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A New Dawn: Unpacking Generation Z

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A New Dawn: Unpacking Generation Z

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This report invites you to deep dive into the minds, behaviours and online habits of Generation Z.

Unpacking some of the key reports and surveys on Generation Z from the last two years, this report collates the most important findings and insights (...so you don’t have to!) to inform new ideas and ways in to creating content that will engage with this lucrative, generational audience.

This report invites you to deep dive into the minds, behaviours and online habits of Generation Z.

Unpacking some of the key reports and surveys on Generation Z from the last two years, this report collates the most important findings and insights (...so you don’t have to!) to inform new ideas and ways in to creating content that will engage with this lucrative, generational audience.

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A New Dawn: Unpacking Generation Z

  1. 1. A NEW DAWN: UNPACKING GEN Z FEBRUARY 2019
  2. 2. 2 GENZ //WHOARETHEY?
  3. 3. 3 WELCOME // A NEW DAWN Gen Z are set to become the largest generational demographic in 2019 [Bloomberg 2018]. For brands this means that engaging with this audience is a key commercial strategy to get right… OR risk being left behind. // UNPACKING GEN Z The following report invites you to deep dive into the minds, behaviours and online habits of Gen Z. Unpacking some of the key reports and surveys on Gen Z from the last two years, this report collates the most important findings and insights (...so you don’t have to!) to inform new ideas and ways in to creating content that will engage with this lucrative, generational audience.
  4. 4. 4 OVERVIEW // AT A GLANCE Executive Summary // TECHNOGRAPHICS Insights and trends into Gen Z digital and social behaviour // PSYCHOGRAPHICS Insights into Gen Z mindset // SO WHAT? Making sense of it all
  5. 5. AT A GLANCE EXECUTIVE SUMMARY
  6. 6. 6 EXECUTIVE SUMMARY Unpacking the key insights around Gen Z: ● Over two-thirds of their day is spent connected online. [Adobe Research 2018] ● Instagram pips Snapchat to the top spot as the most used social platform, as picture based social channels dominate and Facebook continues to slide out of favour. [Piper Jaffray 2018] ● They consume video content like no other generation - content opportunities can be leveraged by tapping into the psychographics of this audience. [Awesomeness Survey 2017] ● They are the biggest streamers of music, which they say has a significant influence on their daily lives. [Global Web Index 2017] ● More self aware of their impact on the world, they are far more conscious about their consumption when it comes to sustainability, environmentalism and social impact. [Fragile 2018] ● Old stereotypes around gender, race and sexuality are alien to an identity nomad generation who are looking to explore and define their own identities. [Awesomeness Survey 2017] ● Social media plays a significant role in their lives and purchasing decision as they consume content from peers, influencers and brands. ● As true digital natives their expectations from brands around experiences and personalisation sets the benchmark high. [EY 2015]
  7. 7. TECHNOGRAPHICS SOCIAL + ONLINE BEHAVIOURS
  8. 8. 8 UNDERSTANDING GEN Z ONLINE HABITS Gen Z are the first true digital natives - born after 1996, their day-to-day lives have been moulded by social media, access to endless information and instant connectedness like no other. They are some of the heaviest users of online; on average daily, Gen Z spend 10.6 hrs online (vs 6.9hrs overall average). [Adobe Research 2018] MOBILE VS DESKTOP Generation Z is the first (even beating Millennials) generation to go over the tipping point between mobile (05:09hrs) vs desktop (04:57hrs) [Global Web Index 2018]. Ensuring content and user experience is optimised for mobile is no longer a consideration for brands but an absolute MUST to ensure you are speaking to them in a format they prefer to use.
  9. 9. 9 WHAT PLATFORMS DO THEY USE + LIKE MOST WHICH SOCIAL PLATFORM(S) DO YOU USE AT LEAST ONCE PER MONTH? 85% +3% YOY 84% +2% YOY 47% -3% YOY 36% -9% YOY 23% - 32% +8% YOY 46% -1% YOY 6% -1% YOY 5% -4% YOY 1% -1% YOY Piper Jaffray 2018 Instagram takes the top spot from Snapchat, for the first time whilst Facebook’s decline continues. Exploring formats such as IGTV and creating specific content (rather than repurposed or as an afterthought) is a smart move for 2019. Read our article on how to make the most of IGTV when it comes to Gen Z. New shoppable features can offer opportunities to entice an audience to deep dive further into product and ultimately purchase. *Note: Piper Jaffray did not include YouTube is this particular survey question set. It is worth noting that YouTube is a key social video platform with this generation - see page 11 on video consumption SPLASH POV WHAT IS YOUR FAVOURITE SOCIAL PLATFORM?
  10. 10. 10 ROLE OF SOCIAL MEDIA Global Web Index 2017 51% To fill up spare time 47% To find funny / entertaining content 46% To stay in touch with my friends 42% To stay up-to-date with current events 38% To share photos or videos WHAT DO YOU USE SOCIAL MEDIA FOR? Motives and uses for time spent on social media give an insight into both what type of content to create but also what mindset they are to make more of a deeper connection to engage. Couple this with the wider behaviours and tastes in the psychographic section of this report can help to guide ultimately what content will perform best. SPLASH POV
  11. 11. 11 WHAT ARE THEY CONSUMING: VIDEO Awesomeness Survey 2017 68 Av. daily videos 17 Snapchat videos 13 YouTube videos <10mins 9 YouTube videos >10mins 9 Non-YouTube short videos >10mins 9 Instagram Stories 6 Non-YouTube short videos <10mins 5 Facebook Videos 58% Learning 53% Laughing 49% Relieving boredom 44% Passing the time 43% Relieving stress 40% Staying in the know 39% Activity with friends GEN Z VIDEO CONSUMPTION GEN Z SAY ONLINE VIDEO BEST FOR… SO CREATE VIDEO CONTENT THAT... EDUCATES HUMOURS ENTERTAINS DISTRACTS DESTRESSES INFORMS SHAREABLE Awesomeness Survey 2017
  12. 12. 12 WHAT ARE THEY CONSUMING: MUSIC 63% 76% 71% 59% 46% 31% Global 01:06 16-24 01:37 25-34 01:14 35-44 00:56 45-54 00:38 55-64 00:19 Global Web Index 2017 MIDiA Research Report 2018 73% “Music is important / very important to my life” 92% “Music impacts my mood” 45% “My favourite artist influences my style.” 40% “Music influences my social circle” Music plays an important role and influence in the life of Gen Z. Brands can leverage this by: ● Collaborating with music influencers to extend the brand experience into new territories that are unique and innovative. ● Exploring branded content opportunities across the different music platforms e.g Spotify, Deezer, Vevo, TikTok etc and formats within these media opportunities. SPLASH POVGEN Z SAY...DAILY MUSIC STREAMING (AVERAGE)
  13. 13. PSYCHOGRAPHICS LIKES, DISLIKES AND MINDSET
  14. 14. 14 UNDERSTANDING THE GEN Z MINDSET Gen Z have grown up in a world that has never known life before the internet; everything at their fingertips gives them both endless opportunities but also opens them up to a bombardment of information, news and social pressure. This is also a world that has been affected in their lifetime by financial, climate, social and political upheaval, resulting in a generation that is far more woke to the world around them and how they fit into this ecosystem. Comparing them to their predecessors - the infamous Millennials - this generation are far more self-aware - what’s my impact on the world, rather than what’s the impact to me - and innovative - they are used to figuring things out and utilising the technology at hand to find answers quickly. A number of key themes can be identified that affect their preferences, behaviours and ultimately purchasing decisions.
  15. 15. 15 CONSCIOUS CONSUMERS 1 in 5 Gen Z say their impact on the world is an important issue in their day to day lives. Awesomeness Survey 2017 “We see more and more youngsters entering our stores, stating ‘I would like to buy a sustainable product, can you show me what you have and how it is made?’” Anit Van Eynde, VP Brand Marketing Levis Strauss & Co Europe Insite Consulting 2017 A brand’s values, wider social and environmental conscious and down to the actual production process has never been more scrutinised than it has now by Gen Z. Brands need to find something to stand for that empowers purchasing decisions or becomes a symbol for good in the world to capture the attention of Gen Z. This should be a considered approach though that feels authentic, as any shallow efforts to piggy back this trend will fall flat with Gen Z. INDUSTRY INSIGHT INDUSTRY POV SPLASH POV 64% of Gen Z are willing to pay a premium for products from brands that embrace causes those consumer identify with. McKinsey TrueGen Report 2018 “It becomes even more important that the way your brand story shows up, feels very true to you brand DNA, and that you don’t try and to pretend you are something you are not. Consumers respond to something that feels honest.” Avery Baker, Chief Brand Officer Tommy Hilfiger Insite Consulting 2017
  16. 16. 16 IDENTITY NOMADS 70% of Gen Z say it is important to defend causes related to identity. Awesomeness Survey 2017 “Today’s youth is more diverse. In the past, you used to be one type and you would stick to that for the rest of your life, in every aspect. Today they switch regularly and this of course brings many opportunities for brands.” Jean Jacques Veikeniers, Business Unit President, Western Europe, Anheuser-Busch InBev Insite Consulting 2017 Old stereotypes and labels are alien to a generation who are far more tolerant and open-minded than previous generations. They want the freedom to define their own identity. For brands this can transpire in a number of ways: value based e.g. supporting and empowering diversity in race, gender and sexuality, product based e.g. customisation of products and unisex ranges, and influencer based e.g. collaborating with a diverse range influencers and role models. Again brands shouldn’t chase after all causes but define itself against relevant territories. INDUSTRY INSIGHT 1 in 10 Gen Z say exploring their sexuality is more important than having a relationship right now. Awesomeness Survey 2017 “Individuality is the new sexy, which they need to embrace, to express and in so they become the best version of themselves.” Victor Hugo, Global Brand Director, Axe Unilever Insite Consulting 2017 SPLASH POVINDUSTRY POV
  17. 17. 17 CONTENT FIENDS 68 The average number of videos watched by Gen Z daily. Awesomeness Survey 2017 “Marketers’ jobs are becoming increasingly more difficult due to media fragmentation. Before you’d work with an agency and say: this is what I want for TV, this visual for print and in-store and this for radio. Today it’s all that, plus YouTube pre-rolls, we need 5 secs, 6 secs, 10 secs. We need Facebook and Instagram. Don’t forget we need stories, 140 characters, Snapchat filters, influencers armies...” Victor Hugo, Global Brand Director, Axe Unilever Insite Consulting 2017 Gen Z consume content at a rapid rate, which is a two edged sword: on the one side it means they are most receptive to online and social content, on the other this makes it a challenge for brands to stand out or hold onto their attention. This requires brands to first get the basics right; content created specifically for a range of formats and channels to ensure it meets expectations. Anything below par will soon be swiped past. The second is creating content that engages them to watch the entirety. This doesn’t mean chasing after 6 - 15 sec films - such short formats make it difficult to share any message or story - but focusing on quality content. For instance 52% say they will complete watching videos that make them laugh [The Drum 2017]. INDUSTRY INSIGHT SPLASH POVINDUSTRY POV
  18. 18. 18 SOCIAL INFLUENCE 63% of Gen Z say social media content is becoming more influential in their purchasing decisions Awesomeness Survey 2017 “Everything is immediate today. What they see from other people, other brands, other products, in other industries. The global borders are going away because of the power of social media. There is an instant gratification that this generation is starting to expect.” Avery Baker, Chief Brand Officer Tommy Hilfiger Insite Consulting 2017 Social media has become one of the biggest influential channels when it comes to purchasing decisions for Gen Z. Brands need to be savvy on the following: 1. Peer influence - this requires a shareability factor to any content that is created 2. Influencers - this requires identifying influencers who bridge between brand and audience 3. Branded content - content has become part of the wider brand experience for Gen Z INDUSTRY INSIGHT 1 in 4 Gen Z say their friends liking a brand makes them more likely to prefer that brand over others Awesomeness Survey 2017 “The internet has enabled information access and social media to be at its peak so suddenly all the world’s affairs become omnipresent - so prevalent, son in your face that [Gen Z] are just more aware of the greater matters of consequences to to speak.” Victor Hugo, Global Brand Director, Axe Unilever Insite Consulting 2017 SPLASH POVINDUSTRY POV
  19. 19. 19 DIGITAL SNOBS 1996 Born after this year they have never known a world without the internet of things “The expectations NextGen today are set by other brands than before. Brands like Google and Amazon, and they don’t see why they can’t have the same kind of experience with brands from more traditional industries. If we don’t deliver someone else will.” Anna Zangni, Head of Global Innovation and Product Development for Youth, MasterCard Insite Consulting 2017 Gen Z are true digital natives and so this demands a higher expectation from brands when it comes to experiences and personalised interactions. Those that aren’t intuitively innovating run the risk of not providing the instant gratification that is to be expected; anything that doesn’t cut it may see a loss of loyalty and transactions rapidly for a brand. INDUSTRY INSIGHT “‘I want to have it and I want to have it now.’ They are not necessarily looking for brands, but rather for something they need very quickly. It is a generation that expects your product to be on par and deliver a super UX.” Ivo Wassenaar, Marketing Strategy eBay Insite Consulting 2017 SPLASH POVINDUSTRY POV
  20. 20. 20 OUR TOMORROWS // I PERSONALLY BELIEVE IN THE NEW GENERATION; IT’S LIKE TURNING A NEW PAGE.
  21. 21. 21 FOR THE COMING OF AGE // OUR GENERATION IS WEIRD. // OUR GENERATION HAS SUITED ME AND MADE ME WHO I AM TODAY.
  22. 22. SO WHAT? MAKING SENSE OF IT ALL
  23. 23. 23 WHAT TO MAKE OF ALL THIS? // VERTICAL-FIRST APPROACH Create content optimised for Instagram and Snapchat. Explore all existing and upcoming features and formats to ensure content is fresh. IGTV full potential is still to be fully realised, so get in early! Brands like Under Armour and Nike are making their mark already. // CONTENT FOR A PURPOSE Content creation (especially video) should be considered against a criteria of whether it is: educating - that taught me something, entertaining - that made me laugh, or informing - that is useful to know. Moves the train of thought away from content for the sake of content. Consider content by channel and by format, to ensure the best experience is being offered through each. Social is a good bet to begin putting this into play due to its significant influence in the purchase decision of Gen Z. // PLAY (ON) THAT FUNKY MUSIC Explore musical collaborations with artists and influencers, media opportunities across the different streaming platforms and think authentically unique e.g. a technical brand; consider ideas within sound engineering. Looking to engage your audience? Involve them to determine what the end output is ( e.g. Bacardi X IGTV Do What Moves You)
  24. 24. 24 WHAT TO MAKE OF ALL THIS? // GET INSIDE THEIR HEADS Purchasing patterns and brand affinity are determined by the psychographics of this generation. Don’t go chasing all of these territories - this can either end up feeling unauthentic or stretch resources unnecessarily - but determine which are a natural extension of the brand or build new bridges to create unique brand experiences that push the boundaries. // REALISING A GREATER CONSCIOUS Think about the bigger picture: can you produce in a more sustainable way? Be inspired by the adidas x Parley collaboration. Are their charities or causes you can support? Are there actions you can take? Patagonia boldly pledged to donate $10mn to environmental groups. Can you empower purchasing decisions? TOMS has been doing this since day one. There are many ways into this, the key is ensuring it feels genuine to the brand. // GIVE THEM THE FREEDOM Gen Z demand and desire to customise their own experiences, products and choices. This sets the bar high for expectations from brands. Plus this must be with ease and speed; anything less won’t cut it. Take food; a whole array of apps now allow dishes to be chosen, customised and delivered direct to your door with just a few clicks no matter your taste, time or budget. Or gyms; things have been shaken up by the likes of Class Pass. Users have the flexibility to pick and choose classes and locations, throwing off the constraints of traditional gym memberships.
  25. 25. 25 CREDITING SOURCES EY 2015 Report on the characteristics of next generation consumers Insite Consulting 2018 Senior Marketing Exec opinions on Gen Z 26 prominent Snr Marketing Exec interviews Global Web Index 2017 Industry report for emerging trends Awesomeness 2017 Survey of Teen likes, dislikes, motives and ambitions N=1,500 McKinsey & Co. 2018 Gen Z survey & insight on the implications for brands Piper Jaffray 2018 Teen survey on spending habits and brand preferences N = 8,600
  26. 26. Want to chat more about Gen Z? Speak to James our Strategist at Splash. jcroft@splashworldwide.com

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