The marketing landscape is undergoing a significant transformation as Gen Z emerges as a powerful consumer force. Born between the late 1990s and early 2010s, this demographic is now aged 12 to 26 and is set to redefine shopping, consumption, and engagement with brands. Let’s explore the unique characteristics of these consumers and actionable strategies for marketing to Gen Z to activate this audience.
Understanding Gen Z Consumers
Values and Expectations: Gen Z places a high premium on experiences that are personal and authentic. They measure success not by material wealth but by resilience to life’s challenges and the ability to do what is important to them. This outlook influences their shopping behavior and expectations from brands.
Financial Outlook: With 23% of Gen Z households having an income over $100,000, their spending power is noteworthy. However, inflation has affected their sense of financial security, making them cautious spenders.1
Spending and Leisure: Gen Z enjoys spending their leisure time in diverse ways, with significant preferences for music, TV, dining out, and playing video games. Their financial concerns are prominent, with many citing financial constraints as a major obstacle to major purchases like buying a house.2
Business and Financial Planning: This generation is proactive about their financial future. 35% of Gen Z have a business plan or have already started a business, showcasing their entrepreneurial spirit. Additionally, a significant portion is engaged in financial planning conversations and is willing to relocate for job opportunities.2
How Advertisers Can Engage Gen Z
Offer Authentic Experiences: To resonate with Gen Z, brands must focus on creating authentic, personalized experiences. This includes offering products and services that align with their values and expectations for resilience and importance in life.
Understand Their Financial Concerns: Acknowledge their financial prudence by offering value through deals, discounts, and opportunities to save. Promoting financial planning tools or services could also appeal to this demographic’s desire to overcome financial challenges.
Embrace Omnichannel Strategies: Gen Z’s shopping preferences show a blend of online and in-store experiences. Despite their digital nativity, 61% are more likely to shop furniture in-store than online, indicating the importance of a seamless omnichannel strategy.3
Prioritize Direct Mail and Coupons: Surprisingly, Gen Z is responsive to traditional marketing tactics like direct mail and coupons, especially for categories like electronics, groceries, apparel, and dining out. Incorporating these methods could be a way to draw their attention and influence purchases.
Prosper Poll of Gen-Z Shoppers:
For each of the following retail categories, how do COUPONS influence your purchases?4
Balance Print and Digital: Gen Z Values Both Print and Digital Mediums
Coordinated exposure to both has been shown to significantly influence their purchasing decisions.
Across all age groups, Gen Z is most likely to make a purchase after receiving both print and digital advertising from a brand:5
Advertisers should integrate print and digital campaigns to maximize engagement with this audience.
As Gen Z becomes the largest cohort of consumers, understanding their unique preferences and values is crucial for advertisers. By focusing on authentic experiences, acknowledging their financial concerns, and employing a mix of traditional and digital marketing strategies, brands can effectively engage and activate Gen Z consumers. Click “get started” below to connect with an expert who can help you develop your Gen Z marketing strategy.
Sources: Roundel / Insider Intelligence 20241; MoneyFit 20242; Furniture Today / Wakefield Research, Oct. 20233; Prosper Insights & Analytics 20244; USPS Mail Moments Survey 20235