The Top 10 Proven Tips for Marketing to Generation Z & 6 Unique Traits of This Generation
In just a few short years, by 2026 there will be 82 million Generation Z consumers, more than any other generation. This generation was born between 1997 and 2012. Members of this cohort between the ages of 16 and 21 already spend an estimated $143 billion per year.
While an obsession with millennials has taken over the collective conscious it is time for you to develop a marketing strategy that resonates with Generation Z. While they are young this generation wields enormous spending power and although they are close in age to millennials there are notable differences between the two cohorts. Translation: you can’t dust off your old millennial marketing strategy and expect the same results.
Having a sense of the key characteristics of Generation Z is an important first step in marketing to them effectively. What follows are some of the key characteristics of this generation followed by the implications for your marketing strategy. As you will see this generation is quite different than many generations that have come before them.
1. They are diverse and inclusive
Approximately 48% of Generation Z is nonwhite making this generation the most racially and ethnically diverse generation in American history. 25% of Gen Zs in the US are Hispanic, 14% are African American and 6% are Asian. This is the generation that embraces same sex marriage, broader definitions of gender as well as interracial marriage. Gen Zs were there to see the United States elect its first black President and to see gay marriage become legal. Instead of dividing, this generation seeks to unite.
What this means for marketers
Tip #1: make diverse and inclusive images a cornerstone of all marketing collateral
This generation as with underrepresented groups from previous generations want to see themselves represented. Brands that aren’t “woke” have started to pay the consequences while brands embracing diversity are coming out on top. Take Victoria Secret. For a very long time it has dug its heels in and resisted every attempt to become more modern in its marketing messages. As a result its same store sales declined by 6% in the second quarter of 2019, topping off declines in same store sales growth for at least five straight quarters.
Lingerie brand Aerie on the other hand has embraced diversity and inclusivity. For example, last year Aerie used models with disabilities on its website including featuring a model wearing intimate apparel sitting in a wheelchair. Speaking about the campaign, Jennifer Foyle, Aerie Global Brand President said: "as a brand, Aerie has been a leader in empowering women and celebrating inclusivity and body positivity since our launch of #AerieREAL in 2014. The results speak for themselves. In the second quarter of 2019 Aerie’s comparable sales were up 16%.
Tip #2: don’t just change your marketing material change your products
Remember the moment when Rihanna practically broke the internet when she launched 40 shades of foundation within her Fenty Beauty makeup line. While the need for diversity has always existed we have reached a point when if you want a leg up you need to reconsider if the market segment you are targeting is too narrow.
As you saw with Fenty Beauty it is not just about the models you use but the products as well. With so many choices available to tech savvy teens it is easier now than ever for a teen to abandon a brand that is not aligned with their values.
2. They are always connected online
If you think teens are always online you are right. Close to 50% of teens between the ages of 13-17 identify themselves as being online almost constantly. They spend so much time online that milestones like getting a driver’s license that got Gen Xers excited no longer hold the same appeal. There are now fewer 16 year old drivers than during any time period since the 1960s. Why get a car when you don’t need to? This is likely a thought echoed by many Gen Zs. Instead why not use my phone to stay connected instead of travelling to see friends.
What this means for marketers
Being online all the time with access to an infinite amount of content and entertainment means that teens have lower attention spans than ever. Why should I watch this entire eight minute video clip when my best friend is messaging me on Instagram? Teens do not have to develop the same level of patience needed to sit still and wait for a TV commercial to come on to take a break like their parents did. It is said that the average Gen Z has an attention span of eight seconds.
Tip #3: create content that captures attention quickly
The key then is to capture their attention while you have it. That’s why GIFs and memes work well with this generation. It is also why TikTok has done so well.
TikTok is a social media app owned by ByteDance, a Chinese company. The app allows users to create and share video clips up to 15 seconds long of dancing, lip syncing, or other activities, with music on top of the clip. 41% of TikTok’s users fall in the valuable 16-24 age-bracket; 23% of Instagram users fall into that age range. In the two years since its launch, TikTok has already hit 500 million monthly active users. To put this in perspective, Facebook and Instagram didn’t reach this milestone until their 6th year of existence. TikTok isn’t quite as popular in the US yet but it is growing rapidly.
Although TikTok doesn’t have a paid advertising business yet, brands and organizations can still engage with users through the use of augmented reality branded lenses or hashtag campaigns.
GUESS launched #InMyDenim and encouraged its users to flaunt their GUESS jeans in a creative way. Videos with the #InMyDenim hashtag have been viewed over 37 million times. In May, Chipotle created the #ChipotleLidFlip challenge, asking TikTok users to flip and land a Chipotle lid container upright. Over 100,000 TikTok users created videos which garnered 230 million views. Other brands and organizations that have embraced TikTok include the NBA, Jimmy Fallon, and the UN.
With a multitude of potential distractions your marketing messages need to be fun, entertaining, engaging and concise. Otherwise you are never going to get the attention of a 16 year old.
Tip #4: make YouTube your best friend
YouTube is another platform to focus on. A study by Pew Research Center found that YouTube is the number one platform used by teens followed by Instagram then Snapchat. Whether it is to learn something new like how to create a bullet journal or to learn “adulting 101” people like to listen to people they can relate to. YouTube does this amazingly well. If you want to market more effectively to teens YouTube is the platform for you. You can set up your own YouTube channel or market your brand through influencers.
Tip #5 make influencers a part of your marketing strategy
YouTube influencers are like the new TV stars. Teens are much more likely to believe an influencer who they feel like they know and trust than a brand rep they know very little about. According to a study, by Piper Jaffray 89% of female teens use online influencers as a source to discover beauty brands and trends.
One of the reasons influencers can be so effective is that if you follow one for long enough you really do feel like you know the ins and outs of the person’s life even if you have never met them. They are relatable. And teens are looking for things they can relate to.
If you don’t have a large marketing budget you can focus on micro influencers that have have as little as 1,000 followers. While these influencers have a smaller base their followers can be more engaged making it a better return on investment.
Tip #6: if you haven’t moved on from Facebook, what are you waiting for?
Instagram is the second most used social media platform used by teens. The direct messaging function is like a new and better version of email. When considering how to communicate with your teenaged customers trying using Instagram. It is the number one channel that teens like to use to receive communications about new products/promotions from brands.
Having a marketing toolkit that uses a mix of Instagram, YouTube and Snapchat and even TikTok will help you to more effectively market to this lucrative customer base.
3. They demand authenticity
Just keep it real. This generation not only seeks authenticity it demands it. Forget about photoshop and show models that look like real people. A study found that 79% of Gen Zs will trust an organization more if the brand uses images that are not photoshopped. This generation is growing up during a body positivity movement. It isn’t the generation that sees Victoria Secret models as the definition of beauty but instead flocks to brands like Aerie which uses models that feel more like a representation of them and their friends.
What this means for marketers
Tip #7: authenticity is not a buzz word, it’s what teens want to see
In 2014 Aerie launched its Aerial Real campaign featuring models that are not re-touched. Speaking about the campaign a spokesperson for Aerie said: “we left beauty marks, we left tattoos, what you see is really what you get with our campaign.” Some of the other “flaws” that are not retouched are: lines, dimples, fat, puckering and slight stretch marks.
Trade in highly edited and perfect looking marketing materials for content that looks like it is a reflection of real people and real life. Perhaps that feels risky. But if you are trying to cater to this generation the real risk is in thinking that they can’t spot authenticity when they see it.
4. They are activists in training
This generation has taken on social causes such as protecting the environment at a young age. And not only are they focused on these causes they want companies to be more socially responsible as well. 90% of Generation Z consumers think that an organization should be responsible for addressing social and environmental causes and would pay more to shop at organizations that are civic minded.
What this means for marketers
Tip #8: be aligned with the social causes that are most important to Gen Z
Remember those company values that were created when your organization was founded and are updated every once and a while? They matter. Teens want to feel as if they are part of something that is bigger than themselves. One way for brands to help teens feel as if they are part of the solution and not the cause is to sell socially responsible products. Many brands are going down this route. If this is not a core focus of your brand you can collaborate with other organizations.
Parley for the Oceans is a not-for-profit organization that focuses on protecting our oceans. Adidas and Parley first collaborated together in 2015 and according to Adidas “every piece [in the Adidas x Parley collection] is made of plastic trash collected from remote beaches and coastal communities”. In 2018 alone Adidas sold one million pairs of shoes using Parley’s recycled ocean plastic. Adidas has increased its sales goal for the collaboration to 11 million pairs for 2019.
Even H&M, a fast fashion company, has a conscious clothing collection. Many see this as a bit ironic since the manufacture and sale of fast fashion can have a negative impact on the environment as people go through clothing quickly leaving it to fill landfills. Why did H&M launch this line, ten years ago? Besides altruistic reasons it is good business. Generation Z is more likely than any other generation to pay more for ethical initiatives.
Is there an organization you can partner with to tackle a civic minded cause? It doesn’t have to be a new product launch it could involve donating excess product to charity. When you buy a pair of glasses at Warby Parker they donate a pair through its Buy a Pair, Give a Pair program. Since the start of its business Warby Parker has given away more than five million pairs of glasses.
5. They are financially oriented
This generation could also be named the recession babies as they were children during the Great Recession. They experienced first-hand their parents struggling financially and they do not want history repeat itself. They have an appreciation for money and want to set themselves up to be financially secure. They also like to save their money.
What this means for marketers
Tip #9: focus on value for money
In Piper Jaffray’s recent survey on teen spending it found that teens reported the lowest level of spending in eight years. The study found that nearly one-third of teens believe the economy is getting worse, up from 25% last fall. Teens know what their parents went through and any signs of economic instability are going to make them nervous. With all the talk of a pending recession no wonder they are nervous.
This highlights the importance of focusing on value for money in marketing messages. With all of the time teens spend online they are much more informed about costs and value than their parents would have been at their age. The number one website teens like to use when shopping is amazon.com which means it is easy for them to research for themselves to see which brands are providing the best value. Since they love amazon.com learning how to effectively advertise on Amazon is a must.
6. The are well educated
Generation Z is also more likely than other generation to obtain a college degree. For example, there are more Gen Zs enrolled in college than there were millennials at a similar age. Generation Z is also less likely to drop out of high school. They will likely be the most educated generation in history.
Tip #10: craft smart marketing messages for a generation that is wise beyond their years
While many teens are still in high school they are preparing like no generation before to get into college. That means they are smart and well informed. They are more likely to see through marketing messages that aren’t alined with their wants and needs. That’s why it is imperative to understand the nuances in the wants and needs of this generation. Since teens are still so young they have less affinity to specific brands meaning that if you can figure out what works for them now you can grow with them as they spend more money as they get older.
Additional Sources
https://www.cnbc.com/2019/04/08/teens-spend-2600-a-year-on-food-clothes-heres-where-they-shop.html
http://www.piperjaffray.com/private/pdf/CM-19-0338%20TSWT%20Infographic%20Spring%202019_11x17.pdf
https://www.emarketer.com/content/gen-z-goes-to-the-gram-for-new-products
https://www.nytimes.com/2019/03/28/us/gen-z-in-their-words.html
https://www.businessinsider.com/generation-z
https://adage.com/article/wp-engine/gen-z-doesnt-want-buy-your-brand-they-want-join-it/2163281
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/welcome-to-gen-z.pdf
https://www.mckinsey.com/industries/retail/our-insights/the-influence-of-woke-consumers-on-fashion.