Generation Z is now an attractive group to a wide array of advertisers. The oldest are now adults, making buying decisions in new ways. Attracting Gen Z audiences to your clients’ businesses requires a new approach because of their unique attributes. They are digital natives, are more racially and ethnically diverse and have different motivations for buying decisions.
Plus, they have dollars to spend. In 2022, their estimated buying power was $140 billion. Their disposable income in 2021 amounted to $360 billion.
Differences in how they buy, what influences them and how they engage with businesses will also be critical to developing strategies for your advertisers to attract them.
In this post, we’ll arm you with strategies and insights to share with customers.
Social Media Channels Play a Leading Role in Buyer Behavior
As digital natives, Gen Z grew up in social media, and it’s a channel they use for purchasing. For example, 60% of Gen Zers use Instagram to discover new products and services. With social media marketing comes the rise of influencers, and this generation trusts them. In addition to Instagram, this group uses YouTube, Snapchat and TikTok the most.
Aspects of social commerce fit well with what motivates these buyers. A Google study revealed that 70% of teenagers see YouTube personalities as more relatable than traditional celebrities. Social media becomes their space to keep tabs on brands. Gen Z is the age group that follows brands on social media the most, at 61%. It’s how they develop relationships and stay up to date on what businesses are doing.
Takeaways for your advertisers:
- Launch social media ads in the channels where Gen Z looks for products and follows brands.
- Consider partnerships with local influencers to attract these buyers.
- Keep social media profiles active, and consistently publish content.
Representation in Ad Content Matters
According to Pew Research data, Gen Z is a picture of the country’s changing racial and ethnic makeup. They are also more likely to be the children of immigrants. Further, they are typically more accepting of all body types and welcome diversity.
As such, your advertisers need to consider how they represent the generation in ad content. If it doesn’t resonate with them, and they don’t see themselves, it could prevent them from engaging with the brand.
Takeaways for your advertisers:
- Use racially diverse people in ads.
- Represent all types of people (including body shapes) in content.
Gen Z Cares About the Environment
Gen Z consumers are the group most likely to request sustainable products. In fact, 73% of them are willing to pay 10% more for these things. This age group is also more active than others in addressing climate change.
As a result, they want transparency about a company’s carbon footprint, how products are made and what a business is doing to mitigate its environmental impact. If a brand isn’t making strides here, 25% of Gen Zers have admitted that it’s affected buying decisions.
If your advertisers align with this perspective, they should make it a core message.
Takeaways for your advertisers:
- Include sustainability and eco-friendly messaging in ad content.
- Be specific about what the company is doing to be more sustainable.
More Spending Behaviors
So, how do they spend their discretionary income? Let’s look at where Gen Z splurges and saves:
- Thirty-two percent of Gen Zers have pets and spend the most on them.
- They spend the least during the holidays compared to other generations.
- They want things fast and will pay up to 5% more for quick delivery.
- Their favorite brands are Nike, Apple and Amazon.
- BNPL (buy now, pay later) is attractive to this group and is used most often by them, with 37% doing so in 2021.
These statistics cover many facets of the customer journey and how the generation may respond to brand campaigns and messaging. This group loves their pets, cares about the environment, wants payment options and expects fast delivery.
If your advertisers can hang their hats on any of these hooks, it could bode well for acquiring more customers from this generation.
Attracting Gen Z Buyers to Your Advertisers
These insights can be beneficial in developing advertising that appeals to Gen Z. When meeting with clients, discuss why they want to target this group and how their products or services align. Just saying they want younger customers isn’t enough, so you’ll need to discuss it with them to develop the most impactful campaign.
While digital may be considered the only way to get in front of these buyers, linear has advantages. Younger generations trust local news. They are heavy streamers, but AM/FM radio reaches 55% of them daily. Thus, traditional media should be part of an integrated campaign, and you can offer it all to them as media sellers.
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