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Generation Z Media Consumption Habits True Digital Natives Table of Contents Generation Z Media Consumption Habits Generation Z Media Consumption Habits True Digital Natives Table of Contents Generation Z Media Consumption Habits 1 Demographics . Who is Generation Z? 2 Purchasing Power . What will they spend and how? 3 Media Consumption . Gen Z is connected and conscientious 4 Media Habits • Social Media: Instagram remains top for teens • Video: Rise of Netflix • Radio: Streaming gains on MP#s 5 Media Habits – Screen Time . Teens and tweens use a large percentage of media per day . Teens and tweens still tune in to TV . TVs and smartphones top devices used 6 Marketing . Ways to relate to Gen Z in marketing and advertising . Move beyond the mainstream . Taco Bell Case Study Trifecta Research 2015 | Privileged and Confidential 2 Demographics Who is Generation Z? . Much like generations before, there is no commonly accepted definition. • Demographers place its beginning anywhere from the early ’90s to the mid-2000s. • Marketers and trend forecasters, however, who tend to slice generations into bite-size units, often characterize this group as a roughly 15-year bloc starting around 1996, making them 5 to 19 years old now. Various sources place the U.S. (Gen Z) population between 60 and 72 million, or roughly 25% of the overall population. Gen Z is the most diverse generation to date and research has shown that multiracial children are the fastest growing youth group in the U.S. Purchasing Power What will they spend and how? . Mintel finds that Gen Z accounts for between $43 and $44 billion in direct spending. Piper Jaffray notes that teens (not called Generation Z) directly command $75 billion of discretionary spending. Gen Z will exert a strong influence over $200 billion worth of sales. They tend to spend on themselves, with girls slightly more cautious than boys. Trifecta Research 2015 | Privileged and Confidential 4 Media Consumption Gen Z is connected and conscientious Trifecta Research 2015 | Privileged and Confidential 5 Media Habits – Social Media Instagram remains top for teens . Gen Z has embraced anonymous social media platforms like Secret and Whisper, as well as Snapchat, where any incriminating images disappear almost instantly. Snapchat is number 3 in Piper Jaffray’s survey and rising as a preferred social network among this generation. Trifecta Research 2015 | Privileged and Confidential 6 Media Habits - Streaming Rise of Netflix Teens are spending more time on Netflix and YouTube as opposed to traditional TV; the amount of time they spend on these websites combined equates to 59% versus traditional TV at 29%. These trends are challenging Viacom, Discovery, and Scripps Interactive business models. Trifecta Research 2015 | Privileged and Confidential 7 Media Habits - Radio Streaming gains on MP3s . From a music perspective, broadcast radio continues to cede share to digital streaming and Spotify is gaining on Pandora. Trifecta Research 2015 | Privileged and Confidential 8 Media Habits - Screen Time Teens and tweens use a large percentage of media per day . On any given day, American teenagers (13 to 18) average about nine hours (8:56) of entertainment media use, excluding time spend at school or for homework. Tweens (8 to 12) use an average of about six hours’ (5:55) worth of entertainment media daily. The most popular media activities among both age groups are watching TV and videos, and listening to music. Trifecta Research 2015 | Privileged and Confidential 9 Media Habits - Screen Time Teens and tweens still tune in to TV . Tweens average 2:26 a day watching TV and videos, 1:18 a day playing games, and 51 minutes listening to music. While watching TV and videos (at 2:38 a day on average) and gaming (1:21 per day) are still popular among teens, listening to music (1:54 per day) and using social media (1:11 per day) appear to gain importance once young people enter the teenage years, adding to the total amount of time teens spend with media. Trifecta Research 2015 | Privileged and Confidential 10 Media Habits - Screen Time TVs and smartphones top devices used . Both tweens and teens use a wide variety of devices to engage with the TV shows, videos, music, games, and social media that they use. The television set still occupies the largest chunk of time among 8- to 12-year-olds, but among teens it now ranks third in terms of media devices, after smartphones and computers. Among both age groups, mobile now accounts for a large proportion of all screen time—nearly half among tweens and nearly two-thirds among teens. Television sets, radios, and print still occupy a substantial amount of young people’s time. Trifecta Research 2015 | Privileged and Confidential 11 Marketing Ways to relate to Gen Z in marketing and advertising Generation Z wants to be communicated with visually and with short, bite-sized content. This is a generation that knows how to search and find exactly what they want, so when expectations aren’t met, don’t expect them to hang around and give you a second chance. Their limited attention span means brands can never stop working for their business and, since they don’t like being sold to, you’ll need to find ways to deliver relevant, engaging and immediately beneficial experiences. Grab their attention - very quickly . Make your front line content Snackable . Visualization always helps . Remember your audience has an audience (making things sharable) . It is also worth thinking about why people would want to share. Embed diversity . Speed up communications (physically and culturally) Trifecta Research 2015 | Privileged and Confidential 12 Marketing Move beyond the mainstream When marketing to Generation Z, brands and advertisers must remember the following things: Trifecta Research 2015 | Privileged and Confidential 13 Marketing Case Study Taco Bell Case Study Taco Bell is viewing Generation Z as the “new Millennial.” They’ve decided to lean in to emerging platforms, including Periscope; build campaigns around cultural moments, such as "promposals"; and continue to embrace food mashups. Taco Bell made its Periscope debut with a live "newscast," unveiling its latest breakfast concoction -- the biscuit taco -- and announcing a giveaway for every customer in America on Cinco de Mayo. Taco Bell is also transporting consumers back to their childhood with inventions like Cap'n Crunch Delights, a doughnut hole inspired by the classic cereal, as well as ads like "Unboxing Kids," which features a brother-sister duo who went viral with their retro fist-pumping home video of unwrapping a Nintendo 64. More than generations before them, who were clad in preppy attire or matching uniforms of rebellion, Generation Z seems to want to be unique. Taco Bell latched onto that insight with this year's "Breakfast Defectors" campaign, designed to promote the brand's new breakfast menu by encouraging consumers to break from culinary conventions. Tropes of rebellion aren't new to marketing, but the pace of change is. Trifecta Research 2015 | Privileged and Confidential 14.
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