Generation Z, born between 1995 and 2010, and its revolutionary consuming habits have become a hot topic. They emerged as a considerable force in the market thanks to their massive influence in reshaping social, economic, and cultural dynamics, which later turned them into a strategic audience to reach. Understanding how to effectively monetize Gen Z is not just an opportunity but a necessity.

Generation Z is digitally native, which means they use social media platforms like Instagram, TikTok, and YouTube not only for entertainment but also as primary sources of inspiration and knowledge. According to several reports, over 30% of them use these platforms as search engines, highlighting their importance in purchasing decisions.

Generation Z is also notoriously brand-loyal; only 25% always buy the same brands. However, when a brand authentically connects with them and aligns with their values, they show significant loyalty. 70% are more likely to buy from brands that reflect their own values.

IAB Spain has unveiled an indispensable study to comprehend Gen Z dynamics: the “Guide to understand Generation Z”. This report highlights key aspects like core characteristics, brands that resonate with Gen Z culture as well as giving some marketing tactics for brands targeting Gen Z.

Core Characteristics of Gen Z Consumers

Digital natives with high expectations: gen Z is the first generation to grow up fully immersed in digital technology. They are accustomed to instant access to information and entertainment, which shapes their expectations for brands. They value speed, efficiency, and seamless digital experiences, considering these as baseline requirements rather than perks.

Authenticity is non-negotiable: for Gen Z, brands are more than providers of products; they are entities that should embody values, tell compelling stories, and engage in meaningful dialogues. Whether through candid behind-the-scenes content or narratives that reflect diversity and inclusivity, authenticity fosters loyalty among these consumers.

Purpose-driven purchasing: purpose and activism resonate deeply with Gen Z. They prioritize sustainability, social justice, and ethical practices when making purchasing decisions. However, their engagement goes beyond surface-level actions. They expect brands to “walk the talk”—meaning they want genuine commitments to causes over marketing campaigns that merely highlight awareness days or symbolic gestures.

Desire for personalization: personalization is another hallmark of Gen Z’s consumer expectations. This generation values products and services tailored to their individual preferences and lifestyles. From algorithm-driven content recommendations to customizable product offerings, they are drawn to experiences that feel unique and relevant.

Brands that Resonate with Gen Z

Brands with strong personalities: to connect with Gen Z, brands need to exhibit clear and relatable personalities. Those that infuse humor, humanity, or aesthetics into their identities stand out.

Innovators in social media engagement: social media remains a critical space for engaging Gen Z. Brands that treat these platforms as more than advertising tools and instead use them to create genuine connections thrive.

Advocates for sustainability and inclusivity: brands like Patagonia and The Body Shop have earned respect for their unwavering commitment to sustainability and social causes. Patagonia’s advocacy for environmental conservation and The Body Shop’s cruelty-free products demonstrate the authentic activism Gen Z expects.

Collaborators with creators and other brands: collaborations are another strategy that resonates with Gen Z. Co-branding campaigns and partnerships with influencers or creators allow brands to tap into cultural moments and communities organically.

Entertainment-driven content: Content that entertains while informing or inspiring is crucial for engaging Gen Z. Brands like Under Armour use collaborations with athletes like Stephen Curry to highlight product innovation while telling compelling stories. Meanwhile, creators like Clavero partner with financial platforms like Revolut for campaigns that blend adventure with product features, ensuring entertainment value remains high.

Takeaways for Brands Targeting Gen Z

Build authentic relationships: to foster genuine connections, brands must listen to Gen Z’s needs and create campaigns that reflect their realities. This includes using authentic voices, engaging in honest conversations, and showcasing the human side of the brand.

Make purpose practical: purpose-driven initiatives should not only be aspirational but also accessible. For instance, brands can integrate sustainability into everyday practices, offering solutions that align with Gen Z’s values without requiring significant sacrifices.

Embrace creativity and collaboration: innovation through collaborations with other brands, creators, or even customers can help brands maintain relevance and excitement. These efforts should aim to add value rather than merely seeking attention.

Prioritize quality and volume in content: while Gen Z demands high-quality content, they also expect a consistent stream of engaging material. Brands should tailor their strategies to align with the dynamics of each platform, ensuring their content remains relevant and impactful.

Wrapping Up

Generation Z is reshaping traditional marketing with their emphasis on authenticity, purpose, and meaningful connections. Brands that understand and adapt to these preferences are well-positioned to succeed in an evolving marketplace. By embracing transparency, creativity, and sustainability, companies can not only attract Gen Z but also inspire lasting loyalty in this influential consumer group.

Generation Z represents a unique challenge and opportunity for brands. To connect with this group, companies must adopt marketing strategies that prioritize authenticity, personalization, and user-generated content. Understanding and adapting to their behaviors and expectations is crucial for establishing lasting and loyal relationships with this generation. As they continue to redefine consumption rules, brands that adapt to these changes will be better positioned for future success.