We recently attended Dmexco 2019. A major theme at the largest digital marketing fair in Europe was how brands can hold their own in a strongly changing (advertising) world. The biggest challenge here is understanding the (new) consumer: Generation Z. According to several speakers at Dmexco, this is the first generation that is substantially different from previous generations.
Established brands under pressure
Once powerful brands such as Kodak, V&D and BlackBerry have (virtually) disappeared from view. Because these brands did what they were good at, their fall was something we would never have imagined in their heyday. And that is, at the same time, a pitfall that brands that are still household names today can learn from. If you don't move with the changes in the world around you, chances are you will lose relevance to Generation Z (18-24 year olds). We list what you need to think about if you want to conquer this target group.
Globetrotters
First, of course, it is then important to know what drives and motivates this generation. Attest did research on this in the UK. It shows that this generation is generally happy (64%), but a minority also has concerns about, for example, the climate and the economy. But this group is slightly larger than, for example, the millenial generation (25-39 years old). What characterizes this generation is that they want to take matters into their own hands to make the world a better place. The climate truants are a good example of this. They also expect this from brands and like to buy from brands that reflect their social views, just like millenials by the way, but significantly more than 40-somethings (+10%). But they have to be able to afford it. To stay relevant, brands need to think about whether they want to speak out on issues this generation cares about.
By engaging in a dialogue around topics that are important to this generation, you can help them form their identity and bond with you. The biggest benefit here is that you will probably gain a customer for life. After all, Generation Z is loyal to brands and communities that suit them. Unlike older generations who switch between brands a lot, they are loyal to only a handful of brands (+10%). This is not to say that every brand should take a socially responsible stance. Only speak out about this if it fits with what you stand for as a brand (your brand identity) otherwise it comes across as artificial and forced, while authenticity is very important to this generation.
Finally, Generation Z is more stressed than millenials (+15%). Brands that help de-stress and make life easier such as Uber and Aibnb are therefore doing well with this generation.
8 second bullshit filter
One of the most common preconceptions about Generation Z is that they have an attention span shorter than that of a goldfish. However, Ziad Ahmed (CEO at JUV Consulting), a twenty-something himself, explains this as an 8 second bullshit filter. You have 8 seconds to convince them that you are worth their time, because they decide what to pay attention to in this short span of time. Because they are growing up in an era where stroom content seems endless, they have adapted to this. Older generations take even more time because they are used to having that time.
Gen Z and advertising
Generation Z is excellent on social media such as YouTube, Snapchat and the emerging TikTok. Already 60% say they experience their social media use as an addiction, causing more and more young people to turn their backs on social media. In addition, they game a lot, which offers opportunities for in-game advertising.
Remarkably, they don't mind the use of personal data. As long as it gives them a better experience. With streaming services, they find that advertising interferes with their experience. That's why today's twenty-somethings are more willing than older generations to pay for streaming services (+10%). But in 66% still prefer a free service with advertising.
Extend the life of your brand
Do all these challenges mean that it is impossible to exist as a brand for decades? Certainly not. But when creating your brand identity, it is best to assume that something or perhaps everything will change in the future. Kirill Borisov (Creative Director Navarre) stated at Dmexco that you have to develop a brand to the point where you are recognizable, unique and authentic. But you can still adapt as a brand to the changing needs of consumers without losing your identity. One brand that has done this well over the past few decades is Netflix. Once started as a mail-order loan service of videotapes and later DVDs, they made the switch to streaming in time that still makes them relevant today.
Inspiration is the key
To stay relevant, brands must empathize with the needs and concerns of the target audience and act on them to ensure that their campaigns reflect this. The key word here is inspiration. By focusing your marketing on providing meaningful, eye-catching content about fulfillment.
Ads have always helped people make decisions, but the best ads help shape who people are. Nike's campaigns are always a great example of this. So inspiration matters because it helps us discover who we are and what we stand for. In doing so, you are most successful when you focus on why you exist as a brand and how you can help consumers make their lives easy. If there is a match with what the consumer is looking for at that moment, they are more likely to pay attention to your advertising. Certainly Generation Z is more likely to accept advertising from brands that promote shared values and offer them the inspiration they need. This also builds trust and a long-term relationship as a brand, something that given Gen Z's loyalty can only benefit future sales.
Stay in touch
Of all generations, Generation Z feels most heard by brands although this is still only a fraction of this group that feels that way. There is a danger in this, because listening to your target audience, profiling yourself as a helpful brand is perhaps more important than ever if brands want to survive in the long run and also win the hearts of Generation Z.