How to Engage Gen Z: Unpacking the Mindset and Behaviors of Generation Z

A NEW DAWN:
UNPACKING GEN Z
FEBRUARY 2019

3
WELCOME
// A NEW DAWN
Gen Z are set to become the largest generational demographic in
2019 [Bloomberg 2018]. For brands this means that engaging with this
audience is a key commercial strategy to get right… OR risk being left
behind.
// UNPACKING GEN Z
The following report invites you to deep dive into the minds,
behaviours and online habits of Gen Z.
Unpacking some of the key reports and surveys on Gen Z from the
last two years, this report collates the most important findings and
insights (...so you don’t have to!) to inform new ideas and ways in to
creating content that will engage with this lucrative, generational
audience.

4
OVERVIEW
// AT A GLANCE
Executive Summary
// TECHNOGRAPHICS
Insights and trends into Gen Z digital and social behaviour
// PSYCHOGRAPHICS
Insights into Gen Z mindset
// SO WHAT?
Making sense of it all

6
EXECUTIVE SUMMARY
Unpacking the key insights around Gen Z:
● Over two-thirds of their day is spent connected online. [Adobe Research
2018]
● Instagram pips Snapchat to the top spot as the most used social
platform, as picture based social channels dominate and Facebook
continues to slide out of favour. [Piper Jaffray 2018]
● They consume video content like no other generation - content
opportunities can be leveraged by tapping into the psychographics of this
audience. [Awesomeness Survey 2017]
● They are the biggest streamers of music, which they say has a
significant influence on their daily lives. [Global Web Index 2017]
● More self aware of their impact on the world, they are far more
conscious about their consumption when it comes to sustainability,
environmentalism and social impact. [Fragile 2018]
● Old stereotypes around gender, race and sexuality are alien to an
identity nomad generation who are looking to explore and define their
own identities. [Awesomeness Survey 2017]
● Social media plays a significant role in their lives and purchasing decision
as they consume content from peers, influencers and brands.
● As true digital natives their expectations from brands around
experiences and personalisation sets the benchmark high. [EY 2015]

TECHNOGRAPHICS
SOCIAL + ONLINE BEHAVIOURS

8
UNDERSTANDING GEN Z ONLINE HABITS
Gen Z are the first true digital natives - born after 1996, their
day-to-day lives have been moulded by social media, access to
endless information and instant connectedness like no other.
They are some of the heaviest users of online; on average daily,
Gen Z spend 10.6 hrs online (vs 6.9hrs overall average). [Adobe
Research 2018]
MOBILE VS DESKTOP
Generation Z is the first (even beating Millennials) generation to
go over the tipping point between mobile (05:09hrs) vs desktop
(04:57hrs) [Global Web Index 2018].
Ensuring content and user experience is optimised for
mobile is no longer a consideration for brands but an
absolute MUST to ensure you are speaking to them in a
format they prefer to use.

9
WHAT PLATFORMS DO THEY USE + LIKE MOST
WHICH SOCIAL PLATFORM(S) DO YOU USE AT LEAST ONCE PER MONTH?
85%
+3% YOY
84%
+2% YOY
47%
-3% YOY
36%
-9% YOY
23%
-
32%
+8% YOY
46%
-1% YOY
6%
-1% YOY
5%
-4% YOY
1%
-1% YOY
Piper Jaffray 2018
Instagram takes the top spot from Snapchat,
for the first time whilst Facebook’s decline
continues.
Exploring formats such as IGTV and creating
specific content (rather than repurposed or as
an afterthought) is a smart move for 2019.
Read our article on how to make the most of
IGTV when it comes to Gen Z.
New shoppable features can offer
opportunities to entice an audience to deep
dive further into product and ultimately
purchase.
*Note: Piper Jaffray did not include YouTube is
this particular survey question set.
It is worth noting that YouTube is a key social
video platform with this generation - see page
11 on video consumption
SPLASH POV
WHAT IS YOUR FAVOURITE SOCIAL PLATFORM?

10
ROLE OF SOCIAL MEDIA
Global Web Index 2017
51%
To fill up spare time
47%
To find funny /
entertaining content
46%
To stay in touch
with my friends
42%
To stay up-to-date
with current events
38%
To share
photos or videos
WHAT DO YOU USE SOCIAL MEDIA FOR?
Motives and uses for time spent on social media give an insight into both what type of content to create but also what mindset they are
to make more of a deeper connection to engage. Couple this with the wider behaviours and tastes in the psychographic section of this
report can help to guide ultimately what content will perform best.
SPLASH POV

11
WHAT ARE THEY CONSUMING: VIDEO
Awesomeness Survey 2017
68
Av. daily videos
17
Snapchat videos
13
YouTube videos
<10mins
9
YouTube videos
>10mins
9
Non-YouTube short
videos >10mins
9
Instagram
Stories
6
Non-YouTube short
videos <10mins
5
Facebook Videos
58% Learning
53% Laughing
49% Relieving boredom
44% Passing the time
43% Relieving stress
40% Staying in the know
39% Activity with friends
GEN Z VIDEO CONSUMPTION
GEN Z SAY ONLINE
VIDEO BEST FOR…
SO CREATE VIDEO
CONTENT THAT...
EDUCATES
HUMOURS
ENTERTAINS
DISTRACTS
DESTRESSES
INFORMS
SHAREABLE

12
WHAT ARE THEY CONSUMING: MUSIC
63% 76% 71% 59% 46% 31%
Global
01:06
16-24
01:37
25-34
01:14
35-44
00:56
45-54
00:38
55-64
00:19
Global Web Index 2017
MIDiA Research Report 2018
73%
“Music is important / very
important to my life”
92%
“Music impacts
my mood”
45%
“My favourite artist
influences my style.”
40%
“Music influences my
social circle”
Music plays an important role and influence in
the life of Gen Z.
Brands can leverage this by:
● Collaborating with music influencers
to extend the brand experience into
new territories that are unique and
innovative.
● Exploring branded content
opportunities across the different
music platforms e.g Spotify, Deezer,
Vevo, TikTok etc and formats within
these media opportunities.
SPLASH POVGEN Z SAY...DAILY MUSIC STREAMING (AVERAGE)

PSYCHOGRAPHICS
LIKES, DISLIKES AND MINDSET

14
UNDERSTANDING THE GEN Z MINDSET
Gen Z have grown up in a world that has never known life before the
internet; everything at their fingertips gives them both endless
opportunities but also opens them up to a bombardment of
information, news and social pressure.
This is also a world that has been affected in their lifetime by
financial, climate, social and political upheaval, resulting in a
generation that is far more woke to the world around them and how
they fit into this ecosystem.
Comparing them to their predecessors - the infamous Millennials -
this generation are far more self-aware - what’s my impact on the
world, rather than what’s the impact to me - and innovative - they
are used to figuring things out and utilising the technology at hand to
find answers quickly.
A number of key themes can be identified that affect their
preferences, behaviours and ultimately purchasing decisions.

15
CONSCIOUS CONSUMERS
1 in 5
Gen Z say their impact on the
world is an important issue in
their day to day lives.
“We see more and more youngsters entering
our stores, stating ‘I would like to buy a
sustainable product, can you show me what
you have and how it is made?’”
Anit Van Eynde, VP Brand Marketing
Levis Strauss & Co Europe
Insite Consulting 2017
A brand’s values, wider social and
environmental conscious and down to the
actual production process has never been
more scrutinised than it has now by Gen Z.
Brands need to find something to stand for
that empowers purchasing decisions or
becomes a symbol for good in the world to
capture the attention of Gen Z.
This should be a considered approach
though that feels authentic, as any shallow
efforts to piggy back this trend will fall flat
with Gen Z.
INDUSTRY INSIGHT INDUSTRY POV SPLASH POV
64%
of Gen Z are willing to pay a premium
for products from brands that embrace
causes those consumer identify with.
McKinsey TrueGen Report 2018
“It becomes even more important that the way your
brand story shows up, feels very true to you brand
DNA, and that you don’t try and to pretend you are
something you are not. Consumers respond to
something that feels honest.”
Avery Baker, Chief Brand Officer
Tommy Hilfiger

16
IDENTITY NOMADS
70%
of Gen Z say it is important to defend
causes related to identity.
“Today’s youth is more diverse. In the past,
you used to be one type and you would stick
to that for the rest of your life, in every aspect.
Today they switch regularly and this of course
brings many opportunities for brands.”
Jean Jacques Veikeniers, Business Unit
President, Western Europe, Anheuser-Busch
InBev
Old stereotypes and labels are alien to a
generation who are far more tolerant and
open-minded than previous generations.
They want the freedom to define their own
identity.
For brands this can transpire in a number
of ways: value based e.g. supporting
and empowering diversity in race, gender
and sexuality, product based e.g.
customisation of products and unisex ranges,
and influencer based e.g. collaborating with a
diverse range influencers and role models.
Again brands shouldn’t chase after all
causes but define itself against relevant
territories.
INDUSTRY INSIGHT
1 in 10
Gen Z say exploring their sexuality is
more important than having a
relationship right now.
“Individuality is the new sexy, which they
need to embrace, to express and in so they
become the best version of themselves.”
Victor Hugo, Global Brand Director, Axe
Unilever
SPLASH POVINDUSTRY POV

17
CONTENT FIENDS
68
The average number of videos
watched by Gen Z daily.
“Marketers’ jobs are becoming increasingly
more difficult due to media fragmentation.
Before you’d work with an agency and say:
this is what I want for TV, this visual for print
and in-store and this for radio. Today it’s all
that, plus YouTube pre-rolls, we need 5 secs, 6
secs, 10 secs. We need Facebook and
Instagram. Don’t forget we need stories, 140
characters, Snapchat filters, influencers
armies...”
Unilever
Gen Z consume content at a rapid rate,
which is a two edged sword: on the one side
it means they are most receptive to online
and social content, on the other this makes it
a challenge for brands to stand out or hold
onto their attention.
This requires brands to first get the basics
right; content created specifically for a range
of formats and channels to ensure it meets
expectations. Anything below par will soon
be swiped past.
The second is creating content that engages
them to watch the entirety. This doesn’t
mean chasing after 6 - 15 sec films - such
short formats make it difficult to share any
message or story - but focusing on quality
content. For instance 52% say they will
complete watching videos that make them
laugh [The Drum 2017].
INDUSTRY INSIGHT SPLASH POVINDUSTRY POV

18
SOCIAL INFLUENCE
63%
of Gen Z say social media content is
becoming more influential in their
purchasing decisions
“Everything is immediate today. What they see
from other people, other brands, other products, in
other industries. The global borders are going away
because of the power of social media. There is an
instant gratification that this generation is starting
to expect.”
Avery Baker, Chief Brand Officer
Tommy Hilfiger
Social media has become one of the biggest
influential channels when it comes to
purchasing decisions for Gen Z. Brands need
to be savvy on the following:
1. Peer influence - this requires a shareability
factor to any content that is created
2. Influencers - this requires identifying
influencers who bridge between brand and
audience
3. Branded content - content has become
part of the wider brand experience for Gen Z
INDUSTRY INSIGHT
1 in 4
Gen Z say their friends liking a
brand makes them more likely to
prefer that brand over others
“The internet has enabled information access and
social media to be at its peak so suddenly all the
world’s affairs become omnipresent - so prevalent,
son in your face that [Gen Z] are just more aware of
the greater matters of consequences to to speak.”
Unilever

19
DIGITAL SNOBS
1996
Born after this year they have
never known a world without
the internet of things
“The expectations NextGen today are set by other
brands than before. Brands like Google and
Amazon, and they don’t see why they can’t have
the same kind of experience with brands from more
traditional industries. If we don’t deliver someone
else will.”
Anna Zangni, Head of Global Innovation and Product
Development for Youth, MasterCard
Gen Z are true digital natives and so this
demands a higher expectation from brands
when it comes to experiences and
personalised interactions.
Those that aren’t intuitively innovating run
the risk of not providing the instant
gratification that is to be expected; anything
that doesn’t cut it may see a loss of loyalty
and transactions rapidly for a brand.
INDUSTRY INSIGHT
“‘I want to have it and I want to have it now.’ They
are not necessarily looking for brands, but rather
for something they need very quickly. It is a
generation that expects your product to be on par
and deliver a super UX.”
Ivo Wassenaar, Marketing Strategy
eBay

20
OUR TOMORROWS
// I PERSONALLY
BELIEVE IN THE
NEW GENERATION;
IT’S LIKE TURNING
A NEW PAGE.

21
FOR THE COMING OF AGE
// OUR GENERATION
IS WEIRD.
// OUR GENERATION
HAS SUITED ME
AND MADE ME
WHO I AM TODAY.

SO WHAT?
MAKING SENSE OF IT ALL

23
WHAT TO MAKE OF ALL THIS?
// VERTICAL-FIRST APPROACH
Create content optimised for Instagram and Snapchat. Explore all existing and
upcoming features and formats to ensure content is fresh. IGTV full potential is still to
be fully realised, so get in early! Brands like Under Armour and Nike are making their
mark already.
// CONTENT FOR A PURPOSE
Content creation (especially video) should be considered against a criteria of whether it
is: educating - that taught me something, entertaining - that made me laugh, or
informing - that is useful to know. Moves the train of thought away from content for the
sake of content. Consider content by channel and by format, to ensure the best
experience is being offered through each. Social is a good bet to begin putting this into
play due to its significant influence in the purchase decision of Gen Z.
// PLAY (ON) THAT FUNKY MUSIC
Explore musical collaborations with artists and influencers, media opportunities across
the different streaming platforms and think authentically unique e.g. a technical brand;
consider ideas within sound engineering. Looking to engage your audience? Involve
them to determine what the end output is ( e.g. Bacardi X IGTV Do What Moves You)

24
WHAT TO MAKE OF ALL THIS?
// GET INSIDE THEIR HEADS
Purchasing patterns and brand affinity are determined by the psychographics of this generation. Don’t go chasing
all of these territories - this can either end up feeling unauthentic or stretch resources unnecessarily - but
determine which are a natural extension of the brand or build new bridges to create unique brand experiences
that push the boundaries.
// REALISING A GREATER CONSCIOUS
Think about the bigger picture: can you produce in a more sustainable way? Be inspired by the adidas x Parley
collaboration. Are their charities or causes you can support? Are there actions you can take? Patagonia boldly
pledged to donate $10mn to environmental groups. Can you empower purchasing decisions? TOMS has been
doing this since day one. There are many ways into this, the key is ensuring it feels genuine to the brand.
// GIVE THEM THE FREEDOM
Gen Z demand and desire to customise their own experiences, products and choices. This sets the bar high for
expectations from brands. Plus this must be with ease and speed; anything less won’t cut it. Take food; a whole
array of apps now allow dishes to be chosen, customised and delivered direct to your door with just a few clicks
no matter your taste, time or budget. Or gyms; things have been shaken up by the likes of Class Pass. Users
have the flexibility to pick and choose classes and locations, throwing off the constraints of traditional gym
memberships.

25
CREDITING SOURCES
EY 2015
Report on the
characteristics of
next generation
consumers
Insite Consulting
2018
Senior Marketing Exec
opinions on Gen Z
26 prominent Snr
Marketing Exec
interviews
Global Web
Index 2017
Industry report
for emerging
trends
Awesomeness
2017
Survey of Teen
likes, dislikes,
motives and
ambitions
N=1,500
McKinsey &
Co. 2018
Gen Z survey &
insight on the
implications for
brands
Piper Jaffray
2018
Teen survey on
spending habits
and brand
preferences
N = 8,600

Want to chat more about Gen Z?
Speak to James our Strategist at Splash.
jcroft@splashworldwide.com

How to Engage Gen Z: Unpacking the Mindset and Behaviors of Generation Z

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