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CULTURAL REBIRTH: Themselves and the Rapidly Changing World There Are Commonalities Between Millennials MILLENNIALS and GEN Zs DRIVE a MORE INCLUSIVE Around Them

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CULTURAL REBIRTH: Themselves and the Rapidly Changing World There Are Commonalities Between Millennials MILLENNIALS and GEN Zs DRIVE a MORE INCLUSIVE Around Them CULTURE NEXT 2021 VOLUME 3 VOLUME 3 VOLUME 00 ADS.SPOTIFY.COM CULTURE NEXT 2021 VOLUME 3 CULTURAL REBIRTH: themselves and the rapidly changing world There are commonalities between millennials MILLENNIALS AND GEN Zs DRIVE A MORE INCLUSIVE around them. Without school and and Zs that came to light in our research too. Both generations are pushing for a more AND CONNECTED CULTURAL LANDSCAPE face-to-face time with friends, they’ve reported more feelings of loneliness over inclusive, multi-faceted culture. Millennials and Gen Zs agreed that as a culture, we’re By: Dawn Ostroff the course of the pandemic. The good news? Music and podcasts have helped: more open to hearing from diverse voices Chief Content & Advertising Business Officer, Spotify 66% of Gen Zs said audio helped them feel than ever before: 53% said they’ve sought less alone over the last year.3 more content from more diverse creators 5 If 2020 was a “cultural wake-up call,” as landscape. This year’s report includes a and podcasts in the past year. our Culture Next research found last year,1 range of voices from around the world, with Millennials, meanwhile, faced a different 2021 is shaping up to be a cultural rebirth. the addition of a few new markets across set of challenges. As this generation This year’s Culture Next examines two Southeast Asia, the United Arab Emirates, advances in their careers and starts different generations navigating a common The COVID-19 pandemic has upended and Japan. And while we found similarities families of their own, the pandemic has challenge: rebuilding culture from the our idea of “normalcy.” An ongoing in how both generations are shaping shaken up their expectations of work-life ground up. And on Spotify, they’re not just global movement for racial justice culture, we’ve also zeroed in on some balance. Audio has emerged as the go-to listening — they’re creating, discovering continues to challenge the status quo distinct differences. source for millennials to connect with (and revisiting), building communities, and and fuel social change. With this as the family, stay informed, and indulge in “me passing the mic to voices that have been backdrop, we spoke with Gen Zs (ages It’s been quite a year for Gen Z, a time.” Smart speakers, for example, have traditionally overlooked. Read on for a look 15-25) and millennials (ages 26-40) to generation now on the edge of newfound emerged as a household must-have for into their changing habits and tastes, and understand the biggest shifts in how independence. With traditional markers of millennial parents to entertain their kids even more ways advertisers can engage both generations are creating, curating, adulthood (like hanging out with friends — and give them a break from screens. with them, learn from them, and create in and experiencing culture. unsupervised, attending college in person, On a personal level, millennials have collaboration with them. or starting their first post-grad jobs) on reported strong emotional connections One thing is certain: Audio is playing pause, Zs are eager to leave virtual events with their favourite podcast hosts. In fact, a major part in this cultural rebirth. behind and resume IRL experiences. For they’re more likely than Gen Zs to say That’s why this latest edition of Culture example, we found that millennials are that podcast hosts sometimes feel like Next includes three new chapters: more likely than Zs to say they’ll continue a friend.4 And with more years behind Listeners, Creators, and Advertisers. In attending virtual concerts after the them, millennials are more likely to favour Scan by going to Search on Spotify this report, we explore how millennials’ pandemic is over.2 Our global research also nostalgic content (think playlists devoted and clicking on the to the sounds of decades past, country and Gen Zs’ distinct perspectives (and revealed that Gen Zs are still searching Button inevitable overlaps) are shaping the audio for connection and meaning — about music, and more). 0001 ADS.SPOTIFY.COM CULTURE NEXT 2021 VOLUME 3 CHAPTER 03: ADVERTISERS TABLE OF The most important cultural shifts for marketers to understand. 21 AFFINITY-HOODS: CONTENTS Similarities among young consumers lie in shared cultural passions, not demographic targeting. CHAPTER 01: LISTENERS 24 Audio is playing a major role in young people’s lives REMOTE CONNECTIONS: Brands are adapting to reach a new consumer whose lifestyle has 03 SOUND ESCAPE: radically shifted. Millennials and Gen Zs explore all the ways digital audio 27 offers comfort and connection. WORKING WITH SPOTIFY ADVERTISING: Reach your audience through digital audio campaigns that are 06 BLURRED LIVES: contextual, immersive, relevant, and original. Sound is blurring the lines between tangible and virtual, fact and fiction, and more. 09 SYMBIOTIC CREATION: Collaborations are changing the sound of culture. METHODOLOGY CHAPTER 02: CREATORS Creators are shaping culture through music and podcasts For this issue of Culture Next, Spotify conducted a combination of qualitative, quantitative, and first-party data analysis, looking at Gen Zs (15-25) and 12 THE “IT” SOURCE: millennials (26-40). We partnered with youth culture agency Archrival to conduct four Zoom focus groups, 40 in-depth interviews, and a dozen ethnographies, Audio has become the “it” source of information and ultimately speaking with more than four dozen respondents around the globe, entertainment for a new generation. in the United States, Canada, Mexico, Brazil, Spain, Italy, France, Germany, the United Kingdom, India, Indonesia, Singapore, the Philippines, Japan, Australia, 15 NEW VOICES: and the United Arab Emirates. We conducted additional in-depth interviews with Millennial and Gen Z creators are amplifying advertising and audio industry thought leaders. underrepresented viewpoints and vibes. We also fielded a global quantitative survey via Lucid among 9,000 respondents 18 GENERATION CURATION: in April 2021 (500 respondents per market — in all the previously mentioned Curation is a critical part of how culture is being markets, as well as Thailand and Malaysia). Findings were additionally grounded shaped today. in Spotify’s unique Streaming Intelligence and first-party data. 0002 ADS.SPOTIFY.COM CULTURE NEXT 2021 Global Trends Report VOLUME 3 LISTENERS: Trend No. 1 Sound Escape As the impact of digital content on our well-being becomes increasingly clear, millennials and Zs are journeying toward a more fulfilling and balanced media diet. For millennials, that means seeking comfort in nostalgic sounds. For Zs, it’s all about offsetting their digitally saturated lives. Whether it’s diving into a true crime podcast, getting hyped with a pop playlist, or soothing themselves with ambient sound (or even — gasp — silence), both generations are exploring all the ways audio can enrich their lives. Nestor, 31, Atlanta 0003 ADS.SPOTIFY.COM CULTURE NEXT 2021 VOLUME 3 Sound Escape MILLENNIALS — WITH MORE YEARS BEHIND THEM — HAVE FINDING BALANCE ESPECIALLY LEANED ON NOSTALGIC PLAYLISTS From doomscrolling to bingeing, unhealthy tech habits FOR RELIEF DURING are the norm for both millennials and Gen Zs — especially THE PANDEMIC: during a pandemic. With so much bad news and so few ways to escape, zoning out can feel like the only recourse. Respondents from both generations told us they feel that IN INDIA, THEY audio of all forms encourages them to tune in to themselves, STREAMED ‘80S HITS to each other, and to the outside world. 195% MORE, AND ‘70S LOVE SONGS 44% MORE WATCH BETWEEN MARCH 2021 Click or scan 8 AND THE YEAR PRIOR. to check out 87% OF Nestor’s video MILLENNIALS AND 78% OF GEN ZS IN INDIA AGREE THAT HOLISTIC MIX THEY USE AUDIO Millennial and Gen Z listeners are focused on finding the TO REDUCE THEIR right mix of content to match or make their mood — and are 6 STRESS LEVELS. moving seamlessly between all formats. Podcasts punctuate music playlists, binaural beats back up morning meditations, and throwback playlists offer a dose of comforting nostalgia. —Karamvir, 18, New Delhi “BEFORE COVID WE WERE ALL SO OCCUPIED WITH ALL THE THINGS GOING ON IN OUR DAILY LIVES, AND WE NEVER REALLY GOT TO DISCOVER THINGS ABOUT OURSELVES. I NEVER THOUGHT I COULD LIKE SOMEONE LIKE LEWIS CAPALDI OR SAM SMITH, BUT THAT'S THE ONLY THING THAT'S ON MY 84% OF INDIAN MILLENNIALS SEE AUDIO PLAYLIST RIGHT NOW. IT JUST TOOK A LITTLE BIT OF DOWNTIME FOR ME 7 TO FIGURE IT OUT.” AS A MENTAL HEALTH RESOURCE. 0004 ADS.SPOTIFY.COM CULTURE NEXT 2021 VOLUME 3 THE FOLLOWING PODCAST CATEGORIES Sound Escape What It Means SAW IMPRESSIVE INCREASES AMONG INDIA’S MILLENNIAL AND GEN Z UNIQUE For Brands 9 USERS IN Q1 2021 COMPARED TO Q1 2020.* DIY *AVERAGE PODCAST LISTENERSHIP IN INDIA INCREASED 271% AMONG MILLENNIALS AND 312% AMONG ZS As millennials and Zs are incorporating WELLNESS audio into their self-care routines, brands have an opportunity to become MENU a part of their daily practices through Spotify Advertising. Among Gen Zs, audio isn’t GO WITH THE FLOW considered just entertainment Listeners are more receptive when — it’s an integral part of their messaging matches their mood. DIY wellness menu. Zs the Consider millennials’ nostalgic listening Gen Z experience and lean into contextual world over are tuning into targeting to match their vibe. specific auditory experiences to self-regulate, manifest, and ALIGN WITH COMFORTING CONTENT heal, whether through positive- Musical repetition creates positive thinking podcasts, ambient Millennial 909% 612% 415% 359% associations as the more we hear something, the more we like it. Sponsor sound, or even silence. On Repeat, a personalised playlist filled MENTAL ALTERNATIVE with the songs you can’t get enough of HEALTH HEALTH right now to increase positive sentiment for your brand.
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