Study shows: Generation Z challenges brands
The international study «AdReaction: Engaging Gen X, Y, and Z» shows that Generation Z (born between 1995 and 2010) has a very specific attitude toward advertising and reacts differently to advertising content than older generations.
As part of the study, attitudes and opinions of representatives of Generation Z were researched for the first time with a view to media use and advertising impact. With more than two billion people, this group is becoming massively important for marketing decision-makers. In addition, Generations Y (born between 1982 and 1994, also known as Millennials) and X (born between 1966 and 1981) were also examined.
"Generation Z is even more extreme in its media behavior than previous generations were. Since their representatives have grown up in an on-demand world with almost infinite choice, they also have a different expectation of advertising. For this young generation, formats that invite participation are highly prized. Generations X and Y, on the other hand, prefer advertising that contains more in-depth information about a brand or product," says Duncan Southgate, Global Brand Director Media & Digital at Kantar Millward Brown.
The study provides marketing managers from all industries with a guide for interacting with different target groups - especially with Generation Z, which has been little researched to date.
Some key findings of the investigation are:
generation "mobile-first," but traditional media are also relevant: Generation Z has grown up with mobile devices. Consequently, 74 percent of their representatives say they spend more than an hour a day surfing on a smartphone or tablet (compared with 66 percent of Generation Y and 55 percent of Generation X). TV consumption is correspondingly lower, with 51 percent of 16-19 year olds watching more than an hour of TV every day (Generation Y: 59 percent and Generation X: 74 percent). Although Generation Z's media consumption is dominated by digital channels, traditional media still have an impact: Generation Z rates advertising formats such as outdoor or print ads as well as TV and radio spots more positively than digital alternatives.
Quick decision makers, but no ad blockers: Generation Z has internalized digital technologies even more than Millennials. Perhaps that's why they are quicker to decide whether they like an ad or not. Consumers from Generation Z who skip digital advertising formats do so three seconds faster on average than Generation X representatives. However, 16-19 year-olds are not generally advocates of ad blockers: 31 percent have one installed on desktops (compared with 30 percent of Millennials and 22 percent of Generation X), and 13 percent on mobile devices (Millennials: 14 percent, Generation X: 12 percent).
Beware of intrusive advertising formats: With regard to digital advertising formats, Generation Z representatives are particularly open to mobile rewards videos - for example, rewards as part of an online game - and skippable pre-rolls. Non-skippable pre-rolls or pop-ups, on the other hand, are perceived as intrusive.
Social media increasingly important: Generation Z uses social media much more intensively than Generations X and Y, both in terms of the time invested and the number of social media platforms used. In addition to Facebook, Twitter and YouTube, Generation Z is particularly active on Instagram and Snapchat. Globally, 36 percent and 24 percent of Generation Z say they access Instagram and Snapchat several times a day. In Generation Y, only 21 percent and 10 percent respectively do so, and in Generation X, only 9 percent and 4 percent respectively.
Enthusiasm for music and movies: In particular, Generation Z has a strong passion for music and movies. This has an impact on the acceptance of corresponding advertising formats: Because 39 percent and 38 percent of respondents from Generation Z say that music and movies, respectively, positively influence their perception of advertising (compared to only 29 percent and 28 percent, respectively, among Generation X representatives). And as many as 43 percent of Generation Z say they want to have continuous access to music. Among Millennials (Generation Y), this is only 30 percent. There are also differences between the generations in terms of the length of video formats: While Generation Z likes videos that are less than ten seconds long, Generation X is more open to videos that are up to 20 seconds long.
The creative approach makes the difference: Music, humor and celebrity testimonials increase Generation Z's receptivity to advertising. In addition, these young consumers are more open than older generations to formats in which they can help shape the development of advertising - for example, by voting (31 percent of Generation Z rate this positively compared to 25 percent of Generation Y) or choosing a specific option (28 percent compared to 25 percent).
Design is important: Generation Z is extremely design-conscious. Their representatives therefore appreciate the aesthetic qualities of an advertising format and the use of modern technologies such as augmented reality and virtual reality. Newer advertising formats such as native advertising, sponsored lenses and sponsored filters also meet with significantly greater acceptance among Generation Z than among older generations.
Advertising does not work globally: Globally uniform campaigns are not very promising due to the heterogeneity of Generation Z. Instead, advertising should address local and regional characteristics. Instead, advertising should address local and regional characteristics. In China, for example, Generation Z always wants to hear cheerful music accompanying advertising. In Germany, it's quite different: Here, younger consumers want background music that - independent of the voiceover - helps them understand the message of the commercial.
"Like other generations before it, Generation Z is not a conformist group. Their representatives grew up differently, have diverse expectations and unequal access to technologies. The views and attitudes of this generation pose new challenges for marketers across all industries. Successful brands will be those that engage with and understand this critical and fast-growing target group," concludes Duncan Southgate.
All results of the study "AdReaction: Engaging Gen X, Y and Z" can be found at here.
About the study
For the study "AdReaction: Engaging Gen X, Y and Z," more than 23,000 consumers aged 16 to 49 were surveyed in 39 countries. Qualitative surveys were also conducted within Generation Z in Germany, the USA and China. In parallel, 31 TV commercials were tested on TV sets and on digital platforms in ten countries. The study examines advertising impact across three generations in order to define at what point in time a specific target group can best be reached with which advertising media. The study provides guidance to marketers regarding creative approaches that work best for each generation.
Since 2001, the "AdReaction" study has been providing insights into the perception and impact of advertising measures, especially in digital formats. It also addresses key questions for marketing managers.
