Spotifyreleased its second annualCulture Next Trends ReportWednesday, with the aim of providing marketers with key takeaways on Generation Z insights and cross-generational views on key topics.
The streaming service teamed up with research agencies B3 Intelligence, Culture Co-op and Lucid to analyze Gen Z and millennials in the fall and winter of 2019 running into 2020, as well as July and August 2020.
Spotify streaming intelligence data was used to mine first-party data and insights from listeners’ streaming behavior, across moments and devices.
The work was conducted in 11 markets: Australia, Brazil, Canada, Germany, India, Indonesia, Italy, Mexico, Spain, the U.K. and the U.S.
Topics that were explored include Black Lives Matter, brand values education, entrepreneurism, parent-child means for connection, societal norms and expectations and voting/politics.
Spotify also created five new Gen Z audience personas to make it easier for advertisers to connect with its listeners based on their distinctive traits and characteristics: family embrace audio at home; Gen Z starting from scratch; progress overtakes partisanship; self-discovery is communal; and sound is getting smarter.
Spotify shared some highlights from its new Culture Next Trends Report:
Progress over partisanship
In January, 65% of Gen Zs in the U.S. aged 18 through 25 said they planned to vote in the upcoming presidential election, and that number jumped to 72% in August.
71% of Gen Z and millennial respondents were less interested in political parties than they were in moving forward.
When asked what they wanted to see out of brands, 93% of Gen Z and millennials chose “purpose” over “politics.”
Gen Zs globally mean business
One out of three respondents 17 and under worldwide said they may not go to college, preferring to start a business instead.
89% of Gen Zs in the U.S. considered education plans other than four-year degrees immediately following high school.
65% of global Gen Zs said they plan to be or already are their own boss.
In July, over 50% of Gen Z respondents globally said they were more inspired to start a business than they were before the pandemic.
Gen Zs and millennials in the U.S. credit sound as therapeutic and a force for community building
When Gen Zs and millennials in the U.S. were asked which qualities make sound powerful to them, the top three responses were emotional, therapeutic and personal.
72% said voice makes them more sentimental toward their devices, and 58% said sound is at the forefront of humanizing technology.
73% said they use audio to cope with stress and anxiety.
80% said music streaming services offer a gateway to other cultures.
In one month last year, over 60% of Spotify users discovered an artist from a country outside of their own.
69% of Spotify users believe music is a great way to find community.
Getting to know (and like) mom and dad through music and podcasts
77% of U.S. parents said in July that music helps families connect.
64% of young people worldwide said listening to their parents’ music gives them a better sense of who their parents are.
78% of parents globally said music is a way they bond with their kids.
86% of parents globally said technology has fueled their family’s discovery exponentially.
72% of parents globally said today’s kids are “light years” ahead of where they were at their age as a result.
And you thought you had just figured out millennials. It's time to start wringing your hands about the new generation that's about to enter the workforce. What do they even want?
Poor Generation Z. The oldest members of this cohort are barely 18 and they’re already getting a bad rap. Media and market research companies have labeled them "screen addicts" with the attention span of a gnat. And the pressure: They only have the weight of saving the world and fixing our past mistakes on their small shoulders.
Really?
While generational research is an inherently messy process—older generations study "the kids" to figure them out—much of the recent research is awash in normative preconceptions, biases, and stereotypes. Gen Z deserves a fairer shake, and the rest of us need a more nuanced conversation: This group makes up a quarter of the U.S. population and by 2020 will account for 40% of all consumers. Understanding them will be critical to companies wanting to succeed in the next decade and beyond.
My firm Altitude set out to dig below the surface to understand not only what Gen Z were doing but why—in their own words. We worked with over a dozen 16- to 18-year-olds with diverse backgrounds from across the country through a series of in-depth discussions, video diaries, and daily interactive exercises designed to provide a glimpse into their lives. Our goal was to view the world through their eyes.
The recent headline-grabbing studies suggest that Gen Z attention spans have shrunk to eight seconds and that they’re unable to focus for extended amounts of time. However, we found that Gen Z actually have what we’re calling highly evolved "eight-second filters."
They’ve grown up in a world where their options are limitless but their time is not. As such, Gen Z have adapted to quickly sorting through and assessing enormous amounts of information. Online, they rely heavily on trending pages within apps to collect the most popular recent content. They also turn to trusted curators, such as Phil DeFranco and Bethany Mota, to locate the most relevant information and entertainment. These tools help Gen Z shrink their potential option set down to a more manageable size.
Once something has demonstrated attention-worthiness, Gen Z can become intensely committed and focused. They’ve come of age with an Internet that’s allowed them to go deep on any topic of their choosing and learn from like-minded fans. Marcus, a 17-year-old from Connecticut, spent years exploring the corners of vintage sneaker culture online, eventually becoming somewhat of a "sneakerhead." During his freshman year in college, he realized he could leverage this knowledge and started a side business flipping rare shoes.
Gen Z have a carefully tuned radar for being sold to and a limited amount of time and energy to spend assessing whether something’s worth their time. Getting past these filters, and winning Gen Z’s attention, will mean providing them with engaging and immediately beneficial experiences. One-way messaging alone will likely get drowned out in the noise.
The media has painted Gen Z as a bunch of socially inept netizens and older generations struggle to understand why they spend so much time online. In reality, Gen Z are under immense pressure to simultaneously manage their personal and professional brands to help them fit in while also standing out.
On a personal level, Gen Z seek immediate validation and acceptance through social media, since that’s where all their peers are and where many of the important conversations happen. They curate different social media personas in order to please each audience and minimize conflict or controversy. "We filter out whatever flaws we may have, to create the ideal image," says Sneha, a 16-year-old from Arizona.
On a professional level, Gen Z are hyperaware of the negative stereotypes that have plagued millennials. As a result, they want to be known for their ability to work hard and persevere offline. "I’ve always felt like I needed to prove myself," says Sneha. "Hard work eventually pays off."
The majority of the people in our study also said that their ability to communicate clearly in person, specifically with older adults, was the number one skill that would ensure their future success. "I need to be able to look adults in the eye, give them a firm handshake and ask them how they’re doing," says Liam, 17.
Between these two forces, Gen Z feel torn: They need social media to build their personal brands but resist being defined by it. They seek social validation and inclusion but are looking to differentiate themselves professionally. Companies that understand this tension will provide Gen Z the tools they need to reconcile and better manage their personal and professional brands.
Recent reports have labeled Gen Z the "entrepreneurial generation" and highlighted their desire to forsake the corporate grind for their own startups. We found that while Gen Z like the idea of working for themselves, the majority are risk-averse, practical, and pragmatic. Their supposed entrepreneurialism is actually more of a survival mechanism than an idealist reach for status or riches.
Whereas millennials were criticized for their lack of focus, Gen Z are determined to plan ahead. Gen Z have been strongly shaped by their individualistic, self-reliant Gen X parents and they’re committed to avoiding the mistakes their meandering millennial predecessors made. "I need a job that will come out with money, otherwise college will be a waste", says Marcus, 17. "I want to pick a career that is stable."
To ease this anxiety, the participants in our study all claimed to be aiming for jobs in growing, less-automatable fields like education, medicine, and sales. And they’re obsessed with developing contingency plans to help them navigate the dynamic job market. While the media has singled out a number of high-profile entrepreneurial teen success stories, the majority of Gen Z in our study are biased in favor of career andfinancial stability. Entrepreneurship is seen as a way to not have to rely on anyone (or anything) else, and their version of it will likely be focused on sustainable "singles and doubles" ventures rather than Silicon Valley "home runs."
Society tends to either romanticize youth or criticize the things they’re doing differently. The reality of Gen Z, however, lies somewhere in between. They face many of the challenges that everyone faces in that life stage—transitioning from school to work, separating from parents, and forming their own identities. But they’re doing so in an ultra-connected, fast-moving technological age.
It’s critical that we recognize Gen Z’s differences and meet them where they are, rather than where we want them to be. Without empathy and understanding, brands risk being filtered into obscurity. As writer Logan Pearsall Smith put it nearly 100 years ago: "Don’t laugh at a youth for his affectations; he is only trying on one face after another to find a face of his own."
Marketers spent the last decade enthralled with the elusive, so-called millennial generation, striving to understand its ever-changing social habits -- from Instagram to Snapchat toPeriscope -- and burgeoning nonconformity, thrifty spirit and swelling hot sauce obsession.
In attempts to grab hold of the consumers also called Generation Y, Pizza Hut doused its pies with sriracha, Whole Foods announced a lower-priced grocery chain and brands everywhere looked to YouTube stars and bloggers to give their products a youthful sheen.
Plenty of advertisers, in fact, were caught off guard by the pace at which technology advanced culture. And as the cycle of culture continues to speed up with the next generation -- dubbed Generation Z, or sometimes "centennials" because they were born around the turn of the century -- smart marketers are looking ahead and making small, fast bets to avoid losing touch with the next crop of teens. They don't even have to look very far ahead, as it happens: With the oldest members of the group hitting 18 this year, Generation Z has already arrived.
Small bets
After seeing their parents and older siblings struggle through the recession, Generation Z is practical and value-conscious. They relish experiences and use the enormous amount of information at their disposal to unearth unique stories. Marketers have to think outside traditional tactics to get the cohort's attention. But once they have it, the generation can become excellent brand ambassadors, using social to spread the word.
Brands like Taco Bell, Target and DreamWorks Animation's AwesomenessTV are already testing the waters to see what Generation Z responds to. By looking ahead, and experimenting with apps, pop-up shops, immersive store experiences and other marketing efforts, these companies are becoming more responsive and adaptable to changes in the marketplace.
"It's this idea of taking on an experimental mentality," said Dan Gould, senior cultural strategist at Sparks & Honey, an agency that has researched Generation Z. "The easiest way to start is by making small bets."
A year ago, Taco Bell's insights teams began asking itself what it knew about the next generation, and how it differs from millennials.
"It took some digging," said Melissa Friebe, VP-Taco Bell Insights Lab. "We found that similar themes are manifesting themselves in different ways. They've become even more empowered, entrepreneurial and just creative."
That's led the fast-food chain to lean in to emerging platforms, including Periscope; build campaigns around cultural moments, such as "promposals"; and continue to embrace food mashups.
Recently, Taco Bell made its Periscope debut with a live "newscast," unveiling its latest breakfast concoction -- the biscuit taco -- and announcing a giveaway for every customer in America on Cinco de Mayo.
Taco Bell: "Tweet us your photos of you with your free biscuit tacos, Instagram us and also Snapchat us."
"We're always in beta and trying things out," said Ms. Friebe. She said that approach resonates with the way young people, who were born into technology, experience things. "[Our consumers] are used to living in this world where people are constantly trying something, seeing if it works and making changes."
Taco Bell is also transporting consumers back to their childhood with inventions like Cap'n Crunch Delights, a doughnut hole inspired by the classic cereal, as well as ads like "Unboxing Kids," which features a brother-sister duo who went viral with their retro fist-pumping home video of unwrapping a Nintendo 64. "[Young people] have access to all of this information and technology, but it also can be overwhelming," said Ms. Friebe. "They are drawn to things like nostalgia."
Constantly looking
In some ways, Generation Z is a natural progression, mimicking younger millennials, according to Mr. Gould at Sparks & Honey. They're practical and value-conscious, having watched their millennial siblings struggle to find work and move out of their parents' homes. With more information than any generation before them, they do their homework to find the best quality at the right price. And once they find something they like, they're loyal and they like to share.
Advertisement
"They are experimental; they're innovative; they're risk takers; and they love to discover new things," said Jim Fielding, global head of consumer products and retail at AwesomenessTV, which caters to young people. "They're constantly on the lookout for something different, fresh and exciting. And they want to share it immediately. It's almost a treasure hunt for them."
Building on that idea, AwesomenessTV is growing its retail presence and experimenting with new, more flexible formats. Last October, it opened a pop-up shop in Los Angeles featuring merchandise from its robust collection of YouTube creators. It also partnered with the New York-based concept shop Story on a four-week installation with products inspired by six of its stars.
"This generation, they don't shop the way the generation did before them," said Mr. Fielding. "It's not about going to the mall. They're shopping digitally, remotely and physically. They're just constantly looking."
These new shopping habits are inciting retail innovation, including reimagined pop-up shops, concept shops like Story that focus on the customer experience and e-commerce models built for the smartphone generation.
A mobile startup called MikMak, for example, is updating infomercials for the iPhone generation. It taps comedians and other personalities to produce short commercials for shoppable products available through the mobile app. And retailers like Rent the Runway, which puts discovery before ownership, are growing rapidly. The dress-rental service grew from a modest e-commerce startup in 2009 to an estimated $500 million company with brick-and-mortar locations in New York, Washington, D.C., Las Vegas and Chicago.
AwesomenessTV's Ingrid Nilsen sported a dress from Rent the Runway at an event at Story last month. Credit: Story
"This is a generation that's less consumed with stuff, and stuff as status," said Rachel Shechtman, founder of the boutique Story. She offered this example: AwesomenessTV talent Ingrid Nilsen, popular among teens and 20-somethings, sported a dress from Rent the Runway during an event at Ms. Shechtman's shop earlier this year. "Maybe the future of consumption in certain product categories is one that's not centered around ownership but has another model associated to it," she said. Certainly, Rent the Runway, Zipcar and other rental models are just the tip of the iceberg.
Social-media marketing is dead
More than generations before them, who were clad in preppy attire or matching uniforms of rebellion, Generation Z seems to want to be unique.
"Standing out is the new fitting in," said Megan Hartman, head of Red Peak Branding's youth-oriented division, Red Peak Youth. "This generation really is about making your own mark and being an individual." Brands that help young people express themselves and turn over styles more quickly, like Forever 21 and H&M, are in the best position to reach this audience, she said.
Taco Bell latched onto that insight with this year's "Breakfast Defectors" campaign, designed to promote the brand's new breakfast menu by encouraging consumers to break from culinary conventions. Tropes of rebellion aren't new to marketing, but the pace of change is.
The sped-up cycle presents a challenge for legacy retailers who built businesses on longer lead times. Some brands, like Gap, are working to quicken their production cycles. New CEO Art Peck recently told Fast Company he's looking to shorten the cycle from 40 weeks to about 30 weeks. Others are using innovative merchandising to show their products in a new light.
"Maybe you can't reinvent the collection, but you can reinvent how you present it," said Mr. Gould. He cited Target as an example. The retailer has stepped up its game on social media, acting as a lifestyle curator and seeking to elevate everyday items by displaying them in creative ways.
Target shared a lush garden lit with lanterns and string lights on its Target Style Instagram account. Credit: Target
On Instagram, Target shares styled photos of a range of products. There is a lush garden patio lit with string lights and lanterns, a collection of color-inspired beauty products and a flannel ensemble with the hashtag #MCM (Man Crush Monday) that features a Swiss Army knife, Royal Pine car-freshener and a brown leather belt. And on Snapchat, it gives fans behind-the-scenes access to musicians like Imagine Dragons and Shawn Mendes.
Experience-driven campaigns are social currency for young consumers who grew up with the ability to share things instantly. "The concept of social-media marketing is dead for Generation Z," said Jeff Fromm, president of FutureCast and a marketing consultant focused on millennials. "Content marketing that's inspirational and engaging becomes a social transmission vehicle."
Unpredictable and moving fast
During a recent leadership meeting at Taco Bell, Ms. Friebe recalled, she was asked where she saw herself in five years. She considered where Generation Z was headed before she responded.
The cohort already earns $44 billion in allowance each year, according to a Sparks & Honey report. And as their purchasing power grows, more brands will be marketing to a future audience that's hard to predict. By experimenting and making small bets, marketers can respond more quickly to cultural shifts without overshooting and missing the mark.
"Five years is just too far ahead because of how quickly culture is changing and how fast this generation is moving," Ms. Friebe said.
Over the past few years, marketers across all industries and categories have been obsessed with millennials -- how to reach them and build meaningful connections with their brands. This captivating generation has a unique sense of self and a nontraditional approach to life stages, which has made marketing to them a challenge.
But perhaps even more challenging is the next generation on the rise -- Gen Z. If marketers thought they threw out the playbook with millennials, they need to know that Gen Zers aren't even playing on the same field.
Gen Z Defined
Gen Z consumers range from ages 2 to 19, though the target range for marketers lies from ages 11 to 16. Gen Z is the most diverse and multicultural of any generation in the U.S. -- 55% are Caucasian, 24% are Hispanic, 14% are African-American and 4% are Asian.
Gen Z Beliefs
There are a few key beliefs native to Gen Z that all retailers must understand. First, Gen Zers are the least likely to believe there is such a thing as the "American Dream." They look for products and messaging that reflect a reality rather than a perfect life -- an important distinction for struggling retailers like Abercrombie & Fitch who still market their products by projecting a flawless, carefree, perfect world. Gen Zers simply don't respond to these traditional notions of beauty or a projected image of perfection like past generations have. They respond to independence and entrepreneurialism, self-direction and a spirit of ingenuity. Brands like Free People (independence is implied in the name) are targeting Gen Zers with messages along these lines and a bohemian aesthetic, and it's working. The brand continues to grow with sales up 25% in the first quarter of fiscal 2015.
Millennials expect success; Gen Zers make their own
Millennials are the generation of customer service -- such as the creation of the Apple Genius Bar -- to solve problems at any moment. They design their own, unconventional paths, yet they anticipate consistent success (and hand-holding) along the way. Gen Z is a generation of highly-educated, technologically-savvy, innovative thinkers. They look for solutions on their own. They set out to make things on their own.
AD AGE DATACENTER
$9.7B
P&G ad spending
Worldwide ad costs of No. 1 advertiser Procter & Gamble. Subscribe to Ad Age DataCenter to see profiles, agency rosters and execs for 100 Leading National Advertisers.
Learn more
With this level of self-direction and purpose, it's no surprise then that Gen Zers also want to form their own style. They challenge traditional ideas of use, form and function when it comes to all facets of style and design. Brands should market their fashions and products with an understanding that Gen Zers will want to make each piece their own, and a message that that's exactly how they intended it.
Retailers must create products and marketing that empower these teens to be their best selves. They must also create places -- stores, websites, online communities -- where Gen Zers feel welcome walking in and logging in, and feel just as wonderful walking out and checking out. Brands that offer goods and an experience that help Gen Zers define and express their individuality and lifestyle will succeed with this group.
Millennials have embraced technology; Gen Zers are digital natives
Yes, millennials grew up with computers in their homes. But Gen Z is the first generation born into a digital world. They don't know a world without PCs, mobile phones, gaming devices and MP3 players. They live online, sharing details of their lives across dozens of platforms and dictating what they like and dislike with a tweet, post or status. And Gen Zers expects to virtually engage with their favorite brands in doing so. So brands can't simply "embrace technology" as millennials have. They must act digitally native, too, creating a seamless and strong overarching brand experience across in-store, digital and mobile. It is shocking how few retailers have achieved this. To reach Gen Zers, it is paramount to reach them through two-way conversations, which are initiated online. An authentic digital and social presence as well as a slew of complimentary digital experiences in which Gen Z fans can engage with and share their brand allegiance is perhaps the best currency a retailer could generate.
Generation Z is open-minded and adaptable, not a group known for fixed opinions or inflexibility. And, with an estimated 72 million people in this demographic, brands would be wise to broaden their horizons to include Gen Z in their thinking. Brands that build careful marketing strategies that connect with the values of the younger set and offer a better digital experience both online and in-store will be successful among this new, young, powerful generation.
Tumblr and Snapchat Emerge as Popular SocNet Choices Among Gen Z Radio Listeners
by MarketingCharts staff
The newly-released Techsurvey9 from Jacobs Media contains some very interesting data about the social networking preferences of Gen Z (born in 1993 or later) radio listeners. The study, which finds that radio listeners in the US and Canada are highly social overall, shows that compared to older generations, Gen Z listeners have a strong affinity for emerging social networks such as Tumblr and Snapchat, and are less drawn to Facebook. In fact, the survey finds that Baby Boomers (born between 1946-64; 73.3%) are as likely as Gen Zers (72.9%) to have a Facebook account. The results come on the heels of research from Piper Jaffray which found Twitter challenging Facebook as American teens’ most important social network.
Looking at the Jacobs Media data, which comes from a survey of more than 78,000 core radio listeners in the US and Canada (including more than 3,000 Gen Z respondents), although just 1.5% of respondents overall report using Snapchat, that figure rises dramatically to 13.5% of Gen Z respondents. Additionally, 17.5% of Gen Zers report using Tumblr, about 5 times the overall average of 3.6%, and 35.4% use Google+, compared to 20.1% overall. Gen Z’s use of Twitter is also strong, with 38.5% of respondents reporting having a Twitter account, though that trails Gen Y’s adoption rate of 42.8%. (Gen Yers are defined as in being born between 1975 and 1992.) Aside from their interest in “secondary” social networks, Gen Zers are also leading the charge in radio’s digital transition. When asked to describe their last week’s listening to the radio station that sent them the survey, respondents overall said they spent 14% of the time tuning in on digital platforms, whether that be through the computer, mobile or other formats. But that figure rose among younger generations, with Gen Zers reporting listening digitally 21% of the time, 50% more than the average.
Other Findings:
68% of Gen Z radio listeners report watching TV for at least 1 hour per day, compared to 93% of Baby Boomers.
Tablet ownership is highest among Gen X (born between 1965 and 1974) radio listeners (42%), followed by Gen Y (39%) and Baby Boomers (33%).
74% of Gen Z listeners have an MP3 player, compared to 42% of Baby Boomers.
Gen Y (21.2%) was most likely to report using MySpace, at almost twice the rate of Gen Z (11.2%).
FourSquare is also most popular among Gen Y radio listeners (8.3%), followed by Gen X (5.1%).
Gen Z (22.9%) and Gen X (22.4%) are about equal in their use of Pinterest, with each of those generations trailing Gen Y (33%).
Instagram is most popular among Gen Z respondents, with 30.8% reporting adoption. Gen Y respondents are close behind, with 29.3% using the site.
