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Omnichannel is the way to reach this new purchasing powerhouse
While Generation Z are often seen as the ‘digital babies’, having grown up with the internet, marketers employing a digital-only approach to reach them won’t find much joy, according to a report.
The report, Gen Z: Decoding the Digital Generation, undertaken by AdAge with UNiDAYS, has found that while nearly all (98%) of the more than 20,000 people surveyed in Australia, New Zealand, the US and the UK, have a smart phone, only 22 per cent use it to make purchases.
Therefore, marketing only undertaken on digital channels will fall short for a generation who likes to shop in traditional retail bricks and mortar stores and have more face-to-face experiences.
Generation Z (born after 1997) make up 26 per cent of the US population and control up to US$143 billion in spending power, the report says. They don’t see digital as a novelty, having grown up with it, so they ignore digital noise. Sixty-four per cent don’t listen to podcasts, 56 per cent don’t click on website ads, 74 per cent don’t watch video streaming shows, however 84 per cent pay attention to OOH advertising.
They prefer reading print books, and shopping in bricks and mortar stores, and 64 per cent use their mobile device for browsing only, 59 per cent use it to do price comparisons, and 58 per cent look up product reviews prior to purchasing.
"The most important takeaway for marketers is that while Gen Z appears to be digital-first, they still have more than a few analogue habits," said Alex Gallagher, CMO of UNiDAYS.
"For example, while Gen Z loves browsing online, they still enjoy shopping at brick-and-mortar stores. It's critical for brands to develop a cohesive strategy, across both online and offline, that caters to their unique preferences.”
Key findings include:
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In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.
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