Marketing to Gen Z: start with the approach that you may not know everything you think you do about this powerful consumer contingent. The Covid-19 pandemic has inflicted unforgettable damage on Gen Z’s lives: They’ll never look the same at work, school, or even the way they socialize. Pre-Covid strategies for marketing to Gen Z also changed forever.
Figuring out how to market to Gen Z is more important than ever. After all, Gen Z comprises a significant percentage of total U.S. consumers, and their spending power is expected to grow to $12 trillion by 2030. That means Gen Z is projected to become the largest, wealthiest generation. It’s also the most valuable generation for brands to attract because they have the greatest lifetime value.
So, what can you learn from the changes the pandemic has brought to help you better connect with Gen Z consumers moving forward? Consider these truths about Gen Z consumers and uncover more powerful ways to connect with them.
1. Entertainment IS news to at least half of Gen Z consumers.
Entertainment and news have become increasingly intertwined for younger generations. For Generation Z, 46% primarily turn to social media platforms, including YouTube and TikTok, for their informational needs, and it seems social media is replacing Google. This stands in stark contrast to older generations, who are more likely to rely on traditional news sources as well as Google.
This trend raises important questions about the nature of news consumption in the digital age. What can be learned from the way information is presented and consumed on platforms like YouTube and TikTok? How does the blending of entertainment and news impact the way younger generations engage with and understand current events?
2. Gen Z’s trust in larger institutions is on the decline.
Recent data from a 2023 Gallup and Walton Family Foundation study reveals a significant lack of trust among Gen Z toward major U.S. institutions. Only about one in six Gen Z members express high trust in Congress, the news media, the presidency, and large technology companies. Additionally, less than a quarter trust the U.S. Supreme Court, the criminal justice system, and the information they find on the internet.
This widespread lack of trust poses challenges for brands and institutions aiming to connect with Gen Z. It underscores the need for authenticity, transparency, and consistent values in all communications and actions. For brands, the question remains: How can you earn and maintain trust in an environment where skepticism is the norm among young consumers?
3. Brand neutrality on societal issues is no longer an option.
Gen Z expects the brands it supports to take a stand on social justice issues. Staying neutral out of a lack of vision or fear of offending some consumers is a failing strategy. Today’s consumers expect their brands to take a stand on at least some topics.
We’ve started to see more brands that were once considered “social issue neutral” take certain stances that might alienate some of their supporters. Take a look at Cracker Barrel’s unexpected stance on LGBTQ+ rights in 2023. The Southern-style restaurant chain, traditionally associated with a more conservative customer base and known for staying out of political discussions, surprised many by publicly supporting Pride.
The decision initially caused some backlash among certain long-time customers who viewed it as contradictory to the brand’s perceived values. However, Cracker Barrel saw an influx of support from younger demographics and urban markets. It’s important to ask: What does your brand stand for?
4. Gen Z trains algorithms (not dogs) to get what they want in their feed.
Gen Z, having grown up in a digital world shaped by algorithms, is taking a more active role in managing their digital experiences. Many Gen Zers consciously like, dislike, save, and ignore content on their feeds to train their algorithms to show them what they want to see.
This generation views their algorithms as an intimate part of themselves, with half of Gen Z members believing that their algorithm knows their tastes and interests better than their own parents.
One thing to think about: Gen Z is very information-savvy. They like the content they like and are adept at getting the online content they want (and less of what they don’t). How can you help Gen Z get the content they’re after in regard to your brand?
5. This is the Age of Transparency for Gen Z.
Never forget how discerning Gen Z (sometimes referred to as “True Gen”) is. They are extremely resourceful at getting the information they want, and at verifying it. This has profound implications for companies in terms of where they stand on social justice, and in terms of what a brand’s driving purpose is. How can your brand be more upfront and transparent with your Gen Z consumers?
Remember never to underestimate Gen Z and its truth-seeking capabilities. If you want to be successful in your efforts to market to Gen Z consumers, take direction from the findings above.
6. Live Events Can Count As Currency
In a 2023 study by The Harris Poll on behalf of TFL, 68 percent of Gen Z respondents said they value experiences such as live events over material things.
“My generation is coming from a place where we want more than social media experiences, especially after Covid,” Sydney Landau, venture associate at Shakti and part of the Z Suite, explained during a call. “Creating in-person communities is important. Concert prices are high, but that’s because there is demand. My friends and I want to spend our time and money on experiences even if it costs a premium.”
The high prices of live events present an opportunity for marketers.
Finding a way to reach, reward, and thank Gen Z with things they want – like offering a discount or even covering the cost of live events – is one way catch the generation’s attention.
7. Travel Is A Status Symbol — Yesterday’s Mercedes Benz
Landau elaborated on the experience economy and travel, “Covid constrained our travel opportunities. Did you really go to Italy if you didn’t post your trip on your Insta account.”
I spoke to Dave Stephenson, Chief Business Officer of Airbnb during the Phocuswright Conference. Dave remarked, “I think Gen Z aspires for things to do, not things to own. The typical Gen Z consumer spends a lot of time on social media, with its inspiring images of travel fueling their desire for unique and memorable adventures.”