Meet Generation Z Forget Everything You Learned About Millennials
Image Source: National Geographic’s October 2013,125th anniversary issue
Meet “Generation Z,” Americans born after Gen Y (from 1995 to present) who are currently under the age of 18.
Marketers have been focused on Gen Y (a.k.a. Millennials) for more than a decade. In fact, Millennials are the most researched generation in history! But Gen Z is different from the Millennial generation. In many ways, Gen Zers are the opposites or extreme versions of Millennials and marketers need to adjust to them. We are just beginning to understand Gen Z and its impact on the future, but here is what we know and foresee…
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There is a population tsunami approaching
361,000
Swing ( 69+ )
10.5%
Baby Boomers ( 50-68 )
Gen Z ( <19 )
Approximate number of babies born in the world each day.
25.9%
23.6% Gen X ( 38-49 )
15.4%
Millennials ( 20-37 )
24.5%
More than a quarter of America’s population belongs to Gen Z, and with each birth, the segment is growing.
Source: U.S. Census Bureau, 2012 (via Mintel 2014) 4
They influence household purchases Percentage of moms who feel their Gen Z child is influential when purchasing the following Toys Apparel The week’s dinner menu Entertainment Family vacation
84% 74% 73% 69% 65%
TV
60%
Cell/mobile
55%
Computer
52%
Home furnishing
32%
Family cars
29%
Source: JWT Intelligence 2012 5
A generation with disposable income
Gen Z receive $16.90 per week in allowance which translates to
$44 billion a year
Source: Mintel 2013 “Activities of kids and teens.” 6
They love to shop, especially online
Percentage of Gen Z who prefer shopping online vs. offline Offline
Clothes Toys Online games Offline games Books Electronics
Online 45% 55% 46% 54% 53% 47% 44% 56% 47% 53% 47% 53%
Music Fashion accessories Shoes Movies Sports equipment Beauty products
50% 50% 43% 57% 45% 55% 53% 47% 40% 60% 49% 51%
Source: JWT Intelligence 2012 7
They are eager to start working
55% of high school students feel pressured by their parents to gain early professional experience
4 in 5 high school students believe they are more driven than their peers
Parents of Gen Z encourage their children to find jobs early and independently without their help.
Source: Study called “High School Careers” by Millennial Branding and Internships.com via entrepreneur.com 8
They are mature and in control Use of Illicit Substances
Teen Birth Rate
(Among high school seniors)
(per 1,000 women age 15-19)
72
Alcohol Marijuana
60
Cigarettes
89.1 80
Cocaine
40
60
20
40 29.4
1.3 1980
’85
’90
’95
’00
’05
2010
25% of Gen Z teens say they were in a physical fight in the past year (down from 42% surveyed in 1991)
1950
’60
’70
’80
’90
’00
2010
10% of Gen Z teens say they tried an e-cigarette in 2012 (a doubling in one year)
Source: Centers for Disease Control and Prevention via vox.com: WebMD (CDC Survey 2014)
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They intend to change the world
26% of 16-to-19 year-olds are currently volunteering
Social listening reveals that Gen Z are determined to “make a difference” and “make an impact.” Social entrepreneurship is one of the most popular career choices.
Source: U.S. Department of Labor, 2013, 10
This is what Millennials started…
Name: Mark Zuckerberg Fame Age: 20 Profession: Internet Entrepreneur
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…this is how Gen Z took over…
Name: Adora Svitak Fame Age: 16 Profession: Activist, author and advocate for education Her 2010 TED talk, “What Adults Can Learn From Kids,” has received over 3 million views.
Source: Adorasvitak.com 12
…and this is the new norm for Gen Z Name: Logan Laplante Fame Age: 13 Profession: Advocate for DIY education His 2013 TED talk, “Hackschooling Makes Me Happy,” has received over 5 million views.
Source: About.me/loganlaplante 13
What made them who they are?
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Growing up in a post 9/11 world during a recession
1 in 4 American children are living in poverty
73% of Americans were personally affected by the Great Recession
Gen Z were developing their personalities and life skills in a socio-economic environment marked by chaos, uncertainty, volatility and complexity. Blockbusters like The Hunger Games and Divergent depict teens being slaughtered. No wonder Gen Z developed coping mechanisms and a certain resourcefulness.
Source: Rutgers 2013, Annie E. Casey Foundation 2013 15
They learned that traditional choices don’t guarantee success
30% of high school students today are pushing out their graduation date
They witnessed the struggles of Millennials (think: older siblings, many still living at home), and have resolved to do things differently.
Source: Report from Education week via The Atlantic 16
Their education system focused on inclusive classrooms and differentiated instruction
They were raised in an American education system that focused on mainstreaming and classroom diversity. As a result, they are collaborative team players where everyone is equal at winning and losing.
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Nature vs. Nurture: Gen Z had a unique childhood
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+400% increase in multiracial marriages (Black and White) in the last 30 years (with a 1,000% increase in AsianWhite marriages)
Multiracial children is the fastest growing youth group in the US
+50% increase in the multiracial youth population since 2000 (to 4.2 million)
Modern families come in all colors and sizes. Long-standing views of race have been challenged by culture: celebrities, artists, politicians and athletes of mixed heritage have changed discourse, along with trans-racial and international adoptions.
Source: Census: “The two or more races population: 2010 Census Brief”; American Academy of Child and Adolescent Psychiatry 19
There is much greater diversity amongst teens and tweens
-1.5% decrease in the caucasian 6-17 year-old population is projected by 2018
+7.6% projected increase in the Hispanic teens population over the next five years, the fastest growing population in the US
Research shows that multiracial children tend to be high achievers with a strong sense of self and adaptability to change.
Source: Mintel “Activities of kids and teens” - US - Nov 2013 20
Traditional gender roles have been challenged
Source: GoldieBlox.com
Gender roles and norms are blurring, which may make it harder for Gen Z to find mates and maintain households when they become adults. Self-identity is less constructed by gender than for past generations. 21
Parenting styles have shifted
With studies showing the adverse effects of helicopter parenting, parents of Gen Z have been discouraged from mollycoddling. As a result, Gen Z have been given more space than Millennials, accessing answers and inspiration on the Internet, and are more self-directed. Source: Census: “The two or more races population: 2010 Census Brief” 22
They live in multi-generational households
Gen Z have been raised in larger, extended households as retired grandparents have moved in and Millennial siblings (Boomerang Kids) have moved back home. As a result, they are sharers and have greater affinity and respect for the elderly. Gen Z share many of the same values as the Great Generation.
Source: Census: “The two or more races population: 2010 Census Brief” 23
How are Gen Z remarkably different?
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They worry about the economy What things cost today
Female
Male
100 Cybercrime
80
The economy
60 40 20 Government leadership
Wars around the world
0
Crime in your town
Terrorism
Your parents’ job security
Source: JWT Intelligence, 2012 25
72% of high school students want to start a business someday (compared to 64% of college students)
Entrepreneurship is in their DNA
61% of high school students want to be an entrepreneur rather than an employee (compared to 43% of college students)
Surrounded by DIY education and crowdsourcing, these teens dream of self employment. They feel pressured to gain professional experience at a very early age. Low wage entry level Gen Z jobs lead to competition with struggling Millennials, fueling competitiveness.
Source: Millennial Branding and Internship.com, 2014, Mintel 2014 26
42.1%
“I plan to start my own business”
“My school offers classes in how to start and run a business” 16.9%
“I work at least one hour a week”
37.8%
55.3%
46.9%
“My school teaches about money and banking” 4.6%
“I have an internship”
“I will invent something that changes the world” 3%
“I run my own business”
More than 90,000 students enrolled in grades 5-12 have the exceptionally rare entrepreneurial talent to help create more jobs within the U.S. Source: Gallup and Operation HOPE. A survey of 1,009 students in grades 5-12 27
They seek education and knowledge Percentage who have done the following: Research online
1 in 2 Gen Zers will be university educated (compared with 1 in 3 for Millennials and 1 in 4 for Gen X)
85%
Watched lessons online Worked on a project with classmates online Taken a test/exam online Taken a lesson online Read a textbook on a tablet
33%
32%
25%
22%
20%
Source: JWT Intelligence 2012; Edudemic survey 28
They use social media as a research tool
52% of teens use YouTube or other Social Media sites for a typical research assignment in school
Source: Pew Research, “How teens do research in the Digital world” 2012 29
They multi-task across 5 screens Percentage who use the following devices multiple times per day Age (13-17)
Age (8-12) 72
TV
72 76
Cell/mobile phone Laptop computer Desktop computer iPod or other portable music player
39 50 28 38 28 36 25
39%
33%
72% 57%
25
Gaming console 17
Handheld gaming device Tablet E-reader
24%
23
16 13 11 4 5
17% 12% 4%
31%
Source: JWT Intelligence 30
Their attention spans are getting shorter
8 sec is the average American attention span (down from 12 sec in 2000)
11%
Gen Z are the ultimate consumers of snack media. They communicate in bite sizes. Research studies suggest that their brains have evolved to process more information at faster speeds, and are cognitively more nimble to handle bigger mental challenges. But, getting and keeping their attention is challenging.
of children 4-17 years old have been diagnosed with ADHD (up from 7.8% in 2003)
Source: National Center for Biotechnology Information, U.S. National Library of Medicine, The Associated Press 31
They think spatially and in 4D
2005 is the year that Google Maps launched with its satellite and zooming functions
Gen Z have always known how to zoom, pinch and swipe. They have grown up with hi-def, surroundsound, 3D and now 4D — 360 degree photography and film is their normal. Ultra slow motion and hispeed video is their standard.
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They lack situational awareness
Teachers say that Gen Z lack situational awareness, oblivious to their surroundings and unable to give directions. Some speculate that Gen Z have become overly reliant on their devices. Source: Pew Research, 2012
image source 33
They don’t want to be tracked
25% of 13-17 year-olds left Facebook in 2014
As Social Media natives, attuned to NSA surveillance issues, they are more concerned about disabling their phone’s geolocation than their privacy settings. Gen Z are drawn to incognito media such as Snapchat, Secret and Whisper.
Source: Facebook Social Ads Platform (“Potential Reach”), 2013 34
They communicate with symbols
Gen Z speak in emoticons and emojis. Symbols and glyphs provide context and create subtext so they can have private conversations. Emoji alphabets and icon “stickers” replace text with pictures. Source: Pew Research, 2012
image source 35
They communicate with speed
68% of teachers think that digital tools make students more likely to take shortcuts and not put effort into their writing
46% of teachers say digital tools make students more likely to “write too fast and be careless”
Source: Pew Research, 2012
Gen Z are agile communicators: speed of communication and repartee garners cultural currency. They’re accustomed to rapid-fire banter and commentary. As a result, Gen Z are not precise communicators and leave a lot of room for interpretation.
image source 36
They communicate with images Percentage of Gen Z using social media 42%
Spring 2013
Fall 2013
33%
30% 27%
Fall 2012
26%
23%
23% 17% 12% 3%
Twitter
Facebook
Instagram
4%
4%
Tumblr
6%
5%
3%
Google+
% share of respondents, select findings
Source: AFP News Report, via MarketingCharts 2013 37
They love the ephemeral and rarity
Gen Z are drawn to social media which disintegrates and self-destructs. They suffer from FOMO (fear of missing out) more than Millennials, so being culturally connected is critical.
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They spend more time with computers
41% Of Gen Z spend >3 hours per day on their computers for non-schoolwork-related purposes (compared to 22% a decade ago)
Source: WebMD (CDC Survey 2014) 39
Their social circles are global
81% of online teens use some kind of Social Media
26% of Gen Z would need to fly to visit most of their social network friends
Source: JWT Intelligence and Pew Research center 40
They are hyper-aware and concerned about man’s impact on the planet
80%
9 of 10
7 of 10
know about man’s impact on the planet
continue to feel optimistic about their own future
feel optimistic about the future of the environment
78% are concerned about world hunger
77% are concerned about children around the world dying of preventable disease
76% are concerned about man’s impact on the planet
Source: Unilever Project Sunlights How Children Inspire Sustainable Behavior in Adults, August 2013; JWT Intelligence 41
They are less active
66% of 6-11 year olds list gaming as their main source of entertainment
51% of teen boys list gaming as their main source of entertainment
This generation is much less active than previous generations. In some cases, sport is viewed as a tool for health instead of play and gaming may have replaced outdoor activities.
Source: Mintel, Activities of Teens and Kids 2013, Entertainment software association 2013 42
They live-stream and co-create
#1 live-streaming platform in the world is Twitch, which features live video gameplay, news and chat
Gen Z gravitate to live-streaming media, such as Twitch and Ustream. Two-way live-streaming and videoconferences (think: FaceTime and Skype) are their preferred ways to communicate.
Source: JWT Inteligence 43
They are the biggest foodies Their interest in cooking is expected to increase over the next five years. % change projected annual eatings F2018 vs. 2013 14 12 10 8 6
Gen Z Millennials
4
Gen X
2 0 -2 -4
Scratch
Fresh
Oven
Stove-top
Source: NPD Group’s “Future of Eating,” 2014 44
Unfortunately, they’re also obese
Teen obesity has nearly tripled from 1971-2010, now stabilized at around 18.4% Teenage boys are more likely than girls to be obese (18.6% vs. 15%)
Source: Centers For Disease Control And Prevention, 2013 (via Mintel 2014). Percentage of obesity among high school students, by state, for selected year 2003 and 2011 45
But, food is their main vice A Different Set of Vices LUST GLUTTONY
Are having less sex (but more un-protected sex) Are more obese
GREED
Are recycling and up-cycling
SLOTH
Are more sedentary
WRATH
Are a happy lot
ENVY PRIDE
Are focused on sharing Are self-confident
Source: Mintel 2014, Centers for Disease Control and Prevention 2014 46
How to connect with Gen Z?
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Don’t treat them like Millennials
Gen Z Tech Innate: 5 Screens Think in 4D Judiciously Share (GeoLoco Off) Active Volunteers Blended (race & gender)
Millennials Tech Savvy: 2 Screens Think in 3D Radical Transparency: Share All Slacktivists Multi-cultural
Togetherness
Tolerance
Mature
Immature
Communicate with Images Make Stuff Have Humility Future Focused Realists Want to Work for Success Collective Conscious
Communicate with Text Share Stuff Have Low Confidence Now Focused Optimists Want to be Discovered Team Orientation
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Don’t treat them like Millennials Very Different Experiences and References
Gen Z Massachusetts legalizes same-sex marriage
The video-sharing website Youtube is launched
Snapchat, a photo messaging app is introduced
Smartphones with a multi-touch interface
Commercial music streaming services
Millennials Politics
Media
Communication
Telecommunications
Music
Homosexuality is no longer considered a disease
The DVD, an optical disc computer storage media format is announced
Instant messaging, a type of online chat, is released by Microsoft
Mobile phones with the ability to send text messages
Portable media player
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Checklist for connecting with Gen Z
1. Depict them as diverse (ethnically, sexually, fashionably) 2. Talk in images: emojis, symbols, pictures, videos
3. Communicate more frequently in shorter bursts of “snackable content” 4. Don’t talk down… talk to them as adults, even about global topics 5. Assume they have opinions and are vocal, influencing family decisions 6. Make stuff — or help Gen Z make stuff (they’re industrious) 7. Tap into their entrepreneurial spirit 8. Be humble 9. Give them control and preference settings 10. Collaborate with them — and help them collaborate with others 50
Checklist for connecting with Gen Z
11. Tell your story across multiple screens 12. Live stream with them — or give them live streaming access 13. Optimize your search results (they do their Internet research) 14. Talk to them about value (they care about the cost of things) 15. Include a social cause that they can fight for 16. Have your house in order (in terms of sustainability) 17. Help them build expertise…they want to be experts 18. Tease (think: ephemeral, puzzles, surprises and games) 19. Feed their curiosity 20. Feed them
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Gen Z topics & interests: what we’re tracking… NEWS
ISSUES
Global Warming
Cost of Education
Back to School
Malala Gaga in Space 2015 Total Solar Eclipse March 2015
Avatar 2 2016
Elon Musk Tuna the Dog
Tuna the Dog
Teen Choice Awards Hunger Games 8/10 Mockingjay 11/21 Earth to Echo August Star Wars Episode VII 2015
MEDIA & CULTURE
Girls in STEM
Gender Equality & LGBT Rights
Brazil & The World Cup
Kids Choice Awards 7/17
Texting While Driving
School Shootings
Economic Disparity
Weather Refugees
GEN Z Twitch 22 Jump Street June
Teenage Mutant Ninja Turtles 8/8
Tarzan November
Common Core Education Nationwide
Socialism & Communism Loneliness
Wearables
Whisper Net Neutrality iPhone 6
YouTube Stars
Mixed Reality Oculus Rift
MTV VMAs 8/24
Drones
Autonomous Cars
3D Printing & Doodling
TECHNOLOGY 52
Want to apply Gen Z insights to your business? We will continue to track Gen Z, adding a global perspective from our Scout Network (now in 11 countries) combined with international social listening. Stay tuned. Reach out to us if you want to explore how to apply these learnings — and future Gen Z insights — to your business. We can package Gen Z insights in a variety of formats, such as: • • • •
Customized “Meet Gen Z” reports, designed for sharing and educating Immersive get-smart-fast-on-Gen-Z workshops Gen Z insights-to-applied-marketing round table discussions Bi-weekly “Gen Z Trend Pulses” — sharable newsletters on Gen Z culture and marketing opportunities
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Segment Analysis &Tracking
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Topic Deep Dives
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Event Tracking
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Issue Monitoring
Social Media Content (short and long form) - posts, tweets, vines, videos, blogs, etc.
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Real-time Burst identification
Community Management
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Channel Analysis
Influencer Outreach
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Content & Influencer Strategy
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Editorial & Cultural Calendars
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Analytics & Measurement
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Real-Time Media Amplification
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innovation -
Macro Trend Identification & Quantification
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Projecting Segments into the Future (Consumers of the Future)
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Product, Service & Packaging Development
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Business Model Design & Reimagination
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Business Context Analysis
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Futurism
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Whitespace Identification
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Brand/Partner & Acquisition Recommendations
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