Introduction

Social Shopping

• Social shopping is a product of social commerce which is the purchase of goods directly from social media pages such as TikTok and Instagram.
• Social commerce is rapidly growing within the United States, with over $36 billion in goods purchased through commercial social platforms.

 

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• Gen Z, also called “digital natives,” is the first generation to be exposed to the internet, mobile systems, and social networks as part of daily life. This makes them tech-savvy, with most of their free time spent online.
• An estimated three out of four Gen Z’s are influenced by social media influencers such as Mr. Beast and PewDiePie on what products to buy.

 

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• They rely heavily on user-generated videos on social media to help cut through the mass information offered on the internet. According to research by Google, 40% of Gen Z will first search social media platforms like Instagram and TikTok for somewhere to eat.
• Social media platforms provide User Generated Content(UGC) which, according to Gen Z, is more authentic than Brand Generated Content(BGC). A report by Stackla claims that UGC is 20% more likely to influence a purchase decision than BGC.
• Hyper-specific content on platforms such as TikTok and Instagram is used to seek answers and even find inspiration, with the two apps covering 60% of their shopping activities.
• According to Charles Nicholls, co-founder, and chief strategy officer at SimplicityDX, Gen Z begins shopping on social media sites but buys and checks out the items at official brand sites.
• Gen Z doesn’t want to read to find information making videos their go-to option for information and answers. Sifting through information in blue and black linking to the e-commerce website is boring for someone used to exciting and immersive social media designs.

 

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•  Bee Joyful is among the companies that have leveraged tiktok successfully. The company deals in selling reusable and eco-friendly products. Leveraging viral moments and specific TikTok trends increased their online sales by 300%. 

Nostalgic For The 2000s

• This trend encompasses Gen Z’s longing for simpler times in a world where they are faced with a billion choices for any given decision.
• Gen Z yearns for pre-social media times, so social media platforms have revived trends such as Y2K. 

 

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• Similarly, in shopping, brands have found that Gen Z wants old products with a new focus on sustainability and social awareness, citing their nostalgia for earlier generations.
• Marketing companies realize the interplay between nostalgia and social responsibility involved in marketing for consumers, especially Gen Z’ers. A study by Talkwalker and Hubspot shows that there was an 88% increase in the use of nostalgia as a keyword on social media.
• According to Fast Company, the insurgence of nostalgia can be acclimated to the pandemic era. 
• It is believed that at that time, Gen Z children were searching for a connection, shared experiences, and emotional connection during social isolation, and looking to the past satisfied that need to some extent.
• Forbes notes that Gen Z is nostalgic about the clothing trends of past generations, thus incorporating them into the modernity of today’s fashion.
• To show that nostalgia appeals to Gen Z, some luxury brands that print cartoon characters that Gen Z watched as children on T-shirts place very hefty prices on the clothes due to the demand.
• One company that embraces this nostalgic trend is CASETiFY, which released iPhone cases that resemble flip phones, Blackberries, and the original iPod.

 

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Sustainable Shopping

• Sustainable shopping refers to a way of shopping that leads to lesser negative impacts on the environment, leading one to be mindful of the environmental and social impact of the products bought.
• A 2022 sustainability report showed that Gen Z has high expectations regarding sustainability.
• The report shows that about 67% of Gen Z prefer brands that appeal to their social conscience, 55% buy eco-friendly products, and 36% often buy products made from recycled materials.
• Further, according to Gen Z Insights, it is evident that sustainable shopping is a trend for Gen Z because research has found that the trend, which may change, polarizes students by either appealing to them entirely during their purchases or not.
• Gen Z prefers to make sustainability-first buying decisions compared to considering brand names when making purchases. Their numbers are also higher compared to other generations.
• Some companies that embrace the essence of sustainability to appeal to Gen Z consumers are such as Depop, ThredUp and RealReal, which sell sustainable second-hand clothes for the fast fashion attitude of Gen Z consumers

 

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Interest In Alternative Payment Methods

•  Alternative Payment Methods (APMs) are payment options that deter from the usual cash options and credit card systems.
• Gen Z's preferred alternative payment method is buying now pay later (BNPL), which allows them to pay in part rather than the total amount at once.
• The payment in installments through BNPL can be in three forms: during the shopping process, at checkout, or post-purchase through installment payments on their credit cards.
• The method of BNPL is found to have created consumer loyalty among Gen Z, with 65% of Gen Z BNPL customers being repeat clients.

 

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• A report by Zest Money showed that BNPL use among Gen Z went up 232 percent in 2021. 
• The use of APMs, particularly BNPL, is a trend because it is listed in the Global Payments and Payments Journal as one of the most preferred payment methods by Gen Zers.
• Some companies that embrace BNPL include such as PayPal, whose buy now, pay later option, dubbed PayPal Pay Later, aims to boost sales, expand their reach, and increase consumer loyalty.

Value Driven Shopping

• Gen Z consumers abide by a given number of values (four) with which they embed themselves when shopping and which help other people understand them amidst the myriad of trends surrounding the generation.
• The first value is making the most of the mundane, a value that enables them to view life through a cinematic lens.
• The second value is financial responsibility, which enables them to treat luxury as a feeling rather than a product.
• The third value is the community, primarily online, where Gen Z consumers with similar interests come together to create safe spaces.
• Finally, the fourth and final value is authenticity or individuality, which gives Gen Z the attitude of standing out rather than fitting in.
• Gen Z, who use values to make purchase decisions, translates to about 84% of 14-17-year-olds and 64% of 18-26-year-olds. 
• Using value in a purchase is a trend because sites such as Hootsuite and The Business Download list are emerging trends among Gen Z consumers while shopping.

 

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Research Strategy

Key Takeaways

• HubSpot reported that 57% of Gen Zs had discovered new products within 3 months through social media, and that 71% repeatedly used it to discover new products. 49% preferred discovering new products through Instagram stories since Instagram is one of Gen Zs favorite social media applications, and 90% of the people on the platform follow at least one business. The popularity of short-form content on Instagram Reels or TikTok showed that it is a popular way of discovering new products, with 41% of Gen Zs discovering new products through this avenue.
• Gen Zs follow and trust social media influencers who they find relatable and authentic. 70% of Gen Z follow at least one influencer on social platforms such as YouTube and Instagram. Influencers have shown they can shape their followers' purchasing decisions using product recommendations, endorsements, and sponsored content.
• Gen Zs use social media to discover products. A study conducted by Statista in 12 global markets, including the USA, found that 49% of Gen Zs said social media platforms were a better place to discover new products. SimplicityDX reported that during the 2022 holidays, 80% of Gen Z shoppers planned to use social media to find gifts, and 41% completely relied on social media for their holiday shopping.
• Brand loyalty is not that important to Gen Z, with most of them looking to make saving through bargains and sales. 71% would rather buy when a product is on sale, compared to 29% who would rather buy it at full price. Additionally, 55% prefer paying more for a known brand product, while 45% prefer paying for a lesser-known brand product.
• Social commerce allows Gen Z users to discover and make purchases seamlessly without exiting an application. Additionally, 60% of Gen Z consumers prefer buying from a direct source to an ecommerce website like Amazon, further highlighting the importance of social commerce. This habit is driven by the ability of the algorithm to learn the user's preferences and make useful recommendations. The applications also provide personalized shopping experiences, minimizing the friction between wanting a product and checkout. It also offers a more engaging experience through filters and other additional features, such as live streams and augmented reality.

Introduction

How Social Media Use Affects Gen Z Shopping Habits

1. Influencers and Influencer Driven Purchases

• The role of social media has grown to become a critical part of life. It connects family and friends and recommends services and products, revolutionizing how people interact. According to a report by HubSpot, 28% of the Gen Z population that use social media make purchases on social media. Influencers largely influence these purchases, especially among the Gen Z population. This is a trend because it has been repeatedly mentioned across multiple sources, including HubSpot, Ghost Retail, and Fast Company.

 

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• The Gen Z population is the first to grow in a world of high-speed internet and social media. Through this, they have unique shopping habits compared to other generations. They follow and trust social media influencers who they find relatable and authentic. 70% of Gen Z follow at least one influencer on social platforms such as YouTube and Instagram. Influencers have shown they can shape their followers' purchasing decisions using product recommendations, endorsements, and sponsored content.
• Additionally, influencers can make products and services to Gen Z more desirable by creating an aura of exclusivity and urgency. The trend has the effect of generating interest and increasing sales for the brand. For instance, The Gen Z population is fascinated by Doja Cat, so JBL leveraged her influence to generate interest in their portable speaker using the “jibble, jibble, jibble” TikTok advertisement. In 3 days, the advertisement generated 2 years' worth of social engagement.
• An element that made the JBL ad campaign successful was authenticity. According to Ghost Retail, Gen Z are highly responsive to influencers who they find authentic. Gen Zs also resonate highly with brands that share their core values and beliefs, increasing sales. This is because they can understand the “why” behind the product and the celebrity partnership, which generates unique content and influences shopping habits. According to HubSpot, 33% of Gen Zs made purchases using influencer recommendations, the highest in any generation.

2. Product Discovery

• Gen Zs use social media to discover products. A study conducted by Statista in 12 global markets, including the USA, found that 49% of Gen Zs said social media platforms were a better place to discover new products. SimplicityDX reported that during the 2022 holidays, 80% of Gen Z shoppers planned to use social media to find gifts, and 41% completely relied on social media for their holiday shopping. This is a trend because it has been repeatedly mentioned across multiple sources, including Statista, HubSpot, and Spiceworks.

 

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• HubSpot reported that 57% of Gen Zs had discovered new products within 3 months through social media, and that 71% repeatedly used it to discover new products. 49% preferred discovering new products through Instagram stories since Instagram is one of Gen Zs favorite social media applications, and 90% of the people on the platform follow at least one business. The popularity of short-form content on Instagram Reels or TikTok showed that it is a popular way of discovering new products, with 41% of Gen Zs discovering new products through this avenue.

 

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• In addition to discovering products through social media, Gen Z appreciates variety. Compared to other generations, Gen Z took their time in deciding which brands and advertisements to interact with and how, from product offerings to discounts, transparency, style of advertisement, and more. The general social media consumer emphasized discounts offered and their need for the service or product.

 

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3. Loyalty, Trustworthiness, and Transparency

• Social media has changed how consumers and brands interact. Brands have leveraged social media sites like TikTok, Instagram, and Twitter to be a direct line of communication with Gen Z shoppers. However, the level of scrutiny has increased for brands, and consumers expect authenticity, transparency, and social responsibility, in exchange for brand loyalty. This is a trend because it has been repeatedly mentioned across multiple sources, including Forbes, BusinessWire, and GWI.

 

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• According to SimplicityDX, Gen Z are tech-savvy but wary, influencing their shopping habits. 61% of Gen Zs stated that social media websites abuse their personal data, and they do not trust social media websites. For Gen Zs, trusting social media networks is not as big as trust. Gen Zs are skeptical of influencers, with the majority (two-thirds) thinking that influencers are mostly useful for product discovery, and approximately half think they are the best for providing recommendations. However, when it comes to making purchases, 36% of them consider influencers less trustworthy, with 59% preferring to make their purchases directly from a brand website and not the influencer.
• Brand loyalty is not that important to Gen Z, with most of them looking to make saving through bargains and sales. 71% would rather buy when a product is on sale, compared to 29% who would rather buy it at full price. Additionally, 55% prefer paying more for a known brand product, while 45% prefer paying for a lesser-known brand product.
• From a brand affinity perspective, status is indispensable to Gen Z. Gen Z consumers want brands to have consumer communities to improve their status. Therefore, being a trending topic on social media helps bring a sense of community and helps highlight buyers, which is influential to the Gen Z population. Motel Rocks, a clothes retailer, uses the bottom section on their page “#MotelRocks” with ‘Motel Girls Rocking It’ posts pulled from Instagram posts containing the tagline. Other hashtags, such as “#tiktokmademebuyit” and “#amazonfinds,” have generated millions of views, 2.3 billion and 6.7 billion views, respectively. Through this, shoppers can determine a brand's trustworthiness and transparency.
• The population of Gen Zs that describes themselves as ambitious is 35%, and they are 43% more likely to use this description than an average consumer. Brands have used aspirational content to speak to their best self and aspire for greatness, influencing their purchasing habits. For instance, Nike created the “By Changing Nothing, She Changed Everything” ad campaign to inspire. According to a statement by Nike, “Serena Williams redefined what it means to be a true champion. Her legacy transcends sport and has inspired generations.”

4. Social Commerce and Making Purchases

• The merging of e-commerce and social media birthed social commerce, which enables brands to sell directly to consumers using social media. Social commerce has changed the shopping habits of Gen Z consumers. As a tech-savvy generation, research has shown that 54% of the Gen Z population is receptive to social commerce. This is a trend because it has been repeatedly mentioned across multiple sources, including Forbes, Ghost Retail, and Cymbio.
• Social commerce allows Gen Z users to discover and make purchases seamlessly without exiting an application. Additionally, 60% of Gen Z consumers prefer buying from a direct source to an ecommerce website like Amazon, further highlighting the importance of social commerce. This habit is driven by the ability of the algorithm to learn the user's preferences and make useful recommendations. The applications also provide personalized shopping experiences, minimizing the friction between wanting a product and checkout. It also offers a more engaging experience through filters and other additional features, such as live streams and augmented reality.

• Owing to the fact that social media is inherently social, social commerce leverages brand engagement and interaction. By sharing purchases on social media, Gen Z consumers can potentially influence their followers and friends to make purchases, increasing brand sales. Social commerce has changed how Gen Z consumers interact and buy. Social media platforms are not just places to connect, but also to find new products and buy. According to Ghost Retail, Gen Z consumers have accepted social commerce and view it as an extension of their consumer journey.

Research Strategy

Key Takeaways

• Gen Z consumers are twice as likely as millennials to make purchase decisions because of an influencer recommendation. About 45% of European Gen Zs would make purchase decisions based on influencer or celebrity wear whereas just 18% of Gen Z would buy from brands their friends wear.
• User-generated content has been identified as a best practice for advertising to Gen Z by Drum and Business Wire. It is considered a Gen Z advertising best practice because 82% of Gen Z trust companies if the images they use for advertisements are of actual customers.
• Advertisements with a social message are attractive to Gen Z audiences. Given that about 68% of Gen Z expect brands to contribute to society it is not unexpected that about 17% of Gen Z audiences prefer advertisements with social messaging in comparison to 6% of Baby Boomer consumers.

Introduction

 

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Influencer Marketing

• Influencers are "people who have built a reputation for their knowledge and expertise on a specific topic." Influencers regularly post on their preferred social media channels about their topic of expertise. Such posts earn views from their followers who have an interest in the topic. Brands are relying on influencers to reach who can create attention-grabbing ads that are in tune with the tastes of Gen Z audiences.
• Influencer marketing has been identified as a best practice for advertising to Gen Z audiences according to Colormatics. It is considered a Gen Z advertising best practice because it allows brands to tap into the significant following of influencers to reach Gen Z audiences.
• Gen Z consumers are bombarded with a variety of content options that make it hard for brands to develop meaningful connections amid the noise. Influencers offer brands the opportunity to build meaningful connections with Gen Z given they are viewed to be more relatable than celebrities, which leads to advertisements by influencers seem more like a "recommendation than a hard sell."
• Gen Z consumers are twice as likely as millennials to make purchase decisions because of an influencer recommendation. According to the Drum, about 45% of European Gen Zs would make purchase decisions based on influencer or celebrity wear whereas just 18% of Gen Z would buy from brands their friends wear.

• Gym Shark leveraged the power of influencers for its #BigDealEnergy Campaign to reach Gen Z audiences. It engaged some of the biggest YouTube stars in gaming and e-sports to promote the campaign.

User Generated Content (UGC)

• UGC refers to the creation of content about a business by individuals who are not official representatives of the business such as employees or advertisers. Examples of UGC include social media reviews, posts, videos, and podcasts.
• User-generated content has been identified as a best practice for advertising to Gen Z by Drum and Business Wire. It is considered a Gen Z advertising best practice because 82% of Gen Z trust companies if the images they use for advertisements are of actual customers.
• Consumers identify that brand advertising campaigns are generally untrustworthy for positioning their brand in the best light to sway consumer decision-making yet their advertised product may not reflect their actual outlook or performance. According to Instapage, about 93% of marketers identify that consumers trust content created by their fellow consumers rather than content created by brands.
• In a recent advertisement, Spotify appealed to the interests of Gen Z by including user generated content by using real people's listening history in their advertisements. For the 2022 NBA playoffs, the NBA increased viewership by promoting advertisements that relied on user-generated content from Instagram, Twitter, TikTok, and other social media platforms.

 

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Social media advertisements

• Social media advertisements refers to advertisements to reach target audiences across social media channels like Instagram, Tik Tok, and Twitter
• Social media advertisements are a leading best practice for advertising to Gen Z audiences according to Supermarket News, Colormatics, NC solutions, and Tint. It is considered a Gen Z advertising best practice because the majority of Gen Z consumers (72%) prefer to see advertisements on social media.
• About 72% of Gen Z audiences are interested in seeing advertisements in their social media feeds. In comparison, 28% of Gen Z are interested in seeing advertisements on cable TV and 20% are interested in seeing advertisements on broadcast TV. Among Baby Boomers, only 19% are interested in seeing advertisements on social media whereas 58% of Baby Boomers prefer advertisements on broadcast TV and 45% of Baby Boomers prefer advertisements on cable TV.
• According to Alan Miles, CEO of NCSolutions, "the significance of social media in the lives of Zoomers are notable differences" (in comparison to other generations) when planning long-term marketing strategies for brands.

Social and sustainable advertisements

• Social and sustainable advertisement is geared towards promoting the positive impact of a brand on the environment and society.
• Social and sustainable advertisements are a leading best practice for advertising to Gen Z audiences according to Supermarket News, Drum, Colormatics, and Business Wire It is considered a Gen Z advertising best practice because 72% of Gen Z would buy from a company that contributes to social causes.
• Advertisements with a social message are attractive to Gen Z audiences. Given that about 68% of Gen Z expect brands to contribute to society it is not unexpected that about 17% of Gen Z audiences prefer advertisements with social messaging in comparison to 6% of Baby Boomer consumers.
• According to Buzz Spark, the Gen Z generation is "considered the socially conscious generation." As such, they are attracted to content that promotes social causes such as equality

Humorous and entertaining advertisements

• Humor and entertainment in advertisements serves to create memorable experiences through advertisements. As such, it helps brands build to connect with consumers.
• Gen Z consumers are attracted to humorous and entertaining advertisements. This best practice is recognized by multiple thought leaders including Supermarket News, Drum, and Business Wire. It is considered a Gen Z advertising best practice because over 65% of them go to the internet to access entertainment.
• About 52% of Gen Z consumers prefer creative and entertaining advertisements in comparison to 42% of Baby Boomers, 44% of Millennials, and 40% of Generation X. Importantly, 43% of Gen Z prefer humorous ads.
• According to Supermarket News, unobtrusive, funny, and social advertisements rank among the top ways to advertise to Gen Z audiences. The news agency notes that "brands that tickle the funny bone are more likely to capture Gen Z's attention."

Research Strategy

Key Takeaways

• According to Search Engine Journal, Gen Z prefers brands that know how to leverage different social media channels uniquely, as they do. For example, Instagram for aspirational content, LinkedIn for career-focused posts, Twitter for the latest news, TikTok for fun and trending challenges, Snapchap for sharing real-life moments, and YouTube for watching videos.

• Marketers targeting Gen Z on social media should have shorter production cycles while keeping the content short to attract the attention of Gen Z.
• Gen Z prefers digital media content, such as "eye-catching photos and engaging videos," over non-visual content. However, most of this generation prefers brands that utilize videos to pass the message, especially when they participate in certain trends and challenges. They see these brands to be more authentic.
• The traits Gen Z look for in an influencer include authenticity (58%), funny/engaging (53%), knowledgable (48%), and intelligence (43%). Only 10% care if the influencer is attractive or has a large following. The brands can use these traits to determine which influencer will connect with Gen Zers.

Introduction

Most Effective Advertising Strategies Targeting Gen Z Consumers

1. Optimize Content for Each Social Media Platform.

• According to the Parallel Interactive report, "Gen Z is a multi-platform and multi-screen generation," i.e., they engage with up to five social media platforms at a time for different purposes. Therefore, marketers are discouraged from sharing the same content or marketing campaigns across multiple channels; instead, they should tailor their content to each specific social media channel because each has a different audience. For example, they should create Instagram content with the Instagram audience in mind.
• According to Search Engine Journal, Gen Z prefers brands that know how to leverage different social media channels uniquely, as they do. For example, Instagram for aspirational content, LinkedIn for career-focused posts, Twitter for the latest news, TikTok for fun and trending challenges, Snapchap for sharing real-life moments, and YouTube for watching videos.

 

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•  TikTok (39%) is the third most preferred advertising channel after "recommendations from friends/family (59%) and seeing a friend/family using a product (54%)" by Gen Z women when they want to purchase a product, as per a 2021 study by Statista. Also, 56% of Gen Z leverages YouTube to discover new products and use Snapchat to share their purchases or moments while shopping.
• In addition, Google’s Knowledge & Information Organization Senior Vice, Prabhakar Raghavan, said that 40% of Gen Z are leveraging TikTok or Instagram instead of Google Maps or Search when looking for a place to eat. This statement is corroborated by Lua Wise, marketing consultant and founder of The Lighthouse Social, who said, “Gen Z’s are using social media as search tools and a place of discovery, to the point where Google will now see social media platforms as a competitor” in her interview with Tribal Impacts' Chief, Sarah Goodall. 

2. Keep Production of the Content Short

• Marketers targeting Gen Z on social media should have shorter production cycles while keeping the content short to attract the attention of Gen Z.
• In the US, Gen Zs prefer platforms that favor short videos, i.e., Snapchat (with 42.0 million visits per month), TikTok (37.3 million visits/month), and Instagram (33.3 million visits/month).
• Gen Zs have a shorter attention span but a higher recalling rate regarding the ads they watch. For example, one study found that Gen Z recalled an ad they watched that was less than 2 seconds.

 

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• Therefore, marketers are advised against spending a lot of time and money uploading one post because currently, social media platforms do not arrange their newsfeeds chronologically, i.e., content posted now will compete with posts uploaded 24-72 hours prior. Also, a single post does not increase engagement rates with the targeted audience.
• Hence, it's advised to have shorter production cycles to:
• "Increase the content presence on targeted audience timelines.
•  Boost metrics with various engagement points.
• Train algorithms to promote your profile for organic growth."
• According to Shelly Chada, Fanbytes content manager, the content should be informative and short to market to the Gen Z group. She advises to "keep it snappy and to the point." 

3. Make Mobile-Optimized Content

• Marketers targeting Gen Z should consider optimizing their content to align with the primary devices they use to access social media: smartphones. According to various studies, 80% of them got their first smartphone when aged 11 and 13 years, and now, 98% have smartphones. Daily, they spend about 4 hours and 15 minutes on average using the phone. In addition, Gen Z visited social media platforms more at 95% per month using a mobile compared to other activities/sites. Check the image below.

 

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• The optimized and tailored content for mobiles should be easy to understand, viewable on smaller screens, stimulating to the eye, and have shorter paragraphs divided by white spaces for easier scrolling and scanning. This will make Gen Zers consume content quickly. 
• According to Leanna Pham, a Gen-Z marketing analyst at Convince & Convert, marketing campaigns tailored for Gen-Z should be mobile-friendly since most own smartphones making it the "most effective way to reach them through online advertising."

4. Use Creative Visuals

• Gen Z prefers digital media content, such as "eye-catching photos and engaging videos," over non-visual content. However, most of this generation prefers brands that utilize videos to pass the message, especially when they participate in certain trends and challenges. They see these brands to be more authentic.
• This is why their preferred social media platforms are Snapchat, TikTok, and Instagram, including YouTube, because they have many videos compared to static posts. According to Statista, adult US Gen Zers (18-25 years) spend an average of 10 hours weekly on TikTok, 5.25 hours on YouTube, and 3.8 hours on Facebook; 85% of teens use YouTube.
• In addition, "40% of Gen Z users prefer Reels, Stories, or TikTok videos when seeing brand ads on social media." On average, Gen Z watches 68 videos daily to de-compress and relax or cheer up.

 

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•  57% of Gen Z prefers video marketing over other forms of marketing, such as email marketing. Therefore, leveraging video as a marketing tool has more advantages than any text-based medium since the "visual content is more stimulating, easier to absorb, and more memorable."
• The marketing videos should be short, have all the details, authentic, and be unique & creative. This will make the content easier to consume and share, making it 'go viral', hence, higher return on investment (ROI) in regards to reach, engagement, and marketability. For example, a TikTok report states, "1 in 4 top-performing videos have a duration between 21 and 34 seconds and see an average of a 1.6% increase in impressions."
• According to Cheryl Rodewig, a marketer and journalist at Idomoo, brands should use videos to communicate with Gen Z. She further states, "Getting a mortgage can be a confusing process, especially for first-time homebuyers. While Gen Z are young, a whopping 83% are looking to purchase a house within the next decade, meaning video is a communication tool lenders need to have in their arsenal."

5. Give Them Influencers and Content Creators They Can Engage With

• Gen Zers want to be valued; to achieve this, brands must engage them with people/influencers they can trust and connect with, i.e., brands should not just pick a random influencer.
• Sprout Social article states that this generation values influencer marketing compared to any other generation, and according to a study by Morning Consult, 72% of Gen Z and Millennials follow influencers on social media, with Gen Z teenagers (aged 13-21) following many influencers. Men prefer following gaming and fitness/sports influencers, while women prefer beauty/skincare and fashion influencers.
•  24% of Gen Z women and 16% of men learn about new products they can buy through influencers.
• The traits Gen Z look for in an influencer include authenticity (58%), funny/engaging (53%), knowledgable (48%), and intelligence (43%). Only 10% care if the influencer is attractive or has a large following. The brands can use these traits to determine which influencer will connect with Gen Zers.

 

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•  Aleksei Stojanovic, Head of Let's Talk Gen Z and Social Media & Content Strategy at Trndsttrs, said the following regarding Gen-Z influencer marketing, “It’s so common to see big influencer partnerships that make zero sense; sometimes brands grab a big name for the sake of grabbing a big name, even though they aren’t relevant to the audience they’re targeting." 

6. Be Authentic and Trustworthy

• According to Statista, 45% of Gen Zers are motivated to engage with a new brand on social media if it appears trustworthy and transparent.
• Also, 85% of Gen Z trust the brand if it uses real (authentic) images of actual customers during marketing. Therefore, an article by Search Engine Journal encourages brands to "use bloopers, behind-the-scenes videos, interviews with staff, and anything that can help foster a human connection."

 

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• Brands can attract Gen Zers by understanding their needs and aligning the marketing content with their values. They expect genuine, personalized, two-way conversations with a human element. To achieve this, brands should not make their social marketing lean more toward selling; instead, they should communicate their core values and tell their brands' stories to build customer relationships with Gen Z. Also, they should be accountable and take responsibility for any misdeeds.
•  Larry Milstein, a Gen Z marketing expert, said the following regarding brands being authentic, "Brand trust is only second to price in terms of determining what brands we’re going to support. You’ve seen brands trip up because they’ve not upheld the standards that they’ve been communicating."

7. Engage and Respond to Them

•  Gen Z loves immediacy. Therefore, brands should respond quickly and frequently when dealing with this generation. This will improve the communication between the two parties. As per a recent study, 41% of Gen Z will buy from a brand that delivers timely customer feedback over its competitors.
• To respond timely to audience engagements, brands are encouraged to leverage social media listening tools, such as Hootsuite, Buffer, Mention, etc., which spot mentions of the brand across various social media platforms.
• Brands can engage with Gen Zers in comment sections of social media platforms through likes and authentic replies, which can be entertaining. In fact, 65% of Gen Z leverages the internet to search for entertainment. Therefore, be fun in your replies.
• Engaging and responding to the target audience increases the brand's engagement and loyalty.
•  Kevin Patel, a founder of OneUp Action, says, "Brands that prioritize authenticity and meaningful engagement with Gen Z will earn their loyalty and advocacy."

8. Increasing the Brand’s Beliefs and Values

• Most Gen Z shoppers want to be associated with brands that align with their personalities, beliefs, and values. According to a Forbes report, "68% of Gen Z and millennials view their purchases as key to understanding who they are and what matters to them." Therefore, they are likelier to tie the brand's impact on society to their purchasing decisions since they value authenticity. Hence, when selecting a brand, its values must appeal to them.
• For example, 63% of Gen Z are more likely to purchase from brands supporting a social cause, such as combating waste pollution. In addition, 73% are willing to pay 10% more to purchase sustainable products.
• Brands should communicate their core values to Gen Z through marketing messages, social media channels, and websites to help them figure out how their brand resonates with their lifestyle. The communications must be timely, inclusive, and sincere. And if the brand cannot live up to its values, they will unfollow, hide, or block it on social media.
•  Rebecca Brooks, a Founder and CEO of market research consultancy at Alter Agents, discusses in Forbes Magazine how companies should address issues such as sustainability, treatment of employees, ethical manufacturing practices, e.t.c., if they want to attract the younger generation comprising Gen Z and Millennials.

9. Utilize User-Generated Content (UGC)

• Multiple sources, such as Search Engine Journal, Stackla, and Sprout Social, have reported that user-generated content is the most effective way of targeting Gen Z since it provides authenticity and transparency of the brand. In addition, research by QuickFrame states that 33% of brands surveyed claimed that the UGC video approach is more successful when targeting Gen Z.
• According to Search Engine Journal, "UGC provides a genuine, unfiltered perspective by taking a community-driven approach to social content." It's authentic because real customers make content around the brand that aligns with Gen Zs marketing preference, i.e., real, relatable content, instead of photoshopped stoke images.
• For example, 46% of Gen Z claim that UGC usually influences what they eat or drink, and 64% are more likely to trust a brand that posts UGC-related content. Check the image below for more context.

 

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• Brands can leverage Gen Z influencers or content creators to help them connect with Gen Z audiences using user-generated content through product promotion, advertising, etc.
•  Max Berns, lead customer success manager at QuickFrame by MNTN, said, “Gen Z is creating and sharing video content with platforms like Snapchat and TikTok in a way that no generation has before. They are more receptive to UGC-style ads because it appears as if it’s coming from someone just like them, whether it’s an influencer or someone in your marketing department.”

10. Build a Community With Gen Z

• To market and reach effectively to Gen Z, brands need to build digital communities with them. But since they are the loneliest generation in the US, brands must find ways to communicate with them in the language they can understand, such as viewing their content and learning their jokes, vocabulary, and acronyms.
• Also, hiring Gen Z or influencers into the company's social team can help facilitate connection and conversation. However, these influencers must be like-minded as the target audience, have engaging platforms, and understand the brand's values.
• Regarding the statement above, Larry Milstein, a Gen Z marketing expert., said, It could be a creative, an artist, a thought-leader, or an activist — find people you believe can serve as ambassadors and tap into their networks in a way that feels less transactional and more authentic."
• Another way to build a community with Gen Zers is by asking them for feedback during product development or celebrating those who have been loyal to the brand for a long time.

Research Strategy