Generation Z is rising in financial, cultural, and social power in the United States and more and more people and companies are starting to pay attention. Currently, Gen Z represents 23 Million Americans with a combined buying power of $43 billion and an additional influence on $600 Billion of family spending. By 2020, 40% of all consumers will be Gen Z. So what do you need to know in order to understand and effectively target this rising group?
What is Generation Z?
Gen Z encompasses ages 13 to 19 with a psychographic overlap with young Millennials ages 20 to 24. As digital natives with more familiarity with virtual worlds than previous generations, this generation is redefining the “new normal.”
These up-and-comers are connected, creative, curious, and conscious. They want to initiate and create, rather than take a back seat. For instance, 72% of current high school students want to someday own their own businesses and 89% spend free time on creative or productive activities instead of just “hanging out.”
Where is Generation Z?
This is the first set of digital natives, born into a world where virtual life dominates real life. As a result, they are more specific with their selection of social media – particularly when they have the luxury of selecting amongst a wealth of options. Based on our research, top social media sites for Generation Z include: Instagram, Snapchat, Music.ly, Tumblr, Vine, Wattpad, and Twitter.
When it comes to social media, it is important to note that video rules above all else. This generation turns to how-to YouTube videos instead of reading how-to Wikis. Videos are simpler than articles, more engaging than tweets, and more in-depth than infographics. In fact, 93% of Gen Z visits YouTube at least once a week and 33% watch lessons online.
How does Generation Z compare to Millennials?
It is a simple but interesting comparison to evaluate Generation Z alongside Millennials. Based on the data we have collected, Generation Z is a bit more cautious and focused than the predecessor generation. 57% would rather save money than spend it right away, while 28% of Generation Z would be motivated by money to work harder and stay with a particular employer. Along those lines, they are more realistic and practical than the idealistic Millennials. Generation Z has grown up seeing Millennials lose their jobs, move back in with parents, and struggle with the obstacles of purchasing their own home or car. Generation Z has a different plan – they want to build a plan for success.