Looming Large

2. Looming Large • Generation Z are those children and teens born from approximately 1996 to 2010. The oldest of whom are college-age and the leading edge of the largest US population age group. • Generation Z is currently 25.9% of the US population and will reach a total of 80 million. Millennials are 24.5%; Generation X, 15.4%; Baby Boomers, 23.6%; and the Silent Generation, 10.5%. • Of course, brands and retailers are eyeing a market that is valued at approximately $44 billion today and, by one estimate, $800 billion by 2018.

3. A Generation of Firsts • The first global generation – The members of Generation Z will live in a world more homogenous than it has ever been. • The first Earth stewardship generation – They are clearly conscience of humans’ impact on the Earth and plan to dedicate a significant portion of their lives to protect it. • The first generation to value brands – They are attracted to brands as concepts that don’t just represent products, but also the benefits they offer to improve a person’s life. • The first diversity generation – Generation Z is essentially color-blind and recognizes the value of diversity. They will also be the first generation with less than 50% of the world’s population as Caucasian.

4. Inside Generation X • When comparing the behavior characteristics of the various generations, Generation Z is more likely to customize the rules while Baby Boomers challenge the rules, Generation Xers change the rules and Millennials create the rules. • Communication styles for the four generations – Generation Z, face-to-face; Baby Boomers, guarded; Generation X, hub and spoke; and Millennials, collaborative. • For Generation Z, change is expected, compared to Baby Boomers who equate change with caution; Generation X, change equals opportunity; and Millennials, change equals improvement.

5. Concerned and Room for Improvement • The effect of the Great Recession on their parents, families and communities was a primary influence on the perspective of Generation Z, which is why 77% think they will have to work harder than previous generations for a satisfying career. • Generation X members are most concerned about whether there will be good jobs when they graduate, at 78%; how they are doing in school, 69%; college/university acceptance, 67%; and the future condition of planet Earth, 67%. • Generation X must also improve a number of skills and traits, including writing, taking personal responsibility, maintaining a positive attitude, taking good care of themselves, productivity, follow-through and initiative.

6. Engage, Don’t Sell • Generation Z is not receptive to the hard-sell, but its members are happy and eager to engage with brands, but only in the forms and via the channels through which most Generation Zers already interact with their friends and the world. • Generation Z wants content that is beneficial, compelling experiences in real time and opportunities to collaborate with brands and retailers to create a community where there is little distinction between a brand and the consumers engaged with it. • Generation Z receives information in small bits, multi-tasks and connects through multiple channels simultaneously and have a short attention span, often cited as brief as 8 seconds.

7. The Right Responses • Brands and retailers must deliver abbreviated, but engaging content, which teens are enthusiastic to share, and enter into an equal dialogue without ever dictating. • Marketers must also be extremely nimble and able to anticipate, if possible, but definitely be current with the trends that are most attractive to teens at any particular moment. • Coupons and special offers should be delivered to Generation Z members’ phones before they even realize they want them, compared to Baby Boomers who will wait days and Millennials who will only wait seconds.

8. All Digital, All the Time • What distinguishes Generation Z’s use of technology from all previous generations is that it is central, absolutely essential, to their lives; and so much so that some technology pundits describe it as a “sixth sense” for this generation. • More than 90% of teens (92%) spend some time online every day and 56% said they connect several times daily. Plus, 24% describe their online presence as “almost constant.” • Older teens, 15–17, are the largest group of teens with a smartphone, at 76%, and teens, 13–14, 68%. Ethnically, 85% of African-American youth own a smartphone, compared to 71% for both European American and Latino American teens.

9. What They Are Doing Online • Texting is still a major communication tool for teens, with 91% of those who own cell phones texting directly or via an app or a Website. Apps, such as Kik or WhatsApp, have become so popular that 33% of cellphone-owning teens use them. • Older teen girls create pinboards on such sites as Pinterest and Polyvore three times as much as boys, 33% and 11%, respectively. Interestingly, girls in rural areas do more pinning than those in urban and suburban areas. • Few teens read or comment on online discussion boards, at 17%, and use anonymous sharing or question apps, such as Whisper, YikYak and Ask.FM, at just 11%.

10. Driven to Socialize • Of course, the primary purpose of almost all Generation Z’s online activity is to socialize from wherever they may be and during any time of the day or night. • Although much has been written about the droves of teens fleeing Facebook, it is still the primary social media platform for 71% of Generation Z members, and the one they use most often, at 41%. • Instagram, Snapchat, Twitter and Google+ are the next four social media platforms Generation Z use and use most often, with Vine used more than Tumblr, but Tumblr used most-often than Vine.

11. Brick-and-Mortars Take a Hit • No wonder Deb Shops and Delia’s filed for bankruptcy during late 2014 and teen-oriented retailers, such as Gap, Abercrombie & Fitch, American Apparel, American Eagle Outfitters and Aeropostale, have been experiencing declining sales. • According to the Fall 2015 Piper Jaffray Semi-Annual Taking Stock with Teens Survey, Amazon was the top shopping Website for 38% of those teens surveyed, with Nike a distant second at 8%, although it was teens top clothing brand, at 27%. • Teens also told Piper Jaffray that they spend the largest share of their consumer dollars on food, at 27%; followed by clothing, 20%; accessories/personal care/cosmetics, 9%; shoes, 9%; and electronics/gadgets, 8%.

12. TV Is Still Big with Generation Z • Generation Z members across all age groups spend an average of 15.5 hours per week consuming “media content,” and 45% 16 to 20+ hours per week. • Children and teens (8–18) spend that time watching four major types of content: drama and reality series on cable TV, 7.8 hours; play games, 7.5 hours; short videos, 7.2 hours; and network TV shows, 7.0 hours. • When PwC surveyed children and teens during May/June 2015, 79% said network TV shows were their #1 type of content, and then movies on TV, 69%; drama and reality series on cable TV, 68%; and all other types of cable TV content, 68%.

13. More Generation Z TV Viewing Insights • The surveyed children and teens also said seeing a commercial was the #1 source for learning about new programming, at 33%; compared to a direct recommendation from a friend/family member, 23%, or friend/family member via social media, 18%. • Another plus for traditional TV is that it is children and teens’ most popular device for viewing media content, at 24%, compared to 19% for a laptop/computer; 10%, tablet; and 10%, mobile phone. • Only teens, 15–18, said a laptop/computer was their most popular device for viewing media content, at 24%, although TV was a strong second at 19%.

14. A Teen on the Team • The optimum media mix for local advertisers today and into the future is TV and digital: Website, email, blog, social media and mobile. It’s the right mix to reach Millennials as well as Generation Z. • Of the many strategies that will connect with today’s Generation Z members, one of the most important is to choose a teen to work with the retailer part time to create the right messages and content. • This “brand ambassador” becomes the face of the store to Generation Z and the best choice is someone who is already very active with the store online. This person could also appear in a retailer’s TV spots to attract teens to the stores’ social media pages.

15. More Strategies to Connect with Generation Z • Show products being used instead of advertising their features and with photos and videos, since Generation Z is the most visually oriented generation. • Share teens’ photos and videos (with permission) on the retailer’s Website or social media pages and like, retweet or comment on some of their posts. Generation Z loves to receive recognition, even if only briefly. • Convert retailers’ Websites to mobile-friendly version because almost all teens have phones and are on them constantly.