Marketing to Gen Z: Characteristics, Demographics, & Stats for Advertisers – Insider Intelligence

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The socially conscious generation prioritizes mental health, sustainability, and racial equity, while shaping consumer habits with a tech-savvy approach
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Born between 1997 and 2012, Gen Z represents about 20% of the US population as of 2023, per the US Census Bureau. In 2021, Bloomberg cited data from Gen Z Planet estimating the cohort had $360 billion in buying/spending power, a number which has most certainly grown as more and more Gen Zers join the workforce. 
In this guide, we explore what Gen Z cares about, where they spend their time online, and how they shop so marketers can reach this valuable target audience. We also delve into their banking and payment habits and how they’re shaping the financial services industry. 

Gen Z (or Generation Z) grew up with rapid digital changes. As teens, Gen Zers experienced the boom of smartphones, wearables, and virtual assistants, among other disruptive tech. This immersion makes them open to integrating new technology into their lives.
Gen Z consumers have strong opinions about the world they live in—and they aren’t afraid to voice them. Gen Zers are known for their social responsibility, dedication to social and political issues, and their demand for authenticity when it comes to brands and advertising. 
Gen Z’s interest in sustainability has contributed to growing resale volumes (which eMarketer forecasts will reach $108.64 billion in 2024), particularly when it comes to fashion. 
Gen Z has fully embraced the blending of media and technology, which is explored in eMarketer’s Gen Z Technology and Media Preferences report. The seamless connectivity between devices allows Gen Zers to engage in multiple activities simultaneously, making what they consume more important than where they consume it. 
Gen Zers are more likely to cite streaming video, streaming music, and playing video games as daily activities compared with the general adult population, per a May 2023 Morning Consult survey. They’re also less interested in traditional TV and listening to the radio.
However, having endless options for entertainment at their fingertips has also impacted attention spans.
Social media is Gen Z’s primary outlet for sharing thoughts, seeking recommendations, and staying informed about current events. 
Instagram is the top choice for direct messaging among Gen Z users, according to eMarketer’s July 2023 survey of US teens and adults ages 15 to 26, per eMarketer’s Gen Z Social Media Preferences report. 
In addition to direct messaging, Gen Zers also favor Instagram for Stories, making it their primary social media platform for this feature. However, marketers shouldn’t overlook TikTok, as nearly half of Stories viewers reported watching them on TikTok in the past month.
For short-form video content, TikTok remains the preferred platform among Gen Z, with a majority of respondents indicating it as their go-to for short videos on social media. 
When it comes to livestreaming (i.e., the real-time broadcasting of audio and/or video content over the internet for an audience to watch as it happens), Gen Z chooses TikTok over Instagram, although YouTube remains the ultimate leader in this arena.
Across all platforms, authenticity is key to engaging with Gen Z.
Social media and influencer marketing play a major role in Gen Z’s purchasing journey, but more traditional channels like in-store and ecommerce are also shaping how they buy, per eMarketer’s Gen Z’s Path to Purchase report. 
By 2027, 97.0% of Gen Zers will be mobile banking users, the highest proportion across all generations, per eMarketer’s April 2023 forecast. To capture Gen Z customers, banks need to understand how the demographic differs from older generations. 
In reaching Gen Z, social media (both paid and organic) proves more impactful than traditional advertising for raising awareness of bank products, per eMarketer’s US Banking Consumer Habits 2023 report.
Building trust is essential to attract Gen Z customers, but banks cannot afford to assume it. 
Gen Zers may be interested in experimenting with new payment options, but traditional card-based payments still play a major role in how they make purchases, per eMarketer’s Gen Z Consumer Payment Habits report. To appeal to Gen Z’s spending habits, providers need to offer payment options that match their preferences.
Gen Z’s early embrace of mobile wallets will drive the technology’s overall adoption. 
Gen Zers are also ahead of the curve on buy now, pay later (BNPL). 
Gen Alpha is the generation after Gen Z. Per eMarketer’s Gen Alpha guide: Gen Alpha is the first generation born entirely in the 21st century. The number of Gen Alphas is expected to reach 2.2 billion worldwide by the end of 2024, according to marketing agency Razorfish. By 2025, there will be more Gen Alphas than baby boomers. Many believe Gen Alpha will be the largest generation. In the US, the estimated 45.6 million children that make up Gen Alpha are already more diverse than the general population.
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