How to Market Generation Z in 2023

The cohort of individuals born between 1997 and 2012, also known as Gen Z, is on track to become one of the largest groups of consumers in the near future. This implies that your brand may have to target this demographic sooner or later.

Despite sharing some traits with their popular predecessor, the millennials, the centennials or Gen Zs are unique in their own way. They are a technology and social media-savvy generation, having grown up with the internet as an integral part of their lives.

Additionally, Gen Z is characterized by their ethical and environmental consciousness, as well as their unique approach to various aspects of life. Consequently, traditional marketing strategies may not effectively appeal to this group of individuals.

In this article, I’d like to talk about the characteristics of Gen Z by compiling vital statistics and information. By delving into this generation’s psyche, I hope to assist you in creating a successful marketing strategy tailored to Gen Z. Let’s begin our exploration to understand what factors should be taken into account when targeting this generation.

Demographic breakdown

According to Statista, although millennials currently represent the largest demographic group in the US, Gen Z is set to surpass them in numbers soon.

This means that even if your brand’s primary target audience consists of millennials (e.g., individuals in their thirties), it will eventually shift toward centennials. I aim to highlight the market opportunities that exist for your brand concerning various factors such as quantity, gender, income, and more.

It’s worth noting that Gen Z is currently the third largest generation in the US, with 68.6 million individuals, preceded by Baby Boomers with 70.23 million and millennials with 72.19 million.

In addition, it is crucial to consider the customer’s gender when creating a marketing campaign. While gathering the most up-to-date information available on gender demographics, we came across the following data from 2016:

The gender distribution for Gen Z is fairly even, as shown in the graphic. However, it’s important to note that gender differences are less defined for this generation, which means that traditional marketing tactics may not be as effective.

As previously mentioned, Gen Z is set to become a significant part of the US labor force. According to Deloitte, by 2025, this generation is expected to comprise around 10% of the workforce, increasing to approximately 23% by 2030.

It’s essential to take into account Gen Z’s purchasing power, given that their average annual salary is only $33,800, which is relatively low. Additionally, 65% of this age group report that they live paycheck to paycheck, underscoring the need for cost-effective marketing strategies.

Media consumption of Gen Z

Surprisingly, TikTok is the most popular social media platform for Gen Z, with 45% of users compared to Instagram’s 41.4%. However, the top spot still goes to Snapchat, with 47% of users.

It’s unlikely that this ranking will change significantly over the next two years, with Snapchat, TikTok, and Instagram maintaining their top three positions. If your target audience includes Gen Z, it’s crucial to establish a presence on these social media platforms to ensure maximum visibility and accessibility.

Gen Zers tend to have a clear purpose when using social media platforms. According to 99firms,

• 41% of iGen prefer Instagram as their preferred social media platform for following brands,
• while only 16% opt for Facebook,
• and 11% use Twitter for this purpose.

Additionally, a whopping 85% of Gen Z uses social media to discover new products. Therefore, it’s essential to maintain a strong social media presence if you’re planning to launch a new business or increase brand awareness for an existing one.

Attitude to marketing

When it comes to marketing to Gen Z, some companies may choose to utilize email marketing. This is because 58% of Gen Zers check their email inbox multiple times per day, and 31.8% don’t mind receiving brand emails a few times a week.

All-in-all, the general picture will marketing picture will look like this:

• 20.2% of Gen Zers prefer engaging with a brand on social media, more than any other channel.
• 19.2% of this generation don’t mind getting brand content via email.
• 18.4% of iGen are willing to communicate with brand representatives in-person.

Personalization is key when it comes to marketing to Gen Z. According to The Drum, 77% of this generation believe it’s important for companies to customize interactions. Additionally, 76% expect businesses to send them digital communications that can be personalized based on their preferences.

In today’s era of cancel culture, it’s also crucial to maintain ethical business practices. Statista reports that 28.2% of Gen Zers are willing to cancel a brand due to its marketing activities.

Favorite brands

Sources report that buying power of centennials will reach up to $44 million dollars. So, where does this money go? What brands do iGens spend money for?

Numerator reports that Gen Z mostly bought from:

1. Hero Cosmetics (cosmetics)
2. The Honey Pot Company (toiletries)
3. Panoxyl (skincare)
4. Maseca (food)
5. TheraBreath (health&wellness)
6. Tree Hut (self-care/toiletries)
7. BuzzBallz (beverages)
8. Olipop (beverages)
9. La Roche Posay (cosmetics/skincare)
10. Native (toiletries)

But what if we talk about clothing brands? As YPulse puts it, the top three brands favored by centennials are Nike, Jordan, and Vans.

Yet, keep in mind that the age distribution of YPulse’s scheme has some odds. Thus, Gen Z starts from people of 25 years and younger (as of 2023) — not at 13 like the scheme states. That’s why, there might be some matches with the millennial’s list.

I advise seeing reports from more sources to see a fuller picture. This way, you’ll understand what iGens are ready to spend their money for.

Shopping behavior

Roughly 42% of Generation Z spend between one to three hours per day on social media, and 50% of them express interest in making purchases directly through these platforms. To cater to this demand, Instagram has responded by introducing an in-app purchasing feature.

Frequently, social media serves as a substitute for search engines like Google for iGens. According to statistics, 85% of this demographic discover new products or services through various social media platforms. Furthermore, this age group places greater faith in the endorsements of bloggers and influencers than they do in television or other online advertisements. In fact, a majority of 56% of iGens are inclined to try a product if it has been recommended by an influencer.

Based on another chart from Insider Intelligence, Generation Z is highly enthusiastic about online shopping. In 2022 alone, about 41.6 million young individuals made digital purchases, and this figure is expected to rise by roughly 4.5 million in 2023.

Gen Z and metaverse

Technology companies and platforms like Roblox or Decentralized offer new experiences and help brands reach wider audiences in the metaverse. Companies like Gucci create virtual worlds, Adidas designs virtual clothing, and Tiffany drops NFTs in the metaverse.

Leveraging the potential of the metaverse can be a successful strategy for companies targeting Generation Z.

Though there are around 48% of iGens know what the metaverse is, we believe their number will only increase. And if you be one of the early adopters of new technology you will have a competitive benefit.

Conclusion

With Gen Z poised to become the largest customer group, studying their behavior is crucial. Understanding their defining characteristics and shopping habits can help fine-tune your marketing strategy. Answering key questions about Gen Z will lead to a better understanding of this generation.

You can also read a fuller version of this article to discover more interesting and helpful data about Gen Zers.