Zenith calls for a rethink of personalization and targeting
Personalized advertising is on the rise. Thanks to data analytics, advertisers are becoming increasingly adept at reaching target audiences in specific usage scenarios—and on a massive scale. However, to ensure that these new, tailored approaches to users actually lead to greater consumer engagement and business growth, advertisers should adjust their targeting strategies.
Targeting by age is still common in many advertising categories. However, given the fundamental shift in media usage and commerce and significant changes in consumers' life stages, the traditional demographic approach is no longer effective.
In its latest report "Generation Z is not the next big thing", Zenith argues for a multi-year approach. The term was coined by marketing expert Gina Pell and Zenith believes that marketers should shift their focus from age to mindset, behavior change and disposable income.
In the report, Zenith argues that targeting by age is no longer effective when many cultures around the world are seeing changes in patterns of life events. As creatures of habit, we are most receptive to new brands when we experience a change in lifestyle. Historically, some of the most formative changes happened before the age of 35. However, now that we are living longer and going through more and different life changes, it is no longer appropriate to target only the young. According to estimates from the Human Mortality Database in 2018, half of the babies born in wealthier countries since 2000 may reach their 100th birthday.
The rules are also changing when it comes to disposable income. Today, many young people around the world are struggling to find work and do not have the same frivolous behaviors or consumption habits of previous generations. According to the Bureau of Labor Statistics, 16- to 19-year-olds will make up only 26 percent of labor force participation in 2024, down from 52 percent in 2000. Similarly, older generations are becoming more determined to enjoy life, take on new things and spend more money.
Statistics on a variety of measures, including alcohol consumption and sexual intercourse, show that today's young people are not the hedonistic disruptors of previous generations. Rather than being trendsetters, they are conformists trying to get the best out of the system.
