Brands and advertisers have long considered millennials as their main target, but according to research from market intelligence company Numerator, Generation Z is emerging as a powerful force behind mobile shopping and spending habits.
Gen Z which spans the teenage years to the early twenties have a projected spending power of $143 billion driven by mobile and more experimental shopping technologies.
When it comes to advertising, Gen Z customers are also more engaged with social media channels and mobile. However, major brands and retailers such as Amazon, Kroger and Target may be missing out by focusing more on online display ads.
Gen Z customers are more likely to engage with mobile ads compared to computer ads.
The study found that Kit Kat, Cheetos and Powerade were brands that resonated with Gen Z.
At the same time, the generation is also more likely to engage with in-store and special event experiences.
Meanwhile, a survey of 100 US digital advertisers by Nanigans previously found that 62% of decision makers consider Gen Z as a top priority and a higher priority than baby boomers despite the larger spending power of the latter. Marketers are well aware that brand loyalty can be established early on and that’s true for Gen Z.
Their focus on social media also means that the youngsters are quick to share brands and purchases with their friends and families.
The research highlights that marketers and brands should adapt their marketing efforts to include Gen Z as they enter adulthood. Social media platforms including Facebook, Twitter and Snapchat could be prime targets.