Every company faces the continuous challenge of adapting to the ever-changing needs and behaviors of different consumer segments. Among these, Generation Z (Gen Z) stands out as a particularly strategic audience. Born between 1997 and 2012, this generation has grown up in a world where the internet, smartphones, and social media are ubiquitous.

Understanding how to effectively monetize Gen Z is not just an opportunity but a necessity. Telecoming, a leader in mobile monetization, has recognized the importance of Gen Z and we are happy to share in this post some figures from Mandala to understand this exciting market.

A future vision

Generation Z is rapidly emerging as a formidable force in the global landscape, not merely due to their numbers but because of their fresh perspectives and their potential to reshape the future. Although their population size may not be as large as that of previous generations, their influence and worldview are changing social, economic, and cultural dynamics worldwide.

Currently, Generation Z makes up 32% of the global population, equating to over 7.7 billion people. Despite their youth, 38% of Generation Z members have already entered the workforce, and by 2025, they are expected to comprise 27% of the global workforce. However, their participation in other areas, such as marriage, remains low, with only 11% of this generation being married. This shift in family and work dynamics shows how Generation Z is redefining traditional expectations and priorities.

A generation shaped by technology

When it comes to consumer decision-making, Generation Z has been shaped by the digital age. They place a high value on convenience, with 83% embracing social shopping and 80% trusting online reviews as much as personal recommendations. This generation is also highly influenced by family, friends, and online influencers, with 70% of parents likely to consult their Gen Z children before making purchase decisions. Their loyalty tends to lean towards reasonably priced or high-quality brands, and rewards programs significantly influence their brand choices. Gen Z is characterized by their unique spending behaviors and preferences. Their spending habits also reflect their values, with 80% indicating a preference for shopping secondhand, highlighting their environmental consciousness and preference for sustainability.

In terms of technology, Generation Z is the first generation to grow up in a world dominated by smartphones and digital technology. As such, they are highly tech-savvy, with 48% believing they are on their way to mastering technology. They expect digital experiences to be AI-powered, with 79% expressing this expectation, and are generally open to adopting new technologies if there is a clear benefit. However, they are also cautious, with 23% avoiding technologies like the Internet of Things (IoT) due to privacy concerns, though 40% are willing to share personal information for a more personalized experience.

Their relationship with mobile technology is particularly strong. A staggering 95% of Generation Z owns a smartphone, with 25% having had one before the age of 10. They spend an average of 4 hours and 15 minutes per day on mobile devices, with 79% stating that they cannot live without their smartphones. Their mobile usage is diverse, spanning activities such as texting, entertainment, gaming, schoolwork, learning new things, and shopping.

Social media as a natural habitat

Social media plays an integral role in their lives, with 66% of Generation Z stating that it is essential to their daily routine. They are avid users of platforms like Instagram and TikTok, with the latter being particularly popular—69% of Gen Z are fans of TikTok compared to 49% of Millennials. Social media is not just a tool for socializing but also a significant driver of commerce; 42% of Gen Z consumers find the most memorable brands on social media, and many follow influencers and brands online, with 46% following over 10 social media influencers. Content consumption among Generation Z is heavily skewed towards digital and social platforms. They favor content that is fun and entertaining, and they rely heavily on algorithmic recommendations from social media. Podcasts and video content are also popular, with 71% consuming over 3.4 hours of online videos daily. YouTube, in particular, plays a significant role in their lives, with 93% watching product reviews on the platform.

Shopping fans

Online shopping is second nature to Generation Z, with 45% preferring it due to its convenience. Clothes and shoes are the top categories they purchase online, and their purchasing behavior is often influenced by the simplicity of the checkout process and the speed of the website. Nearly half of Gen Z consumers have used “Buy Now, Pay Later” (BNPL) services, reflecting their innovative approach to managing finances.

Gen Z is often referred to as the first generation of true digital natives. Unlike previous generations, they have never known a world without the internet. This unique upbringing has shaped their preferences, behaviors, and expectations in significant ways. This generation is characterized by their reliance on mobile devices for almost all their digital activities, including social media, entertainment, shopping, and communication. A substantial portion of their daily screen time is spent on mobile phones, which serve as their primary gateway to the digital world.

As we navigate the complexities of today’s market, integrating strategies that resonate with Generation Z is not just advantageous—it’s essential. This generation, with its unique digital fluency and evolving values, offers a glimpse into the future of consumer behavior. By aligning your marketing efforts with their preferences and expectations, you can not only capture their attention but also build lasting connections with a demographic that is set to dominate the global economy in the coming years. Now is the time to rethink your approach and ensure that your brand speaks directly to the heart of this influential cohort.