The GenZ Opportunity

By Gemma Newton, Head of Data and Insights

To be immersed within the marketing industry is to understand the audiences we’re reaching, so today we’re delving deep into understanding a truly dynamic generation-  Gen Z.

By now, we know Gen Z are savvy when it comes to obvious marketing, and they won’t hold back in calling out brands if their pledge or messaging isn’t authentic and  could be seen as problematic. Instead, they respond to innovative campaigns that relate directly to them.

So, as brands and marketers- how do we capture Gen Z’s eye?

 Brands who manage to grow a loyal GenZ audience base are ones who place innovation first. The key areas that Genz look out for here are creativity, technology ( for example, the metaverse- and AR), brands that truly listen, being reactive to trends, changes in behaviour and consumer interests.

Understanding Gen Z in numbers

·         96% of Gen Z are loyal to brands who have a quality product.

·         1/3 of Gen Z already have over £1,000 in savings.

·         60% like to spend on luxury products.

Knowing this- we can see here that Gen Z have much potential as a loyal audience for many brands and products when it comes to marketing.

According to data collected by Imagen Insights, over the next year, we will witness a recalibrating of the relationship between Gen Z and their mobiles as they seek out something more real and representative. Specifically, they will be spending less time living vicariously through social media and more time engaging with people in the real world. They will want to see this sense of realism replicated within advertising too.

This is interesting to consider when we know that:

·         52%  of Gen Z use ad blockers.

Perhaps the way to capture Gen Z through advertising is no longer online and backing up this thought are these statistics:

·         30-32% of Gen Z receive ads that are Online, Mobile and Desktop .

·         51%- 55% of Gen Z receive ads that are in the Cinema, Outdoor and Magazines.

This really does suggest a shift towards Gen Z spending less time online, which for advertisers is interesting to note- there are a myriad of ways to capture this hard to please generation.

But they’re not denouncing technology altogether:

The Game-ification of Gen Z

25% of Gen Z’s  leisure time is spent on gaming, which isn’t a surprise when we consider that they like to see brands that are creative, and favour technology. In fact, according to Mckinsey & Company,  70 percent of people under 25 prefer spending time gaming over watching videos. 

Plus, the game industry is growing fast, and its digital worlds have drawn in almost three billion players and exceed $300 billion in value. Esports are picking up steam, often due to sponsorships or streaming, and beyond consoles, the Wordle craze is part of a wave of quick phone games with a social aspect; showing that ultimately, people want to connect with each other with these games.

A way for brands/marketers to tap into this is with the trend of “gamification,” or adding game elements into things that didn’t start out as games. For examples, see below:

Fashion: gamification encourages customers to check back to online stores frequently for the chance of scoring a steal. The fashion industry is stepping into gaming ecosystems elsewhere too, with brands entering the metaverse.

Well-being: An Icelandic health start-up interjects game elements into all its programs, including one for COVID, using the same dopamine rush games give you to get you involved in your well-being. 

Booking a flight: Gen Z is huge on experiences, and the 65 percent who said they hoped to take a big vacation in 2022 are another win for gamification. Frequent-flyer programs are using tiers and points to keep customers booking, and even to encourage greener behaviour.