Why Gen Z Requires Innovative Advertising
With the first wave of Gen Zers entering financial independence, keen brands and advertisers are looking for the means to engage, interact and gain the loyalty of this fledgling demographic.
Considering that Gen Z currently has roughly $44 billion in annual purchasing power, and with estimates showing Gen Z will account for 40% of all consumers by 2020, this is an important time for brands to figure out the best ways to reach and engage Gen Z.12
Indeed, the methods that attract and engage Millennials are no longer effective against this mobile-focused generation, whose smartphone usage accounts for almost three hours of daily usage to consume media.3
Here’s how brands are successfully reaching, attracting, and engaging Gen Z.
Traditional Digital Ads Don’t Work
“Just as my generation grew up on print and broadcast media, Gen Z has grown up on digital media. In this same way, I don’t find print and broadcast advertising remarkable because of my exposure to it, they don’t find digital ads remarkable. It’s the advertising ecosystem they’ve been immersed in since birth,” Jerry Rackley, chief analysts of Demand Metric, said in relation to the Kantar Millward Brown report titled “Ad reaction: Engaging Gen X, Y and Z”.4
The study highlighted some interesting aspects about Gen Z and its advertising preferences.
For instance, only 29 percent of Gen Z respond positively to desktop display ads – a significantly smaller percentage than even Millennials which had 41 percent respond positively. Similarly, only 22 percent and 21 percent responded positively to mobile display ads and mobile video ads, respectively.5
Gen Z publications are so aware of this fact that many don’t even contain traditional ads. In fact Obsessee, a Gen Z, female targeted publication doesn’t even have a website; the publication exists across ten different social media platforms.
“We’re really just focused on building the followers, engagement, content types,” Power says. “The exciting part of it for me is the idea of how we’ll monetize it because advertising will be 100 percent integrated. Maybe one of the girls is doing a manicure using products from a beauty brand, or taking a tour of a factory to see how a handbag line gets made,” explained Katherine Power, co-found and chief executive of Clique Media Group, an owner of Obsessee.
Experiential Ads Are Best
Gen Zers are not completely averse to brands and advertisements – they simply require a more enticing and engaging experience.
According to Joline McGoldrick, vice president of Insights and Strategic Marketing for Kantar Millward Brown’s Media and Digital Practice, “More obvious elements like celebrity and special effects or virtual reality are much less important in shifting their receptivity. Seventy-two percent and 58 percent of Gen Z said humor or music, respectively, make them more positive toward an ad.”6
When it comes to more innovative ad formats, native and branded content seem to be the most effective when it comes to Gen Z.
As the Kantar Millward Brown report explains, “Stop using invasive, non-skippable online formats which are disliked by all generations, especially Gen Z. Embrace branded content which is a more popular format. For Gen Z, make ads interactive and use innovative online formats.” 7
Indeed, branded content seems to reign supreme for Gen Z, with 40 percent responding positively according to the report.8
While Gen Z seems selective in its advertising preferences, it seems that early advertisers and studies are starting to uncover that innovative design and formats are striking a chord.
As the first wave of Gen Zers enters financial independence, brands will need to invest in native and branded content to successfully reach, attract, and engage this generation.
1. Liffreing, Ilyse. “Move over, Millennials: Gen Z Agencies Are on the Rise.” Digiday, 10 Aug. 2017.
2. Rampton, John. “7 Ways Marketers Can Reach Gen Z.” Entrepreneur, 10 Mar. 2017.
3. Granados, Nelson. “Gen Z Media Consumption: It’s A Lifestyle, Not Just Entertainment.” Forbes, Forbes Magazine, 22 June 2017.
4. Martin, Erik J. “Gen Z Is Not into Your Digital Ads: Here’s What to Do About It.” EContent Magazine, 19 May 2017.
5. “Kantar Millward Brown – AdReaction: Engaging Gen X,Y and Z.” Kantar Millwardbrown.
6. Martin, Erik J. “Gen Z Is Not into Your Digital Ads: Here’s What to Do About It.” EContent Magazine, 19 May 2017.
7. “Kantar Millward Brown – AdReaction: Engaging Gen X,Y and Z.” Kantar Millwardbrown.
8. IBID