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gen z

Brand trust issues among Gen Z impacting conversion rates
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A poll of over 1,500 consumers by Wunderkind in its latest Consumer Insights Report revealed that lack of trust in a brand was the top reason one in three (28%) Gen Z shoppers would abandon a purchase when shopping direct with a retailer online, indexing +9 percentage points higher than the average UK customer.  Trust issues were also a core driver for cart abandonment for over a quarter (26%) of the Millennial shoppers polled.

The role of reputation and trust continues to be a growing consideration within purchasing decisions, with Forter’s Consumer Trust Premium report suggesting UK consumers would spend +44% more, on average, with retailers they trust, while a further 73% said they were more loyal to brands they perceive to be authentic.

And this growing need for authentic brand experiences is also evolving channel choices and preferred customer engagement among younger Gen Z shoppers specifically, with a quarter (25%) saying they would choose to shop on a retailer’s DTC (Direct-To-Consumer) website as their top ‘trusted channel’.  Gen Z is also now almost twice as likely than other shopper demographics to value brand name recognition (16% vs 9%), emphasising the role of reputation and trust in their purchasing decisions.

Meanwhile, when it came to content engagement, authentic brand storytelling indexed +5 percentage higher for Gen Z consumers (15%) compared to the average UK shopper (10%) when it came to encouraging them to visit a brand’s website frequently, with the role of reviews and User Generated Content (UGC) also ranking +9 percentage higher for Gen Zers (48% vs 39%), showcasing the role of social proof in building credibility in buying journeys.

“As Gen Z’s global spending power skyrockets, set to grow to $12trillion by 2030, this represents a significant opportunity for retailers to acquire, engage and retain younger cohorts of consumers who seek more meaningful and authentic interactions with the brands they buy from,” Wulfric Light-Wilkinson, General Manager International of Wunderkind, commented.  “Compelling content plays a pivotal role in driving repeat visits to brand websites and apps.  By helping consumers connect with products, trust brands and find value in their interactions, the right content fosters engagement and loyalty, allowing brands to deepen connections and maximise reach.”

Are podcasts the key to reaching Gen Z and Millennials?
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Podcasts have emerged as a powerful medium for brand discovery, overtaking traditional platforms — especially amongst younger audiences, according to new data from research platform GWI’s Connecting the Dots report.

The shift highlights a growing opportunity for brands to tap into this trend to reach their key audiences. Since 2021, brand discovery through podcasts has accelerated, particularly with Gen Z listeners, who are increasingly tuning into podcasts over other media.

And it’s not just brand awareness that has increased. Almost as many Americans get their news from podcasts (21%) as newspapers (24%) — a shift driven primarily by Millennials and Gen Z listeners, of which one in four say they enjoy listening to podcasts.

The recent US election also highlighted the importance of podcasts to American listeners, with 14% of Americans noting podcasts as a source of information on US politics, and 5% noting it as one of the most trustworthy sources.

With podcast investment on the rise through high-profile deals — like the recent acquisition of Call Her Daddy by SiriusXM for $125 million — they are positioned as a lucrative investment for brands wanting to connect with younger consumers, who are spending more time with podcasts than ever before.

However, as with all channels, brands must be mindful of ad fatigue — especially among younger listeners, of which one in five say they’ll tend to skip ads, compared to just 15% of Gen X and Baby Boomers.

In fact, consumers have made it clear that the format of an ad is a deciding factor in skipping it or switching off entirely. 17% of listeners have a preference for ads integrated into the episode, in the host’s style — making it crucial for brands to tailor engaging and relevant advertisements.

Although most listeners dedicate less than an hour a day to podcasts (42%), the growing listenership is a clear opportunity for brands to align with their audiences interests through tailored, host-led ads that seamlessly blend into the show’s content.

Commenting on these findings, Bridget Evans, Global Director of Business Brand Marketing at Spotify, said: “Gen Z’s love for podcasts extends offline, with 37% attending live podcast events, deepening their relationships with trusted hosts and communities.

“This means podcasts are now a 360-degree amplification opportunity for brands. Spotify’s ecosystem — from live events to social and audience targeting via Spotify Audience Network and more — lets brands reach these highly-engaged audiences and forge authentic connections across multiple touchpoints.”

Matt Smith, Trends Analyst at GWI adds: “Unlike traditional media, podcasts provide a unique opportunity for brands to reach listeners in an environment where ads can feel like a part of the experience. Younger generations value a deeper personal connection to content and are drawn to hosts that they find relatable, so podcasts are a powerful option for targeting these audiences in an engaging way.

“As podcast popularity continues to grow, brands that adopt a well-thought out and aligned approach to podcast advertising can create more memorable touchpoints with audiences that can’t be replicated via other channels.”

Photo by Soundtrap on Unsplash

Research reveals Gen Z avoids ads at all costs
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Any company looking to target Gen Z consumers (those born between 1997 and 2012) shouldn’t even bother with traditional advertising.

That’s the stark finding from a new report released by digital consumer research firm Bulbshare, which gathers insights from thousands of consumers around the world.

Titled Ad blockers and advocacy: Why Gen Z is blocking paid ads in favour of real voices, the report finds that 99% of consumers in this generational cohort will hit “skip” on an ad if it’s an option and that nearly two-thirds (63%) use ad blockers to avoid online adverts.

Their readiness to do so comes largely from the fact that they feel overwhelmed by the number of adverts they see daily. The report shows that nearly three-quarters (74%) of consumers feel bombarded with ads. The same percentage feel irritated with adverts and the incursions they place on their time. One in four, meanwhile, find advertising extremely intrusive, while one in two believe it is somewhat disruptive.

“The best advertising has always been disruptive,” says Bulbshare founder and CEO Matt Hay. “It should be difficult to ignore. But today’s brands face the very real danger of being part of an indistinct but annoying wall of noise”.

Over the past decade or so, brands have increasingly supplemented their traditional advertising efforts with influencer marketing. But customers are becoming more distrustful of the relationships between big brands and high-profile figures.

Bulbshare’s research shows that 84% of Gen Z consumers have lost faith in influencers. They are, unsurprisingly, more inclined to make purchases based on authentic recommendations. In fact, 86% would be more inclined to buy a product recommended by a friend than a paid influencer.

“This desire for authenticity makes it imperative that brands not only have products worth recommending but that they cultivate communities where authentic recommendations can take place,” says Hay. “In fact, there’s real hunger for this among Gen Z consumers. Some three quarters (74%) would promote a product they genuinely care about online. Moreover, 88% are enthusiastic about collaborating with brands, and 76% said they enjoy reviewing products.”

“In a world where 81% of consumers trust real opinions over those promoted via an advert,” Hay concludes. “It makes much more sense to allow consumers to be authentic advocates for a product or brand than to spend money on an ad that will, at best, be ignored and cause active resentment at worst.”

Download Ad blockers and advocacy: Why Gen Z is blocking paid ads in favour of real voices here.

Businesses not making most of digitally native Gen Zs
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Around one in four (26%) of Generation Z workers say their company isn’t doing enough to attract the younger generation.

That’s according the Digital Natives Report from Advanced, which also reveals that 20% say a lack of diversity and multi-generation experience will hold their company back from modernising its key processes or systems.

In addition, 31% don’t think their company gives the younger generation a voice when it comes to technology adoption.

The report is based on an independent survey commissioned to explore the attitudes of over 1,000 UK senior business decision makers across multiple generations.

The report says that as a new cohort of people – Generation Z – enters the workforce, organisations are increasingly required to accommodate the demands for modern technology, flexible working and a digital environment. These younger workers have been inherently familiar with the internet and technology from a young age, are tipped to be the innovators in the workplace, and are prepared to challenge the technical status quo.

As much as 42% of Generation Z workers would like to see Business Intelligence (BI) in their daily working lives followed by the Internet of Things (40%), Robotic Process Automation (30%) and Artificial Intelligence (26%). Interestingly, 80% of them would be happy to work alongside robotic technology if it meant less manual processes.

Other key findings from the report include:

  • Nearly twice as many Generation Z workers see chatbots in their daily working lives compared to the over 55s. Artificial Intelligence is the most used technology among Generation Z, at 40% – much higher than the over 55s at 28%
  • 64% of Generation Z think a robot would be better at decision making than their boss if it had access to the right business intelligence. 39% of the over 55s agree
  • 40% of Generation Z say one of the most important attributes for a business leader in the digital era is to ensure their leadership team is diverse enough to bring a mix of skills and experience. 46% of the over 55s agree.

Gordon Wilson, CEO at Advanced, said: “It’s this enormous appetite for new technology, along with their innate digital skills, that will help propel businesses into the digital era. In fact, Generation Z is arguably the silver bullet for helping organisations successfully meet the growing pressure to be digital-by-default.

“Like it or not, digital transformation is essential for business growth so our report’s findings will come as blow to many business leaders who are clearly failing to accommodate five generations of workers that each have varying levels of technology knowledge.

“Leaders must embrace the younger generation as a priority – and that means being open to change and a different way of doing things. What’s more, they mustn’t underestimate what this new generation can achieve or pigeonhole them into uninspiring roles. Rather, they need to create roles based on their skills, knowledge and talents.”

Visit here for the full Digital Natives Report.