Brands Get Ready: Gen Z Are Growing Up

Jane Ng
Executive Director, Client Consulting
Kantar Millward Brown Philippines
Think Millennials were a big deal?
Just wait for Centennials.

MILLENNIALS CENTENNIALS

BORN AGES BORN AGES

1979-1996 21-38 1997-present 0-20
IN 2017 IN 2017

GLOBAL POPULATION GLOBAL POPULATION

1.75 BILLION 2.46 BILLION

GenX Boomers Matures

1965-1978 1946-1964 1945 and earlier

39-52 53-71 72+

3
40 million-strong, Generation Z
Filipinos comprise the biggest
segment of Philippines
population.

3% Philippines Population 2015

12% 49% 48% 49% 49% 51% 61%

16% 40% 51% 52% 51% 51% 49% 39%

Total PHL Gen Z Gen Y Gen X Boomers Matures

30% Male Females

Z (0-20) Y (21-38)
X (39-52) Boomers (53-71)
Matures (72+)

Based on 2015 national census, there were 100,979,303 Filipinos two years ago.
Source: Philippine Statistical Authority 4
Gen Z’s mantra is ‘good things come to those who act,’ and they aren’t
going to let age, education, employment or lack of resources stop them
from making their mark on the world.

What are they like?

- Sheryl Connely, Global Consumer Trends and Futuring, The Ford
Motor Company

5
Gen Z are on mobile and social. They are like Gen Y on steroids.
GenZ GenY GenX Boomers Matures

Use internet throughout the day 52 46 37 31 26

Multiple devices 31 28 18 17 12

Finding articles to read, or videos to watch 81 73 73 68 68

Chatting on FB 39 40 42 41 52

Chatting on FB Messenger 44 37 38 39 28

Keeping up with news and live events on SNS 78 75 69 61 68

Keeping up with bloggers, celebrities, or online

personalities on SNS
73 64 62 58 55

Read brands online weekly 23 20 20 9 3

Watch brand content on YouTube 50 45 39 35 22

Ask brand questions on mobile apps 37 36 33 27 24

Tag brand opinion on FB 68 61 62 51 48

Source: Kantar TNS Connected Life Philippines 2016-2017

 But don’t be too quick to stereotype them

Supposedly Gen Z attitudes Gen Z Gen Y Gen X

Every time I have any kind of query I just Google it 44% 58% 64%
I only enjoy content that feels honest and real 41% 51% 60%
I want a job with the opportunity to grow quickly 38% 52% 61%
I´m very careful with the information I share in social
38% 51% 58%
media, I really value my digital privacy
I like to have always-on access to music via digital
37% 36% 33%
platforms

Q: From the following statements choose all that you identify with more.
 67% of GenZ
buyers shop in- Gen Z still prefer
store most of to shop in a 64% of Gen Z
the time. store versus shoppers prefer
online. brick to click.
- A new study, released by IBM
and the National Retail - a research study - Retail Experience
Federation, polled over 15,000
commissioned by Euclid
consumers between the ages of
Analytics
13 and 21 from 16 different
countries

8
 … will have a different
outlook on the world from a
cohort born to swipe.

A cohort raised to dial…

9
How do we engage Gen Z?

10
 A lack of
1. boundaries
Respect their invites a lack of
space online. respect

11
Because Gen Z are more skeptical to most advertising formats

D i gi tal Medi a Net +ve % Gen Z Gen Y Gen X

Online display ads (mobile) 41% 49% 43%
Online display ads (laptop or PC) 39% 46% 54%
Video ads (laptop or PC) 33% 45% 44%
Video ads (mobile) 29% 38% 33%
Online search ads 32% 45% 55%
TV ads 53% 76% 81%
Media

Radio ads 30% 60% 63%

Billboard/Outdoor ads 51% 72% 70%
Cinema ads 46% 63% 59%
Tra d i ti o n a l

Product placements in movie or shows 54% 59% 64%

Magazine ads 42% 56% 72%
Newspaper ads 40% 61% 73%
Direct mail (postal) 27% 41% 38%
 Avoid intrusive formats – they are Gen Z’s least favorite

Net +ve % Gen Z

Mobile app reward 52%

Skippable pre-roll 38%
Skippable vertical video 38%
Social click-to-play 34%
Level of C ontrol

In-banner click-to-play 30%

Skippable mobile app pop-up 28%
View to play 26%
Social auto-play 18%
In-banner auto-play 17%
Pre-roll 8%
Mobile app pop-up -5%
 Find the right moments to targeting Gen Z

46% of Gen Z are most open 44% of Gen Z are most open
when looking for information when they are in a relaxed mode

31%
27% 27% 28% 25%
21%
10%

6am-9am 9am-12nn 12nn-3pm 3pm-6pm 6pm-9pm 9pm-12mn 12mn-6am

Time of the day more positive towards ads
FIND YOUR MOMENTS: the intersection of Gen Z,
occasions, emotions, and motivations.
COMMUNICATING MOMENTS: It’s not just about the
time of the day. What are we communicating to Gen Z at
that moment in time of their need?

Driving growth through innovation 15

2.
Finding the
right creative
approach.

16
Even when control is given, there remains skepticism towards
advertising vs other Generations
Positivity towards Ads which allow different types of control

Gen Z Gen Y Gen X

Skip 38% 53% 46%

Fast forward 35% 48% 36%

Close 27% 30% 23%

Mute 25% 31% 21%

Hide 18% 24% 17%

Ignore 15% 19% 15%

 Create Great Digital Content To Break That Wall of Skepticism

Tell a story Generate an Branding matters more Consider music that Consider humor –
emotional response than ever – engages people and just make sure it’s funny for
integrate early the audience relates to your audience!

Consider special Avoid overloading with For social content – Structure your ad to engage Get the length
effects/powerful ‘messages’ - a positive make it work people and ensure the just right
unique design impression may be enough without audio skip matters less

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Humor, Augmented reality, music & stories are most favored by Gen Z.

Types of characteristics which increase positivity towards ads

53% 49% 47% 41%

Funny or humorous Has augmented reality Has good music Tells an interesting story
 Content marketing: a new wave of experimentation for Marketers

1 2

Find the right cultural & creative Experiment with more innovative
elements that will resonate with online formats to engage
Gen Z

Humor Music Augmented Reality

Brands need to look even deeper into Gen Z to Sponsored filters
dimensionalise creative tones which will work for them. Sponsored lenses
Expandable ads
Native ads
Take over ads
Net positivity towards different types of online
advertising among Gen Z
45% Gen Z are more open to sponsored
42% filters & sponsored lenses vs other
28%
types of online ads. Consider how
28%
to engage them effectively outside
24%
of the “traditional” digital formats
Content marketing: a new wave of experimentation for Marketers

3 Make it Personal
3.
Be Social.
Be Meaningful.
Be Loved.

25
 There is a real challenge for brands to engage meaningfully Gen Z
beyond the current interactivity levels

Positivity towards ads based on types of interactivity

35% 28%
Choose my favorite among Vote for something to happen
several options

40% 40% 27%

Take decisions (stories,
characters)
25%
Join a conversation about the
campaign

Like, share or comment Find out more about the

on the ad brand (e.g. link to 19% 17%
website) Sign up for more content from the Interact via an assignment
brand
Even with branded content, receptivity is not as great as other
generations.

Gen Z Gen Y Gen X

Tutorials 54 77 81
Social media feeds 54 62 71
Branded events 48 68 66
Native articles 46 66 64
Sponsored events 46 66 71
Brand information 45 71 71
Expert reviews 45 72 74
User reviews 45 70 72
Social media celebrity content 44 48 53
Shopping content 43 64 64
Magazine advertorials 41 59 65
Celebrity content 37 42 47
To break the receptivity wall when using branded content, offer an
exchange of information to trigger interest

Positivity towards branded content which…

59% 57% 28% 26%

Provides new Offers tips or solutions Contains a Features music that is
information person/character that appealing to me
I´m interested in
But to facilitate an active mindset towards branded content, build
brand love

43%

I will seek out branded content if it´s for a brand I love

What does this mean for Marketers? Gen Z wants to look deeper into brands and learn about
their story, their purpose and details about their
1 Curate Meaningful Brand(ed) Content production processes, so they can determine if the
brand’s values match their own. Brands need to think of
how they can cascade this through strategically placed
branded and sponsored content.

Tasty Uber Airbnb

 Gen Z will take the proactive stance of looking for your
What does this mean for Marketers? content if it is a brand they are interested in. Critical to
ensure that digital content drive both short term & long
2 Don’t forget to build Brand Love term brand effects

16M views
382K Shares
1M Likes

10M Views
322K Shares
521K Likes

14M Views
516K Shares
625K Likes
 A perfect storm of disruption
Consumers, retailers and manufacturers
are all undergoing fundamental shifts

4.
Execute to win
at POS

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Must understand omni-shopper dynamics of GenZ
 Understand the shopping moments of Gen Z

Missions and
occasions, not shopper
types, are the primary
drivers of shopper
behaviour.

Connected Shopper study in soft drinks, Kantar TNS 2016

Help Gen Z shoppers control their currencies
 Winning with Generation Z

 Respect their space online

 Find the right creative approach

 Be Social. Be Meaningful. Be Loved.

 Execute to win at POS

 Some thoughts about Gen Alpha
The Children of Millennials

“Screenagers” Bots: Between Brands and Gen Alpha

Going beyond transactions:

How do brands avoid losing
that emotional connection
while riding on the
efficiencies of bots?
 Some thoughts about Gen Alpha
The Children of Millennials

The world comes with social Smart nations

networking by default

Gen Alpha does not know what a world As Gen Alpha grows into a smarter, cashless
without social media looks like. How do world, how do brands evolve their retail
brands compete more effectively to stay experience to cater to this generation?
connected to Gen Alpha?
Brands Get Ready: Gen Z Are Growing Up
Jane Ng
Executive Director, Client Consulting
Kantar Millward Brown Philippines