Marketing to Gen Z: Why it Matters and How to Get it Right

Only a few years ago, marketers were scrambling to appeal to millennials. And just when they thought they were beginning to understand them, well. Here comes a whole generation of new kids on the block, and let me tell you: most of them definitely aren’t kids anymore. 

Generation Z or Gen Z (please don’t call them Zoomers) represents the largest generation in history, born between the years of 1997 and 2012. They currently comprise over a quarter of the US population, and are now considered a significant demographic that is backed by a lot of spending power. 

If you thought that marketing to millennials was hard, then you’d best gird your loins. Appealing to Gen Z requires overcoming several challenges, but don’t worry. We’re here to help.

Fast facts about Gen Z that you need to know

Before we go any further, it’s important to understand what–or who–you’re dealing with. Here are a few statistics about Gen Z that every marketer needs to know:

Who is Gen Z?

• According to the US Labor of Statistics, Gen Z is expected to make up about 30% of the workforce in the country by 2030. 
• Over half of Gen Z–52%, specifically–is non-Hispanic whites, and 50% of them identify as BIPOC. This means that they are both more racially and ethnically diverse than millennials. 
• The current purchasing power of Gen Z is currently valued at over $360 billion, according to Business Insider. They may not have as much disposable income as older generations, but they have a considerable influence on family spending, making them an essential demographic for businesses to target.

What’s important to Gen Z?

• The IBM Institute for Business Value states that 66% of Gen Z prioritizes product quality the most when making purchasing decisions. 
• A study from McKinsey & Company found that 58% of Gen Z is willing to pay more for products and services that they feel cater to their individual personalities. 
• An overwhelming majority of Gen Z consumers–88%—prefers branded experiences presented through multiple channels.
• 69% of Gen Z consumers think that ads are disruptive. (Relatable!)
• 45% of Gen Z feel represented in the diversity of the ads they serve; which is probably why 71% of them want to see more diversity in advertising. 
• Being fashionable and on-trend matters to 67% of consumers that belong to Gen Z. 
• 68% of Gen Z expects brands to contribute to society; and 61% of them are willing to pay more for products that are made ethically and sustainably. 
• Gender equality matters to Gen Z: about 77% of the demographic feel more positively towards brands that promote and embody it on social media. 

Gen Z is the mobile generation

• Gen Z has grown up in a world of technology, making them digital natives. They are proficient in navigating social media, and technology is an integral part of their daily lives. This has significantly influenced their consumption patterns, making digital marketing an essential aspect of reaching this demographic.

• 55% of Gen Z use their smartphones for 5 or more hours a day; 26% of them are on their phones at least 10 or more hours a day. 
• 75% of them prefer using their phones over their computers or tablets, according to the IBM Institute for Business Value. 
• 73% of Gen Z primarily uses mobile devices connected to the internet to communicate with their friends and family. They also primarily use their phones for gaming and entertainment over any other device. 
• About 61% of Gen Z makes online purchases via mobile devices, and 41% of them regularly pay for items in-store using their phones.
• To illustrate just how much they’re on their phones, 95% of Gen Z uses another device while watching TV, most commonly to chat with friends or scroll through social media platforms.  

Hurrah for the internet

• A vast majority of Gen Z–74%—spend their free time online. 
• They spend an average of just under 3 hours on social media each day–nearly an hour more than the average millennial. 
• 62% of Gen Z check their Instagram daily, and 60% of them visit YouTube daily.

Marketing to Gen Z: The Basics

Value-driven, diverse, tech-savvy, and socially aware are the traits that Gen Z is known for. Gen Z also has a keen interest in social justice and sustainability issues, and they are more likely to support businesses that align with their values. 

At the same time, Gen Z values authenticity and is skeptical of traditional marketing tactics. They want to engage with brands that share their values and are transparent in their marketing. Here’s how to get it right the first time:

Create authentic and relevant content

Gaining Gen Z’s trust is the first and most important hurdle that marketers need to overcome. They value authenticity above all else, and are more likely to engage with brands that provide relevant content. This is also a savvy generation that is quick to spot fake or insincere messaging. 

Therefore, businesses should focus on creating transparent and relatable content that resonates with Gen Z’s interests and values. It’s essential to communicate with this generation in a conversational tone and avoid overtly promotional messages.

Leverage the power of social media

Gen Z lives, breathes, and thrives on social media. (If you didn’t post it on Instagram and TikTok, did it even happen?) This makes it one of the most important channels for reaching this particular audience. 

Gen Z also does its homework diligently, and brands that do not have a loyal following will be viewed with skepticism at best. It is essential for businesses to have a strong social media marketing strategy, to foster a sense of community around their brand, and to create engaging and visually appealing content that can capture Gen Z’s attention. 

Optimize for mobile

As the statistics above show, Gen Z is almost always on their phones, spending a significant time on social media, communicating with their friends and family, and making online purchases. This makes mobile optimization essential for businesses targeting this demographic. 

A mobile-friendly website and mobile-first approach to marketing can significantly impact the success of marketing campaigns aimed at Gen Z.

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Gen Z represents a significant demographic for businesses to target, with a considerable economic influence and a unique approach to consumption. Marketing to Gen Z requires an authentic and transparent approach that resonates with their values and priorities. The tips above should help your business get ahead of its competitors when it comes to capturing their attention and loyalty. 

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