COVER STORY: Marketing to Gen Z isn’t all memes and viral moments

Marketing to Generation Z or Gen Z has become a bit of a phenomenon in recent times as older, legacy brands are embracing the “how do you do fellow kids?” mentality desperately trying to get the attention of this younger cohort.

Gen Z are people born from 1995 to 2010, they are seen as the digital generation, growing up with the internet with 98 percent of the group owning a smartphone and spending at least four hours on apps.

With all this in mind, how can marketers make sure they grab the attention of this digital youth and ensure their message gets heard?

Gartner reports that Gen Z is 1.5 times more likely to follow a brand that provides content that boosts their own image.

Jack Mackinnon, senior principal analyst at Gartner said Gen Z consumers are the most diverse generation ever and the most digitally savvy.

He explained, “As digital natives, Gen Z is highly critical of the benefits and ROI of too much internet and social media use. Because of this, and the fact that two-thirds of marketing budgets are invested in digital channels to target this audience, CMOs must be evermore mindful of how they are engaging Gen Z.”

Gen Z might be young, but they have a big role to play in household purchases according to Taz Papoulias, head of strategy and media at digital marketing agency True Sydney.

“Recent research has actually showed us that around 50 to 60 percent of Gen Z have a massive influence in the purchasing decision of households. Old school thinking was you target the buyer, which was obviously the mum, the dad whoever's making the purchase in the house, but now, it's more of a collective effort,” he explained.

“Targeting certain features and benefits of products and services that are going to be used in the house, they now include the Gen Z because they have more of a say now as they're getting older.”

Fight for their rights

Gen Z, is the generation that cares and will fight for what is right.

According to McKinsey, “Nine in 10 Generation Z consumers believe companies have a responsibility to address environmental and social issues. The inclusion of the latter is a departure from the views of the previous generation of millennials, which had a greener focus.”

Claudia Ratterman, director of digital marketing at Gartner said Gen Z are more likely wanting brands to be part of solving key societal issues.

She said, “It is much more than just creating entertaining video content and being funny. But also focusing on issues and ideals that matter most to Gen Z. Your brand’s social activism story is a powerful way to engage them.”

While Gen Z are passionate about societal and political issues, they can also be the source to some other problems.  

Caitlin Hislop, head of strategy at We Are Social calls Gen Z the generation of contradictions.

“It’s easy to say that they care deeply about the environment and they absolutely do, but they also are driving ultra-fast fashion, like Shein."

“But they're also fueling Depop so like secondhand sales. You've always got to think about that flip side and where's the tension,” she explained.

Hislop breaks down where brands sometimes get it wrong in terms of Gen Z and their identity.

“There are lots of stats that are always banded around in terms of them being like the queerest generation ever or open to different forms of identity. That might be true, but there's also other areas where they may be more conservative, they’re not necessarily drinking as much.

“Brands need to have a good understanding of what are the myths about Gen Z as well as what is the truth,” she added.

A diverse, more inclusive generation

Every effective digital strategy needs relevant and compelling content, and the content that is most relevant for Gen Z is rooted in their personal values, according to Gartner.

Identity, creativity and passion are still in the top 20 values for Gen Z, but new priority values that have emerged for this generation include tenacity and expertise, according to Gartner research.

Gen Z consumers are the first to report that “fun” is now less important than it once was for previous generations.

Claudia Ratterman, director, social media marketing at Gartner said 15 percent of Gen Z – twice as many as the older generations – use more than one racial or ethnic category to describe themselves.

They are also more likely to embrace gender fluidity in their peers, Ratterman said.

She said, “What this means to marketers is they should use diverse and inclusive imagery and themes. We've always encouraged marketers to do that, with Gen Z, it's even more important for reaching and connecting with this demographic.”

The power of the voice

Gen Z uses voice search when finding out information, which Papoulias said marketers should take advantage of.

“Over 50 percent of all Google searches are now voice and Gen Z are leading that, and that voice technology is starting to grow more.

“If you can imagine where the current Gen Z are right now in 10 years. If you have a look at Gen Y, Gen X, they're only picking up on a voice now, whereas the Gen Zs are right in there. As they become older, and the use technology for their daily lives, it's all going to be voice."

Papoulias said what that means is your brand’s ads and content need to reflect that.

“If you are a brand and somebody says, ‘Where's the nearest Thai restaurant?’ You need to make sure that your copy on your site speaks conversationally because now all search engines and even platforms are looking to the fact that you are not actually just stuffing keywords,” he said.

The TikTok effect

Claudia Ratterman at Gartner explains that Gen Z are on five or more digital platforms like TikTok, Snap and Instagram. Whereas Millennials are on four or fewer platforms.

She said, “What this means is that marketers really should define a multi-platform strategy with platform specific tone and themes.

“For example, if you're marketing on Snapchat, your strategy may look a little bit different than if you are marketing on TikTok. Snapchat savvy, digital marketers use AR to drive awareness and conversions.”

Hislop said Snap is a great example for brands adopting AR marketing technologies.

“Snapchat have historically done really well for shoppable brands because it's in built in the platform,” Hislop explained.

“Anything that uses AR does really well for them. We are seeing both with Snapchat and TikTok because of TikTok made me buy it, brands are getting more understanding of benefits of using shoppable ads of talking to Gen Z and giving them an ability to trial the product quickly.”

Marketers need to understand that Gen Z are on several apps.

One of these apps that has garnered a huge following in the past three years is TikTok which boasts 1.39 billion users and 1 billion monthly active users.

Ratterman said, “I am always amazed that it only really launched in 2019 because it's already such a dominant platform. Australian TikTok usage is like 23 hours a month, which is a 40 percent increase since 2021.

“TikTok has had an absolutely seismic effect on the landscape because so many Gen Z users have shifted from other platforms. Whether they're still using Facebook and Instagram, but are now spending more time on TikTok, where it has now become their primary social platform.”

Ratterman said rival platforms are beginning to adapt to the short-form video idea to keep up with the app’s upward trajectory.

“In terms of TikTok, for example, short-term entertaining video content does really well. You have to adapt to the platform that the consumer is on.

“The short-form, entertaining video content is doing so well that even there has been recent updates from Meta on their Facebook and Instagram platforms to match their capabilities closer to TikTok, which means that short-term does really well and resonates well,” she said.