‘Gen Z’ is the market on everyone’s lips. And that’s not changing anytime soon.
Though many startups know the importance of reaching gen Z, it can feel daunting to smaller brands and businesses that fear backlash from a chronically online generation. But winning over this generation is a worthy pursuit that could pay off for decades… if you get it right.
Gen Z, born between 1997 and 2012, commands a staggering US$360 billion in disposable income – an opportunity that will only expand as more Zoomers enter the workforce in years to come.
Despite the cost of living around the world, a 2024 survey by Deloitte found 48% of gen Z feel optimistic about their financial situations improving over the next year. This is the most optimistic they have reportedly felt about the state of their financial reality since before the pandemic – making it the perfect time for brands to start engaging with this generation.
It’s understandable that many businesses, particularly SMEs, might be hesitant to market to gen Z. As the first generation to grow up with social media since childhood, Zoomers are fiercely unique and expect different outcomes from the companies they support. This is often where brands miss the mark.
One of the biggest mistakes marketers can make when speaking to youth audiences is not differentiating between gen Z and millennials.
Where millennials are community-driven and respond favourably to humanised brands that take on friend-like personas (think: 2010s Instagram brands that call their followers “babe”), gen Z consumers respond better to user-generated content from value-led companies.
Example 1: Marc Jacobs:
@marcjacobs An emotional remix by @DJ MANDY
@marcjacobs Last time we checked, you don’t have a Tote
Example 2: Sephora:
@sephora Post-run pre-coffee haircare coming right up.
@sephora You won’t have to lie about being ready with this easy makeup routine using all Clean at Sephora products. @uniquelytyana @milkmakeup @Haus Labs by Lady Gaga @Ami Colé
This is partly because gen Z has advertising fatigue, and partly because this generation is under no impression that capitalism is friendly.
Take The Washington Post, for example. The legacy newspaper grew a TikTok following of over 1.7 million for its ability to turn hard news into digestible skits online for a generation that does not consume news via traditional media. The account, which started out with one single host delivering these skits, now has several journalists who feature on the channel. When the account expanded its hosts, gen Z fans dubbed it “The Washington Post Cinematic Universe”. In an interview with Link In Bio, WaPo’s senior video producer Dave Jorgenson said the majority of the account’s audience is in their 20s, followed closely by people in their 30s.
WaPo’s TikTok is a strong example of a brand playing the long game with gen Z. Rather than relying on TikTok trends to guide its strategy, the media company adapted its existing offering to the audience it was trying to attract. While they might not be buying a newspaper any time soon, they’ll have an affinity towards The Washington Post when they are ready to buy a newspaper (or more likely an online media subscription!) because of the effort the brand made to engage with them in an authentic way early on.
That being said, Zoomers are more disillusioned by corporations than previous generations, with 57% worldwide agreeing that capitalism “does more harm than good,” according to the 2020 Edelman Trust Barometer. Deloitte’s 2024 survey also found six in 10 gen Zs believe businesses have the power to impact a “range of societal changes,” including climate change and ethical generative AI. However, 51% feel businesses are falling short here.
Gen Z’s progressive beliefs pose an opportunity for SMEs.
While Zoomers are highly critical of corporations, they recognise they must interact with them. This is where gen Z purchasing behaviour really takes shape, with 79% of gen Zs saying that businesses could and should do more to empower consumers to make sustainable purchasing decisions.
As a result, Zoomers prioritise spending money with smaller companies that align with their values.
Examples of smaller companies that appeal to gen Z:
– Brooki Cookies
@brookibakehouse Day in my life as a bakery owner 👩🍳 #bakery #bakeryowner #bakerylife #baking
– The Volt
@samjtodd
A 2022 report by Hubspot found 60% of gen Z prefer products made by smaller businesses. Similarly, Afterpay’s Next Gen Index noted gen Z’s spending with small businesses increased by 300% between 2020 and 2022.
With all that in mind, the question remains: how can SMEs tap this US$360 billion opportunity with gen Z?
The simplest answer is to be authentic in your marketing efforts. In this case, ‘authenticity’ means being transparent about your brand, its story, and its values, and using these pillars to inform content and marketing strategies.
Consider these five principles to help guide these strategies:
All in all, there is no denying that tapping into gen Z can be daunting, but the key isn’t a one-size-fits-all strategy — it’s about crafting an approach that genuinely reflects your brand’s mission, story, and values.
If a legacy newspaper can win over gen Z, you can, too.
Lauren Meisner is the founder and director of Centennial World.
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Lauren Meisner is the founder and director of the award-winning digital youth publication, Centennial World reaching 2+ million gen Zs per month. Prior to launching Centennial World in 2019, she was a beauty and entertainment writer for beautyheaven, ELLE Australia, and Harper’s BAZAAR Australia. Lauren also writes the gen Z viral news Substack ‘infinite scroll’ and co-hosts and produces Centennial World’s weekly internet culture podcast.
