Report Gives Brands Insight on Marketing to 'Generation Z'—Kids 16 and Under

By John Consoli -- Broadcasting & Cable, 6/6/2013 2:29:27 PM

There's lots being written about how marketers can best reach Generation Y consumers, the group of young adults described as millennials who are between ages 18-34. But another group of young consumers will present a great challenge for marketers now and going forward: Generation Z, or kids 16 years of age and under.

To aid in that process, research firm the Intelligence Group recently released a massive 221-page survey that is based on its Cassandra Report, which included 800 online interviews with kids 7-13 and their parents from spots all around the country. The main conclusion is that, much the way some parents already regard their tween kids, Generation Z will be marketers' most challenging generation yet.

The survey delves into what makes this generation of kids tick right now, from the perspective of both the kids and their folks, and then projects how Gen Z will behave as consumers as they age. The report encourages marketers to get some in-depth understanding of this group, which will need to be targeted much differently.

"We are witnessing a shift towards a more gender-neutral approach in which the pink-and-blue polarities of the past are considered outdated by these next-gen parents and kids," the survey says. "Brands of the future will need to rethink gender-based marketing to help build a more neutrally-hued world."

With tech advances continuing to speed along, and kids growing comfortable with them at an ever-younger age, it's no surprise that the report tells marketers Gen Z kids, "are already having online conversations about your brand, making it even more necessary for you to consider how you will engage them in the future. These empowered, impatient and discerning new consumers will demand a more intimate relationship with the brands they love. Brands that can speak directly to this generation's unique DNA can start connecting and building the lifelong relationship now."

The report says Gen Z kids are already participating in household decision-making and it predicts they will be smarter than marketers when it comes to technology and information gathering.

"This generation is very comfortable in the adult world, and the X/Z generation overlap means they are sharing more brands, entertainment properties, activities, technology and experiences with their parents than did past generations. Z kids are feeling empowered and they know that their opinions and talents are more valuable and relevant than ever before."

The report also says Gen Z kids will become "a generation of self-starters, multi-thinkers and pioneers, who will want to carve their own individual paths to success."

In that regard, the report predicts Gen Z kids will not only "embrace a new, constructive spirit of rebelliousness to define themselves and make an impact, they'll also seek out extreme experiences, products and content that will set them apart from the crowd, and will make an effort to put the stamp of their individuality on everything they do, say and share."

Backing Up the Claims

To back up such far-thinking claims, the report points out that Gen Z includes some of the first children of Facebook parents who have been documenting their children's lives "since they were in utero. Their identities have thus been virtually pre-established by their parents, their likenesses and behaviors and habits broadly shared with friends and strangers even before the kids were themselves cognizant of these characteristics."

As a result, the report predicts, Gen Zs will "take great stock in Web esteem," adding, "they've been taught their entire upbringing that online sharing is natural, and that how we present ourselves online is important. Consequently, this generation will seek personal validation through their social media presence and popularity. Brands can encourage Zs' self-realization by giving these young consumers even more platforms and opportunities for sharing."

Since Gen X parents and Z kids are closer than previous generations, the report says that they will share more together. "We expect to see an upsurge in entertainment that simultaneously appeals to both parents and kids," the report says, "like a new spate of family movies, TV shows and even music, and a less pronounced adult/kid divide out in the real world."

The report also points out that Gen Z kids have unprecedented access to multiple cultures, religions, lifestyles and ideas, and "exposure to mix-and-match culture has made them incredibly open-minded."

And the report adds that "to an even greater extent than their Y predecessors, Zs fail to see the online and offline worlds as separate and distinct from one another. For these young consumers, online has become a natural part of their offline experience."

The report advises marketers to be ready to deal with the rebellious nature of Gen Zs. "As Zs come of age, their rebellious spirit will only grow stronger and their willingness to buck the status quo more deep-seated. Brands should not only ready themselves to contend with this questioning generation, but should take a cue of their own from Zs' purposeful rebelliousness."

As such, marketers who offer original and innovative products and ad campaigns "will be prized above all" among Gen Zs, the report states. "Inauthenticity will be sniffed out, and imitations derided as mere parlor tricks. Truly rebellious brands will abandon the playbook and build their identities from scratch -- just as Apple once did."

The report cites some examples of current campaigns that might appeal to Gen Zs as they grow. It also offers a list of "Zs to Watch," and contains many pages of survey questions about Gen Z opinions, habits and thought processes, and also those of their parents, and how each perceives the other.

The results for Gen Zs are broken out both by gender and also by age groups: 7-9 and 10-13.

And in a helpful summary, the report contains 10 tips for marketers who want to begin working on developing a relationship with Gen Zs now.

1. Tap Into Their Entrepreneurial Spirit
Zs are self-starters, itching to make an impact, a change and a name for themselves. Brands can be a resource for insights and investments that start these young individuals on a groundbreaking, innovative path.

2. Listen and Respond to Them
Gen Zs' multitasking, multi-think mentality keeps them tuned into various streams of content all at once -- and they expect brands to keep up with their rapid-fire pace of conversation, content consumption and Q&A. Marketers need to embrace and embody the real-time turnaround that Zs crave.

3. Invite Them Into Your Decision-Making
The real-time pace of online interaction has led Zs to expect to be heard by brands, whether they're voicing a complaint, asking a question or giving a compliment or suggestion. This generation wants to feel that its input makes an impact, and Zs love to have their ideas considered and realized.

4. Let Them Try Before They Buy
Gen Zs are uber-researchers and bargain hunters, and they expect to be able to test out products before they commit to buying anything. Brands should provide these savvy young consumers with opportunities to try, play and experiment pre-purchase, both virtually (through augmented reality) and physically (through trial periods and sample offerings).

5. Make Sure You Are Innovating and Digitally Evolving
Gen Z sees little distinction between their digital and physical worlds. They aim to seamlessly engage with both. Marketers should begin to think about ways to further integrate their digital and physical communications, creating products, content and games that feature both tangible and virtual elements working together and well.

6. Encourage Them to Get Creative With Your Product
Zs are always seeking new opportunities to display their most inventive, beautiful and brilliant creations. Brands should give them platforms upon which to share their projects, get ideas and inspiration and interact with likeminded young people and prominently feature their best works to give them a moment in the spotlight.

7. Make Them Feel Secure
Growing up in the wake of 9/11 and in the midst of a recession has made Gen Zs inherently security-minded. Brands should feature marketing messages that speak to Zs' and their parents' desire to feel safe and secure, and partner with the right causes to remind them that you're working to make the world a better and safer place.

8. Inspire Them to Change the World
Gen Z considers it a given and a necessity to recycle, conserve and make green choices, and they are participating in some form of community service through their school, family or church in disproportionate numbers. Brands can be great resources for information and motivating young people to improve their schools, communities and their world.

9. Build a Relationship Early On
Since trust and transparency are such important social markers for Gen Zs, marketers should engage them on their level and offer experiences they can enjoy at their current age -- even if what they're selling doesn't seem imminently useful to kids. Earning their trust now will have sticking power when these young individuals enter adulthood.

10. Show Them the Bright Side
Gen Zs may be born realists, but they still desire and respond to messages of hope and optimism. Brands can enhance Zs' outlook by showing them the brighter sides of life, and encouraging them to find and share the bright moments themselves. Marketing messaging can remind them that, in a sometimes-scary world, they can still find positive people and opportunities.