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Gen Z, Sometimes Called Post-Millennials Or Centennials, Are the First Generation to Have Grown up with a Smartphone in Their Hand

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Gen Z, Sometimes Called Post-Millennials Or Centennials, Are the First Generation to Have Grown up with a Smartphone in Their Hand Engaging across generations Japan Report Ÿ January 2017 Engaging across generations Contents • Introduction, methodology and summary of findings • Generational profiles • Challenges in connecting with generations through advertising • What each generation thinks of different ad formats • Strategies for overcoming ad avoidance 2 Engaging across generations Introduction and objectives A new generation is approaching adulthood. Gen Z, sometimes called Post-Millennials or Centennials, are the first generation to have grown up with a smartphone in their hand. How radically different are their media attitudes and behaviors from people in the older Gen Y* (Millennial) and Gen X *(Baby Busters) generations? And how much of a challenge does this pose to marketers as they plan media and develop creative? Concurrent with this generational shift, increased media fragmentation means marketers are scrambling to understand which channels and creative ideas are best used to reach and engage their target audiences. Options seem endless. The rapid rise of online video and mobile ad formats makes it hard to know what type of creative will work, and where best to place it. Our previous AdReaction Video study (released October 2015) told us that Japanese audiences were still spending more daily minutes watching Live TV than watching video on digital devices, and receptivity to digital ads remained much lower than for live TV ads. It also provided valuable insight into how and why advertisers should adapt their videos for the digital and mobile world. This new AdReaction study explores advertising receptivity across Gen X, Y and Z to understand when and where each group are most likely to respond positively. It also provides marketers with practical advice about how to overcome ad avoidance, and which creative approaches work best across the three generations. * In Japan, Gen Y is generally named as Minimum Life, Pressured, or Yutori/Satori. Gen X is called as Bubble, Dankai Junior, Post Dankai Junior, or Employment Ice Age. 3 Engaging across generations Methodology Sample size in Japan • Gen Z (16-19 year olds) = 154 • Gen Y (20-34 year olds) = 220 • Gen X (35-49 year olds) = 226 • All data based on this sample unless specified otherwise Online panel-based interviewing • All interviewing conducted via online self-completed questionnaire* • For each generation: 50% male and 50% female • This report refers to Japanese results only, but the same study was fielded in 38 other countries (global data available at http://www.millwardbrown.com/adreaction/genxyz/) Ad testing (Japan is not included) • 31 ads copy tested across10 countries (Australia, Brazil, China, France, Germany, India, Mexico, Spain, U.S. and UK) — 11 TV, 8 Facebook video, 12 YouTube video • Total sample size = 8,986 interviews; approximately 100 Gen X, 100 Gen Y and 100 Gen Z per ad • All interviewing conducted via online self-completed panel-based questionnaire (Link for TV and Link for Digital) Social Media Research (Only Japan) • Collected approx. 50M ad related posts on Twitter, picked up and analyzed their relative strength of response by generation *Statistically significant generational differences noted within this report are tested at a 90% confidence level 4 Engaging across generations Why a Spotlight on Gen Z? • The focus for marketers is shifting from Millenials to GenerationZ. • This mobile-native generation is growing with social media and on the cusp of entering the workforce but still has a strong influence on the purchasing power of GenX and GenY parents. • It is said that Gen Z will shape the future of the Japan with their purchasing power. Therefore, understanding Gen Z is increasingly important for marketers. 5 Engaging across generations Summary of Findings § In spite of high usage of digital, Gen Z is less receptive to digital ad formats and avoids ads instantly. § Because of their life stage, Gen Z lives with parents and consume TV and OOH well with good receptivity. § On the other hand, they are negative to legacy digital ad formats, especially formats without control such as pre-roll or auto-play, while shows better receptivity toward new ad formats and branded contents. § Developing advertising to meet the needs of audiences will help advertiser to connect across generations § Gen Z compels advertisers to consider discrete components like humor, story, visual appeal, and music, which are all essential and must form a seamless fit with each other and the advertised brand. § Knowing that audiences are turned off by invasive and interruptive formats, advertisers have a clear window of opportunity in short content that offers audiences the ability to interact with and feel more in control of the advertising they receive. § Increased focus on the experience of the creative can make branded and sponsored contents a good option for advertisers. Interest to category, affinity to brand, and relevant offers should be integrated into creative idea with ownable manner. § Gen Z requires a 360 approach to media planning including offline media and optimization § Media Planners must give sufficient weight to how factors like time of day, mood, and physical context influence favorability and optimize their media to reach Gen Z in the times and places where they are most receptive to media. e.g. OOH & Mobile at commuting § Targeting must be in lock step with creative development. There must be synergy between the advertised brand / category and the audience, yet at the same time media must be contextually relevant to the places and spaces it’s running. 6 Engaging across generations GENERATIONAL PROFILES Who is Gen Z? From childhood, they can reach massive information through smartphone, and show themselves and know various peoples on social media. It’s possible that such a difference of environment cause the difference of values and behaviors. 7 Engaging across generations How Gen Z is described generally? Gen Z is really digital native, mobile native and growing with social & smartphone Use multi-screens and multi-accounts, and always connected. Not expect Good at self- Care about Conscious to Open minded to completeness but branding personality privacy minority reality Marketing need to change to engage Gen Z. Visual first and Short attention Good at search, More trust in Frankly use consume audio span to ad, and i.e. experience influencers than e-commerce well ad blocking over information brand 8 Gen Z at a glance Judging from the size of households, Gen Z seems to live Media Usage with their parents and mentioned Demographics (One hour or more per day) they are not very busy. Working status 17% TV 71% Opposed to global trend, TV is still (part/full-time) a dominant media. Chief Shopper Magazines 7% 20% Gen Z spends more time outdoor (all the time) Newspapers 6% as well as using mobile phones. Size of HH 89% YX Laptop usage is less compared to (3 or more ) the other generation. Radio 8% Married 20% Outdoor 45% X Very busy 14% Laptop 58% Not very busy 32% Mobile 67% YX What is your current working status? How many people are there living in your household, including yourself? Are you the parent/guardian of any children under 18 who live in your What is your current marital status? 9 household? How busy would you say you are? Do you personally choose the items to buy from supermarkets and shops for U.S. Report your household….? Tapping into Gen Z mindset VALUES • Digital privacy (18% X) • Content that feels honest and real (14%) • Diversity and individuality (29% X) • Spending time with like-minded people (35% YX) MISCONCEPTIONS ABOUT GEN Z • Love selfies (Only 10% YX) • Receive lots of feedback on what they post (Only13% X) BEHAVIORS • Turns to Google for queries (34%) • Starts new projects and activities (21% YX) • Keeps busy by multi-tasking (13%) Gen Z • Enjoys access to always-on music (14%) • Share my activities, interests and hobbies online The strongest feature of GenZ is seen in sharing with my friends.(33% YX) interests online and spending time with like-minded Gen Z Gen Y Gen X people. They are open-minded, but careful about I like to share my activities, interests and digital privacy. Social environment influenced their 33YX 17X 9 hobbies online with my friends. values and behavior. 10 Q: From the following statements choose all that you identify with more. U.S. Report Advertising is a topic worth to talk with Other members of your family Friends others Work colleagues None of these Audiences are discussing Gen Z 50 YX 62 8 17 advertising with those closest to them. Because of life stage, GenZ discuss advertising with their friends, which means viral Gen Y 54 40 Z15 27 network is strong in GenZ’s community such as school and shared to the other generations through family. Gen X Z 60 36 ZY 24 22 11 Q: Who are you more likely to discuss advertising with? U.S. Report Engaging across generations Why is Gen Z so influential? The evolving new generation is a trend setter and influencing upper generations with leveraging social. News Family School GenX Hot topic on social Established Media News GenZ Share Social consumption GenY Social Media 12 Engaging across generations Based on TNS’s Connected Life, as age becomes younger, User Generated Contents are more consumed. 13 Engaging across generations CHALLENGES IN CONNECTING WITH GENERATIONS THROUGH ADVERTISING As audiences have become more reliant upon their devices and skilled in finding the content that they are consistently adept at avoiding ads that they perceive to be interrupting, irrelevant or annoying. 14 Engaging across generations All generations try to avoid ads, especially Gen Z. Gen Z especially take advantage of ads offering control. Gen X lack of interest. Technological Physical Advantage of Control Lack of Interest Gen Z Gen Y Gen X 16-19 20-34 35-49 Look away Install ad from screen broker tool 41 35 35 35 30 34 53 39 51 53 73 64 Skip * In US, ad blocking is more Q.
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