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THE
GEN Z
MARKET
ING
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OK
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THE
GEN Z
MARKET
ING
PLAYBO
OK
The ultimate guide to today’s most
influential consumers
3. GOING SHOPPING
Gen Z shoppers seek quality and value, and yet part traditionalist. Page 15
they look to the people they trust for advice.
Page 7 8. LOOKING FORWARD
Gen Zs look to the future with feelings ranging
4. CATCHING THE TRAVEL from optimism to uncertainty.
BUG Gen Zs want to see the world, and Page 17
they’re doing it on their own terms.
Page 10 9. THE BEST WAYS TO
REACH GEN Z Follow these five best
5. WHAT’S FOR DINNER? practices for marketers that want to engage
Zs enjoy eating out, and they don’t mind with Gen Z.
spending more for the experience. Page 12 Page 19 h
Page 13
N
7. WHERE TECHNOLOGY
o
They command up
to $143 billion in U.S.
spending power.3
Gen Zers are mobile-first.5
overwhelmingly
GEN Z
Barkley—and that’s before most members of this
generation have even graduated from
college, launched their careers and started
families. This moment in time is a golden
opportunity for you to influence a generation that
will wield massive purchasing power for decades
to come. If, that is, you make the right moves now.
Meet Gen Z: the generation born between 1997 To help you get to know this audience, The Gen Z
and 2012, the oldest of whom are just now Marketing Playbook offers an in-depth look at this
reaching adulthood. For marketers, this generation based on a series of surveys of Gen Z
generation represents a tremendous opportu nity college students ages 17 to 23 from the U.S., the
—and a significant challenge. U.K., Australia and New Zealand by Student
Affinity Network UNiDAYS.
Some marketers might be tempted to write this
group off as too young (and possibly too broke) to The Playbook provides current data on key
areas of importance to Gen Z, along with their best ways to reach these young, digitally savvy
hopes and concerns for the future and their and politically aware consumers.
spending habits worldwide. It also suggests the
While generation designations aren’t an exact science, here’s a look at how the generations
are defined by birth years:
The silent generation: Gen X: 1965-1980 Many marketers have spent the
1928-1945 Gen Zers are, by and large,
The defining moments for the children of Gen Xers, so
Americans of this generation were, by they tend to share similarities
and large, the Great Depression, World with their parents—like their
War II and the Korean War. Members of underlying wariness of overtly
the Silent Generation are sim ilar to “sunny” messaging and,
members of Generation Z in their thanks to the Great Recession,
overall favoring of pragmatism over a greater appreciation for
idealism. thrift and value.
As consumers, Baby Boomers differ heavily media. Where Gen Zers are turning to Snapchat up
from Gen Zers in that they have a stronger to 11 times a day, Millennials depend on less
affinity for brand loyalty— and much of that anonymous networks such as Facebook and Twitter.
loyalty stems from how well they see So while Gen Z may share Millennials’ bright
themselves being treated as customers. outlook, marketers need to remember one major
entirety of their careers striving to appeal to difference: The younger generation is less trusting
Millennials’ sense of optimism—and taking for than Millennials.
granted their trust in the privacy policies of social
AND
ents deal with sky-high college debt has also
shaped Z’s educational and career choices. Zs
select their colleges thoughtfully, opting for
programs that incur the least amount of debt
MONEY
rather than chasing after the most prestigious
(and expensive) schools. In fact, 26 percent
plan to graduate college without taking on
any debt.
Instead, Gen Zs choose to work and
save—73 percent of undergrads have a job or
side hustle to help pay for their education and
When it comes to money, Gen Zers are much
expenses. And their pragmatism doesn’t stop
more cautious than previous generations.
The Great Recession of 2008 has had a lasting
impression on this group of consumers, as
many of them saw their families struggling
financially and want to avoid that fate for
themselves.
As a result, Gen Zers are extremely prac Banking on Gen Z
tical with money, choosing to save up for big
purchases rather than take on credit card debt
(a full 83 percent say they do this). In fact,
52 percent of Zs in the 2018 UNiDAYS Money
When it comes to banking, many Gen Zs are influ enced
26%
by their parents’ choices. Overall, 72 percent have a
savings or checking account that they opened in high
school with guidance from their parents. Sixty-one
percent opened an account at their par ents’ bank.
expect to graduate college with Another influence? Fourteen percent choose banks close
no debt. to home or school. And, in spite of being coined “the
online generation,” 45 percent say they would not bank
26%
with an online-only institution, with 70 percent
of these respondents saying they want a bank with a
physical location.
83%
52%
61%
Don’t have a Only have Save up rather Plan to apply for
credit card one credit card than use credit a credit card
SHOPPIN
although 60 percent of Gen Zs say the main fac
G Shopping by app
In general, Gen Z doesn’t use a ton of shopping or retail
Given Gen Z’s attitudes about spending, it brand apps. For brands, this means it’s more import ant to
stands to reason they’re mindful shoppers who look focus on aggregator shopping apps rather than on your
own brand apps. Aggregator apps have much more appeal
for quality and value. They’re also more
than a store’s own brand app, and they also add value by
difficult to influence with traditional adver simplifying shopping for Gen Z.
tising campaigns and celebrity endorsements that
worked with previous generations. The Brand App Experience How many retail brand apps
do you use?
Friends
Product reviews
Family
65% 77%
Celebrities 16%
22%
Shopping by Phone
How do you use your mobile device for shopping?
64%
59%
Browsing only
58%
Price comparisons
57%
Product reviews
52%
Purchasing
46%
Item availability
28%
Store locations
23%
Source: UNiDAYS 2018 Technology Survey, answers multiselected, all respondents.
53%
In-store/mall displays
48%
TV ads
45%
Cinema/movie ads
35%
Window displays
30%
Billboards
23%
Transit ads
19%
Print ads
12%
Pop-up
stores Concerts 65%
20 0
35%
15 2,000 or more 1,000 to 2,000 750 to 1,000
30 500 to 750
U.S. (US$) U.K. (£) AU (AU$) NZ (NZ$) Source: UNiDAYS 2018 Travel Survey, all respondents.
10 Ad Age August 2019
Travel Experiences Sightsee and visit museums 13%
What do you like to do when you travel? Travel Inspiration
What influences you to travel?
U.S. U.K. AU NZ All Eat out 13%
6% 15%
8% 25% 20%
Outdoor adventures Just walk and take it all in Favorite Travel Incentives
What discounts motivate you to travel?
Hotels,
hostels
Source: UNiDAYS 2018 Travel Survey, all respondents. and
lodgings
Travel
package
Party deals
Excursions,
tours and adventures 11%
Technology
(camera, drone, pocket WiFi, etc.)
7%
Unwind with a book or
my phone where I can relax
Train
7%
Car
Volunteer rentals
15% 4%
All
inclusive
0 5 10 15 20 getaways
17% Equipment
and gear (hiking,
camping, etc.)
4%
Bus
Airfare 4%
WHAT’S FOR
DINNER?
Like travel, eating out is an experience for Gen Serving Gen Z
Zers, and their spending reflects this. Seventy eight How do college students discover new menu items?
percent of college-aged Gen Z respon dents to the
2017 UNiDAYS Restaurants Survey 8%
43 percent typically prepare meals at home, and a feeds. Sharing images and video snippets of menu
surprising 14 percent never cook. While they enjoy items can pay divi dends, as friends will brag to each
new food experiences, 41 percent of respondents to other about their latest restaurant finds.
Source: UNiDAYS 2017 Restaurants Survey, all respondents.
the 2018 UNiDAYS Health & Wellness Survey eat
fast food at least once a week. Fast food doesn’t
necessarily mean burgers and fries, however. This
generation looks for healthy alternatives, such as
salads and wraps. In fact, 84 percent say healthy
Gen Z’s Healthy Food Choices
ingredients are important, 72 percent want What is your go-to healthy menu item?
ingredients high in protein and 66 percent crave
organic foods.
While Gen Zers are willing to spend money on
food, they still enjoy getting a deal: 93 percent say
they are more likely to try a restaurant that offers
student discounts, and 78 percent use student
discounts at local restaurants. Ninety-one percent Salad
will eat at an off-peak time if it means getting a 32%
discount. Gen Zs are likely to try new quick-service
chains once a month (48 percent), so offering a
student discount is a great way to attract new Gen Z
customers.
Smoothie
Social media is another great way to get Gen Zs 20%
talking about your restaurant. Zs communicate in
images, and smart marketers can appeal to this
crowd by focusing on atmo sphere and food
presentation that will stand out in customers’ social Wrap
19%
Source: UNiDAYS 2018 Health & Wellness Survey,
Sushi answers multiselected, all respondents.
16%
Bowl
8%
CHOOSING
HEALTH
AND
WELLNESS
Although eating out is a popular pastime for 82%
Gen Z, they are very conscious of how what they • 60 percent believe getting enough sleep is
consume impacts their overall health. In fact, another area of importance.
college students around the world prior itize health Overall, Gen Zs are willing to make a financial
and wellness as a central part of their lives—and commitment to working out, with 59 percent
they view physical well-being and mental health saying they’d pay up to $20 a month, or $240 a
as virtually synonymous, and equally important. year, for a gym membership or per sonal training,
Gen Zers are united in what concerns them and another 21 percent willing to pay up to $50 a
most. According to the 2018 UNiDAYS Health & month, or $600 annually. Thirty-three percent say
Wellness Survey: they spend up to $50 a year on workout clothing,
• 72 percent say managing stress and men tal and 39 percent spend up to $200.
health is their most important health and wellness As with other products and services, Gen Zers
concern. turn to family and friends for recommen dations
• 68 percent state that a well-balanced diet is for new restaurants (82 percent) and new gyms
critical. (64 percent), with 71 percent discov ering new
• 61 percent say exercise is a major concern. eateries and fitness opportunities through social
media. Just walking around the
100%
Restaurants Fitness
Cardio/dance
10%
Running/jogging
44%
44%
Cycling 53%
21%
24%
37%
Pilates
13%
1%
39%
Rowing 42%
6%
5%
Walking
23%
Boxing/kickboxing
11%
11%
Barre
4%
0%
43%
Swimming
Source: UNiDAYS 2018 Health & Wellness Survey, answers multiselected, all respondents.
WHERE
TECHNOLOGY
MEETS
REALITY
By now, it should be obvious that technology could with their predecessors.
flows through Gen Zs’ lives like air and water. These are macro trends that appear consis tently
Unlike previous generations, Zers—no matter no matter where Zers live—providing even more
where they live—see digital as an integral and evidence that this is the first truly global generation.
essential part of their lives. This generation has Gen Z offers marketers a promising and lucrative
never known life without the internet. They take relationship for brands that do the legwork
for granted that they can find new restaurants, necessary to reach them.
shops or gyms in a few seconds and review
online price comparisons while shopping in a
brick-and-mortar store.
But this doesn’t mean that all gadgets are created
equal. Certain tech is essential for Zers; for Gen Z’s Digital Connections
example, 98 percent own a smartphone, and 94 Which devices do you own?
percent have laptops, according to UNiDAYS’
2018 Technology Survey. At the same time, only
14 percent own a smartwatch, and just 18 per Desktop
computer
cent use standalone fitness trackers.
30%
In other words, this generation is part cutting-
edge technophile and part tradition alist. They may Smartphone
love browsing online, but they still enjoy shopping 98%
at brick-and-mortar stores. They may get news via
social media (80 percent say they do), but they
overwhelm ingly prefer print books over digital
ones (77 percent vs. 38 percent).
Fitness
For brands, this information is critical. When tracker
reaching out to Gen Zs, a mobile-first strategy is 18%
extremely important. But marketers should still
make certain to cover all platforms—including
desktop, in-person, email and even the good old- Laptop
fashioned phone—when creating consumer touch 94%
points. A carefully balanced and person alized
omnichannel approach is needed to make a lasting Smart
connection with this highly influential consumer watch
group. 14%
Connecting with Gen Z consumers might be
complex, but it can yield great rewards. Zs are Tablet
accessible through a wider variety of channels than 44%
any previous generation, which means brands can VR gear
reach them in the moment more easily than they 4%
Gaming
console 37% Other
1%
That’s true for Gen Z around the world. Source: UNiDAYS 2018 Technology Survey, answers multiselected, all respondents.
60
50
40
30
20
10
0
Laptop TV Mobile Tablet I don’t watch TV
1% Text
Social media
10%
In store
17%
chat Email
Source: UNiDAYS 2018 Technology Survey, all respondents.
LOOKING
FORWARD
College-aged Gen Zs look toward graduation with adulthood.
emotions ranging from optimism to uncertainty. When marketing to Gen Z, it’s important to be aware
While many have made smart financial and lifestyle of the issues that matter to them and to behave in a
choices up to this point, 57 percent of respondents to way that shows you’re informed. But getting involved
UNiDAYS’ 2019 Future Survey have mixed feelings in politics shouldn’t be a
about the future, both for themselves and for society
at large.
The
The transition to adult life can be challeng ing, and Environmental Equalizer
it’s clear that Zs are worried about their financial
Gen Zs around the world are united in their opinions on the
futures: 70 percent say they’re concerned about
environ ment. Eighty-two percent say they would be more
getting a job and 85 percent are afraid they won’t likely to buy a product if it were environmentally friendly.
find affordable housing. Yet, they also have hopes For brands interested in connecting with this group, envi
for what the future will bring: 72 percent of survey ronmental issues are a relatively safe (and welcome) place
to take a stand.
respondents say they plan to get married, and 70 per
cent plan on having children. And although financial
stability is a top concern, 77 percent of Gen Zs Top five environmental issues What environmental issues
are most important to you?
would prefer to work for a company that doesn’t just
offer a good salary, but also shares their political Global warming/
views. climate change
When it comes to society at large, Gen Zs are 87%
concerned about a wide range of issues, including
healthcare, education costs, the environment and Pollution
equality. And they’re frus trated with their countries’
85%
governments: 54 percent don’t trust their country’s
leadership, and 58 percent don’t see their country’s
lead ership, making progress on issues important to Recycling
them. In fact, 61 percent of Gen Z believe brands are 73%
better positioned than govern ments to solve social
problems. Animal rights
Whether they look at the future from a personal or
65%
political perspective, 85 percent of this generation
feel either very or some what empowered to shape
the future. They are uncertain—yet still hopeful— Natural disasters
about how big an impact they will have on the world. 50%
Smart brands can seize this opportunity to influence
and inspire these consumers as they move toward Source: UNiDAYS 2019 Future Survey, answers multiselected, all respondents.
Important to Important People 17
The Gen Z Marketing Playbook Gen Z Looks Ahead
What is your overall outlook on the future?
Healthcare
75%
Education cost
71%
Environment
70%
Equality
70%
Jobs and unemployment
65%
Gun control
53%
Terrorism
47%
Immigration
43%
Data privacy
38%
International relations
32%
Source: UNiDAYS 2019 Future Survey, answers multiselected, all respondents.
BEST
authentically and behave with integrity. Don’t
WAYS TO
brand values guide you there.
• Approach Gen Zs as collaborators, not just
consumers. Take every opportunity to listen to Gen
Z’s concerns and questions. By engaging with
REACH
them to exchange ideas (for example, through
product feedback or design competitions), you’ll be
more apt to deliver on exactly what this generation
wants and needs. And, if you stop marketing too
GEN Z
hard and focus instead on helping them be their
best selves (for example, through social good or
career development opportunities), your brand will
earn their respect now and in the future.
• Focus on value, not price. Gen Zs are willing
to spend, but they want value for their money.
Help Gen Z make smart purchasing decisions by
offering advice about how to choose the best
As Gen Z makes moves to become the largest products and services. Take steps to ensure that
cohort of consumers in just a few short years, the overall value, quality and social promise of
marketers willing to do the work to engage this your products and ser vices merit the price tag you
influential generation have an incredible oppor put on them. Gen Z feels a connection to brands
tunity. This group already influences $143 billion in that do good, so they are often willing to pay more
direct U.S. spending power, and their influ ence on for sustain ably sourced clothing or brands that
the marketing industry can only grow. Their affinity give back to the community with every purchase.
for brands, once firmly established, has the
• Digital is important—but it’s not every thing.
potential to continue through their prime spending
Yes, Gen Zs have grown up in a digital world, but
years as they establish careers and start families
in many ways they’re also a “throw back”
and households.
generation. They transition easily between digital
To help you successfully connect with these and traditional media, but the key to success in
young consumers while they’re still exploring what either medium is not to dis rupt them. Instead,
they want and which brands work best for them, we engage them where they are—with what they care
have compiled five best practices that will set you about. While they spend time on social media,
up for a long and satisfying relationship with Gen Z: family and friends are also highly influential. And
• Do your homework. Understanding what Gen even though they can purchase things quickly
Z wants from brands in general is a start, but it’s online, Zs still have a passion for shopping in
even more important to understand what Gen Z stores and crave unique, in-person experiences.
likes and does not like about your brand. While When it comes right down to it, the most
this generation of young con sumers shares many important action marketers must take is to engage
traits, they also expect brands to understand them with Gen Zs now. Getting on board with Gen Z
as individuals. To appeal to them, you must start early can open the door to relation ships that last
by demonstrat ing that you understand their long after they’ve graduated. Smart marketers
nuances and their differences as well. won’t just talk at Zs, but will work to encourage
• Connect your story to what matters to Gen Z. dialogue and participation. Remember, Gen Z’s
More than previous generations, Gen Z cares about loyalty is contagious. Make them an integral part of
the world and what brands stand for. Brands today your marketing, and you can secure the loyalty of
must have a crystal-clear narrative. For many of the these young, powerful consumers for decades to
most successful brands, this starts with a social come.
John Dioso
Editor, Studio 30
jdioso@adage.com
About the Data
The information in this guide was
drawn from surveys conducted by
Student Affinity Network UNiDAYS of
college-aged students in the U.S.,
U.K., Australia and New Zealand
unless otherwise noted: