Gen Z are spending more time in finance and shopping apps during Q3 2020

Anne Freer | October 22, 2020

App Business

Generation Z is emerging as one of the most powerful consumer segments as new data released by App Annie reveals that they spent an average 4.1 hours on apps during the third quarter of 2020. And that estimate doesn’t even include games.

Some 98% of them own a smartphone with TikTok and Snapchat being the most over-indexed apps among Gen Z in nine out of 10 marketers.

It highlights just how important photo and video apps are among younger generations.

“Leveraging data to understand how to best reach consumers on mobile is more critical than ever, and Gen Z’s importance for marketers will only increase in 2021 and beyond,” said Skye Featherstone, Product Marketing Manager, Snap, Inc. “Businesses need to understand the values and user preferences of this audience to create truly engaging experiences on innovative platforms like Snapchat.”

Meanwhile, finance and shopping app categories saw notable gains year-on-year, as Gen Z spent 60% of their time with apps in these categories during Q3 2020 compared to the same quarter the year before.

Finance apps like Venmo and DANA are more likely to be over-indexed which goes to show that Gen Z prefer mobile-first banking approaches.

But the new report also signals that shopping apps and brands should utilise marketing strategies to reach this audience because Gen Z users have an average 20 shopping apps on their phones.

“Gen Z has never known a world without their smartphone. They see the world through this mobile first lens,” said Ted Krantz, CEO, App Annie. “As new consumers, businesses have an opportunity to earn their loyalty. App Annie connects brands to the mobile preferences of this generation.”

Engagement is also deeper with 20% more sessions per user among the top apps.

The core action gaming genre accounted for almost 25% of time spent among Gen Z gamers.

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