Brands Get Ready: Gen Z Are Growing UpJane Ng

Executive Director, Client Consulting

Kantar Millward Brown Philippines

3

Think Millennials were a big deal?

Just wait for Centennials.

MILLENNIALS

BORN1979-1996

AGES

21-38IN 2017

GLOBAL POPULATION

1.75 BILLION

CENTENNIALS

BORN1997-present

AGES

0-20IN 2017

GLOBAL POPULATION

2.46 BILLION

GenX Boomers Matures

1965-1978 1946-1964 1945 and earlier

39-52 53-71 72+

4

40 million-strong, Generation Z

Filipinos comprise the biggest

segment of Philippines

population.

40%

30%

16%

12%

3%

Z (0-20) Y (21-38)

X (39-52) Boomers (53-71)

Matures (72+)

Based on 2015 national census, there were 100,979,303 Filipinos two years ago.

Source: Philippine Statistical Authority

51% 52% 51% 51% 49% 39%

49% 48% 49% 49% 51% 61%

Total PHL Gen Z Gen Y Gen X Boomers Matures

Philippines Population 2015

Male Females

5

Gen Z’s mantra is ‘good things come to those who act,’ and they aren’t

going to let age, education, employment or lack of resources stop them

from making their mark on the world.

- Sheryl Connely, Global Consumer Trends and Futuring, The Ford

Motor CompanyWhat are they like?

GenZ GenY GenX Boomers Matures

Use internet throughout the day 52 46 37 31 26

Multiple devices 31 28 18 17 12

Finding articles to read, or videos to watch 81 73 73 68 68

Chatting on FB 39 40 42 41 52

Chatting on FB Messenger 44 37 38 39 28

Keeping up with news and live events on SNS 78 75 69 61 68

Keeping up with bloggers, celebrities, or online

personalities on SNS73 64 62 58 55

Read brands online weekly 23 20 20 9 3

Watch brand content on YouTube 50 45 39 35 22

Ask brand questions on mobile apps 37 36 33 27 24

Tag brand opinion on FB 68 61 62 51 48

Source: Kantar TNS Connected Life Philippines 2016-2017

Gen Z are on mobile and social. They are like Gen Y on steroids.

But don’t be too quick to stereotype them

Q: From the following statements choose all that you identify with more.

Supposedly Gen Z attitudes Gen Z Gen Y Gen X

Every time I have any kind of query I just Google it 44% 58% 64%

I only enjoy content that feels honest and real 41% 51% 60%

I want a job with the opportunity to grow quickly 38% 52% 61%

I´m very careful with the information I share in social

media, I really value my digital privacy38% 51% 58%

I like to have always-on access to music via digital

platforms37% 36% 33%

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67% of GenZ

buyers shop in-

store most of

the time.

- A new study, released by IBM

and the National Retail

Federation, polled over 15,000

consumers between the ages of

13 and 21 from 16 different

countries

Gen Z still prefer

to shop in a

store versus

online.

- a research study

commissioned by Euclid

Analytics

64% of Gen Z

shoppers prefer

brick to click.

- Retail Experience

9

A cohort raised to dial…

… will have a different

outlook on the world from a

cohort born to swipe.

10

How do we engage Gen Z?

11

1. Respect their

space online.

A lack of

boundaries

invites a lack of

respect

Because Gen Z are more skeptical to most advertising formats

Net +ve % Gen Z Gen Y Gen X

Online display ads (mobile) 41% 49% 43%

Online display ads (laptop or PC) 39% 46% 54%

Video ads (laptop or PC) 33% 45% 44%

Video ads (mobile) 29% 38% 33%

Online search ads 32% 45% 55%

TV ads 53% 76% 81%

Radio ads 30% 60% 63%

Billboard/Outdoor ads 51% 72% 70%

Cinema ads 46% 63% 59%

Product placements in movie or shows 54% 59% 64%

Magazine ads 42% 56% 72%

Newspaper ads 40% 61% 73%

Direct mail (postal) 27% 41% 38%

Traditional

Media

DigitalMedia

Avoid intrusive formats – they are Gen Z’s least favorite

Net +ve % Gen Z

Mobile app reward 52%

Skippable pre-roll 38%

Skippable vertical video 38%

Social click-to-play 34%

In-banner click-to-play 30%

Skippable mobile app pop-up 28%

View to play 26%

Social auto-play 18%

In-banner auto-play 17%

Pre-roll 8%

Mobile app pop-up -5%

LevelofControl

21%27%

31%27% 28% 25%

10%

6am-9am 9am-12nn 12nn-3pm 3pm-6pm 6pm-9pm 9pm-12mn 12mn-6am

Find the right moments to targeting Gen Z

46% of Gen Z are most open

when looking for information

44% of Gen Z are most open

when they are in a relaxed mode

Time of the day more positive towards ads

15Driving growth through innovation

FIND YOUR MOMENTS: the intersection of Gen Z,

occasions, emotions, and motivations.

COMMUNICATING MOMENTS: It’s not just about the

time of the day. What are we communicating to Gen Z at

that moment in time of their need?

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2. Finding the

right creative

approach.

Even when control is given, there remains skepticism towards advertising vs other Generations

Skip

Fast forward

Close

Mute

Hide

Ignore

38%

35%

27%

25%

18%

15%

53%

48%

30%

31%

24%

19%

46%

36%

23%

21%

17%

15%

Gen Z Gen Y Gen X

Positivity towards Ads which allow different types of control

Create Great Digital Content To Break That Wall of Skepticism

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Generate an

emotional response

Tell a story

Get the length

just right

Consider special

effects/powerful

unique design

Consider music that

engages people and

the audience relates to

Avoid overloading with

‘messages’ - a positive

impression may be enough

Branding matters more

than ever –

integrate early

Structure your ad to engage

people and ensure the

skip matters less

For social content –

make it work

without audio

Consider humor –

just make sure it’s funny for

your audience!

Humor, Augmented reality, music & stories are most favored by Gen Z.

Types of characteristics which increase positivity towards ads

53%Funny or humorous

49%Has augmented reality

47%Has good music

41%Tells an interesting story

Content marketing: a new wave of experimentation for Marketers

Find the right cultural & creative

elements that will resonate with

Gen Z

1

Humor Music Augmented Reality

Brands need to look even deeper into Gen Z to

dimensionalise creative tones which will work for them.

Experiment with more innovative

online formats to engage

2

Sponsored filters 45%

Sponsored lenses 42%

Expandable ads 28%

Native ads 28%

Take over ads 24%

Net positivity towards different types of online

advertising among Gen Z

Gen Z are more open to sponsored

filters & sponsored lenses vs other

types of online ads. Consider how

to engage them effectively outside

of the “traditional” digital formats

Content marketing: a new wave of experimentation for Marketers

Make it Personal3

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3. Be Social.

Be Meaningful.

Be Loved.

There is a real challenge for brands to engage meaningfully Gen Z beyond the current interactivity levels

Positivity towards ads based on types of interactivity

40%Like, share or comment

on the ad

40%Find out more about the

brand (e.g. link to

website)

35%Choose my favorite among

several options

28%Vote for something to happen

27%Take decisions (stories,

characters)

25%Join a conversation about the

campaign

19%Sign up for more content from the

brand

17%Interact via an assignment

Even with branded content, receptivity is not as great as other generations.

Gen Z Gen Y Gen X

Tutorials 54 77 81

Social media feeds 54 62 71

Branded events 48 68 66

Native articles 46 66 64

Sponsored events 46 66 71

Brand information 45 71 71

Expert reviews 45 72 74

User reviews 45 70 72

Social media celebrity content 44 48 53

Shopping content 43 64 64

Magazine advertorials 41 59 65

Celebrity content 37 42 47

To break the receptivity wall when using branded content, offer an exchange of information to trigger interest

59%Provides new

information

57%Offers tips or solutions

28%Contains a

person/character that

I´m interested in

26%Features music that is

appealing to me

Positivity towards branded content which…

But to facilitate an active mindset towards branded content, build brand love

I will seek out branded content if it´s for a brand I love

43%

What does this mean for Marketers? Gen Z wants to look deeper into brands and learn about

their story, their purpose and details about their

production processes, so they can determine if the

brand’s values match their own. Brands need to think of

how they can cascade this through strategically placed

branded and sponsored content.

Curate Meaningful Brand(ed) Content1

Tasty Uber Airbnb

What does this mean for Marketers?

Don’t forget to build Brand Love2

16M views

382K Shares

1M Likes

14M Views

516K Shares

625K Likes

10M Views

322K Shares

521K Likes

Gen Z will take the proactive stance of looking for your

content if it is a brand they are interested in. Critical to

ensure that digital content drive both short term & long

term brand effects

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4. Execute to win

at POS

A perfect storm of disruption

Consumers, retailers and manufacturers

are all undergoing fundamental shifts

Must understand omni-shopper dynamics of GenZ

Understand the shopping moments of Gen Z

Connected Shopper study in soft drinks, Kantar TNS 2016

Missions and

occasions, not shopper

types, are the primary

drivers of shopper

behaviour.

Help Gen Z shoppers control their currencies

Winning with Generation Z

Respect their space online

Find the right creative approach

Be Social. Be Meaningful. Be Loved.

Execute to win at POS

Some thoughts about Gen AlphaThe Children of Millennials

“Screenagers” Bots: Between Brands and Gen Alpha

Going beyond transactions:How do brands avoid losingthat emotional connectionwhile riding on theefficiencies of bots?

Some thoughts about Gen AlphaThe Children of Millennials

The world comes with social

networking by default

Smart nations

As Gen Alpha grows into a smarter, cashlessworld, how do brands evolve their retailexperience to cater to this generation?

Gen Alpha does not know what a worldwithout social media looks like. How dobrands compete more effectively to stayconnected to Gen Alpha?

Brands Get Ready: Gen Z Are Growing UpJane Ng

Executive Director, Client Consulting

Kantar Millward Brown Philippines