikTok and 67% use Snapchat, according to the same survey. Morning Consult also found that female Gen Zers reported more usage of photo-focused apps such as Instagram, Snapchat and BeReal, while male users were more likely to use text-based apps including Discord, Twitter and Reddit. Also read: Khaby Lame reigns as the most-followed TikTok star Seventy-five percent of respondents said they use TikTok, Discord and Reddit to look up recommendations and reviews before making a purchase, according to a report based on more than 100 surveys of Gen Zers by Samy Alliance, a group of agencies that specialize in digital marketing. Even though they spend a lot of time online, Gen Z values taking mental health breaks from social media. According to Harris Poll data, 81% of teens believe that mental health is a significant issue for young people in the U.S. This is especially true for teen girls—56% of Gen Z women believe that social media is built to be addicting and that they are actively working to curb their social media use. Related: CVS tackles Gen Z insecurity from social media While there isn’t much data on Meta's Threads as of publication, the sheer popularity of the app thus far means it’s a platform to watch for Gen Z consumers. The app had reached 100 million sign-ups in just five days, according to a Threads post by Mark Zuckerberg on July 10. Gen Z-focused apparel retailer American Eagle, which stopped posting on Twitter last year, is leaning heavily into Threads. “We’ve been focusing less on product and kind of being more of the sarcastic best friend that our audience is interested in,” American Eagle Chief Marketing Officer Craig Brommers, recently told Ad Age. “Threads can also be a place where we test new content that we don’t have on other channels and see if it connects with our Gen Z audience.” Read more on American Eagle's Threads strategy here Post by @americaneagle View on Threads What are Gen Z’s favorite brands? Gen Z has several favorite brands, with the top 5 including YouTube, Google, Netflix, Amazon and M&Ms, according to Morning Consult’s Gen Z’s Favorite Brands 2022 report. Doritos, Nike, Cheetos and Walmart also made the list. The report also found that the top five most-favored brands among Gen Z men were YouTube, Gatorade, Playstation, Google and Walmart. Compared to Gen Z women, they favored more gaming and sports brands, including Logitech, Epic Games, the NFL and Discord. For Gen Z women, their most-favored brands were YouTube, Google, Netflix, Target and M&Ms. Compared to Gen Z men, women heavily favored makeup brands, including Ulta Beauty, e.l.f Cosmetics, NYX and Revlon. There are also brands that have been gaining traction with Gen Z. Converse twice in the last year has topped Ad Age's Gen Z Harris Poll, which measures brand momentum with the group. Also read: 20 brands gaining Gen Z's attention in May 2023 And: Gen Z love powers Converse sales gains The shoe brand has reached various Gen Z audiences by giving college students the chance to customize their Chuck Taylors. For Black History Month, the shoe brand launched a “Black Joy” collection, which melded streetwear with floral patterns. Other brands making the Gen Z Harris Poll ranking included Rubbermaid, Lego and Schick. Aldi has also gained traction among Gen Z due to its low prices as younger consumers balance inflation and higher prices. Gen Z also cares deeply about the earth and environmental causes, which has translated into interest in electric vehicles. Find more Ad Age-Harris Poll stories here See America's Hottest Brands 20 brands that are trending in 2023 Click here How do brands build trust with Gen Z? Gen Z is very critical of brands. According to Morning Consult’s 2023 Most Trusted Brands report, Gen Z is less likely than the rest of the population to say that they trust brands to do what is right. Younger consumers typically get to know brands more intimately on social media but are often skeptical of marketing efforts, which may come off to them as performative or tone-deaf. “We see that Gen Z as a whole has less trust in government institutions, corporations, and brands in general,” said Nicki Zink, industry analyst team lead at Morning Consult. “Gen Z also wants brands to have strong political and ethical values, such as treating employees fairly.” Also read: Why Gen Z's trust is hard to earn Brands can build trust in a few ways—through data, sustainability, listening to trends and poking fun at themselves. Asking Gen Z what they think is one way to learn what they want to see from a brand. Madewell, American Eagle, Ulta and others use questionnaires to ask loyal customers their preferences. Brands should also incorporate sustainability in their Gen Z marketing efforts. Examples include Madewell’s Jortcore influencer campaign that encouraged people to upcycle a pair of old jeans into shorts for the summer. Volvo tapped YouTuber Andrew Huang to create a song out of car noises for its latest hybrid car. Consumers of all generations say they are five times more likely to buy from brands that address climate change, according to Edelman's 2023 Trust Barometer report. Gen Z also wants brands to take a stance on social justice issues. According to the Harris Poll, 82% of Gen Z teens say, “There is still so much to be done in the fight against racism, this is just the start.” Also, 76% of Gen Z women want to see more women of color embraced in companies’ services and products, not just their marketing campaigns. Ulta has worked to address this with its MUSE accelerator, which takes early-stage beauty brands owned by people of color and gives them capital and mentorship. The Edelman report also found that consumers were over four times more likely to buy from brands that commit to ending racism and promoting gender equality. Related: How different generations view diversity in advertising TikTok trends can also be a way for brands to gain Gen Z's trust. Chipotle has leaned into the platform more than once to connect with fans. One example came on the heels of the viral “It’s Corn!” song that was circulating on TikTok. Chipotle posted its own take on the trend, showing Corn Kid ordering his own burrito bowl. Later, Chipotle was quick to make a viral fajitas quesadilla a regular menu item, being sure to incorporate the hack’s creators, influencer Alexis Frost and food reviewer Keith Lee. @chipotle Wait for it #corn ♬ original sound - Chipotle But it will take time for brands to build trust with Gen Z, said Morning Consult’s Zink, noting the generation hasn’t had as many interactions with brands and may be less wary as they get older. Pew Research also points out that the “Gen Z” label can lead to oversimplification or stereotypes. Gen Z is not a monolith, and while shared experiences and identities can be helpful, personalized marketing is still important. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here How do brands connect with Gen Z through influencer marketing? Influencer marketing in general is still performing well for brands. Spend on influencers is growing faster than overall digital spending, in part because the return on investment is strong and improving, according to an Aberdeen Research & Strategy study commissioned by creator marketing platform CreatorIQ. A survey of more than 200 respondents in April 2023 found spending rose 7.9% on influencer marketing over the past 12 months, compared to 7.3% on digital marketing overall. Respondents expected to increase influencer spending by a far more robust 11.2% in the next 12 months, compared to 9.7% for digital marketing generally. For Gen Z specifically, creators still have sway over what they buy. One in three Gen Z participants pointed to recommendations from an influencer or celebrity as a potential motivator in convincing them to purchase clothing from a brand they hadn’t previously shopped at, according to a survey by Collage Group. Gen Z also wants to see a brand’s product sizing being inclusive of different body shapes and sizes, the brand’s models resembling them, and in-depth reviews by creators. For brands working with creators, it’s important to let the creator tailor the brand message or video to best connect with the target audience. Gen Z also wants to see brands support their favorite creators,including by sending them products. One example: Catalina Crunch took advantage of a video where a creator warned against eating their full-of-fiber cookies, and rewarded her with a tailored PR package instead. But Gen Z is also very sensitive to inauthentic creators or partnerships. This reached an extreme earlier this year when de-influencing became a trend on TikTok, where creators highlighted products that they did not like.

Gen Z marketing—everything brands need to know about reaching young consumers

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