For publishers and media companies, the need to focus on younger audiences for future growth, especially Gen Z (16-25) and young millennials (26-32), is well documented. Most publishers have put significant resources and effort into engaging and staying relevant to the newest generations of readers, viewers, and listeners. But are their tactics working?
Digiday and Arc XP surveyed 116 publishers and 114 Gen Z and young millennial consumers to understand the tactics publishers are currently using to attract these generations and how they match up with the preferences of these audiences.
The good news is that, according to our State of publisher audiences report, publishers are already attracting and engaging with Gen Z and young millennial audiences. Nearly half (47%) of publishers say Gen Z makes up 41% or more of their digital audience, and more than half (50%) say young millennials consist of 41% or more of their audience.
Challenge
However, the survey results indicate that publishers might be missing opportunities to build long-term, loyal relationships with them.
For example, when asked which content channels are the most successful in driving young millennials and Gen Z audiences to their website, publishers said they are seeing positive results from Facebook (66%) and then a tie between Twitter (48%) and YouTube (48%).
That said, when we asked Gen Z and young millennial respondents what channels they prefer, Facebook came in fifth place, and Twitter in seventh. YouTube was the number one preferred channel by a substantial margin.
What causes these differences? Why are publishers so enthusiastic about Facebook, while younger consumers have a significantly different short list of go-to channels? One answer may be in how publishers analyze the data that is telling them which channels work. Their analytics capabilities and data sources may not have caught up with where the consumer is now.
Opportunity
The survey also uncovered an opportunity for publishers to create content formats that better match Gen Z and young millennial preferences. Publishers say that short-form video (78%) and a combination of text and video (62%) are the best formats for engaging younger consumers, with short-form text (40%) and a combination of text and audio (40%) tying for third place.
Gen Z and young millennial consumers named short-form video (61%) as their most preferred content format, matching publisher expectations. They also appreciate short-form text (40%). However, long-form text (32%) came in third in their preferences. Contrary to popular wisdom about their extremely short attention spans, Gen Z and young millennials like to read and even don’t mind long-form content. That’s good news for publishers, especially those publishing words over video.
Future focus
Publishers who reflect Gen Z and millennial audiences’ views and values will have a better chance of keeping them and growing new segments of younger readers, viewers, and listeners. Fortunately, 88% of Gen Z and millennial consumers surveyed say that publishers are somewhat to extremely aligned with their values and opinions.
Yet respondents indicated that publishers still had some work to do to on representation. Only 21% said that their political views were well represented in news and entertainment content channels. Representation of ethnically diverse demographics and LGBTQ+ demographics were graded even worse, with only 11% and 5% of respondents saying those demographics were well represented.
When asked how their editorial teams are learning about the values of young millennials and Gen Z audiences and the topics they’re interested in, 31% said they are hiring more employees from these generations and 31% said they are monitoring comments from younger users. Only 4% said they aren’t taking any specific steps. So, despite some disconnects, the survey found that, given publishers’ tactics for engaging younger audiences, it’s clear that they continue to make real investments in understanding these consumers.
Understanding Gen Z’s media experiences and entertainment preferences is a priority for publishers because they provide a proxy for the future of digital media. Already, according to a McKinsey analysis, Gen Z accounts for 40% of global consumers while a Barkley US report estimated that they hold $143 billion in spending power.
To gain insight into this generation, Digital Content Next (DCN) commissioned Seidmon Associates to research Gen Z’s attitudes, values, and behavior regarding digital content. Through a 20-minute online survey, they queried 1,556 respondents aged 16-40 between May 14 and June 5, 2021. Approximately half (792) of respondents fell into the Gen Z demographic, ages 16-24, and the remainder (764) into Gen Y, ages 25-40. DCN’s goal in conducting this research is to help their members better understand the way that Gen Z experiences content to build audience reach and engagement. Note that the research included a Gen Y sample to offer a contrasting perspective and a better understanding of Gen Z.
Attributes and access
High quality is the most important attribute that influences digital media brand loyalty among both generations. Trust is the next most significant attribute among Gen Z and Gen Y. And privacy and authenticity also matter a great deal to both generations.
For both Gen Z and Gen Y, mobile rules – with nearly half of both generations saying their phone is valued above all else. DCN’s research found that Gen Z values video more than any other media platform – by a margin of roughly 2-to-1 over social, gaming, music, or Google search. Both generations have more paid subscriptions for video than any other content type (a little over three each).
In terms of devices and hardware, the mobile phone is clearly most valued, followed by gaming consoles and devices. However, videogame consoles are second in importance among Gen Z, while laptops are second among Gen Y.
Video and attention
There’s a significant intersection here, as video is highly accessible at all times, given these consumers’ tendency to view it on mobile. Both generations see video as part of their social fabric and say that it is part of their daily conversation. According to DCN’s Vice President of Research, Rande Price, “That means that major marketing campaigns aren’t lost on them. Big announcements like of Marvel series drops on Disney+, the reintroduction of chess due to Queens Gambit on Netflix, etc. – these are all part of their social conversation.”
The research finds that, in general, both generations prefer shorter-form content. Gen Z attributes this to their “short attention span” while Gen Y value short form as a time filler. YouTube, Instagram and TikTok are most popular with Gen Z, while Gen Y prefers YouTube, Facebook, and Instagram (in that order). Both Gen Z and Gen Y prefer user-generated over company-produced digital media content by a 2-to-1 margin. In particular, Gen Z respondents felt that user-generated content was “more authentic, honest, and relatable” than professionally produced content.
As the report concludes, Gen Z are digital natives, born into a world with it all – social media, instant messaging, video games, live streaming, traditional TV and movies. Therefore, “understanding Gen Z’s media experiences and entertainment preferences is a priority for publishers because they are the future.”
The full report also covers a wide range of topics including Gen Z’s rational around paying for subscriptions, attitudes and preferences on news, ethical and social considerations, and more. DCN members can access the full report here.
Digital Content Next (DCN) commissioned Seidmon Associates to research Gen Z’s attitudes, values, and behavior regarding digital content. The goal of this research is to help DCN members better understand the way that Gen Z experiences content to build audience reach and engagement.
A 20-minute online survey was conducted among 1,556 respondents aged 16-40 between May 14 and June 5, 2021. Approximately half (792) of respondents fell into the Gen Z demographic, ages 16-24, and the remainder (764) into the Gen Y demographic, ages 25-40. Note that the research included a Gen Y sample to offer a contrasting perspective and a better understanding of Gen Z.
Research highlights include:
High quality is the most important attribute that influences digital media brand loyalty among both generations. Trust is the next most significant attribute among Gen Z and Gen Y. And privacy and authenticity also matter a great deal to both generations.
Gen Z values video more than any other media platform – by a margin of roughly 2-to-1 – over social, gaming, music, or Google search. Both generations have more paid subscriptions for video than any other content type (a little over three each).
In terms of devices and hardware, the mobile phone is most valued, followed by gaming consoles and devices. However, videogame consoles are second in importance among Gen Z, while laptops are second among Gen Y.
Both generations prefer shorter-form content. Gen Z attributes this to their “short attention span” while Gen Y value short form as a time filler.
Full research report for DCN members only. Log in or Register to download. The link will appear immediately below.
When it comes to media consumption, consumers have never had it so good. From streaming services to social media, movies to music and video games, to a variety of linear TV channels, options abound. With so much choice, comes inevitable competition for the providers, as they try to court the consumer. So how can media and entertainment brands form meaningful relationships with audiences? According to the latest Digital Media Trends survey it’s all about understanding generational trends – in particular Generation Z, who could cause the next wave of disruption.
The 2021 survey, which was conducted by Deloitte’s Technology, Media & Telecommunication practice, found that Gen Z demonstrate strikingly different preferences. Other research—and experts—back this up. Let’s take a closer look.
Video games
Boomers love streaming video while Gen Z is obsessed with gaming. The group, aged 14-24, place video games as their number one entertainment activity (26%). That’s followed by listening to music (14%), browsing the internet (12%), and using social media (11%). Only 10% of Gen Z said that watching TV or movies at home was their favorite form of entertainment.
“For the first time since we started this survey, Gen Z did not pick watching movies or TV shows as their favorite media. It was gaming,” says Kevin Westcott, Deloitte’s Vice Chairman and U.S. Technology, Media and Telecom Leader. “Obviously there was quite a bit of growth during the pandemic. Gaming is a social activity and a way to stay connected. However, video games were already significantly growing before Covid-19. It will be interesting to see if these preferences persist now that lockdown rules are relaxing in the U.S.”
With the dominance of video entertainment being challenged, media companies need to take a more diversified approach. Publishers should experiment with different storytelling techniques on social platforms, and gamification is a great place to start.
“If a media brand isn’t in the games business, they need to look at how they can make things more engaging,” says Westcott. “Gen Z are looking for more participation and this is where transmedia could help. By utilizing a range of platforms, the audience can interact with content and influence it, rather than just watching it.”
Source: Digital Media Trends, 15th edition
Social media
Beyond connecting with the world, social media is a common gateway for consuming a wide range of media content. Although all generations use social media, consumption varies depending on age. According to the Digital Media Trends survey, Gen Z and Millennials both rank listening to music as their main activity on social media. However, Gen X prefer to consume news. The second most popular activity on social media for Gen Z was gaming. For Millennials it’s watching TV shows and movies.
News
Interestingly, despite these social media usage trends for news, 50% of Gen Z still rank social media as their preferred way to get news, while only 12% select news from network or cable TV. Boomers are the opposite, with 58% getting their news from network or cable TV, and just 8% using social media.
According to a report by Flamingo, commissioned by the Reuters Institute for the Study of Journalism at Oxford University, younger audiences differ from older groups in terms of what they want from the news. Young people are largely driven by progress and enjoyment, which translates into what they look for in news. As such, they want news to feel easy and accessible. That means creating formats that are native to mobile and social platforms, as well as including these ideas on their own websites.
The report, entitled How Young People Consume News, also suggests that the news media need to change the way they report the news. This includes tackling issues such as stereotypes, diversity and negativity. It should also influence how news brands present themselves and their content on third party platforms.
Commercial media
A report by the Institute of Practitioners in Advertising (IPA), called Making sense. The commercial media landscape, found similar disparities with the way different generations spend their time on commercial media. Ages 16 to 34 spend 53% on a smartphone or tablet and just 22% on a TV. Conversely, those aged 55 and above spend 53% of their commercial media time on TV and just 14% on a smart phone or tablet.
“The way to drive engagement in younger audiences on broadcast TV is to ensure content is available across multiple platforms,” explains Simon Frazier, Senior Research and Marketing Manager, IPA. “Younger audiences are always media multi-tasking, which is a challenge for media. But broadcasters that tie in with a variety of touch points and blur lines between entertainment and reality enjoy good engagement and a good commercial performance.”
Content
According to a report from VICE Media, in partnership with Ontario Creates, Gen Z is redefining how content is being discovered, consumed, and shared. Three quarters of respondents (75%) report that original content is important to them. Music, video streaming and video games are the top paid services, while cable or satellite TV subscriptions don’t even make it into the top five for Gen Z.
This younger demographic also wants more diversity. Half say that there is a gap in gender diversity, sexual identity, and ethnic representation.
Source: Gen Z: The culture of content consumption
Along with good content, they want ease of discovery. Gen Z were born on social platforms so they play an important part of their content discovery. YouTube is their number one content source, with Instagram a close second, followed by Facebook, and Snapchat. TikTok is also gaining popularity. Gen Z tends to like content on social platforms that is transparent, with few barriers between the creator and the audience.
“With new voices and new platforms entering the media landscape by the minute, the competition for young people’s attention has never been greater,” said Julie Arbit, Global SVP of Insights, VICE. “Combine that with a young generation that has never been hungrier for content or savvier about how to access it and you have a whole new approach to content consumption. Understanding this new mindset is essential for anyone who is trying to reach this young audience.”
Subscriptions
The VICE study also found a massive 90% of Gen Z are willing to pay for content if it offers better quality (61%), better experience (56%), and more convenience (50%). Only four in 10 said they wanted an ad-free environment. However, with consumers losing income due to the Covid-19 pandemic, Digital Media Trends noted an increase in churn rates, across all generations, in the past 12 months.
“During the pandemic, churn across streaming more than doubled,” says Westcott. “We call it ‘hit and run’. So, they join for the hit show and then leave to join another service.”
“Instead of focusing on adding new subscriptions, media providers need to shift their focus to long term subscriptions. And the way to do that is to broaden their range of content, and offer exclusive, original, high demand TV series, plus games and music.”
Advertising
Despite the growth of subscription-based services, IPA reports that 63% of 16 to 34-year olds spend their time using platforms that are commercially funded by advertising.
“This represents huge opportunities for reaching this audience through commercial media,” says Frazier.
In the same group, four out of the top five commercial media properties are socially driven. These findings were backed up by Digital Media Trends. They found that social media influencers and ads on social media are the two most persuasive channels influencing younger generations’ buying decisions. They also typically liked ads on social media more than ads in streaming video content and other channels. On social media platforms, 62% of Gen Z and 72% of Millennials would rather see ads personalized to their likes and activity than generic ones.
Growing convergence
Despite these differences, there is a growing convergence of behavior across several generations of consumers, as younger age groups influence older audiences.
Source: Making Sense: The Commercial Media Landscape
“Ten years ago, we did a study on Millennials,” says Westcott. “We thought, as they aged, they would become more like us. But that didn’t happen. Instead, they have influenced older generations, who are now behaving in similar ways. The only way they really differ is that 26% of Gen Z rate gaming as their favorite entertainment, verses just 10% of Gen Z and 3% of Boomers.”
It is this preference for gaming that could challenge video as the leading form of media consumption across all generations. However, according to the IPA report, there was a significant drop in the correlation between how younger and older generations consumed commercial media during lockdown 2020.
It found just an 8% similarity between 16-34-year-olds and 55+ during lockdown 2020. This was down from 21% before the Covid pandemic and 58% in 2015.
“What is clear is that the lockdown has undoubtedly reinforced the dominance of key media for the different audiences and exacerbated the differences,” says Frazier.
So, while media companies may still be video-first, it seems that younger generations are moving away from this platform. The question is, are media brands and advertisers prepared to follow suit?
You thought marketing to Millennials was tricky? Meet Gen Z. They’re not only digital natives, they’re social and mobile natives too. To gain insight into this generation, MNI Targeted Media Inc. commissioned a study of Gen Z behavior, surveying students at major universities about their media consumption habits. And we learned a lot.
This generation, born between 1995 and 2012, are mobile-first, and rarely seen without their phones in-hand. But don’t put them down just because they’re constantly staring at their smartphones: Gen Z-ers are socially fluid change agents with tremendous purchase influence.
They may be young, but they’ll be voting soon – and they’re more fiscally savvy than you think. Gen Z is entrepreneurial, saving up for and buying the things they want. Their purchase decisions are partly influenced by their peers and personalities they admire. But take note: These influencers also need to align with Gen Z values and marketers will want to recognize that Gen Z are influencers and entrepreneurs unto themselves.
It’s equally important for marketers to keep messaging relevant and authentic. Interestingly enough for Gen Z, celebrities aren’t their “go to” source. For a generation that lives on social media, their influencers can be their fashion forward friends, political influencers or even fellow Gen Z members who have already gained notoriety on their own terms. In this regard, context matters and the platform on which they engage with influencers will be as important to marketers as their messaging. Businesses that take the time to understand how this generation consumes media, how they grow to trust and how they shop and make purchases stand to benefit.
This generation is smart, and they’ll see right through attempts to “buy” them. But if you approach them with authenticity and engage them on the channels and platforms where they’re most receptive, you may just win them over. Publishers need to adhere to these same insights, with an appropriate responsiveness when there is urgency from their audience. We can look to the recent news of ABC canceling its #1 ranked comedy Roseanne after the star’s bizarre Twitter rant. In this case, we saw the network put authenticity and value before revenue – which in the end I suspect will pay off in spades.
The key to making a connection with them is to make sure you know and understand all the channels in which they consume media – that means podcasts, YouTube, Snapchat, Twitter, Instagram, and Facebook, for starters. There’s more to it than just advertising or posting on these channels: you have to speak their language. You will want to have subject matter experts who really understand how Gen Z communicates on each channel so that your content is authentic. The language across channels varies, and the nuances will be important. Getting it wrong could mean losing this audience’s confidence for the long term.
With this in mind, here are six laws of marketing to Gen Z:
1. Keep your content platform-specific
This generation moves through social channels seamlessly, and they understand the value of the storytelling within each platform. They expect the brands they follow to do the same. You need to know the rules of engagement for each social network, and map custom content for each in a unique way. Here’s what they expect across channels:
Snapchat – A way to share real-life moments
Instagram – How they showcase their aspirational selves
Twitter – Their top news source
Facebook – A source of general information
2. Keep your prices competitive and your quality high
This is a generation of savvy shoppers. They like to save money and they know how to compare prices. If a competitor is selling a product for less, they will buy it for less. That said, they respect good quality, and will pay more for a better product.
3. Let them tell the story with their own original content
If you give Gen Z customers an opportunity to create user-generated content related to your product or brand, they’re likely to do it. There are big payoffs to relinquishing control of your branded content:
They like seeing their peers using products – and it will create a positive ripple effect.
They like posting content to their own channels.
They like getting noticed, and your brand benefits from going along for the ride. You get to enjoy the dividends by driving engagement and reinforcing your brand identity.
4. Be authentic
Millennials had a reputation for insisting that brands be “real,” but Gen Z takes it a step further. They want to feel like they know the people behind the brand, and they like brands that care about the issues that are important to them. Brands like Tom’s and Bob’s that donate to charity do well. Mattel’s support of same-sex marriage and Dick’s Sporting Goods halting sales of assault rifles were both Gen Z-friendly moves.
5. Want to capture them in-store? Consider testing AI
6. Ask them for feedback, and then listen to their responses
As digital, social and mobile natives, Gen Z is comfortable engaging in discourse with brands they care about. If you’re unsure about how a particular campaign or message you’re working on will resonate, solicit their opinion. They’ll respond, and they’ll be honest.
Adding Gen Z employees to your organization is the best approach to engaging them as consumers. These young adults have a language and a style of their own that is hard to replicate. So, bring in the real deal, and integrate them in with your older team members. Not only will this help your organization better understand how Gen Z moves through the world, it will ensure you’re not embarrassing yourself by posting three-month-old memes to your social channels. Gen Z team members will make sure you’re always authentic, and that your messaging is always current and on fleek.
I mean, on trend.
Vicki Brakl is Vice President, Marketing of MNI Targeted Media Inc., and its three business units, Targeted Media Health, MNI, and Harpoon Digital. A 16-year multi-channel marketing veteran with a rich background that spans executive management, strategy, branding, positioning, promotion, experiential and event planning, public relations and internal communications, Vicki has extensive experience developing innovative multi-platform brand plans and media strategies. Her previous roles include client and agency-side positions at PepsiCo, several below-the-line Omnicom agencies and a few startups in the CPG, Publishing and private-public partnership sectors. She has crafted and executed high-impact marketing plans for Pepsi brands, Walmart, Bank of America, TD Ameritrade, Citibank, Skinny Water, and countless others.
