A shift in how marketers reach consumers is anticipated to occur as Generation Z gains purchasing power in the coming decade. Defined as the generation born between 1995 and 2010, Generation Z is unlike their Millennial parents or Baby Boomer grandparents. On pace to become the largest generation of consumers by the year 2020, and representing $29 to $143 billion in spending power, their influence cannot be ignored by marketers.1 Here are the top three reasons why marketers need to be preparing now to attract Generation Z consumers.
They’re Technology Natives
Unlike previous generations, Generation Z consumers have been immersed in technology, even as children. Many have never experienced the days before cell phones, laptop computers, GPS devices, etc. Therefore, they are well-equipped to find the information they need, in real-time, using the myriad of devices they are accustomed to navigating. Having grown up with advertising coming from all directions, marketers will need to be creative in their campaigns to catch and keep Generation Z consumers’ attention. It’s likely that video advertising, social media stories, and native advertising will quickly become the go-to approaches to attract this target demographic.
Social Media Reigns Supreme
For Generation Z, SnapChat, Instagram, and YouTube have become tools to review and research new products and brands. According to recent marketing studies, Generation Z consumers are two times more likely to look up a new product on YouTube before buying it.2 Likewise, 45% of consumers ages 13-24, report using Instagram to learn more about a company. Keeping social media profiles current and using them to showcase the brand experience will be vital in building brand awareness and loyalty within this demographic.3 Because of this, incorporating innovative social media advertising, particularly on new platforms such as SnapChat and Tiktok, will likely become top priority to reach Generation Z.
Innovative Marketing Will Be Priority
The technology learning curve for Generation Z consumers is little to none. This technology savvy generation has grown up experimenting with new technology and have become accustomed to adopting new devices every 18-24 months. Using traditional marketing approaches or reusing marketing campaigns may not be effective with this group. Marketers will have to continually learn new strategies and leverage marketing data as much as possible to help evolve marketing campaigns to fit Generation Z’s ever-changing technology preferences. The key will be to devise personalized marketing approaches that can capture their attention on the same platforms they use on a regular basis.
Marketing, like technology, will need to evolve in the coming decades to keep pace with consumer demands and preferences. And, as Generation Z’s purchasing power increases as they move into young and middle adulthood, marketing will need to shift to better attract, engage, and retain their attention. Taking the time to understand how Generation Z consumers approach purchasing decisions and the role that social media plays in their decision-making process will serve to help you create a unshakable advantage well into the future. Even testing innovative, video-based advertising strategies now in your current promotions can give your organization a significant head start on tapping into the Generation Z market.
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