Discontent and Optimism: A Deep Dive into Gen Z Consumer Behavior

Gen Z is a generation that is unique in relation to its predecessors. Exposed to heavy saturation of media from an early age, Gen Z is a technology dependent group. This report aims to illuminate Gen Z consumer behavior and media habits to generate consumer insights for a more effective marketing approach. 

Uncertain Times

Gen Z is continually growing into an age that requires more responsibility, and subsequently, spending power. However, Gen Z has navigated obstacles early in their development, such as the COVID-19 pandemic, that developed a sense of uncertainty and discontent. While the pandemic and the resulting economic uncertainty stifled Gen Z’s development, optimism for the future remains.

According to Mintel, Gen Z feels as if life isn’t going according to plan. 54% of respondents expressed that they felt like they missed out on typical teenage experiences due to the pandemic. Gen Z missed out on its childhood storybook ending. And while the pandemic provided Gen Z with more hardship than generations before had experienced at that age, the remaining discontent opens the door for brands to recognize and capitalize on Gen Z’s current discontent. 

In conjunction, Gen Z adults too feel their life is not where they thought it would be at this point. Mintel reports 64% of Gen Z adults (1997-2005) viewing their lives as not where they thought they would be at this point. Although it is common for Americans to experience a disconnect between childhood aspirations and adult life reality, Gen Z is experiencing this phenomenon earlier than typically expected. 

Pioneers of a Digital Age

While Gen Z had to navigate the difficulties of the pandemic at an earlier age than most, they are also childhood pioneers of a new digital age. Gen Z has been affected by technological innovations in unique ways. It was the first generation to navigate adolescence with social media, as well as exposure to audio streaming and video streaming services at an early age. Gen Z, aged 16-25 for consumer focus, is the most digital demographic in its media consumption habits that the world has seen thus far, according to WARC Media. 

But while Gen Z is the most continually exposed generation in terms of media consumption, reaching Gen Z is a difficult brand challenge. The mediums that Gen Z consumers interact with are the most under-developed in terms of advertising. Gen Z interacts with music streaming, video games, video streaming, and other new-age forms of entertainment. In contrast, more traditional media avenues such as linear television and broadcast radio are falling behind in terms of consumption. 

Additionally, the typical ways that Americans are exposed to news are evolving. According to Pew Research Center, half of U.S. adults get news at least sometimes from social media, and three-in-ten U.S. adults say they regularly get news from Facebook. Facebook is the social media leader in terms of news consumption, with YouTube following with 26% of adults regularly exposed to news on the site. In comparison to other generations such as Gen X and Gen Y, it is becoming too difficult to woo Gen Z, as their attention is waning in regards to long-form media (Aims Journal). 

Newly Crowned King

While Facebook and YouTube remain category leaders for news exposure, TikTok is soaring above the rest in capturing Gen Z’s attention. According to Pew Research, and cited by WARC Media, the app is used by a higher share (67%) of U.S. teens than Instagram (62%) and Snapchat (59%). TikTok claims users spend on average “a movie’s worth of time” on the app each day, and Sensor Tower estimates the global all-user average at 95 minutes per day, which is much higher than other social media platforms. This is also more time than Gen Z spends on TV streaming platforms. However, video streaming consumption is rapidly increasing. 

According to Mintel, Gen Z adults additionally report mental health as a top priority, with mental health surpassing stress management, weight management, and individual time spent. This insight is driven by a multi-faceted combination of young age relative to others, which limits dietary restrictions and concerns; anxiety-inducing events such as the pandemic, which aggravates the need for relief from stress; and a general sense of openness in relation to disclosing mental challenges. However, the American Economic Review found that the introduction of Facebook at colleges and universities had a negative impact on student mental health. 

Influencing Gen Z

If TikTok is the Gen Z media leader, then TikTok traits need to be evaluated. Social media influencers are setting trends that define consumer behavior, as they possess large audiences of Gen Z members. With attention waning among Gen Z consumers, short-form video advertising proves the most appealing and engaging, according to Mintel. The use of influencers through paid media is an avenue that companies should pursue, as 59% of social media users follow influencer accounts. Mintel reports that influencer marketing works best in beauty, health and wellness, and clothing and apparel. According to Sage Journals, influencer marketing can be hugely successful if done correctly. In 2019, Gucci used influencer marketing to launch a new fragrance line, and after collaborating with 23 artists on Instagram, reached nearly 750,000 followers. 

PESO

Pop-Tarts has capitalized on the power of social media to launch its new flavor, Banana Bread. Pop-Tarts used social media posts to create awareness about the new flavor (paid media). They also partnered with influencers to pair the product with the #grandmaera trend on TikTok, resulting in influencers creating a “Pop-Tartigan” out of knitted material (shared media). The new flavor is also showcased prevalently on the Pop-Tarts website (owned media). Food & Wine magazine also covered the #grandmaera phenomenon and the Pop-Tartigan on March 29, 2023 (earned media). The multi-faceted approach Pop-Tarts took to market the new flavor was largely successful, as it capitalized on Gen Z consumer trends through social media and influencer reach. 

Conclusion

According to the findings presented, Gen Z can be capitalized on through social media marketing. Brands should appeal to Gen Z’s feelings of discontent and uncertainty through the creation of safe and effective advertisements that appeal to their interests.