AI-powered conversational-research firm Rival
Technologies and market-research consultancy
Reach3 Insights have released a new
report
revealing Gen Z’s shifting attitudes on social media, influencer marketing,
online shopping, sustainability and brand loyalty.
Based on a mobile-first, conversational survey of 750 Gen Zs (aged 18-27) in the
US and Canada in April 2024, the 2024 Gen Z Marketing & Engagement Report found
that social media’s role in purchase discovery is increasing — but it is only
one step in a long and complex buying journey. Among Gen Z consumers who shop
online, only 18.4 percent complete the purchase directly through social
channels. In contrast, 88.2 percent buy via online marketplaces (Amazon,
Etsy, etc) and 74.6 percent through brand websites.
When asked which social media platforms they use to discover new brands, Gen Zs
highlight Instagram (70.3 percent), TikTok (34.3 percent), and
YouTube (33.1 percent) as top channels.
The research also suggests that the buzz around influencer marketing may be
fizzling out: Contrary to studies even from last year, in which a majority of younger
consumers credited influencers with having a major impact on their sustainable
purchasing and lifestyle
habits,
47.5 percent of Gen Zs now say they are “not very likely” or “not likely at all”
to buy something recommended by influencers. Many respondents described paid
influencer partnerships as “very insincere” or “annoying,” with some respondents
asserting a preference instead for “normal people with normal incomes and lives”
to be the voices promoting the products. The report points out that influencer
marketing can still work; but authenticity is key, as these shoppers are showing
a new preference for substance over style — emphasizing the importance of
ensuring that any influencer used is a good fit for the product and can create
relatable content.
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“Influencer marketing is at risk of facing a serious reckoning,” says Paula
Catoira, Chief Marketing Officer at
Rival Group — parent company of Rival Tech and Reach3. “To ensure ROI from
influencer partnerships, brand marketers need to understand their Gen Z
customers and align their marketing strategy with the need of this audience.”
Gen Z attitudes on sustainability itself also seem to be shifting. The report
found that 42.9 percent of Gen Zs prefer sustainable products when available,
but it’s not the only consideration. Budget and price are big factors in buying
decisions. This helps explain why fast
fashion,
for example, continues to grow despite its impact on the environment — a
phenomenon that was recently
parodied
in the season finale of “Saturday Night Live.”
And as always, authenticity is key — as Gen Zs are one of several consumer
segments that are increasingly savvy about identifying
greenwashing.
Influencers themselves are well aware of this; and a 2023 study found more and
more content creators are steering clear of sustainability-related
content
due to a lack of insight and clarity around company and product sustainability
claims.
The report points out that for many brands that cater to Gen Zs, sustainability
can still be a huge competitive advantage as long as product prices remains
competitive. And being transparent about brand claims is paramount: The research
suggests that brand websites (59.9 percent) and packaging (43.5 percent) play a
key role in communicating details about brand sustainability efforts; when it
comes to this, Gen Zs say they are much more likely to believe third-party
websites (42 percent) than influencers (12 percent).
“Our research highlights how the attitudes and behaviors of Gen Zs can shift
significantly as they go through different life stages and as socio-economic
factors evolve,” said Andrew Reid,
CEO and founder of Rival Technologies. “To get accurate and nuanced insights on
Gen Zs and win their loyalty, brands need to engage with these young consumers
on an ongoing basis and do it in a way that’s aligned with their expectations
and behaviors.”
One of the study’s key takeaways for marketers is that Gen Zs want to feel they
can build an authentic and personal connection with brands; and while they still
prioritize sustainability, socio-economic factors such as inflation have very
real impact on how this group views and prioritizes sustainability-related
issues.
As Jennifer Reid, Co-CEO
and Chief Methodologist at Rival Group, points out: “Among a generation fueled
by skepticism, trust is paramount for both engagement and loyalty. And since
authenticity, honesty and transparency are critical in building that trust, they
should be the goals of every marketer with young consumers in their sightlines.”
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Sustainable Brands Staff
Published May 31, 2024 8am EDT / 5am PDT / 1pm BST / 2pm CEST