Move over Millennials––Generation Z is rising to buying power. This demographic makes up over one quarter of the American population, representing roughly 1.5% more of it than Millennials do. Unlike Millennials, this hyper-connected group of young adults and teens born after 1995 doesn’t remember a time before Internet, cell phones, apps or social media. They use 5 different screens and devices each day, and 90% of them would be upset if they had to give up their Internet connection. Collectively, they spend $44 billion a year, influence nearly $600 billion in family spending and by 2020, they will account for 40% of all consumers.
So what makes Gen Z tick?
Their favorite way to spend money is on food and drink. Gen Z-ers devote 36% of their allowance or earnings to their favorite foods and beverages, according to research by VISA. Social activities with friends and related purchases make up another 32%. Great news for fresh produce marketers!
They’ll give you 8 seconds to grab their attention. Their attention spans are small because they have to be. Growing up in a digital age provided limitless options, but not limitless time. Images grab their attention more than text, and content should be snackable.
They are do-gooder entrepreneurs. 72% of high school students dream of owning their own business one day, and over a quarter of teenagers today are volunteering. They want to achieve financial stability pursuing a career that taps into their interests and passions. This means they’ll connect to our industry’s passion for what we do.
They want privacy online. 25% of young teens abandoned Facebook this year, turning to more private social platforms such as Snapchat, Secret and Whisper to share personal stories with friends.
They are extremely driven. 64% of college students want to earn an advanced degree, and 80% believe they are more driven than their peers. 85% research online and 33% watch lessons and tutorials to educate themselves.
They want to influence positive change in the world. 3 out of 4 Gen Z-ers are concerned about humanity’s impact on the planet and 60% plan to make an impact in their career. This means that buying and purchasing what they view as ethically sourced and sustainably produced products will be key.
They believe in celebrity endorsements. Teens are 7% more likely than Millennials to trust an ad endorsed by a celebrity or athlete and 11% less likely to respond to an ad seeking to make an emotional connection.
The first wave of Gen Z-ers are already graduating and are ready take the economy by storm. Whether they start their own business or work for a non-profit, they want to make a difference and use technology to do it. Traditional marketing methods won’t work on this group of tech-savvy teens––brand engagement will thrive on digital channels.
Are you ready? Share your thoughts or questions about this up-and-coming consumer group in the comments below.
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