With Gen Z becoming a major force in the consumer market, brands need to meet their expectations. And let me tell you, those expectations are high. That’s no surprise since this is the first generation of consumers who have grown up entirely in the digital age.

To help brands determine the best ways to connect with Gen Z, the ad design platform Creatopy surveyed over 1,100 Gen Z individuals between the ages of 18 and 26 in the U.S. They explored shopping habits, online behavior, and preferences to provide brands with solid insights they can use when marketing to this generation. Let’s dive into what they discovered.

General Characteristics and Statistics About Gen Z

Before we explore the survey findings, let’s first look at some key facts about Gen Z.

1. They Are the Most Diverse Generation in American History
   Gen Z includes individuals born between 1996 and 2012. What sets them apart is their diversity. They are the most ethnically and racially diverse generation in U.S. history and are expected to become majority nonwhite by 2026.
2. They Are Hardworking
   Despite being labeled as lazy by some media outlets, Gen Zers are actively participating in the workforce. Data from the U.S. Bureau of Labor Statistics shows that about 7.3 million Gen Z individuals work full-time each year, while 6.3 million work part-time.
3. They Represent 40% of the Global Consumer Population
   Gen Z’s spending power is growing rapidly, reaching an estimated $360 billion. They already make up 40% of the global consumer market and are projected to surpass 41 million digital buyers in the U.S. by the end of 2022.

Gen Z Shopping Habits

Given their significant spending power, how exactly does Gen Z approach shopping? Do they spend more or less than millennials? What drives their purchasing decisions? Let’s find out.

4. They Have Steady Income Sources
   Over 70% of respondents reported having a stable source of income. However, this doesn’t mean the rest have no earnings at all. Many Gen Zers are still students who rely on side gigs like reselling goods, social media influencing, or pet sitting. Much of their income goes into savings, whether through investments like cryptocurrency or traditional retirement accounts.
5. They Are Thoughtful Shoppers
   Unlike what some might expect, Gen Z is not impulsive when it comes to shopping. Around 50% of them shop online every month, but most only buy what they need. About 33% wait for sales and seek out discounts before making purchases.
   One reason for this cautious spending could be the 2008 financial crisis. Many Gen Zers grew up seeing their families struggle financially, which influenced their approach to money management. Just because they have smart ways to earn money doesn’t mean they are quick to spend it.
6. They Value Social Responsibility
   Gen Z is known for having strong opinions on social issues. Naturally, they prefer to buy from brands that take meaningful action to improve society. Whether it’s promoting recycling, protecting the environment, or advocating for equality, brands must be genuine about their efforts. Gen Z can quickly detect insincere activism and will call out companies that engage in performative actions.

Gen Z’s Social Media Habits and Preferences

As the first generation to grow up with the internet, Gen Z is highly connected. This is clear in how they engage with social media.

7. They Spend 1 to 5 Hours on Social Media Daily
   Most respondents spend between one and five hours on social media each day. Only about 11% spend less than an hour.
8. They Use Social Media for Shopping Research
   Social media isn’t just for staying connected. Gen Z also uses it to research brands and make purchasing decisions. However, since their attention span is short, brands have just a few seconds to capture their interest. Creativity is key.
9. YouTube, TikTok, and Instagram Are Their Go-To Platforms
   YouTube, TikTok, and Instagram are the most popular social media platforms among Gen Z. This could be because they enjoy creating content or because they consume twice as much video content as millennials.
10. Facebook and Snapchat Are Less Popular
    While Gen Z still uses Facebook and Snapchat, these platforms are not as influential as YouTube, TikTok, and Instagram. This means brands should focus their marketing efforts on the platforms where Gen Z is most active.

What Works and What Doesn’t in Marketing to Gen Z

Since Gen Z spends so much time online, they are easy to reach. However, not all marketing tactics work on them. Here’s what brands should know.

11. Performative Activism Fails
    Gen Z doesn’t respond well to corporate activism that feels fake. They expect brands to be authentic and will quickly reject anything that seems performative or insincere.
12. User-Generated Content Works
    Gen Z trusts content created by real people, including influencers. They are more likely to connect with brands that feature user-generated content in their advertising.
13. Visually Engaging Ads Get Attention
    Creativity matters. Gen Z is drawn to visually interesting ads that align with a brand’s identity and values.
14. Clickbait and Disruptive Ads Fail
    Gen Z dislikes clickbait and long-winded ads. They prefer ads that feel natural rather than disruptive.
15. Both Video and Static Ads Are Effective
    When asked to choose between static and video ads, Gen Z was almost evenly split. This shows that both ad types can be successful if done right.
16. Traditional Advertising Still Works
    Surprisingly, Gen Z still trusts traditional advertising, such as TV and print. These formats continue to hold value alongside digital ads.
17. Personal Data Collection Is a Concern
    Gen Z is cautious about privacy. About 60% would not share personal data for a more personalized experience, and 75% find targeted ads based on personal data to be invasive.
18. Transparency Builds Trust
    To gain Gen Z’s trust, brands must be open about how they handle personal data and avoid over-reliance on targeted ads.

Key Takeaways for Marketing to Gen Z

• Trust is everything. Gen Z can easily spot inauthenticity, so brands must focus on building genuine relationships.
• Diversity and inclusivity matter. Gen Z expects brands to reflect their values and speak their language.
• In-person experiences still count. While Gen Z is highly digital, they also appreciate real-world interactions.
• They love a good deal. Gen Z is always on the lookout for discounts and prefers not to pay full price.

Final Thoughts

Gen Z is a major part of today’s consumer market. If they are part of your target audience, understanding their preferences and values is crucial.

This generation is highly digital, socially aware, and financially cautious. They support brands that align with their beliefs and reject those that don’t. Businesses that take the time to understand Gen Z and adapt their marketing strategies accordingly will have a much better chance of long-term success.