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Understanding Gen Z for Marketers

Gen Z, those born after 1995, are now the largest living generation and have significant influence on purchasing decisions. They differ notably from Millennials in that they are more entrepreneurial, self-directed learners who use various digital devices and social media in their daily lives. Gen Z grew up in a diverse, post-9/11 world and witnessed economic struggles, leading them to focus on financial security and making an impact.

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0% found this document useful (0 votes)
262 views56 pages

Understanding Gen Z for Marketers

Gen Z, those born after 1995, are now the largest living generation and have significant influence on purchasing decisions. They differ notably from Millennials in that they are more entrepreneurial, self-directed learners who use various digital devices and social media in their daily lives. Gen Z grew up in a diverse, post-9/11 world and witnessed economic struggles, leading them to focus on financial security and making an impact.

Uploaded by

Alif Adnan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 56

Meet

Generation
Z
Forget Everything You Learned
About Millennials

Image Source: National Geographics October 2013,125th anniversary issue

Meet Generation Z, Americans born after Gen Y


(from 1995 to present) who are currently under the
age of 18.

Marketers have been focused on Gen Y


(a.k.a. Millennials) for more than a decade.
In fact, Millennials are the most
researched generation in history!
But Gen Z is different from the Millennial
generation. In many ways, Gen Zers are the
opposites or extreme versions of Millennials
and marketers need to adjust to them.
We are just beginning to understand Gen Z
and its impact on the future, but here is what
we know and foresee

There is a population tsunami approaching

361,000

Swing
( 69+ )

10.5%

Baby Boomers
( 50-68 )

Gen Z
( <19 )

Approximate number of babies


born in the world each day.

25.9%

23.6%
Gen X
( 38-49 )

15.4%

Millennials
( 20-37 )

24.5%

More than a quarter of


Americas population
belongs to Gen Z, and with
each birth, the segment is
growing.

Source: U.S. Census Bureau, 2012 (via Mintel 2014)


4

They influence household purchases


Percentage of moms who feel their Gen Z child is
influential when purchasing the following
Toys
Apparel
The weeks dinner menu
Entertainment
Family vacation

84%
74%
73%
69%
65%

TV

60%

Cell/mobile

55%

Computer

52%

Home furnishing

32%

Family cars

29%

Source: JWT Intelligence 2012


5

A generation with disposable income

Gen Z receive $16.90 per week in


allowance which translates to

$44 billion a year

Source: Mintel 2013 Activities of kids and teens.


6

They love to shop, especially online

Percentage of Gen Z who prefer shopping online vs. offline


Offline

Clothes
Toys
Online games
Offline games
Books
Electronics

Online
45%
55%
46%
54%
53%
47%
44%
56%
47%
53%
47%
53%

Music
Fashion accessories
Shoes
Movies
Sports equipment
Beauty products

50%
50%
43%
57%
45%
55%
53%
47%
40%
60%
49%
51%

Source: JWT Intelligence 2012


7

They are eager to start working

76%
of Gen Z wish their hobby
would turn into a full-time
job (compared to 50% of
Millennials)

55%
of high school students feel
pressured by their parents
to gain early professional
experience

Parents of Gen Z encourage their children


to find jobs early and independently
without their help.

4 in 5
high school students
believe they are more
driven than their peers

Source: Creative Artists Agency & Intern Sushi (2014)


Millennial Branding & Internship.com surveyed 4,597 students (172 high school
students and 4,597 college students): American Freshman Survey
8

They are mature and in control


Use of Illicit Substances

Teen Birth Rate

(Among high school seniors)

(per 1,000 women age 15-19)

72

Alcohol
Marijuana

60

Cigarettes

89.1
80

Cocaine

40

60

20

40
29.4

1.3
1980

85

90

95

00

57%
of Gen Z say they would
rather save money than
spend it

05

2010

1950

25%
of Gen Z teens say they
were in a physical fight in
the past year (down from
42% surveyed in 1991)

60

70

80

90

00

2010

10%
of Gen Z teens say they
tried an e-cigarette in 2012
(a doubling in one year)

Source: Centers for Disease Control and Prevention via vox.com; Cassandra Report: WebMD (CDC Survey 2014)

They intend to change the world

60%
of Gen Z want to have an
impact on the world with
their jobs (compared to
39% of Millennials)

26%

Social listening reveals that Gen Z are determined


to make a difference and make an impact.
Social entrepreneurship is one of the most popular
career choices.

of 16-to-19 year-olds are


currently volunteering

Source: Creative Artists Agency & Intern Sushi, 2014; U.S. Department of Labor, 2013,
10

This is what Millennials started

Name: Mark Zuckerberg


Fame Age: 20
Profession: Internet Entrepreneur

11

this is how Gen Z took over

Name: Adora Svitak


Fame Age: 16
Profession: Activist, author and
advocate for education
Her 2010 TED talk, What Adults Can
Learn From Kids, has received over 3
million views.

Source: Adorasvitak.com
12

and this is the new norm for Gen Z


Name: Logan Laplante
Fame Age: 13
Profession: Advocate for DIY education
His 2013 TED talk, Hackschooling
Makes Me Happy, has received over 5
million views.

Source: About.me/loganlaplante
13

What made them who they are?

14

Growing up in a post 9/11 world


during a recession

1 in 4
American children
are living in poverty

73%
of Americans were
personally affected by the
Great Recession

43%

Gen Z were developing their personalities


and life skills in a socio-economic
environment marked by chaos, uncertainty,
volatility and complexity. Blockbusters like
The Hunger Games and Divergent depict
teens being slaughtered. No wonder Gen Z
developed coping mechanisms and a
certain resourcefulness.

of 7-to-13 year olds feel


school violence/shootings
will have the biggest
impact on their generation
Source: Rutgers 2013, Annie E. Casey Foundation 2013: The Cassandra Report
15

They learned that traditional choices


dont guarantee success

64%
consider earning an
advanced degree as one
of their life goals
(compared to 71% of
Millennials)

They witnessed the struggles


of Millennials (think: older
siblings, many still living at
home), and have resolved to
do things differently.

30%
of high school students
today are pushing out their
graduation date

16

Their education system focused on inclusive


classrooms and differentiated instruction

They were raised in an American


education system that focused on
mainstreaming and classroom diversity.
As a result, they are collaborative team
players where everyone is equal at
winning and losing.

17

Nature vs. Nurture: Gen Z had a unique childhood

18

+400%
increase in multiracial
marriages (Black and White) in
the last 30 years (with a
1,000% increase in AsianWhite marriages)

Multiracial children is the fastest


growing youth group in the US

+50%
increase in the multiracial
youth population since 2000
(to 4.2 million)

Modern families come in all


colors and sizes. Long-standing
views of race have been
challenged by culture: celebrities,
artists, politicians and athletes of
mixed heritage have changed
discourse, along with trans-racial
and international adoptions.

Source: Census: The two or more races population: 2010 Census Brief;
American Academy of Child and Adolescent Psychiatry
19

There is much greater diversity


amongst teens and tweens

-1.5%
decrease in the caucasian
6-17 year-old population is
projected by 2018

+7.6%
projected increase in the
Hispanic teens population
over the next five years, the
fastest growing population in
the US

Research shows that multiracial children


tend to be high achievers with a strong
sense of self and adaptability to change.

Source: Mintel Activities of kids and teens - US - Nov 2013


20

Traditional gender roles have been


challenged

Source: GoldieBlox.com

Gender roles and norms are


blurring, which may make it harder
for Gen Z to find mates and
maintain households when they
become adults. Self-identity is
less constructed by gender than
for past generations.
21

Parenting styles have shifted

With studies showing the adverse effects of


helicopter parenting, parents of Gen Z have
been discouraged from mollycoddling. As a
result, Gen Z have been given more space
than Millennials, accessing answers and
inspiration on the Internet, and are more
self-directed.
Source: Census: The two or more races population: 2010 Census Brief
22

They live in multi-generational households

Gen Z have been raised in larger, extended


households as retired grandparents have
moved in and Millennial siblings (Boomerang
Kids) have moved back home. As a result,
they are sharers and have greater affinity and
respect for the elderly. Gen Z share many of
the same values as the Great Generation.

Source: Census: The two or more races population: 2010 Census Brief
23

How are Gen Z remarkably different?

24

They worry about the economy


What things
cost today

Female

Male

100
Cybercrime

80

The economy

60
40
20
Government
leadership

Wars around
the world

Crime in
your town

Terrorism

Your parents
job security

Source: JWT Intelligence, 2012


25

72%
of high school students
want to start a business
someday (compared to
64% of college students)

Entrepreneurship is in their DNA

61%
of high school students
want to be an entrepreneur
rather than an employee
(compared to 43% of college
students)

Surrounded by DIY education and crowdsourcing,


these teens dream of self employment. They feel
pressured to gain professional experience at a very
early age. Low wage entry level Gen Z jobs lead to
competition with struggling Millennials, fueling
competitiveness.

Source: Millennial Branding and Internship.com, 2014, Mintel 2014


26

42.1%

I plan to start
my own
business

My school offers
classes in how to
start and run a
business
16.9%

I work at
least one
hour a week

37.8%

55.3%

46.9%

My school
teaches about
money and
banking
4.6%

I have an
internship

I will invent
something that
changes the
world
3%

I run my own
business

More than 90,000 students enrolled in grades 5-12


have the exceptionally rare entrepreneurial talent
to help create more jobs within the U.S.
Source: Gallup and Operation HOPE. A survey of 1,009 students in grades 5-12
27

They seek education and knowledge


Percentage who have done the following:
Research online

1 in 2
Gen Zers will be university
educated (compared with 1
in 3 for Millennials and 1 in 4
for Gen X)

85%

Watched lessons
online
Worked on a project
with classmates online
Taken a test/exam
online
Taken a lesson online
Read a textbook on a
tablet

33%

32%

25%

22%

20%

Source: JWT Intelligence 2012; Edudemic survey


28

They use social media as a research tool

52%
of teens use YouTube or
other Social Media sites for a
typical research assignment
in school

Source: Pew Research, How teens do research in the Digital world 2012
29

They multi-task across 5 screens


Percentage who use the following devices
multiple times per day
Age (13-17)

Age (8-12)
72

TV

72
76

Cell/mobile phone
Laptop computer
Desktop computer
iPod or other portable
music player

39
50
28
38
28
36
25

39%

33%

72%
57%

25

Gaming console
17

Handheld gaming
device
Tablet
E-reader

24%

23

16
13
11
4
5

17%
12%
4%

31%

Source: JWT Intelligence


30

Their attention spans are getting shorter

8 sec
is the average American
attention span
(down from 12 sec in 2000)

11%

Gen Z are the ultimate consumers of snack


media. They communicate in bite sizes.
Research studies suggest that their brains have
evolved to process more information at faster
speeds, and are cognitively more nimble to
handle bigger mental challenges. But, getting
and keeping their attention is challenging.

of children 4-17 years old


have been diagnosed with
ADHD (up from 7.8% in
2003)

Source: National Center for Biotechnology Information, U.S. National Library of Medicine, The Associated Press
31

They think spatially and in 4D

2005
is the year that Google
Maps launched with its
satellite and zooming
functions

Gen Z have always known how to zoom, pinch and


swipe. They have grown up with hi-def, surroundsound, 3D and now 4D 360 degree photography
and film is their normal. Ultra slow motion and hispeed video is their standard.

32

They lack situational awareness

Teachers say that Gen Z lack situational


awareness, oblivious to their
surroundings and unable to give
directions. Some speculate that Gen Z
have become overly reliant on their
devices.
Source: Pew Research, 2012

image source
33

They dont want to be tracked

25%
of 13-17 year-olds left
Facebook in 2014

As Social Media natives, attuned to NSA


surveillance issues, they are more
concerned about disabling their phones
geolocation than their privacy settings.
Gen Z are drawn to incognito media such
as Snapchat, Secret and Whisper.

Source: Facebook Social Ads Platform (Potential Reach), 2013


34

They communicate with symbols

Gen Z speak in emoticons and emojis.


Symbols and glyphs provide context
and create subtext so they can have
private conversations. Emoji alphabets
and icon stickers replace text with
pictures.
Source: Pew Research, 2012

image source
35

They communicate with speed

68%
of teachers think that
digital tools make students
more likely to take
shortcuts and not put effort
into their writing

46%
of teachers say digital tools
make students more likely
to write too fast and be
careless

Source: Pew Research, 2012

Gen Z are agile communicators:


speed of communication and
repartee garners cultural currency.
Theyre accustomed to rapid-fire
banter and commentary. As a result,
Gen Z are not precise
communicators and leave a lot of
room for interpretation.

image source
36

They communicate with images


Percentage of Gen Z using social media
42%

Spring 2013

Fall 2013

33%

30%
27%

Fall 2012

26%

23%

23%
17%
12%
3%

Twitter

Facebook

Instagram

4%

4%

Tumblr

6%

5%

3%

Google+

% share of respondents, select findings

Source: AFP News Report, via MarketingCharts 2013


37

They love the ephemeral and rarity

Gen Z are drawn to social media which


disintegrates and self-destructs. They
suffer from FOMO (fear of missing out)
more than Millennials, so being
culturally connected is critical.

38

They spend more time with computers

41%
Of Gen Z spend >3 hours
per day on their computers
for non-schoolwork-related
purposes (compared to
22% a decade ago)

Source: WebMD (CDC Survey 2014)


39

Their social circles are global

81%
of online teens use some
kind of Social Media

26%
of Gen Z would need to fly
to visit most of their social
network friends

Source: JWT Intelligence and Pew Research center


40

They are hyper-aware and concerned


about mans impact on the planet

80%

9 of 10

7 of 10

know about mans impact


on the planet

continue to feel optimistic


about their own future

feel optimistic about the


future of the environment

78%
are concerned about world
hunger

77%
are concerned about
children around the world
dying of preventable
disease

76%
are concerned about mans
impact on the planet

Source: Unilever Project Sunlights How Children Inspire Sustainable Behavior in Adults, August 2013; JWT Intelligence
41

They are less active

66%
of 6-11 year olds list
gaming as their main
source of entertainment

51%
of teen boys list gaming as
their main source of
entertainment

This generation is much less active than


previous generations. In some cases, sport is
viewed as a tool for health instead of play and
gaming may have replaced outdoor activities.

Source: Mintel, Activities of Teens and Kids 2013, Entertainment software association 2013
42

They live-stream and co-create

#1
live-streaming platform in
the world is Twitch, which
features live video
gameplay, news and chat

Gen Z gravitate to live-streaming


media, such as Twitch and Ustream.
Two-way live-streaming and videoconferences (think: FaceTime and
Skype) are their preferred ways to
communicate.

Source: JWT Inteligence


43

They are the biggest foodies


Their interest in cooking is expected to
increase over the next five years.
% change projected annual eatings F2018 vs. 2013
14
12
10
8
6

Gen Z
Millennials

Gen X

2
0
-2
-4

Scratch

Fresh

Oven

Stove-top

Source: NPD Groups Future of Eating, 2014


44

Unfortunately, theyre also obese

Teen obesity has nearly tripled from


1971-2010, now stabilized at around 18.4%
Teenage boys are more likely than girls to be obese (18.6% vs. 15%)

Source: Centers For Disease Control And Prevention, 2013 (via Mintel 2014). Percentage
of obesity among high school students, by state, for selected year 2003 and 2011
45

But, food is their main vice


A Different Set of Vices
LUST
GLUTTONY

Are having less sex (but more un-protected sex)


Are more obese

GREED

Are recycling and up-cycling

SLOTH

Are more sedentary

WRATH

Are a happy lot

ENVY
PRIDE

Are focused on sharing


Are self-confident

Source: Mintel 2014, Centers for Disease Control and Prevention 2014
46

How to connect with Gen Z?

47

Dont treat them like Millennials

Gen Z
Tech Innate: 5 Screens
Think in 4D
Judiciously Share (GeoLoco Off)
Active Volunteers
Blended (race & gender)

Millennials
Tech Savvy: 2 Screens
Think in 3D
Radical Transparency: Share All
Slacktivists
Multi-cultural

Togetherness

Tolerance

Mature

Immature

Communicate with Images


Make Stuff
Have Humility
Future Focused
Realists
Want to Work for Success
Collective Conscious

Communicate with Text


Share Stuff
Have Low Confidence
Now Focused
Optimists
Want to be Discovered
Team Orientation

48

Dont treat them like Millennials


Very Different Experiences and References

Gen Z
Massachusetts
legalizes same-sex
marriage

The video-sharing
website Youtube is
launched

Snapchat, a photo
messaging app
is introduced

Smartphones with a
multi-touch interface

Commercial music
streaming services

Millennials
Politics

Media

Communication

Telecommunications

Music

Homosexuality is no
longer considered
a disease

The DVD, an optical disc


computer storage media
format is announced

Instant messaging, a
type of online chat, is
released by Microsoft

Mobile phones with


the ability to send
text messages

Portable media player

49

Checklist for connecting with Gen Z

1. Depict them as diverse (ethnically, sexually, fashionably)


2. Talk in images: emojis, symbols, pictures, videos

3. Communicate more frequently in shorter bursts of snackable content


4. Dont talk down talk to them as adults, even about global topics
5. Assume they have opinions and are vocal, influencing family decisions
6. Make stuff or help Gen Z make stuff (theyre industrious)
7. Tap into their want to be an entrepreneur spirit
8. Be humble
9. Give them control and preference settings
10. Collaborate with them and help them collaborate with others
50

Checklist for connecting with Gen Z

11. Tell your story across multiple screens


12. Live stream with them or give them live streaming access
13. Optimize your search results (they do their Internet research)
14. Talk to them about value (they care about the cost of things)
15. Include a social cause that they can fight for
16. Have your house in order (in terms of sustainability)
17. Help them build expertisethey want to be experts
18. Tease (think: ephemeral, puzzles, surprises and games)
19. Feed their curiosity
20. Feed them

51

Gen Z topics & interests: what were tracking


NEWS

ISSUES

Global
Warming

Cost of
Education

Back to School

Malala
Gaga in Space
2015
Total Solar
Eclipse
March 2015

Avatar 2
2016

Elon Musk
Tuna the Dog

Tuna the Dog

Teen Choice
Awards
Hunger Games
8/10
Mockingjay
11/21
Earth to Echo
August
Star Wars
Episode VII
2015

MEDIA & CULTURE

Girls in
STEM

Gender
Equality &
LGBT Rights

Brazil
&
The World Cup

Kids Choice
Awards
7/17

Texting While
Driving

School
Shootings

Economic
Disparity

Weather
Refugees

GEN Z
Twitch
22 Jump Street
June

Teenage
Mutant Ninja
Turtles
8/8

Tarzan
November

Common
Core
Education
Nationwide

Socialism &
Communism
Loneliness

Wearables

Whisper
Net Neutrality
iPhone 6

YouTube
Stars

Mixed Reality
Oculus Rift

MTV VMAs
8/24

Drones

Autonomous
Cars

3D Printing
& Doodling

TECHNOLOGY
52

Want to apply Gen Z insights to your business?


We will continue to track Gen Z, adding a global perspective from our
Scout Network (now in 11 countries) combined with international social
listening. Stay tuned.
Reach out to us if you want to explore how to apply these learnings
and future Gen Z insights to your business. We can package Gen Z
insights in a variety of formats, such as:

Customized Meet Gen Z reports, designed for sharing and educating


Immersive get-smart-fast-on-Gen-Z workshops
Gen Z insights-to-applied-marketing round table discussions
Bi-weekly Gen Z Trend Pulses sharable newsletters on Gen Z culture
and marketing opportunities

53

agency of relevance
cultural strategy at the core
cultural
intelligence
-

Social & Cultural Listening

Competitive Intelligence & War


Gaming

content &
distribution
-

Pre-Planned (70/30) Content


Production - Online and Offline

Real-time Content Production


Real-Time Commerce

Segment Analysis &Tracking

Topic Deep Dives

Event Tracking

Issue Monitoring

Social Media Content (short and


long form) - posts, tweets, vines,
videos, blogs, etc.

Real-time Burst identification

Community Management

Channel Analysis

Influencer Outreach

Content & Influencer Strategy

Channel Optimization & Fan Base


Development

Editorial & Cultural Calendars

Analytics & Measurement

Real-Time Media Amplification

innovation
-

Macro Trend Identification &


Quantification

Projecting Segments into the


Future (Consumers of the Future)

Product, Service & Packaging


Development

Business Model Design &


Reimagination

Business Context Analysis

Futurism

Whitespace Identification

Brand/Partner & Acquisition


Recommendations

ADVERTISING
AGENCY

SOCIAL AGENCY

54

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54

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