As Generation Z emerges as a powerful consumer group, brands must adapt to their high expectations, a given for the first generation of digital natives.

To guide brands in selecting suitable communication strategies and creating impactful promotional campaigns, Creatopy, a platform for ad design, conducted a survey. Over 1,100 Gen Z individuals aged 18 to 26, residing in the U.S., participated, sharing insights into their shopping behaviors and preferences. The goal was clear: to gain a deeper understanding of Gen Z and provide concrete data that brands can leverage in their marketing endeavors. Interested in the findings? Let’s dive in.

Table of contents

• General Z characteristics
• Gen Z shopping habits
• Social media preferences of Gen Z
• How to market to Gen Z
• Key takeaways

General Gen Z characteristics & stats

Before delving into the survey results, let’s review some fundamental facts about Gen Z.

1. They are the most diverse generation in American history

Gen Z, encompassing individuals born between 1996 and 2012, holds the distinction of being the most diverse generation in American history in terms of ethnicity and race. Projections indicate they will constitute majority nonwhite by 2026.

2. They are hardworking

Contrary to media portrayals that sometimes depict them as lacking work ethic, data from the U.S. Bureau of Labor Statistics reveals a different story. Approximately 7.3 million Gen Z individuals in the U.S. are employed full-time, with an additional 6.3 million holding part-time positions.

3. They represent 40% of the global consumer base

Gen Z’s spending power has understandably reached $360 billion, as they already represent 40% of global consumers of the global consumer population. Furthermore, they are projected to comprise over 41 million of U.S. digital buyers by the close of 2022.

Gen Z shopping habits

Given Gen Z’s substantial buying power, how does this generation approach shopping? Do they tend to spend more or less than millennials? What motivates their purchasing decisions? Let’s explore the answers.

4. They have consistent income streams

When questioned about having a stable source of income, over 70% of respondents confirmed they did. This doesn’t imply that the remaining portion lacks any income. Many Gen Zers are still pursuing their education and rely on side hustles, such as reselling, influencer marketing, or dog walking, to generate earnings. Additionally, a significant portion of their income is allocated to savings, whether through cryptocurrency investments or contributions to retirement accounts.

5. They are thoughtful shoppers

How does Gen Z choose to spend their money? Surprisingly, they are not impulsive shoppers. While approximately 50% engage in online shopping monthly, the same proportion makes purchases only when necessary, and 33% prioritize deals and sales.

One potential explanation for this behavior is the 2008 financial crisis, which exposed Gen Zers to economic hardships faced by their parents and families during their formative years. This experience likely influenced their views on money management and safeguarding their income. So, while Gen Z has mastered various methods of earning money, they don’t readily spend it on fleeting pleasures.

6. They value social responsibility

Gen Z is a diverse cohort with strong convictions on social matters. They are drawn to brands actively engaged in societal betterment, whether through environmental initiatives, promoting recycling, or advocating for equality and racial justice. Authenticity is key, as Gen Z is quick to detect and dismiss performative activism or virtue signaling. What matters most is genuine commitment.

Gen Z social media usage & preferences

This tech-savvy generation, accustomed to constant internet connectivity from a young age, exhibits a distinct relationship with social media.

7. They allocate 1-5 hours daily to social media

A majority of survey participants dedicate 1-5 hours per day to their social media feeds, with only about 11% spending less than an hour.

8. They leverage social media for research and purchases

Gen Z’s interaction with social media extends beyond communication and staying informed. They utilize these platforms for product and brand research, ultimately influencing their purchase choices. This trend is well-documented in numerous studies, including this example illustrated by Marketing Charts.

However, this also means their attention spans are shorter, leaving brands with a limited window to make a lasting impression. Creativity is crucial to maximize the impact within that brief timeframe.

9. YouTube, TikTok & IG are their favorites

YouTube, TikTok, and Instagram reign supreme as the most popular social media platforms among Gen Z. This preference could stem from their own forays into content creation or their high consumption of video content, which they find readily available on these platforms, surpassing millennials in video consumption by double. Therefore, your business might want to explore YouTube advertising or creating organic content for the platform (lots of YouTube video ideas here).

10. Facebook & Snapchat lag behind

While still in use, Snapchat and Facebook are less favored by Generation Z compared to the leading platforms. These statistics underscore the significance of prioritizing social media advertising, particularly when targeting Gen Z. Reaching your target audience begins with meeting them where they are most active.

Marketing to Gen Z: What works & what flops

Gen Z’s constant online presence might suggest easy accessibility, but not every advertisement resonates with them. Genuine effort in understanding their preferences is non-negotiable.

11. “Woke-washing” falls flat

Rigid, overly branded content and “woke-washing” tactics are ineffective in captivating Gen Z. They value authenticity and reject performative actions. As digital natives, they excel at detecting inauthenticity and readily dismiss anything perceived as fake, irrelevant, misleading, or insincere.

12. UGC is king

What proves effective, and what your business should embrace, is user-generated content (UGC), especially from influencers, as Gen Z readily connects with them authentically.

An Instagram repost of a repost of a repost…the epitome of UGC.

13. Visually engaging ads win

Trust is paramount for Gen Z, making ads that reflect a brand’s core values highly appealing. However, creativity and visually engaging elements are equally important in capturing their attention.

14. Clickbait is a no-go

Conversely, clickbait ads or excessively lengthy content are met with disapproval. Gen Z’s limited patience means they won’t hesitate to skip such content. Disruptive ads are equally ineffective and should be replaced with more native and seamless experiences.

15. Both video and static ads have their place

When presented with a choice between static and video ads, responses were almost evenly split. This indicates that both formats can be successful when executed effectively. While Gen Z consumes more video content on social media, they don’t necessarily favor video ads over static ones.

16. TV & print are still relevant

Surprisingly, Gen Z revealed a continued trust in traditional advertising formats. Television and print media are far from obsolete.

17. Personal data use is a turn-off

Gen Z is averse to ads that leverage personal data. While this sentiment resonates with many, digital natives are particularly protective of their privacy. 60% of respondents expressed unwillingness to share personal data for a more personalized experience, and 75% perceive ads reliant on such data as intrusive.

18. Transparency builds trust

Once again, trust takes center stage. To gain Gen Z’s trust, brands must exercise restraint in utilizing personal data or, at the very least, maintain complete transparency about its use.

How to market to Gen Z: Key takeaways

• Trust is everything. Gen Z possesses a keen ability to discern authenticity. Brands aiming to resonate with them must prioritize establishing building a relationship based on trust.
• Inclusivity and relatability are crucial. Building trust requires brands to speak Gen Z’s language and genuinely comprehend their values. Embracing inclusive advertising and collaborating with individuals who are part of Gen Z, whether influencers or company employees, is essential.
• In-person interactions still matter. Despite their tech-savviness and immersion in the digital realm, Gen Z values in-person connections. Brands should prioritize hybrid experiences that seamlessly blend online and offline interactions through a customer-centric approach.
• Never underestimate the allure of a good deal. Gen Z is adept at finding discounts and is generally averse to paying full price. Brands need to tailor their sales and promotional strategies accordingly.

Want more Generation Z characteristics & stats?

Gen Z represents a significant portion of today’s consumer base. If they align with your target market, understanding their preferences is paramount to driving purchases of your products or services. As the first digitally native generation, Gen Z spends a considerable amount of time online and enjoys a stable income. However, they are also socially conscious and more inclined to support brands whose values align with their own. Long-term success belongs to brands that recognize Gen Z’s distinct characteristics, differentiate them from millennials, and adapt their marketing strategies accordingly. You can download Creatopy’s whitepaper based on the survey and discover all the findings here.