What the rise of Gen Z means for advertising

At first sight, the idea that all members of a single generation will share similar personalities may seem just as ridiculous as asserting that all Capricorns are sensitive. 

Obviously, all humans are unique individuals, but we do share common qualities, and some of those are shaped by the era in which we are born. Those who grew up in the 1930s were indelibly marked by the Great Depression, and we all know the difference between a ‘child of the 60s’ and an ‘80s yuppie’.

Already it’s time to forget everything you knew about those whingey, entitled and narcissistic Millennials.

People can’t help but be influenced by the social, economic and political forces that prevail in their most formative years. And people of a certain age will be affected more profoundly by the spirit of the times than those whose personalities are already formed, or those who are too young to know what’s going on. Hence, generational differences.

You probably remember a rush of think-pieces setting out to define what Gen Y would be like, and how to sell to them. And yet, already it’s time to forget everything you knew about those whinging, entitled and narcissistic Millennials, obsessed as they supposedly are with avocado toast since they are unable to get a foot on the property ladder, and start thinking about their successors; Generation Z. 

Above: Avocado toast is so Generation Y [Photo by Wesual Click via Unsplash].

Gen Z already? They’re just a bunch of kids, aren't they?

Not really. Born between 1997 and 2015, Generation Z are the cohort currently aged between six- and 24-years-old, and there are nearly 68 million of them in the US alone. And the reason that people who work in advertising need to start understanding them is that – like so many young people who have gone before – they will soon start setting the trends that everyone else will follow. 

We all know that young people don’t have much money. The average new car buyer in the US, for example, is 53-years-old. But, of course, you won’t see that 53-year-old in a car ad. You’ll more likely see someone half their age. And this is not due to the ageism of the ad industry: it’s due to the ageism inside us all. 

Which brand you would rather own, the mobile phone that is popular with 24-year-olds, or the one preferred by 50-somethings? 

The 53-year-old, you see, doesn’t want to drive a car that they think is driven by 53-year-olds. They want to drive a car that they think is popular with ‘the cool people’. Same goes for sportswear, alcohol products… everything. Except pharmaceuticals, naturally. If you doubt the truth of the sentiment, ask yourself which brand you would rather own, the mobile phone that is popular with 24-year-olds, or the one preferred by 50-somethings? Exactly.

So, that is why marketers (quite rationally) market their product to cool, young people. And why people in the advertising industry need to get to know Gen Z, who are about to have that baton passed to them from Gen Y.

Above: Brands use younger actors and models in their ads because who wants to buy something for old people? 

What defines Gen Z?

The most significant influence on this cohort is that they are the first generation of true digital natives. With no memory of a world before smartphones, they have grown up hearing a multiplicity of voices, whereas previous generations (in some countries) may have relied on very few media sources, such as a state TV broadcaster. That’s why Gen Z are radically inclusive of people different to themselves (as seen in the sudden push towards acceptance of trans and non-gender-conforming people – a Pew study tallied 35% of Gen Zers saying they personally know someone who prefers to go by gender-neutral pronouns, compared with 16% of Gen Xers and 12% of Boomers). 

If Gen Z can therefore be defined by their acceptance of a wide range of different identities and comfort in adopting more fluid, less conforming and more individualised identities themselves then what are the implications for advertising?

And, unlike previous generations, they have grown up with numerous means of self-expression constantly to hand. Aided and abetted by Snapchat filters and face-swap apps, they pick up and put down different personalities multiple times a day before breakfast. If Gen Z can therefore be defined by their acceptance of a wide range of different identities and comfort in adopting more fluid, less conforming and more individualised identities themselves – a proposition backed up by a large piece of research from McKinsey – then what are the implications for advertising?

First, the depiction of a brand as a means of joining a tribe may be about to become redundant. Think of the huge success of products that seemed to define a generation: brands such as Levi’s, Abercrombie & Fitch, or Starbucks. Gen Z will still want brands, though not as a way to situate themselves in one of a limited number of available identities, but rather as pieces in a self-constructed mosaic of individuality. The knock-on effect here is around how advertising narratives will play out – it implies we’re less likely to see stories around consumers uniting with others, and more likely to see stories about consumers following their own paths.

Above: A recent Starbucks commercial highlighted the brand' pro-trans outlook.

Gaining in experience

The second thing is that brands are less likely to be used for the purpose of denoting status. In fact, this concept has already been fading for some time. It’s more associated with Gen X even than with Gen Y, and probably reached its zenith when Bret Easton Ellis shoved long lists of brands into the mouth of serial killer Patrick Bateman in American Psycho, a book in which the word ‘Armani’ is mentioned 57 times, and ‘Ralph Lauren’ over 30.

The implication for advertising is that we’ll see even more ads communicating companies’ environmental and social credentials.

Gen Y have tended to communicate status via bragging about their experiences rather than their possessions (isn’t that what Instagram was invented for?) and no doubt Gen Z will move even further away from the need to display any high-priced consumer goods to the world. The implication is that premium brands will need to start telling stories around their inherent quality, and not around what they say about the consumer, or the experiences they enable.

Thirdly, Gen Z are even keener than Gen Y for brands to be purpose-driven, with 55% of Gen Zers choosing brands that are eco-friendly and socially responsible, according to research by the National Retail Federation, and an incredible 94% believing that companies have a responsibility to make the world a better place, per a study done by 3BL media. The implication for advertising is that we’ll see even more ads communicating companies’ environmental and social credentials. Heck, maybe we’ll even see companies actually doing more to drive social good.